HS Code:
Palmitic acid, classified under HS Code 2915.70, is a saturated fatty acid commonly found in palm oil and animal fats. It is widely used in the production of soaps, cosmetics, industrial lubricants, and as a food additive. As a key raw material in various industries, its global trade is influenced by agricultural production, industrial demand, and sustainability concerns surrounding palm oil cultivation.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
UN Comtrade Database and ITC Trade Map
$450 million USD
37.5% of total trade of total trade
Increasing
$380 million USD
31.7% of total trade of total trade
Stable
$90 million USD
7.5% of total trade of total trade
Increasing
$70 million USD
5.8% of total trade of total trade
Stable
$60 million USD
5.0% of total trade of total trade
Increasing
Average Rate
5.2% ad valorem
Highest Rate
15% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like EU-ASEAN or USMCA)
Rising demand for sustainable and certified palmitic acid
Increased production costs but higher market access in eco-conscious regions like the EU
2021-2023
Shift towards alternative fatty acids due to environmental concerns
Potential reduction in demand for palm-derived palmitic acid in favor of synthetic or alternative sources
2022-2023
Growth in cosmetic and personal care industries
Boost in demand for palmitic acid as a key ingredient in skincare and haircare products
2020-2023
The EU introduced stricter regulations under the EU Deforestation Regulation (EUDR), mandating traceability for palm oil derivatives like palmitic acid to combat deforestation.
June 2023
Increased compliance costs for exporters like Indonesia and Malaysia, potentially affecting trade volumes to the EU.
Indonesia revised its export levy structure for palm oil products, including palmitic acid, to fund domestic biodiesel programs.
March 2022
Slight increase in export prices, affecting competitiveness in price-sensitive markets.
The Roundtable on Sustainable Palm Oil (RSPO) reported a 15% increase in certified palmitic acid production, driven by demand from North America and Europe.
September 2023
Enhanced market access for certified producers, while non-certified suppliers face reduced demand in key markets.