Onion and Shallot Market

The article highlights the increasing demand for onion and shallot worldwide, projecting a steady growth trend in the market over the next eight years. Detailed analysis of market performance, consumption patterns, production trends, and import/export statistics are provided. Key insights include country-wise consumption and production data, notable growth rates, and average prices. The article serves as a comprehensive guide to understanding the onion and shallot market dynamics for industry stakeholders.

Market Forecast

Driven by increasing demand for onion and shallot worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +2.3% for the period from 2022 to 2030, which is projected to bring the market volume to 130M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +4.6% for the period from 2022 to 2030, which is projected to bring the market value to $75B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Onion and Shallot

In 2022, the amount of onion and shallot consumed worldwide was estimated at 108M tons, flattening at the previous year. The total consumption volume increased at an average annual rate of +2.3% from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations in certain years. Over the period under review, global consumption reached the peak volume at 108M tons in 2020; however, from 2021 to 2022, consumption failed to regain momentum.

The global onion and shallot market size totaled $52.2B in 2022, leveling off at 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% over the period from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded in certain years. Global consumption peaked in 2022 and is expected to retain growth in the immediate term.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were China (24M tons), India (23M tons) and the United States (3.6M tons), with a combined 47% share of global consumption. Egypt, Bangladesh, Pakistan, Turkey, Japan, Indonesia, Russia, Sudan, Iran and South Korea lagged somewhat behind, together comprising a further 20%.

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the key consuming countries, was attained by Bangladesh (with a CAGR of +7.9%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, China ($13.4B) led the market, alone. The second position in the ranking was held by India ($6B). It was followed by Bangladesh.

From 2012 to 2022, the average annual rate of growth in terms of value in China stood at +2.4%. In the other countries, the average annual rates were as follows: India (+5.3% per year) and Bangladesh (+7.8% per year).

The countries with the highest levels of onion and shallot per capita consumption in 2022 were Sudan (41 kg per person), Turkey (26 kg per person) and China (17 kg per person).

From 2012 to 2022, the biggest increases were recorded for Bangladesh (with a CAGR of +6.8%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Onion and Shallot

In 2022, global production of onion and shallot stood at 108M tons, flattening at the previous year. The total output volume increased at an average annual rate of +2.2% over the period from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2020 with an increase of 4.5% against the previous year. As a result, production reached the peak volume of 109M tons. From 2021 to 2022, global production growth failed to regain momentum. The general positive trend in terms output was largely conditioned by a noticeable expansion of the harvested area and a relatively flat trend pattern in yield figures.

In value terms, onion and shallot production amounted to $52.9B in 2022 estimated in export price. The total output value increased at an average annual rate of +3.6% from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2017 with an increase of 19% against the previous year. Global production peaked at $53B in 2020; however, from 2021 to 2022, production stood at a somewhat lower figure.

Production By Country

The countries with the highest volumes of production in 2022 were India (25M tons), China (25M tons) and the United States (3.3M tons), with a combined 50% share of global production. Egypt, Turkey, Iran, Pakistan, Sudan, Bangladesh, Japan, the Netherlands, Indonesia and Russia lagged somewhat behind, together accounting for a further 19%.

From 2012 to 2022, the most notable rate of growth in terms of production, amongst the key producing countries, was attained by Sudan (with a CAGR of +6.5%), while production for the other global leaders experienced more modest paces of growth.

Yield

The global average onion and shallot yield declined slightly to 19 tons per ha in 2022, therefore, remained relatively stable against the previous year. In general, the yield, however, recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2015 when the yield increased by 1.7%. Over the period under review, the average onion and shallot yield hit record highs at 19 tons per ha in 2019; however, from 2020 to 2022, the yield failed to regain momentum.

Harvested Area

In 2022, the total area harvested in terms of onion and shallot production worldwide stood at 5.7M ha, with an increase of 1.6% against 2021 figures. The harvested area increased at an average annual rate of +1.9% over the period from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2020 with an increase of 6.4%. As a result, the harvested area attained the peak level of 5.8M ha. From 2021 to 2022, the growth of the global onion and shallot harvested area remained at a somewhat lower figure.

Imports

World Imports of Onion and Shallot

In 2022, overseas purchases of onion and shallot were finally on the rise to reach 9.6M tons for the first time since 2019, thus ending a two-year declining trend. The total import volume increased at an average annual rate of +4.5% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2013 when imports increased by 21% against the previous year. Global imports peaked in 2022 and are expected to retain growth in the immediate term.

In value terms, onion and shallot imports stood at $4.2B in 2022. The total import value increased at an average annual rate of +5.5% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2013 with an increase of 37% against the previous year. Over the period under review, global imports attained the peak figure in 2022 and are expected to retain growth in the immediate term.

Imports By Country

In 2022, the United States (660K tons), Bangladesh (630K tons), Malaysia (525K tons), Pakistan (493K tons), the United Arab Emirates (385K tons), the UK (369K tons), Iraq (347K tons), Saudi Arabia (315K tons), Cote d'Ivoire (292K tons), the Netherlands (281K tons), Japan (279K tons) and Sri Lanka (278K tons) was the main importer of onion and shallot in the world, creating 51% of total import. Poland (240K tons) held a little share of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the leading importing countries, was attained by Bangladesh (with a CAGR of +35.6%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, the United States ($526M) constitutes the largest market for imported onion and shallot worldwide, comprising 12% of global imports. The second position in the ranking was taken by the UK ($257M), with a 6.1% share of global imports. It was followed by Malaysia, with a 5.1% share.

From 2012 to 2022, the average annual growth rate of value in the United States stood at +6.2%. The remaining importing countries recorded the following average annual rates of imports growth: the UK (+4.4% per year) and Malaysia (+4.5% per year).

Import Prices By Country

The average onion and shallot import price stood at $443 per ton in 2022, with an increase of 2% against the previous year. In general, the import price continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 an increase of 13% against the previous year. As a result, import price attained the peak level of $459 per ton. From 2014 to 2022, the average import prices remained at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was the United States ($797 per ton), while Cote d'Ivoire ($166 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Iraq (+4.9%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Onion and Shallot

In 2022, the amount of onion and shallot exported worldwide expanded significantly to 9.8M tons, picking up by 7.5% on the previous year. The total export volume increased at an average annual rate of +3.4% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth appeared the most rapid in 2013 with an increase of 42%. As a result, the exports reached the peak of 9.9M tons. From 2014 to 2022, the growth of the global exports remained at a somewhat lower figure.

In value terms, onion and shallot exports expanded notably to $4.4B in 2022. The total export value increased at an average annual rate of +5.4% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2013 when exports increased by 38% against the previous year. Over the period under review, the global exports hit record highs in 2022 and are likely to see steady growth in years to come.

Exports By Country

In 2022, India (2.1M tons) and the Netherlands (1.7M tons) were the main exporters of onion and shallotaround the world, together resulting at near 39% of total exports. China (835K tons) held the next position in the ranking, followed by Mexico (464K tons) and Iran (445K tons). All these countries together took approx. 18% share of total exports. Egypt (381K tons), the United States (321K tons), Spain (318K tons), Peru (296K tons), Poland (201K tons), Uzbekistan (200K tons), Afghanistan (185K tons) and Turkey (184K tons) followed a long way behind the leaders.

From 2012 to 2022, the biggest increases were recorded for Uzbekistan (with a CAGR of +48.9%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, the largest onion and shallot supplying countries worldwide were the Netherlands ($856M), China ($565M) and India ($525M), with a combined 44% share of global exports. Mexico, the United States, Egypt, Spain, Poland, Peru, Iran, Afghanistan, Uzbekistan and Turkey lagged somewhat behind, together comprising a further 36%.

Among the main exporting countries, Uzbekistan, with a CAGR of +46.4%, 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 $453 per ton in 2022, remaining constant against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +1.9%. The most prominent rate of growth was recorded in 2014 an increase of 9.7%. The global export price peaked in 2022 and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was the United States ($1,024 per ton), while Turkey ($155 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Poland (+4.4%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform