Updated Jan 22, 2023 09:00

Wool Grease Market in Argentina

Market Overview
The Argentinian wool grease market surged to $ in , jumping by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, saw a pronounced reduction. Wool grease consumption peaked at $ in 2007; however, from 2008 to , consumption failed to regain momentum.

In value terms, wool grease production amounted to $ in estimated in export price. Overall, production, however, recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2012 when the production volume increased by %. Over the period under review, production reached the peak level at $ in 2013; however, from 2014 to , production failed to regain momentum.


Consumption
Wool grease consumption in Argentina soared to tons in , increasing by % compared with the previous year. In general, consumption, however, continues to indicate a mild slump. Over the period under review, consumption hit record highs at tons in ; however, from to , consumption stood at a somewhat lower figure.

The value of the wool grease market in Argentina soared to $ in , picking up by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, continues to indicate a pronounced downturn. Wool grease consumption peaked at $ in 2007; however, from 2008 to , consumption stood at a somewhat lower figure.


Market Forecast
Driven by rising demand for wool grease in Argentina, the market is expected to start an upward consumption trend over the next eight-year period. The performance of the market is forecast to increase slightly, with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Argentina remains a net exporter of wool grease; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.