Global Palm Oil Market 2019 - Key Insights

IndexBox has just published a new report, the World - Palm Oil - Market Analysis, Forecast, Size, Trends and Insights. Here is a summary of the report's key findings.

The global palm oil market revenue amounted to $48B in 2017, surging by 10% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, the total market indicated a remarkable expansion from 2007 to 2017: its value increased at an average annual rate of +4.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations throughout the analyzed period. Based on 2017 figures, the palm oil consumption increased by +21.2% against 2015 indices. The growth pace was the most rapid in 2011, with an increase of 42% y-o-y. In that year, the global palm oil market reached their peak level of $56B. From 2012 to 2017, growth of the global palm oil market stood at a somewhat lower level.

Palm Oil Production

Global palm oil production amounted to 66M tonnes in 2017, increasing by 4.3% against the previous year. Overall, the total output indicated a remarkable growth from 2007 to 2017: its volume increased at an average annual rate of +5.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations throughout the analyzed period. Based on 2017 figures, the palm oil production increased by +65.5% against 2007 indices. The most prominent rate of growth was recorded in 2011, with an increase of 10% y-o-y. Over the period under review, the global palm oil production reached its maximum volume in 2017, and is expected to retain its growth in the near future.

Palm Oil Exports
Exports 2007-2017

In 2017, the amount of palm oil exported worldwide amounted to 47M tonnes, surging by 9.9% against the previous year. In general, the total exports indicated a strong expansion from 2007 to 2017: its volume increased at an average annual rate of +5.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations throughout the analyzed period. Based on 2017 figures, the palm oil exports decreased by -1.8% against 2015 indices.

In value terms, palm oil exports amounted to $34B (IndexBox estimates) in 2017. In general, the total exports indicated a prominent growth from 2007 to 2017: its value increased at an average annual rate of +5.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations throughout the analyzed period. Over the period under review, the global palm oil exports reached its peak figure level of $40B in 2011; however, from 2012 to 2017, it failed to regain its momentum.

Exports by Country

Indonesia represented the largest exporting countries with an export of around 27M tonnes, which recorded 57% of total exports. It was distantly followed by Malaysia (14M tonnes), committing 29% share of total exports. The Netherlands (1.4M tonnes) and Papua New Guinea (702K tonnes) followed a long way behind the leaders.

From 2007 to 2017, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by Indonesia (+8.4% per year), while the other global leaders experienced more modest paces of growth.

In value terms, Indonesia ($19B), Malaysia ($10B) and the Netherlands ($1.2B) constituted the countries with the highest levels of exports in 2017, with a combined 88% share of global exports.

Among the main exporting countries, Indonesia (+8.9% per year) experienced the highest rates of growth with regard to exports, over the last decade, while the other global leaders experienced more modest paces of growth.

Export Prices by Country

The average palm oil export price stood at $735 per tonne in 2017, surging by 11% against the previous year. In general, palm oil export price continues to indicate a relatively flat trend pattern.

Average export prices varied somewhat amongst the major exporting countries. In 2017, major exporting countries recorded the following export prices: in the Netherlands ($879 per tonne) and Papua New Guinea ($793 per tonne), while Indonesia ($695 per tonne) and Malaysia ($766 per tonne) were amongst the lowest.

From 2007 to 2017, the most notable rate of growth in terms of export prices was attained by Papua New Guinea (+1.6% per year), while the other global leaders experienced more modest paces of growth.

Palm Oil Imports
Imports 2007-2017

In 2017, approx. 45M tonnes of palm oil were imported worldwide; growing by 5.1% against the previous year. The total import volume increased an average annual rate of +4.5% from 2007 to 2017; however, the trend pattern indicated some noticeable fluctuations in certain years.

In value terms, palm oil imports amounted to $34B (IndexBox estimates) in 2017. Overall, the total imports indicated a remarkable expansion from 2007 to 2017: its value increased at an average annual rate of +4.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations throughout the analyzed period. Over the period under review, the global palm oil imports reached its maximum level of $41B in 2011; however, from 2012 to 2017, it stood at a somewhat lower level.

Imports by Country

In 2017, India (9.2M tonnes), distantly followed by China (5.2M tonnes), Bangladesh (3.3M tonnes), Pakistan (2.8M tonnes) and the Netherlands (2.6M tonnes) were the main importers of palm oil, together making up 51% of total imports. Spain (1.9M tonnes), Italy (1.5M tonnes), the U.S. (1.4M tonnes), Egypt (1.1M tonnes), Germany (937K tonnes), Russia (891K tonnes) and Kenya (768K tonnes) took the minor share of total imports.

From 2007 to 2017, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Spain (+19.6% per year), while the other global leaders experienced more modest paces of growth.

In value terms, the largest palm oil markets worldwide were India ($6.8B), China ($3.5B) and Bangladesh ($2.1B), together comprising 36% of global imports. Pakistan, the Netherlands, Spain, Italy, the U.S., Egypt, Germany, Russia and Kenya lagged somewhat behind, together comprising a further 31%.

In terms of the main importing countries, Spain (+20.8% per year) experienced the highest growth rate of imports, over the last decade, while the other global leaders experienced more modest paces of growth.

Import Prices by Country

In 2017, the average palm oil import price amounted to $758 per tonne, rising by 8.4% against the previous year. In general, the import price indicated a mild growth from 2007 to 2017: its price increased at an average annual rate of +1.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations throughout the analyzed period. Based on 2017 figures, the palm oil import price increased by +10.5% against 2015 indices.

Average import prices varied somewhat amongst the major importing countries. In 2017, major importing countries recorded the following import prices: in Egypt ($861 per tonne) and Germany ($850 per tonne), while Bangladesh ($651 per tonne) and China ($680 per tonne) were amongst the lowest.

From 2007 to 2017, the most notable rate of growth in terms of import prices was attained by India (+4.5% per year), while the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform