Saudi Arabia: Palm Oil Market 2024

Palm Oil Market Size in Saudi Arabia

In 2022, after three years of growth, there was significant decline in the Saudi palm oil market, when its value decreased by 99.9% to less than $X. In general, consumption showed temperate growth. As a result, consumption attained the peak level of $X, and then dropped markedly in the following year.

Palm Oil Production in Saudi Arabia

In value terms, palm oil production stood at $X in 2022 estimated in export price. Overall, production saw a relatively flat trend pattern. Palm oil production peaked in 2022 and is expected to retain growth in the immediate term.

Palm Oil Exports

Exports from Saudi Arabia

After four years of growth, shipments abroad of palm oil decreased by -3.3% to X tons in 2022. Overall, exports, however, saw measured growth. The most prominent rate of growth was recorded in 2018 when exports increased by 158% against the previous year. The exports peaked at X tons in 2013; however, from 2014 to 2022, the exports remained at a lower figure.

In value terms, palm oil exports reduced to $X in 2022. Over the period under review, exports, however, showed a moderate increase. The pace of growth was the most pronounced in 2018 with an increase of 127% against the previous year. The exports peaked at $X in 2021, and then dropped in the following year.

Exports by Country

Bahrain (X tons), Jordan (X tons) and Egypt (X tons) were the main destinations of palm oil exports from Saudi Arabia, together accounting for 99% of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Bahrain (with a CAGR of +55.5%), while the other leaders experienced more modest paces of growth.

In value terms, Bahrain ($X), Jordan ($X) and Egypt ($X) were the largest markets for palm oil exported from Saudi Arabia worldwide, with a combined 99% share of total exports.

Bahrain, with a CAGR of +50.4%, recorded the highest growth rate of the value of exports, in terms of the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The average palm oil export price stood at $X per ton in 2022, with a decrease of -1.6% against the previous year. Overall, export price indicated a slight expansion from 2012 to 2022: its price increased at an average annual rate of +1.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, palm oil export price decreased by -4.9% against 2020 indices. The pace of growth was the most pronounced in 2014 when the average export price increased by 30%. The export price peaked at $X per ton in 2015; however, from 2016 to 2022, the export prices failed to regain momentum.

Average prices varied noticeably for the major foreign markets. In 2022, amid the top suppliers, the country with the highest price was Jordan ($X per ton), while the average price for exports to Bahrain ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Oman (+6.3%), while the prices for the other major destinations experienced more modest paces of growth.

Palm Oil Imports

Imports into Saudi Arabia

Palm oil imports into Saudi Arabia rose rapidly to X tons in 2021, increasing by 15% compared with the previous year's figure. The total import volume increased at an average annual rate of +3.9% over the period from 2012 to 2021; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2019 with an increase of 22%. Over the period under review, imports attained the peak figure in 2021 and are expected to retain growth in the immediate term.

In value terms, palm oil imports surged to $X in 2021. Overall, total imports indicated a pronounced expansion from 2012 to 2021: its value increased at an average annual rate of +2.6% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports increased by +98.5% against 2018 indices. As a result, imports reached the peak and are likely to continue growth in the immediate term.

Imports by Country

Malaysia (X tons), Indonesia (X tons) and Oman (X tons) were the main suppliers of palm oil imports to Saudi Arabia, with a combined 95% share of total imports.

From 2012 to 2021, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Malaysia (with a CAGR of +15.6%), while imports for the other leaders experienced a decline.

In value terms, Malaysia ($X), Indonesia ($X) and Oman ($X) constituted the largest palm oil suppliers to Saudi Arabia, together accounting for 93% of total imports.

In terms of the main suppliers, Malaysia, with a CAGR of +15.3%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced a decline.

Import Prices by Country

In 2021, the average palm oil import price amounted to $X per ton, rising by 38% against the previous year. In general, the import price, however, continues to indicate a mild shrinkage. Over the period under review, average import prices hit record highs at $X per ton in 2012; however, from 2013 to 2021, import prices remained at a lower figure.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Oman ($X per ton), while the price for Indonesia ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the United Arab Emirates (+0.4%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Platform

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