EU palm oil demand continues to decline amid biofuel restrictions

Palm oil imports into major European Union countries continue to decline as its use in biofuel production decreases. According to European Commission data, most key importers reduced purchases between July 1 and October 18, 2026, compared with the same period last year. The main driver of this trend has been the exclusion of palm oil-based biofuels from national quota obligations, limiting demand for the feedstock from Europe’s biofuel sector.

The Netherlands remains the EU’s largest palm oil trading hub and one of its major biofuel producers. During the period, the country imported around 302 thsd tons of palm oil. Italy ranked second, reducing purchases by 29% to nearly 196 thsd tons. Spain maintained its import volumes at almost the same level as a year earlier, at just over 115 thsd tons.

Germany imported approximately 70.6 thsd tons of palm oil during the period, down 5% year over year. A much sharper decline was recorded in Belgium, where imports fell by 40%, or 22.8 thsd tons. Denmark also reduced purchases by 34% to 11.56 thsd tons. As a result, some Northern and Western European countries recorded the most significant declines in import demand.

However, not all European countries showed a downward trend. Greece significantly increased its palm oil imports to 33 thsd tons, while France and Sweden also expanded purchases. Despite higher shipments to certain markets, the overall EU trend remains toward reduced palm oil use, particularly in the biofuel industry. This could intensify competition among vegetable oil exporters for European buyers and influence the structure of EU imports.

Tags: EU, palm oil, biofuel