Insights into the global nutmeg, mace and cardamom market
Issued by IndexBox - Jul 26th 2018, 11:24
According to the report "World: Nutmeg, Mace And Cardamoms - Market Report. Analysis And Forecast To 2025", recently published by IndexBox, in 2016 the nutmeg, mace and cardamom market peaked at 113K tonnes.
Over the period from 2007 to 2016, consumption expanded with an annual average rate of growth of +5.1%. Following a slight decline in consumption from 2009-2010, the nutmeg, mace and cardamom market continued to experience minor fluctuations over the next two year period; from 2013 to 2016, consumption saw strong growth against increased levels of consumption in India and several other Asian countries.
As a result, from 2007 to 2016, the market volume surged by 56% (IndexBox estimates). In wholesale prices, the market amounted to $342M, contracting by 6% over the last year. Over the previous two years, the market volume remained relatively stable in value terms; this was preceded by a period of rapid growth in 2013.
India, Vietnam and Indonesia Together Accounted for 50% of Consumption on the Nutmeg, Mace and Cardamom Market
The countries with the highest consumption were India (29.5%, based on tonnes), Viet Nam (10.5%), Indonesia (9.9%), Saudi Arabia (8.4%), Pakistan (4.3%), Nepal (4.2%), Bangladesh (3.4%), Lao (2.7%), the U.S. (2.5%), the UAE (2.5%), Bhutan (1.9%) and Germany (1.6%). The other consumers together comprised near 19% of global consumption.
Asian and Middle Eastern countries constitute key global consumers of nutmeg, mace and cardamom. The popularity that this spice enjoys can be explained by the wide variety of national dishes using it as a major component ingredient and the age-old tradition of using nutmeg, mace and cardamom spices in medicine.
At the same time, the major consumer markets of the Middle East, namely Saudi Arabia and the UAE, are fully supported by product imports. A significant proportion of the import volume to these countries is supplied by Guatemala; a slightly smaller volume is supplied by India.
The key producers - India, Guatemala and Indonesia – also constitute export-orientated markets. Guatemala exports almost the entire volume of its domestic production; Indonesia and India export 64% and 28%, respectively, of their domestic output. Nepal ranks fourth in terms of the key producers, directing approx. 44% of its total domestic production to the foreign market in 2016.
The European market remains negligible, despite the use of nutmeg, mace and cardamom, both as a spice and in the pharmaceutical and cosmetic industries. As, nutmeg, mace and cardamom are not grown in Europe, consumption is fully buoyed and supported by imports.
The highest annual rates of growth with regard to nutmeg, mace and cardamom consumption from 2007 to 2016 were recorded in Nepal, with a +26.5% growth, Pakistan, with a +12.3% growth, and Bangladesh and India, with +11.0% and +10.3% growth, respectively.
Consequently, India (+10 percentage points), Nepal (+3 percentage points), Indonesia and Pakistan (+2 percentage points, each) strengthened their share in terms of global consumption from 2007 to 2016. By contrast, the share of the UAE (-4 percentage points) and Saudi Arabia (-3 percentage points) declined over the period under review.
Amongst the leading consuming countries, high levels of per capita consumption were recorded in Bhutan (2,775 kg per 1,000), Lao (448 kg per 1,000), the UAE (308 kg per 1,000) and Saudi Arabia (301 kg per1,000), which were significantly higher than the global average of 15 kg per 1,000. In these countries, per capita consumption remained stagnant or even declined, with the exception of Bhutan, which increased its per capita consumption by +3.5% per year over the last nine year period. The highest annual growth of per capita consumption from 2007 to 2016 was in Nepal, with a +25.3% growth.
The Global Consumption of Nutmeg, Mace and Cardamom Will Continue to Grow against Population Growth and Diet Diversification
The market for nutmeg, mace and cardamom is relatively small; as this spice grows only in those countries with a tropical climate, the market is restricted by the capacity of the key producer countries that grow this product. Nutmeg, mace and cardamom enjoy the most popular in the countries of Asia and the Middle East: here it is used as a key ingredient in a variety of traditional dishes. In Europe, a net importer of nutmeg, mace and cardamom, it is also used as a spice, being added to local dishes, sauce bases and marinades. Nutmeg, mace and cardamom is also widely used in the pharmaceutical and cosmetic industries.
Population growth will promote the expansion of the food industry and a more varied diet; these two factors, combined with increased disposable household income, will ensure the further growth of the global nutmeg, mace and cardamom market.
Market performance is forecast to grow with an anticipated CAGR of +1.9% for the period from 2016 to 2025, which is then expected to lead the market volume to 135K tonnes by 2025. Global output of nutmeg, mace and cardamom increased significantly over the past year, against enhanced production in India
The production of nutmeg, mace and cardamom reached 123K tonnes in 2016, an increase of 17K tonnes (or 16%) against the previous year. This growth was mainly associated with the expansion of production in India: this was due mainly to a substantial increase in the volume of crop acreage dedicated to nutmeg, mace and cardamom cultivation.
Overall, production grew by an average rate of +4.6% per year from 2007 to 2016. In value terms, production stood at $440M. The production value grew steadily from 2007 until it dropped in 2015, due to a pronounced decline in producer prices. In 2016, it surged by 19%, thereby offsetting the decline observed the previous year.
India, Guatemala and Indonesia Remain the Main Producers of Nutmeg, Mace and Cardamom
India (38.0K tonnes), Guatemala (36.6K tonnes) and Indonesia (31.0K tonnes) were the key world nutmeg, mace and cardamom producing countries, with a combined share of 86% of global production. The other major producers were Nepal (5.2%), Lao (2.5%), Bhutan (2.1%) and Sri Lanka (1.4%).
In India, production levels increased by +12.0% annually from 2007 to 2016, largely as a result of a growth in the amount of harvested area being used to cultivate and produce nutmeg, mace and cardamom. Most of the other major producing countries showed a growth in nutmeg, mace and cardamom output in physical terms: Guatemala (+3.0%), Indonesia (+3.0%), Bhutan (+2.3%) and Lao (+1.2%).
Approx. 72% of the Total Market Is Buoyed by Exports
Nutmeg, mace and cardamom is a widely traded commodity, with the share of export in total global output standing at about 72% in 2016, declining from its peak figure of 90% attained in 2012. Despite the share of product imports contracting in recent years, it still illustrates a high trade intensity, which is determined mainly by the substantial distances between the main countries of nutmeg, mace and cardamom production and the key consuming countries. Nutmeg, mace and cardamom will continue to be highly traded, fueled by increasing consumption, trade liberalization policies, and intense global and regional integration. However, the trade expansion could be restrained by the softening growth of nutmeg, mace and cardamom production and increasing domestic demand in some of the major exporting countries.
Guatemala, Indonesia and India Appear as the Largest Suppliers of Nutmeg, Mace and Cardamom
In 2016, the volume of global product exports totalled 88K tonnes, declining marginally over the last two years. In value terms, it contracted by 9% to $639M in 2016, a decline of $118M (or 16%) against the maximum level observed in 2011.
Guatemala (42%, based on tonnes) was the largest exporter of nutmeg, mace and cardamom in the world: almost the entire volume of domestic production in Guatemala is exported onto the global market.
Guatemala was distantly followed by Indonesia (23%), India (12%), the UAE (5%), Nepal (3%), the Netherlands (3%) and Sri Lanka (2%). From 2007 to 2016, the UAE (+25.0% per year) and India (+16.2% per year) were the fastest growing suppliers amongst the major exporters. Despite being amongst the largest global producers of nutmeg, mace and cardamom, Lao and Bhutan did not export much of their production, implying that it was consumed domestically.
The share of India (+8 percentage points) and the UAE (+4 percentage points) increased in the structure of exports, while Indonesia (-4 percentage points) and Nepal (-6 percentage points) saw their share reduced.
Viet Nam, Saudi Arabia, the UAE and India Have the Largest Volumes of Imports
The volume of global imports totalled 78K tonnes or $541M in 2016. The imports volume declined over the last year from its peak figure achieved the previous year. Prior to this, imports grew at an ever faster rate from 2007 to 2016.
In 2016, Viet Nam (16%, based on tonnes), Saudi Arabia (13%), the UAE (9%), India (8%), Pakistan (6%), Bangladesh (5%) and the Netherlands (4%) constituted the leading destinations for nutmeg, mace and cardamom imports. The remaining importers together comprised 39% of global imports. Amongst the major importing countries, Pakistan (+12.3% per year) and Bangladesh (+11.0% per year), gained the highest annual rates of growth from 2007 to 2016 – consumption in both Bangladesh and Pakistan remains almost completely buoyed by imports.
While the share of Viet Nam (+4 percentage points), India, Pakistan (+3 percentage points, each), and Bangladesh (+2 percentage points) increased from 2007 to 2016, the share of Saudi Arabia and the Netherlands contracted slightly. The shares of the other countries remained relatively stable throughout the analysed period.
World: Nutmeg, Mace And Cardamoms - Market Report. Analysis And Forecast To 2025
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