In 2023, Indonesia's vegetable oil demand stood at 17.4 million metric tons, reflecting a year-on-year growth of 3.11% from 2022. Over the last two years, the demand saw steady increases, with a 3.27% rise in 2022. The 5-year CAGR from 2019 to 2023 was relatively low at 0.58%, indicating minor annual incremental growth.
From 2014 to 2023, the industry experienced volatility with substantial fluctuations. Notably, in 2015 the demand dropped significantly by 28.93%, followed by a sharp 86.85% recovery in 2016. Despite periodic declines (e.g., 2020’s 13.97% drop), the annual variations averaged out to a significant CAGR of 10.69% due to surges in years like 2018 (91.66%) and 2021 (24.65%).
For the future, the vegetable oil demand in Indonesia is forecast to grow at a 5-year CAGR of 2.3%, with a total growth rate of 12.03% through 2028. Monitoring factors such as evolving dietary preferences, biofuel industry developments, and agricultural policies will be crucial for anticipating future trends in this sector.
