2025 Malaysia Animal Fats (HS 1516) Export: Surge & Risk

Key Takeaways

Animal Fats, classified under HS Code 1516, exhibited strong growth from January to June 2025.

• Market Pulse: Export value surged 106% ($46.72M to $96.57M) and volume rose 57% (25.69M kg to 40.38M kg), driven by recovering palm oil demand and US tariff advantages.
• Structural Shift: Malaysia Animal Fats Export relies heavily on the Netherlands (10.51% of value) and China (10.09%), creating concentration risk despite premium Dutch margins.
• Product Logic: HS Code 1516 trade data reveals a skewed market—36.5% of value comes from sub-code 1516204700, with unit prices ranging from $1.34 to $3.83/kg, signaling quality-driven niches.

This overview covers the period from January to June 2025 and is based on verified customs data from the yTrade database.

Malaysia Animal Fats (HS Code 1516) Key Metrics Trend

Market Trend Summary

Malaysia's Animal Fats Export trend shows strong expansion from January to June 2025. Total export value climbed from $46.72 million to $96.57 million, while shipment weight increased from 25.69 million kg to 40.38 million kg. Both metrics demonstrated consistent growth after February, with value rising 106% and volume expanding 57% over the six-month period. The trajectory for Malaysia Animal Fats Exports indicates accelerating trade momentum, particularly from March onward.

Drivers & Industry Context

This growth aligns with broader palm oil sector recovery and favorable trade conditions. The Malaysian Palm Oil Board projected export rebounds in late 2025 due to stronger festival demand in key markets like India [MPOC], which likely drove stockpiling and increased shipments of processed fats under HS Code 1516. Additionally, zero-tariff advantages in the US market [Hancole Group] enhanced competitiveness, supporting the rising hs code 1516 value. The March weight dip reflects temporary demand fluctuations rather than structural shifts, with subsequent months showing robust recovery.

Table: Malaysia Animal Fats Export Trend (Source: yTrade)

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Malaysia HS Code 1516 Export Breakdown

Market Composition & Top Categories

According to yTrade data, the dominant sub-code for Malaysia HS Code 1516 Export in the first half of 2025 is 1516204700, capturing 36.5% of the total export value. The remaining sub-codes consist of similar processed vegetable fats and oils, with value shares declining to minor levels below 4%. This market is heavily skewed towards a few key product types, reflecting a concentrated export profile for processed fats.

Value Chain & Strategic Insights

Unit prices range from 1.34 to 3.83 USD per kg, indicating clear specialization based on quality or processing depth, rather than uniform commodity pricing. The HS Code 1516 breakdown shows a value chain where higher-priced exports likely represent more refined or specific formulations, appealing to niche markets. This trade structure points to a market sensitive to quality differentiation, not just volume or cost.

Table: Malaysia HS Code 1516) Export Breakdown Details (Source: yTrade)

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Malaysia Animal Fats Destination Countries

Geographic Concentration & Market Risk

The Netherlands is Malaysia's dominant Animal Fats export destination in the first half of 2025, capturing 10.51% of total export value. This heavy reliance on a single market for Malaysia Animal Fats export destinations introduces significant concentration risk. China follows as the second-largest buyer, but its 10.09% value share still leaves the trade flow heavily exposed to European demand shifts.

Purchasing Behavior & Demand Segmentation

The Netherlands' high value-to-weight ratio indicates a quality-conscious market paying premium prices, likely for specialized animal fat specifications. In contrast, partners like China and Algeria show nearly equal value and weight ratios, signaling price-sensitive bulk industrial purchasing. This split defines two distinct trade partners for Animal Fats: the Dutch market offers superior margin potential while others represent volume scale through commodity transactions.

Table: Malaysia Animal Fats (HS Code 1516) Top Destination Countries (Source: yTrade)

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Malaysia Animal Fats Buyer Companies Analysis

Buyer Concentration & Market Structure

According to yTrade data, Malaysia's Animal Fats export market is dominated by key accounts that consistently place high-value orders. These buyers represent 73.63% of total export value and 69.69% of volume, indicating a stable, contract-based supply chain. This concentration among Malaysia Animal Fats buyers suggests a mature market where long-term relationships and reliable delivery schedules are critical for maintaining export flow.

Purchasing Behavior & Sales Strategy

The heavy reliance on key accounts creates concentration risk, making it essential to secure multi-year contracts with these high-volume repeaters while diversifying into secondary buyer segments. For smaller, sporadic buyers, implement a digital outreach strategy to capture spot demand and reduce dependency on top clients. Monitoring HS Code 1516 buyer trends will help anticipate shifts in purchasing patterns, especially during early to mid-2025.

Table: Malaysia Animal Fats (HS Code 1516) Top Buyers List (Source: yTrade)

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Action Plan for Animal Fats Market Operation and Expansion

• Secure key account contracts: Lock in multi-year deals with top buyers (73.63% of export value) to stabilize revenue amid market concentration.
• Diversify geographic exposure: Reduce reliance on the Netherlands by targeting secondary markets like India, where festival demand is projected to rebound.
• Leverage premium pricing: Push higher-margin products (e.g., $3.83/kg variants) to Dutch buyers through technical specs and branding.
• Monitor spot demand: Deploy digital outreach to capture smaller, sporadic buyers and offset dependency on bulk contracts.
• Optimize logistics for bulk buyers: Streamline shipping for price-sensitive markets (China, Algeria) to protect volume margins.

Take Action Now —— Explore Malaysia Animal Fats HS Code 1516 Export Data

Frequently Asked Questions

Q1. What is driving the recent changes in Malaysia Animal Fats Export in 2025?

Malaysia's Animal Fats exports surged 106% in value and 57% in volume from January to June 2025, driven by palm oil sector recovery, festival demand in key markets, and zero-tariff advantages in the US.

Q2. Who are the main destination countries of Malaysia Animal Fats (HS Code 1516) in 2025?

The Netherlands (10.51% of export value) and China (10.09%) dominate Malaysia’s Animal Fats exports, with the Netherlands being the top market.

Q3. Why does the unit price differ across destination countries of Malaysia Animal Fats Export in 2025?

Prices range from 1.34 to 3.83 USD/kg due to quality differentiation—the Netherlands pays premiums for refined products, while China buys bulk at commodity prices.

Q4. What should exporters in Malaysia focus on in the current Animal Fats export market?

Exporters should secure multi-year contracts with top buyers (73.63% of value) while diversifying to secondary markets to reduce reliance on a few key accounts.

Q5. What does this Malaysia Animal Fats export pattern mean for buyers in partner countries?

Dutch buyers benefit from stable, high-quality supply, while price-sensitive markets like China can leverage bulk purchasing for cost efficiency.

Q6. How is Animal Fats typically used in this trade flow?

Processed animal fats under HS Code 1516 are primarily used in food manufacturing, industrial applications, and specialized formulations for niche markets.