SADC: Refined Palm Oil Market 2024

Refined Palm Oil Market Size in SADC

The SADC refined palm oil market was finally on the rise to reach $X in 2022, after two years of decline. Overall, consumption, however, recorded a strong expansion. The level of consumption peaked at $X in 2019; however, from 2020 to 2022, consumption failed to regain momentum.

Refined Palm Oil Production in SADC

In value terms, refined palm oil production reached $X in 2022 estimated in export price. The total output value increased at an average annual rate of +1.7% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2017 with an increase of 23%. As a result, production attained the peak level of $X; afterwards, it flattened through to 2022.

Refined Palm Oil Exports

Exports in SADC

Refined palm oil exports reduced notably to X tons in 2022, shrinking by -33.9% against the year before. In general, exports recorded a abrupt decline. The pace of growth appeared the most rapid in 2016 with an increase of 29%. As a result, the exports attained the peak of X tons. From 2017 to 2022, the growth of the exports failed to regain momentum.

In value terms, refined palm oil exports contracted to $X in 2022. Overall, exports, however, recorded a relatively flat trend pattern. The growth pace was the most rapid in 2021 with an increase of 57%. As a result, the exports attained the peak of $X, and then fell in the following year.

Exports by Country

In 2022, South Africa (X tons) represented the largest exporter of refined palm oil, creating 76% of total exports. Zambia (X tons) held an 11% share (based on physical terms) of total exports, which put it in second place, followed by Mozambique (5.6%) and Democratic Republic of the Congo (4.5%). Tanzania (X tons) followed a long way behind the leaders.

South Africa was also the fastest-growing in terms of the refined palm oil exports, with a CAGR of +15.0% from 2012 to 2022. At the same time, Mozambique (+6.2%) displayed positive paces of growth. By contrast, Zambia (-5.0%), Democratic Republic of the Congo (-19.5%) and Tanzania (-23.2%) illustrated a downward trend over the same period. From 2012 to 2022, the share of South Africa, Mozambique and Zambia increased by +66, +4.1 and +1.6 percentage points, respectively.

In value terms, South Africa ($X) remains the largest refined palm oil supplier in SADC, comprising 61% of total exports. The second position in the ranking was held by Mozambique ($X), with a 29% share of total exports. It was followed by Zambia, with a 4.9% share.

In South Africa, refined palm oil exports increased at an average annual rate of +16.6% over the period from 2012-2022. The remaining exporting countries recorded the following average annual rates of exports growth: Mozambique (+28.6% per year) and Zambia (-4.2% per year).

Export Prices by Country

The export price in SADC stood at $X per ton in 2022, picking up by 36% against the previous year. Over the period under review, the export price enjoyed resilient growth. The most prominent rate of growth was recorded in 2021 when the export price increased by 76%. The level of export peaked in 2022 and is expected to retain growth in the near future.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Mozambique ($X per ton), while Democratic Republic of the Congo ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Mozambique (+21.1%), while the other leaders experienced more modest paces of growth.

Refined Palm Oil Imports

Imports in SADC

In 2022, purchases abroad of refined palm oil decreased by -3.7% to X tons, falling for the third consecutive year after three years of growth. Total imports indicated pronounced growth from 2012 to 2022: its volume increased at an average annual rate of +3.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports decreased by -29.8% against 2019 indices. The pace of growth appeared the most rapid in 2019 with an increase of 41%. As a result, imports attained the peak of X tons. From 2020 to 2022, the growth of imports failed to regain momentum.

In value terms, refined palm oil imports expanded sharply to $X in 2022. Total imports indicated a noticeable expansion from 2012 to 2022: its value increased at an average annual rate of +3.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +74.1% against 2016 indices. The pace of growth was the most pronounced in 2019 when imports increased by 25% against the previous year. Over the period under review, imports hit record highs in 2022 and are likely to continue growth in years to come.

Imports by Country

South Africa represented the main importer of refined palm oil in SADC, with the volume of imports accounting for X tons, which was approx. 51% of total imports in 2022. Tanzania (X tons) ranks second in terms of the total imports with a 16% share, followed by Angola (15%) and Democratic Republic of the Congo (6.6%). The following importers - Zimbabwe (X tons), Zambia (X tons) and Madagascar (X tons) - each reached a 10% share of total imports.

Imports into South Africa increased at an average annual rate of +2.5% from 2012 to 2022. At the same time, Zimbabwe (+37.6%), Madagascar (+19.3%), Democratic Republic of the Congo (+15.2%) and Tanzania (+5.5%) displayed positive paces of growth. Moreover, Zimbabwe emerged as the fastest-growing importer imported in SADC, with a CAGR of +37.6% from 2012-2022. Angola experienced a relatively flat trend pattern. By contrast, Zambia (-5.3%) illustrated a downward trend over the same period. Democratic Republic of the Congo (+4.4 p.p.), Zimbabwe (+3.2 p.p.), Tanzania (+3 p.p.) and Madagascar (+2.5 p.p.) significantly strengthened its position in terms of the total imports, while South Africa, Angola and Zambia saw its share reduced by -3.7%, -3.9% and -4.7% from 2012 to 2022, respectively.

In value terms, South Africa ($X) constitutes the largest market for imported refined palm oil in SADC, comprising 60% of total imports. The second position in the ranking was taken by Angola ($X), with a 13% share of total imports. It was followed by Tanzania, with an 8.7% share.

From 2012 to 2022, the average annual growth rate of value in South Africa totaled +5.0%. In the other countries, the average annual rates were as follows: Angola (-1.0% per year) and Tanzania (-0.3% per year).

Import Prices by Country

In 2022, the import price in SADC amounted to $X per ton, surging by 9.3% against the previous year. In general, the import price continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2021 an increase of 38% against the previous year. Over the period under review, import prices attained the peak figure in 2022 and is likely to see gradual growth in the near future.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Zimbabwe ($X per ton), while Tanzania ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by South Africa (+2.4%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform