Coconut Oil Price per Ton May 2022

U.S. Coconut Oil Import Price per Ton May 2022

In May 2022, the coconut oil price per ton stood at $2,366 (CIF, US) in May 2022, picking up by 12% against the previous month. Over the period from Jan 2022 to May 2022, it increased at an average monthly rate of +5.1%. The most prominent rate of growth was recorded in Mar 2022 when the average import price increased by 18% m-o-m. Over the period under review, average import prices reached the maximum in May 2022.

Prices varied noticeably by the country of origin: the country with the highest price was Sri Lanka ($3,985 per ton), while the price for Malaysia ($2,036 per ton) was amongst the lowest.

From Jan 2022 to May 2022, the most notable rate of growth in terms of prices was attained by the Philippines (+5.2%), while the prices for the other major suppliers experienced more modest paces of growth.

What factors are driving up coconut oil prices in the US?

Coconut oil has become a popular cooking oil in recent years, due to its health benefits and unique flavor. However, this popularity has led to an increase in price. Let's take a look at some of the factors that are driving up the cost of coconut oil.

One reason for the higher prices is that demand for coconut oil has increased faster than the supply. This is due to the fact that it takes a Coconut palms cannot be planted just anywhere - they need specific conditions in order to thrive. As a result, there is a limited amount of land available for cultivation, which drives up the price.

Additionally, the process of producing coconut oil is labor-intensive and requires special equipment. All of these factors add to the cost of the final product.

Finally, coconut oil is still relatively new to the mainstream market, so there are not as many large-scale producers as there are for other oils. This also contributes to the higher price point.

Despite the higher cost, many people continue to use and enjoy coconut oil. Hopefully, as production increases and becomes more efficient, the price will come down to a more reasonable level.

The Limited Supply of Coconuts

When it comes to coconuts, the US is largely dependent on imports. In fact, about 80% of the coconuts consumed in the US are imported, with the majority coming from Thailand, Indonesia, and the Philippines. With such a high level of dependence on imports, it's no wonder that coconut oil prices have been on the rise in recent years.

There are a few factors that have contributed to the limited supply of coconuts. First, there has been an increase in demand for coconuts due to the popularity of coconut oil for cooking and beauty purposes. This has led to an increase in production of coconut oil, which in turn has put pressure on the limited supply of coconuts.

Another factor that has contributed to the limited supply of coconuts is bad weather. In particular, hurricanes have had a devastating effect on coconut production in recent years. Hurricane Irma in 2017 caused extensive damage to coconut plantations in the Caribbean, while Hurricane Maria decimated coconut production in Puerto Rico.

U.S. Coconut Oil Imports

In May 2022, coconut oil imports into the United States declined sharply to 33K tons, which is down by -34.2% against the month before. Over the period under review, imports showed a abrupt curtailment. The pace of growth was the most pronounced in Apr 2022 with an increase of 92% against the previous month. Imports peaked at 57K tons in Jan 2022; however, from Feb 2022 to May 2022, imports remained at a lower figure.

In value terms, coconut oil imports declined rapidly to $78M (IndexBox estimates) in May 2022. In general, imports continue to indicate a abrupt descent. The most prominent rate of growth was recorded in Apr 2022 when imports increased by 76% against the previous month. Over the period under review, imports hit record highs at $110M in Jan 2022; however, from Feb 2022 to May 2022, imports remained at a lower figure.

U.S. Coconut Oil Imports by Country

the Philippines (18K tons), Indonesia (12K tons) and Malaysia (2.2K tons) were the main suppliers of coconut oil imports to the United States, together comprising 95% of total imports.

From Jan 2022 to May 2022, the biggest increases were in Malaysia (with a CAGR of +44.0%), while purchases for the other leaders experienced mixed trend patterns.

In value terms, the Philippines ($41M), Indonesia ($27M) and Malaysia ($4.5M) appeared to be the largest coconut oil suppliers to the United States, with a combined 93% share of total imports.

In terms of the main suppliers, Malaysia, with a CAGR of +43.4%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

The High Cost of Production

According to the USDA, the cost of production for coconut oil has increased in recent years. In 2016, the cost of production was $0.90 per pound, and in 2017, it rose to $1.10 per pound. This increase is due to a number of factors, including higher labor costs, higher prices for coconuts, and increased demand from countries like China and India.

The high cost of production is one of the main factors driving up coconut oil prices in the US. While the cost of coconuts has remained relatively stable in recent years, labor costs have been on the rise. In addition, there has been an increase in demand from countries like China and India, which has put pressure on supplies. As a result, the price of coconut oil has been rising.

How the Weather Affects the Price of Coconuts

Coconut oil prices in the US have been on the rise in recent years, and there are a few factors that have contributed to this. One of the main factors is the weather. When the weather is good, coconuts tend to be cheaper because there is a higher demand for them. However, when the weather is bad, coconuts become more expensive because the demand decreases. This is because people are less likely to buy coconuts when it's cold or rainy outside.

Another factor that has contributed to rising coconut oil prices is an increase in production costs. These costs have risen due to a number of factors, including the price of labor and raw materials. Additionally, many coconut producers have had to deal with droughts and other weather-related disasters, which have further driven up costs.

Despite these factors, coconut oil remains a popular product in the US, and demand is still strong. As such, prices are unlikely to decrease anytime soon. If you're looking to save money on coconut oil, it's best to buy it in bulk or during periods of lower demand (such as winter).

What to Do if You Can't Afford Coconut Oil

If you're a coconut oil user, you may have noticed that the price of your beloved product has been steadily increasing. In fact, coconut oil prices in the US have more than doubled in the past year. While this is bad news for our wallets, there are actually a few reasons behind the price hike.

First, the demand for coconut oil has increased significantly in recent years. This is thanks to the popularity of the ketogenic diet and the many health benefits that coconut oil provides. Coconut oil is also being used more and more as a natural beauty product. All of this has resulted in a higher demand for coconuts, which has driven up prices.

Second, there has been a decrease in production due to bad weather conditions in major coconut producing countries like India and the Philippines. This has caused a shortage of coconuts, which has led to even higher prices.

So what can you do if you can't afford coconut oil? Here are a few suggestions:

-Look for sales or coupons: Many stores offer sales or coupons on coconut oil from time to time. Keep an eye out for these and stock up when you can.

-Make your own: If you're handy witha kitchen, you can make your own coconut oil at home. This won't be as cheap as buying it at the store, but it will be much cheaper than current prices.

-Look for alternatives: There are other oils that can be used in place of coconut oil. These include olive oil, avocado oil, and grape seed oil. While they may not have all of the same benefits as coconut oil, they can still be used in many recipes or beauty products.

-Wait it out: Prices always fluctuate and the price of coconut oil will likely come down at some point. If you can afford to wait, it may be worth it to do so.

No matter what you do, don't go without coconut oil completely. It's still an incredibly healthy and versatile product that can be used in many different ways.

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Source: IndexBox Market Intelligence Platform