Spice Market in Sri Lanka
In value terms, spice production amounted to $ in estimated in export price. Overall, production recorded prominent growth. The pace of growth appeared the most rapid in 2011 with an increase of % against the previous year. Spice production peaked at $ in 2016; however, from 2017 to , production failed to regain momentum.
The average yield of spices in Sri Lanka reduced modestly to tons per ha in , waning by -% on figures. The yield figure increased at an average annual rate of +% from 2007 to ; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2016 when the yield increased by %. As a result, the yield attained the peak level of tons per ha. From 2017 to , the growth of the average spice yield failed to regain momentum. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.
In , approx. ha of spices were harvested in Sri Lanka; increasing by % compared with the previous year. The harvested area increased at an average annual rate of +% over the period from 2007 to ; the trend pattern remained consistent, with only minor fluctuations being observed throughout the analyzed period. The growth pace was the most rapid in 2008 when the harvested area increased by % against the previous year. The spice harvested area peaked in and is likely to continue growth in the immediate term.
The size of the spice market in Sri Lanka rose rapidly to $ in , with an increase of % 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). Overall, consumption continues to indicate buoyant growth. Spice consumption peaked at $ in 2016; however, from 2017 to , consumption stood at a somewhat lower figure.
From 2007 to , the biggest increases were recorded for cinnamon (canella) (with a CAGR of +%), while consumption for the other products experienced more modest paces of growth.
In value terms, piper pepper ($), ginger ($) and pimenta pepper ($) constituted the products with the highest levels of market value in , together accounting for % of the total market. These products were followed by cinnamon (canella), anise, badian, fennel and coriander, nutmeg, mace and cardamoms, cloves, spices except pepper or ginger and vanilla, which together accounted for a further %.
Among the main consumed products, cinnamon (canella), with a CAGR of +%, recorded the highest growth rate of market size over the period under review, while market for the other products experienced more modest paces of growth.
In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .