Western Africa: Palm Kernel Oil Market 2024

Palm Kernel Oil Market Size in Western Africa

After two years of decline, the West African palm kernel oil market increased by 4.8% to $X in 2022. The market value increased at an average annual rate of +1.3% over the period from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations being observed throughout the analyzed period. Over the period under review, the market attained the peak level at $X in 2017; however, from 2018 to 2022, consumption stood at a somewhat lower figure.

Palm Kernel Oil Production in Western Africa

In value terms, palm kernel oil production shrank slightly to $X in 2022 estimated in export price. Overall, production, however, saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 with an increase of 43%. As a result, production reached the peak level of $X. From 2014 to 2022, production growth failed to regain momentum.

Palm Kernel Oil Exports

Exports in Western Africa

In 2022, overseas shipments of palm kernel and babassu oil decreased by -32% to X tons for the first time since 2019, thus ending a two-year rising trend. In general, exports, however, saw modest growth. The pace of growth was the most pronounced in 2021 with an increase of 99%. As a result, the exports reached the peak of X tons, and then declined sharply in the following year.

In value terms, palm kernel oil exports shrank significantly to $X in 2022. Overall, exports, however, saw a tangible expansion. The pace of growth appeared the most rapid in 2021 when exports increased by 225% against the previous year. As a result, the exports reached the peak of $X, and then fell notably in the following year.

Exports by Country

Cote d'Ivoire was the largest exporter of palm kernel and babassu oil in Western Africa, with the volume of exports accounting for X tons, which was near 71% of total exports in 2022. It was distantly followed by Ghana (X tons) and Liberia (X tons), together constituting a 26% share of total exports.

From 2012 to 2022, average annual rates of growth with regard to palm kernel oil exports from Cote d'Ivoire stood at +2.7%. At the same time, Liberia (+46.2%) displayed positive paces of growth. Moreover, Liberia emerged as the fastest-growing exporter exported in Western Africa, with a CAGR of +46.2% from 2012-2022. By contrast, Ghana (-2.1%) illustrated a downward trend over the same period. From 2012 to 2022, the share of Cote d'Ivoire and Liberia increased by +4.7 and +4.6 percentage points, respectively.

In value terms, Cote d'Ivoire ($X) remains the largest palm kernel oil supplier in Western Africa, comprising 71% of total exports. The second position in the ranking was taken by Ghana ($X), with a 22% share of total exports.

In Cote d'Ivoire, palm kernel oil exports increased at an average annual rate of +4.5% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Ghana (-1.4% per year) and Liberia (+51.4% per year).

Export Prices by Country

The export price in Western Africa stood at $X per ton in 2022, shrinking by -4.1% against the previous year. Export price indicated slight growth from 2012 to 2022: its price increased at an average annual rate of +1.3% 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 +56.3% against 2020 indices. The pace of growth was the most pronounced in 2021 an increase of 63% against the previous year. As a result, the export price reached the peak level of $X per ton, and then contracted modestly in the following year.

Average prices varied noticeably amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Liberia ($X per ton), while Cote d'Ivoire ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Liberia (+3.6%), while the other leaders experienced more modest paces of growth.

Palm Kernel Oil Imports

Imports in Western Africa

Palm kernel oil imports dropped to X tons in 2022, reducing by -13.6% against 2021. Over the period under review, imports saw a drastic downturn. The growth pace was the most rapid in 2019 when imports increased by 53% against the previous year. Over the period under review, imports reached the maximum at X tons in 2012; however, from 2013 to 2022, imports failed to regain momentum.

In value terms, palm kernel oil imports dropped to $X in 2022. In general, imports showed a deep setback. The most prominent rate of growth was recorded in 2017 when imports increased by 31%. The level of import peaked at $X in 2012; however, from 2013 to 2022, imports remained at a lower figure.

Imports by Country

In 2022, Ghana (X tons), distantly followed by Mauritania (X tons), Burkina Faso (X tons), Nigeria (X tons), Senegal (X tons) and Niger (X tons) were the key importers of palm kernel and babassu oil, together comprising 92% of total imports. Cabo Verde (X tons) followed a long way behind the leaders.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the key importing countries, was attained by Cabo Verde (with a CAGR of +32.1%), while imports for the other leaders experienced more modest paces of growth.

In value terms, Ghana ($X) constitutes the largest market for imported palm kernel and babassu oil in Western Africa, comprising 33% of total imports. The second position in the ranking was taken by Senegal ($X), with a 16% share of total imports. It was followed by Burkina Faso, with a 14% share.

In Ghana, palm kernel oil imports contracted by an average annual rate of -2.4% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Senegal (+3.5% per year) and Burkina Faso (+2.6% per year).

Import Prices by Country

The import price in Western Africa stood at $X per ton in 2022, almost unchanged from the previous year. Import price indicated slight growth from 2012 to 2022: its price increased at an average annual rate of +1.3% 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 +9.3% against 2020 indices. The growth pace was the most rapid in 2017 when the import price increased by 66%. As a result, import price attained the peak level of $X per ton. From 2018 to 2022, the import prices failed to regain momentum.

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 Senegal ($X per ton), while Cabo Verde ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Niger (+7.3%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform

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