China’s rising demand opens new prospects for Thai palm oil exports

China is steadily emerging as a key importer of Thai palm oil for use in the food industry, creating fresh opportunities for Thailand to broaden its export base. Nantapong Jiralertphong, Director of the Office of Trade Policy and Strategy at the Ministry of Commerce, stated stronger demand from the Chinese market supports Thailand’s strategy to expand trade links and enhance market resilience.

India currently accounts for 77 per cent of Thailand’s palm oil exports, Nantapong noted, adding that growing shipments to China will help balance export flows and strengthen the sector’s long-term outlook. As reported by Thai PBS, a partner of TV BRICS.

According to experts, Thai producers are also encouraged to increase the value of their output by developing higher-grade products. These include pure palm oil, organic palm oil for baking and non-dairy creamer applications, as well as trans-fat-free palm oil, which aligns with evolving consumer preferences in China.

Nantapong further advised exporters to make active use of digital trade channels to widen their reach among business partners. He pointed to existing trade frameworks including the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN – China Free Trade Area (ACFTA), as practical tools for improving market access and price competitiveness. According to the source, China ranks as the world’s third-largest consumer of palm oil, after Indonesia and India.

Experts observed that Chinese import trends increasingly favour higher-quality products, presenting scope for Thailand to upgrade its offerings. Reinforcing the image of Thai palm oil as a reliable and sustainably produced product will further support its international positioning.