HS Code:
The category 'Animal, vegetable or microbial fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinized, whether or not refined, but not further prepared' (HS Code: 1516) includes processed fats and oils derived from animal, vegetable, or microbial sources. These products undergo processes such as hydrogenation, inter-esterification, re-esterification, or elaidinization to modify their physical or chemical properties for use in food production, industrial applications, and other sectors. Common examples include hydrogenated vegetable oils used in margarine, shortening, and baked goods. This category excludes fats and oils that have been further prepared or mixed with other ingredients.
Total Trade Volume
USD 5.2 billion
Data from 2022
Source
United Nations Comtrade Database
USD 1.1 billion
21.2% of total trade
Increasing
USD 900 million
17.3% of total trade
Increasing
USD 600 million
11.5% of total trade
Stable
USD 450 million
8.7% of total trade
Stable
USD 400 million
7.7% of total trade
Decreasing
Average Rate
8.5%
Highest Rate
25% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like EU internal trade or USMCA)
Shift towards sustainable sourcing
Increased demand for certified sustainable palm oil and other fats due to environmental concerns, driving up costs but improving market access in regions like the EU.
2020-2022
Decline in demand for hydrogenated fats
Regulatory bans and consumer preference for healthier alternatives (e.g., low trans-fat products) have reduced demand in North America and Europe.
2018-2022
Growth in plant-based food industry
Rising demand for vegetable-based fats in plant-based meat and dairy alternatives, boosting trade volumes in Asia-Pacific and North America.
2021-2023
The European Union implemented stricter regulations limiting trans fats in food products to 2% of total fat content, affecting imports of hydrogenated oils.
April 2021
Exporters to the EU must adapt by offering low trans-fat alternatives, potentially increasing production costs but aligning with consumer health trends.
Indonesia temporarily banned palm oil exports in 2022 to stabilize domestic prices but lifted the ban after global supply concerns, impacting hydrogenated palm oil trade.
May 2022
Restored supply stability for major importers like India and the EU, though short-term price volatility affected market confidence.
Updated provisions under the USMCA have facilitated tariff-free trade of processed fats and oils among the US, Mexico, and Canada, boosting regional trade.
July 2020
Increased trade volume within North America, particularly for US exporters of hydrogenated vegetable oils to Mexico.