Global Onion and Shallot Market to Reach $77B by 2030, with CAGR of +4.4%

IndexBox has just published a new report: World - Onion and Shallot - Market Analysis, Forecast, Size, Trends And Insights.

The article discusses the rising demand for onion and shallot worldwide, leading to an upward consumption trend over the next seven years. Market performance is expected to expand with a projected CAGR of +2.1% for volume and +4.4% for value from 2023 to 2030.

Market Forecast

Driven by increasing demand for onion and shallot worldwide, the market is expected to continue an upward consumption trend over the next seven years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +2.1% for the period from 2023 to 2030, which is projected to bring the market volume to 136M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +4.4% for the period from 2023 to 2030, which is projected to bring the market value to $77B (in nominal wholesale prices) by the end of 2030.

Consumption

World Consumption of Onion and Shallot

Global onion and shallot consumption amounted to 117M tons in 2023, remaining constant against 2022. The total consumption volume increased at an average annual rate of +2.7% from 2013 to 2023; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being observed throughout the analyzed period. Global consumption peaked in 2023 and is expected to retain growth in years to come.

The global onion and shallot market size rose to $57B in 2023, picking up by 2.4% 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). The market value increased at an average annual rate of +3.2% from 2013 to 2023; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Global consumption peaked in 2023 and is likely to see steady growth in the immediate term.

Consumption By Country

The countries with the highest volumes of consumption in 2023 were India (26M tons), China (24M tons) and Pakistan (5.4M tons), with a combined 48% share of global consumption. Egypt, the United States, Bangladesh, Turkey, Indonesia, South Korea, Japan, the Netherlands, Nigeria and Brazil lagged somewhat behind, together comprising a further 20%.

From 2013 to 2023, the most notable rate of growth in terms of consumption, amongst the key consuming countries, was attained by Egypt (with a CAGR of +16.3%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, China ($14.6B) led the market, alone. The second position in the ranking was held by India ($7.3B). It was followed by Indonesia.

In China, the onion and shallot market increased at an average annual rate of +2.7% over the period from 2013-2023. In the other countries, the average annual rates were as follows: India (+1.7% per year) and Indonesia (+15.1% per year).

In 2023, the highest levels of onion and shallot per capita consumption was registered in the Netherlands (103 kg per person), followed by South Korea (37 kg per person), Egypt (31 kg per person) and Turkey (28 kg per person), while the world average per capita consumption of onion and shallot was estimated at 15 kg per person.

In the Netherlands, onion and shallot per capita consumption expanded at an average annual rate of +8.6% over the period from 2013-2023. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: South Korea (+0.5% per year) and Egypt (+14.0% per year).

Production

World Production of Onion and Shallot

In 2023, production of onion and shallot decreased by -1.7% to 115M tons for the first time since 2012, thus ending a ten-year rising trend. The total output volume increased at an average annual rate of +2.3% over the period from 2013 to 2023; the trend pattern remained relatively stable, with only minor fluctuations in certain years. The most prominent rate of growth was recorded in 2020 with an increase of 4.9%. Over the period under review, global production reached the peak volume at 117M tons in 2022, and then shrank slightly in the following year. The general positive trend in terms output was largely conditioned by perceptible growth of the harvested area and a relatively flat trend pattern in yield figures.

In value terms, onion and shallot production rose modestly to $56.9B in 2023 estimated in export price. The total output value increased at an average annual rate of +2.9% from 2013 to 2023; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2017 with an increase of 16%. Over the period under review, global production reached the maximum level at $58.2B in 2021; however, from 2022 to 2023, production stood at a somewhat lower figure.

Production By Country

The countries with the highest volumes of production in 2023 were India (29M tons), China (25M tons) and Egypt (3.6M tons), together accounting for 50% of global production.

From 2013 to 2023, the biggest increases were recorded for Egypt (with a CAGR of +12.7%), while production for the other global leaders experienced more modest paces of growth.

Yield

In 2023, the global average yield of onion and shallot was estimated at 19 tons per ha, therefore, remained relatively stable against the year before. Over the period under review, the yield continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2019 with an increase of 1.9% against the previous year. As a result, the yield attained the peak level of 20 tons per ha. From 2020 to 2023, the growth of the average onion and shallot yield remained at a lower figure.

Harvested Area

The global onion and shallot harvested area dropped to 6M ha in 2023, declining by -2.2% on 2022. The harvested area increased at an average annual rate of +2.3% over the period from 2013 to 2023; the trend pattern remained relatively stable, with only minor fluctuations being observed throughout the analyzed period. The pace of growth appeared the most rapid in 2020 when the harvested area increased by 5.8%. The global harvested area peaked at 6.2M ha in 2022, and then dropped in the following year.

Imports

World Imports of Onion and Shallot

In 2023, the amount of onion and shallot imported worldwide surged to 12M tons, picking up by 40% against the previous year's figure. Overall, total imports indicated a prominent increase from 2013 to 2023: its volume increased at an average annual rate of +5.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2023 figures, imports increased by +41.0% against 2021 indices. As a result, imports attained the peak and are likely to continue growth in the immediate term.

In value terms, onion and shallot imports amounted to $4.1B in 2023. The total import value increased at an average annual rate of +1.8% from 2013 to 2023; however, the trend pattern remained relatively stable, with somewhat noticeable fluctuations being observed in certain years. The pace of growth was the most pronounced in 2019 when imports increased by 20%. Over the period under review, global imports hit record highs in 2023 and are expected to retain growth in years to come.

Imports By Country

Pakistan represented the main importing country with an import of about 3.3M tons, which amounted to 27% of total imports. It was distantly followed by the United States (682K tons), Bangladesh (643K tons) and Malaysia (566K tons), together creating a 15% share of total imports. The UK (386K tons), the United Arab Emirates (357K tons), Sri Lanka (306K tons), Cote d'Ivoire (288K tons), the Netherlands (280K tons), Germany (250K tons), Japan (242K tons), Canada (226K tons) and Kazakhstan (207K tons) followed a long way behind the leaders.

Pakistan was also the fastest-growing in terms of the onion and shallot imports, with a CAGR of +34.6% from 2013 to 2023. At the same time, Bangladesh (+33.6%), Cote d'Ivoire (+8.9%), the United States (+4.5%), Kazakhstan (+4.4%), the Netherlands (+3.3%), Sri Lanka (+2.1%), Malaysia (+2.1%) and Canada (+2.0%) displayed positive paces of growth. The United Arab Emirates and Germany experienced a relatively flat trend pattern. By contrast, the UK (-1.0%) and Japan (-2.2%) illustrated a downward trend over the same period. While the share of Pakistan (+25 p.p.) and Bangladesh (+4.8 p.p.) increased significantly in terms of the global imports from 2013-2023, the share of Malaysia (-1.7 p.p.), the United Arab Emirates (-1.7 p.p.), Japan (-2.2 p.p.) and the UK (-2.7 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest onion and shallot importing markets worldwide were the UK ($387M), Germany ($287M) and the Netherlands ($229M), together accounting for 22% of global imports. Malaysia, Canada, Bangladesh, Japan, the United Arab Emirates, Sri Lanka, Pakistan, Cote d'Ivoire, Kazakhstan and the United States lagged somewhat behind, together comprising a further 26%.

In terms of the main importing countries, Bangladesh, with a CAGR of +24.2%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

The average onion and shallot import price stood at $333 per ton in 2023, which is down by -26% against the previous year. Over the period under review, the import price showed a noticeable decline. The most prominent rate of growth was recorded in 2019 an increase of 11%. Over the period under review, average import prices hit record highs at $467 per ton in 2013; however, from 2014 to 2023, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2023, amid the top importers, the country with the highest price was Germany ($1,145 per ton), while the United States ($18 per ton) was amongst the lowest.

From 2013 to 2023, the most notable rate of growth in terms of prices was attained by the UK (+5.6%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Onion and Shallot

In 2023, approx. 10M tons of onion and shallot were exported worldwide; growing by 10% on the year before. The total export volume increased at an average annual rate of +1.6% from 2013 to 2023; the trend pattern remained relatively stable, with only minor fluctuations in certain years. As a result, the exports attained the peak and are likely to continue growth in the immediate term.

In value terms, onion and shallot exports surged to $5.3B in 2023. Overall, total exports indicated a pronounced expansion from 2013 to 2023: its value increased at an average annual rate of +4.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2023 figures, exports increased by +24.5% against 2019 indices. The growth pace was the most rapid in 2019 when exports increased by 23% against the previous year. Over the period under review, the global exports attained the maximum in 2023 and are expected to retain growth in the immediate term.

Exports By Country

In 2023, India (2.7M tons), distantly followed by the Netherlands (1.6M tons), China (1.2M tons) and Mexico (0.5M tons) were the key exporters of onion and shallot, together constituting 59% of total exports. The United States (331K tons), Peru (300K tons), Spain (294K tons), Uzbekistan (289K tons), Iran (269K tons), Egypt (242K tons), Afghanistan (214K tons), Niger (168K tons) and Argentina (161K tons) followed a long way behind the leaders.

From 2013 to 2023, the most notable rate of growth in terms of shipments, amongst the main exporting countries, was attained by Uzbekistan (with a CAGR of +48.2%), while the other global leaders experienced more modest paces of growth.

In value terms, the Netherlands ($1.2B), India ($655M) and China ($651M) were the countries with the highest levels of exports in 2023, together comprising 48% of global exports. Mexico, the United States, Spain, Egypt, Peru, Uzbekistan, Niger, Afghanistan, Iran and Argentina lagged somewhat behind, together accounting for a further 30%.

Among the main exporting countries, Uzbekistan, with a CAGR of +51.8%, recorded the highest growth rate of the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

The average onion and shallot export price stood at $518 per ton in 2023, growing by 11% against the previous year. Over the period from 2013 to 2023, it increased at an average annual rate of +2.3%. The pace of growth was the most pronounced in 2019 an increase of 12%. The global export price peaked in 2023 and is expected to retain growth in the immediate term.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Spain ($948 per ton), while Iran ($152 per ton) was amongst the lowest.

From 2013 to 2023, the most notable rate of growth in terms of prices was attained by the Netherlands (+13.8%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform