Bangladesh's edible oil market exceeded $3.5 billion in FY2024/25, growing approximately 8% year-on-year. Population growth (1.1% annually) and rising per-capita edible oil consumption (approximately 18 kg/year) are simultaneously driving structural market expansion.
In Q1 2025, international palm oil prices stood at $950–1,050/ton, up approximately 10% year-on-year, while soybean oil was at $1,100–1,200/ton CIF. Indonesia's B40 (40% biodiesel blend mandate) has reduced palm oil export volumes, sustaining upward price pressure. Bangladesh depends on imports for 92% of its edible oil, and a structure of 55 refineries importing crude oil for local refining and distribution is well established. Of total refining capacity of 5 million tons/year, actual utilization is approximately 60%.
$3.5B+
Market Size
FY2024/25
3.1M tons
Annual Imports
+5% YoY
$950–1,050/t
Palm Oil Price
2025 Q1 CPO
$1,100–1,200/t
Soybean Oil Price
2025 Q1 CIF
18kg/year
Per-Capita Consumption
Rising trend
5M tons/year
Refining Capacity
Local facilities
92%
Import Dependence
Total edible oil
55 sites
Refineries
In operation
Import Source Country Comparison
Bangladesh Edible Oil Major Import Countries (2025 Basis)
Country
Main Products
Import Share
Price Competitiveness
Supply Stability
Indonesia
Palm oil (CPO and RBD)
45%
High
Partially limited by B40
Malaysia
Palm oil (RBD refined)
30%
High
Stable
Argentina
Soybean oil (SBO)
12%
Moderate
Seasonal variation
Ukraine
Sunflower oil
5%
Moderate
War risk
India
Mustard and cottonseed oil
4%
Low
Stable
Other
Olive and canola oil
4%
Low
Premium segment
Price Trend Analysis (2023–2025)
Bangladesh Edible Oil Import Price Trends by Period (CIF Basis, $/ton)
Oil Type
H1 2023
H2 2023
H1 2024
H2 2024
2025 Q1
Palm oil (CPO)
$880
$820
$870
$920
$1,000
Soybean oil (SBO)
$1,050
$980
$1,020
$1,080
$1,150
Sunflower oil
$1,200
$1,050
$1,000
$1,050
$1,100
Mustard oil (local)
BDT 180/L
BDT 170/L
BDT 175/L
BDT 185/L
BDT 190/L
Olive oil (imported)
$3,500
$3,200
$3,400
$3,800
$4,000
Local Refining Industry Structural Changes
Refining Industry Status
Total Refining Capacity5M tons/year (60% utilization rate)
Bangladesh applies a differentiated tariff structure: 15% on crude oil and 25% on refined oil. During Ramadan 2024, the crude oil tariff was temporarily reduced to 5%, and a similar measure is expected in 2025. Additional charges including 5% Advance Income Tax (AIT) and 3% Regulatory Duty (RD) push the effective tax rate to 23–33%.
02
TC (Tariff Commission) Protective Policy
The Bangladesh Tariff Commission is reviewing Anti-Dumping Duties on refined oil imports to protect the local refining industry. Rising direct imports of Malaysian and Indonesian RBD Palm Olein are lowering local refinery utilization rates, making the introduction of protective tariffs a real possibility.
03
BSTI Quality Standard Strengthening
Bangladesh Standards and Testing Institution (BSTI) is tightening edible oil quality standards. Restrictions on trans fat content (below 2%), residual solvent standards, and acid value limits are becoming stricter, making market entry increasingly difficult for low-quality imported oils.
04
Mandatory Fortification Under Review
The Bangladesh government is reviewing mandatory vitamin A and D fortification for edible oil. City Group and Meghna Group are already voluntarily producing vitamin A-fortified edible oil, and if mandatory fortification is implemented, smaller refineries will face increased equipment investment burdens.
Retail Distribution Channels and Consumption Trends
Edible oil consumption in Bangladesh is rapidly shifting from traditional markets (bazaars) to modern supermarkets. Modern retail chains such as Shwapno, Agora, and Meena Bazar are growing among urban consumers, driving demand for branded edible oil.
Traditional Channel (Bazar)
Market Share70% (urban) / 85% (rural)
Key ProductsBulk palm olein (unbranded)
Average Unit PriceBDT 145–160/L
Growth Rate3–4% (slowing)
Modern Channel (Supermarkets)
Market Share30% (urban-focused, growing)
Key ProductsTeer, Fresh, premium imported oils
Average Unit PriceBDT 175–350/L
Growth Rate15%+ (high growth)
Korean Company Export Opportunity Analysis
Korean Edible Oil Export Market Entry Strategy Flow
Market Research
Analyze premium segment opportunity
→↓
BSTI Certification
Meet quality standards
→↓
Distribution Partner
Target Shwapno, Agora, etc.
→↓
Marketing
K-Food branding
→↓
Expansion
HoReCa and B2B channel development
Bangladesh's edible oil market is an essential consumer goods segment worth $3.5B+, growing 5–7% annually. Korean companies will achieve better results by focusing on premium segments (sesame oil, olive oil, canola oil) rather than competing in the bulk market, and entering through K-Food branding and modern retail channels (Shwapno, Agora).