HS Code:
The Baking or Frying Fats category, often classified under HS Code 1517 (Margarine; edible mixtures or preparations of animal or vegetable fats or oils), encompasses a variety of processed fats used primarily in baking, frying, and food preparation. This category includes products like margarine, shortening, and other blended edible fats that serve as alternatives to butter or lard. These products are widely used in both household and industrial food production due to their cost-effectiveness, longer shelf life, and versatility in high-temperature cooking. Global trade in this category is influenced by agricultural production of raw materials (like palm oil and soybean oil), dietary trends, and regional preferences for specific fat types.
Total Trade Volume
USD 12.5 billion
Data from 2022
Source
United Nations Comtrade Database
USD 3.2 billion
25.6% of total trade of total trade
Increasing
USD 2.8 billion
22.4% of total trade of total trade
Increasing
USD 1.5 billion
12.0% of total trade of total trade
Stable
USD 1.1 billion
8.8% of total trade of total trade
Stable
USD 0.9 billion
7.2% of total trade of total trade
Decreasing
Average Rate
8.5% ad valorem
Highest Rate
35% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU Single Market or USMCA)
Shift towards sustainable and non-palm oil fats
Increased demand for alternatives like sunflower or rapeseed oil-based fats due to environmental concerns over palm oil deforestation
2021-2023
Rising health consciousness
Growing preference for low trans-fat and non-hydrogenated fats, pushing manufacturers to reformulate products
2020-2023
Industrial demand growth in emerging markets
Higher consumption in food processing industries in Asia and Africa, driving export growth for major producers like Indonesia and Malaysia
2019-2023
The European Union introduced stricter regulations on palm oil imports, requiring sustainability certifications to combat deforestation.
January 2023
Increased compliance costs for exporters like Indonesia and Malaysia, potentially reducing their market share in the EU
The United States finalized regulations banning partially hydrogenated oils (a common component in frying fats) to reduce health risks.
June 2021
Shift in demand towards reformulated products, benefiting producers of non-hydrogenated fats
A new trade agreement reduced tariffs on edible fats between ASEAN countries and China, boosting trade volumes.
March 2022
Significant increase in exports from Indonesia and Malaysia to China, strengthening their position in the Asian market