HS Code:
The Vegetable fats and oils and their fractions category (HS Code: 15) includes a wide range of products such as palm oil, soybean oil, sunflower oil, olive oil, and their derived fractions. These products are primarily used in food processing, cooking, and industrial applications like biofuel production and cosmetics. This category is a critical component of global agricultural trade, influenced by factors such as climate conditions, agricultural policies, and consumer demand for healthier or sustainable oil alternatives.
Total Trade Volume
USD 120 billion
Data from 2022
Source
United Nations Comtrade Database
USD 30 billion
25% of total trade of total trade
Increasing
USD 20 billion
16.7% of total trade of total trade
Increasing
USD 10 billion
8.3% of total trade of total trade
Stable
USD 8 billion
6.7% of total trade of total trade
Decreasing
USD 7 billion
5.8% of total trade of total trade
Increasing
Average Rate
8.5%
Highest Rate
35% (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 palm oil
Increased certification requirements and shift towards traceable supply chains, impacting exporters like Indonesia and Malaysia
2021-2023
Growing popularity of plant-based diets
Higher demand for vegetable oils as alternatives to animal fats, boosting trade volumes for soybean and sunflower oils
2020-2022
Biofuel production expansion
Increased use of vegetable oils like soybean and palm oil in biodiesel, driving demand in markets like the EU and Brazil
2019-2023
The EU implemented stricter regulations on deforestation-linked commodities, including palm oil, requiring proof of sustainable sourcing.
June 2023
Potential trade barriers for exporters like Indonesia and Malaysia, with increased compliance costs but long-term benefits for sustainable producers.
Phase 1 trade deal led to increased US soybean oil exports to China as part of agricultural purchase commitments.
January 2022
Boosted trade volumes for US exporters, though market volatility remains due to geopolitical tensions.
Indonesia temporarily banned palm oil exports in April 2022 to secure domestic supply, but lifted the ban after three weeks due to global supply concerns.
May 2022
Short-term price spikes and supply chain disruptions globally, with lingering uncertainty for importers.