South Africa: Palm Kernel Oil Market 2024

Palm Kernel Oil Market Size in South Africa

After two years of growth, the South African palm kernel oil market decreased by -13.9% to $X in 2022. Overall, consumption continues to indicate a mild shrinkage. As a result, consumption reached the peak level of $X, and then declined in the following year.

Palm Kernel Oil Exports

Exports from South Africa

In 2022, palm kernel oil exports from South Africa surged to X tons, jumping by 19% against 2021 figures. Overall, exports recorded a moderate expansion. The pace of growth appeared the most rapid in 2017 when exports increased by 160%. The exports peaked at X tons in 2019; however, from 2020 to 2022, the exports failed to regain momentum.

In value terms, palm kernel oil exports skyrocketed to $X in 2022. Over the period under review, exports continue to indicate strong growth. The pace of growth was the most pronounced in 2021 with an increase of 221% against the previous year. Over the period under review, the exports hit record highs in 2022 and are expected to retain growth in the immediate term.

Exports by Country

Zimbabwe (X tons) was the main destination for palm kernel oil exports from South Africa, with a 98% share of total exports. It was followed by Botswana (X tons), with a 0.4% share of total exports. Zambia (X kg) ranked third in terms of total exports with a 0.2% share.

From 2012 to 2022, the average annual growth rate of volume to Zimbabwe totaled +6.4%. Exports to the other major destinations recorded the following average annual rates of exports growth: Botswana (-17.1% per year) and Zambia (-14.6% per year).

In value terms, Zimbabwe ($X) remains the key foreign market for palm kernel and babassu oil exports from South Africa, comprising 97% of total exports. The second position in the ranking was held by Botswana ($X), with a 0.7% share of total exports. It was followed by Zambia, with a 0.4% share.

From 2012 to 2022, the average annual rate of growth in terms of value to Zimbabwe totaled +10.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: Botswana (-10.4% per year) and Zambia (-5.2% per year).

Export Prices by Country

The average palm kernel oil export price stood at $X per ton in 2022, increasing by 14% against the previous year. Over the period under review, export price indicated a temperate expansion from 2012 to 2022: its price increased at an average annual rate of +3.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, palm kernel oil export price increased by +93.0% against 2018 indices. The pace of growth was the most pronounced in 2014 an increase of 60%. The export price peaked in 2022 and is expected to retain growth in the near future.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Malawi ($X per ton), while the average price for exports to Zimbabwe ($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 Kenya (+20.9%), while the prices for the other major destinations experienced more modest paces of growth.

Palm Kernel Oil Imports

Imports into South Africa

In 2022, supplies from abroad of palm kernel and babassu oil decreased by -23.2% to X tons, falling for the second consecutive year after three years of growth. Over the period under review, imports continue to indicate a noticeable descent. The pace of growth was the most pronounced in 2019 with an increase of 13%. Over the period under review, imports attained the maximum at X tons in 2012; however, from 2013 to 2022, imports failed to regain momentum.

In value terms, palm kernel oil imports fell to $X in 2022. In general, imports continue to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2021 with an increase of 74%. As a result, imports reached the peak of $X, and then shrank in the following year.

Imports by Country

In 2022, Indonesia (X tons) constituted the largest palm kernel oil supplier to South Africa, accounting for a 76% share of total imports. Moreover, palm kernel oil imports from Indonesia exceeded the figures recorded by the second-largest supplier, Malaysia (X tons), threefold.

From 2012 to 2022, the average annual rate of growth in terms of volume from Indonesia was relatively modest.

In value terms, Indonesia ($X) constituted the largest supplier of palm kernel and babassu oil to South Africa, comprising 75% of total imports. The second position in the ranking was taken by Malaysia ($X), with a 25% share of total imports.

From 2012 to 2022, the average annual growth rate of value from Indonesia stood at +3.6%.

Import Prices by Country

The average palm kernel oil import price stood at $X per ton in 2022, increasing by 20% against the previous year. Over the period under review, import price indicated notable growth from 2012 to 2022: its price increased at an average annual rate of +3.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, palm kernel oil import price increased by +133.4% against 2019 indices. The pace of growth was the most pronounced in 2021 when the average import price increased by 76%. Over the period under review, average import prices hit record highs in 2022 and is expected to retain growth in the immediate term.

Average prices varied noticeably amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was Malaysia ($X per ton), while the price for Indonesia stood at $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Indonesia (+3.4%).

Source: IndexBox Platform

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