Datetime: 2025-07-08 06:52:58 Visit: 7386
Changes in supply and demand of the global coconut oil market in May and June
Recently, the performance of the global coconut oil market in May and June has attracted widespread attention in the industry. Its dynamic changes in supply, demand and price levels have demonstrated the complexity and vitality of the market.
In terms of supply, as the world's largest coconut oil producer, the Philippines encountered many challenges during the coconut harvest season in May and June. Due to long-term drought and tropical cyclones in some areas, the country's coconut production has dropped significantly. According to data from the Philippine Coconut Administration, coconut production in May fell by 20% year-on-year, and the situation in June was still not optimistic, with production reaching only 75% of the same period last year. This has led to a serious shortage of supply of coconut dryers, the main raw material for coconut oil production, and many local coconut oil processing plants have been forced to reduce production.
At the same time, Indonesia is facing a similar dilemma. Although the Indonesian government has taken a series of measures to encourage coconut planting, the adverse weather conditions have had a negative impact on the growth and fruiting of coconut trees. Data from the Indonesian Ministry of Industry show that during May and June, the country's coconut oil production decreased by about 15% compared with the same period last year. In other coconut oil producing countries, such as Sri Lanka, coconut planting and processing have also been hindered to a certain extent due to labor shortages and rising agricultural input prices, further exacerbating the tight global coconut oil supply situation.
On the demand side, with the improvement of consumer health awareness and the growth of demand for natural and organic products, the demand for coconut oil in food, cosmetics and medicine continues to rise. In the food industry, coconut oil is widely used in the production of baked goods, cooking oil and various health foods due to its unique flavor and health properties. In May, the purchase volume of coconut oil by baking companies in Europe and the United States increased by 12% month-on-month. Although the growth rate slowed down in June, it still maintained a high level of demand.
The demand for coconut oil in the cosmetics and personal care industries is also strong. Coconut oil is rich in various nutrients and has excellent moisturizing, antibacterial and antioxidant effects. It is an important raw material for many skin care and hair care products. According to data from market research institutions, the purchase order volume of coconut oil by world-renowned cosmetics brands in May and June increased by 8% year-on-year. Among them, some brands focusing on natural ingredients have increased their purchase of high-quality coconut oil.
Affected by the supply and demand relationship, the price of coconut oil in the international market soared in May and June. In early May, the offshore price of coconut oil produced in the Philippines was US$2,500 per ton. By mid-June, this price had exceeded US$2,800, an increase of 12%. The price of coconut oil produced in Indonesia also showed a similar upward trend. The price increase has greatly increased the production costs of downstream companies, and some small companies are even facing survival pressure.
Faced with the current market situation, countries are also actively taking countermeasures. The Philippine government said it would increase support for coconut growers, including providing subsidies and promoting new technologies to increase coconut production; at the same time, it also plans to strengthen cooperation with other countries to jointly deal with the shortage of coconut oil supply. Indonesia encourages companies to explore new coconut oil production technologies, improve production efficiency, and actively expand overseas markets to ease domestic supply pressure.
Industry experts analyzed that if weather conditions cannot be effectively improved in the next few months, the tight supply of global coconut oil may continue and prices will remain high and volatile. However, as countries gradually implement their response measures and newly planted coconut trees enter the harvest period, it is expected that the market supply and demand relationship will be alleviated to a certain extent in the next 1-2 years.
