Updated Oct 23, 2022 16:18

Spice Market in Guatemala

Market Overview
In , the Guatemalan spice market decreased by -% to $ for the first time since 2016, thus ending a four-year rising trend. Overall, consumption, however, showed prominent growth. Over the period under review, the market attained the peak level at $ in 2012; however, from 2013 to , consumption remained at a lower figure.

In value terms, spice production dropped modestly to $ in estimated in export price. Over the period under review, production posted buoyant growth. The most prominent rate of growth was recorded in 2008 with an increase of %. Over the period under review, production hit record highs at $ in , and then reduced in the following year.

The average yield of spices in Guatemala expanded to kg per ha in , with an increase of % compared with the previous year. The yield figure increased at an average annual rate of +% over the period from 2007 to ; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth was the most pronounced in 2012 with an increase of % against the previous year. The spice yield peaked at kg per ha in 2013; however, from 2014 to , the yield stood at a somewhat lower figure. 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 Guatemala; remaining stable against the previous year's figure. Over the period under review, the harvested area saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 when the harvested area increased by % against the previous year. Over the period under review, the harvested area dedicated to spice production attained the peak figure at ha in 2007; however, from 2008 to , the harvested area remained at a lower figure.


Consumption
In , consumption of spices decreased by -% to tons, falling for the third consecutive year after three years of growth. Over the period under review, consumption, however, continues to indicate a temperate increase. Spice consumption peaked at tons in 2012; however, from 2013 to , consumption stood at a somewhat lower figure.

The value of the spice market in Guatemala shrank dramatically to $ in , waning by -% 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). In general, consumption, however, continues to indicate a prominent increase. Over the period under review, the market reached the peak level at $ in 2012; however, from 2013 to , consumption remained at a lower figure.


Consumption by Type
Nutmeg, mace and cardamoms ( tons) constituted the product with the largest volume of consumption, comprising approx. % of total volume. Moreover, nutmeg, mace and cardamoms exceeded the figures recorded for the second-largest type, anise, badian, fennel and coriander ( tons), fourfold. The third position in this ranking was taken by pimenta pepper ( tons), with an % share.

From 2007 to , the average annual growth rate of the volume of nutmeg, mace and cardamoms consumptions stood at +%. With regard to the other consumed products, the following average annual rates of growth were recorded: anise, badian, fennel and coriander (+% per year) and pimenta pepper (+% per year).

In value terms, nutmeg, mace and cardamoms ($) led the market, alone. The second position in the ranking was taken by cinnamon (canella) ($). It was followed by anise, badian, fennel and coriander.

From 2007 to , the average annual growth rate of the value of nutmeg, mace and cardamoms markets amounted to +%. With regard to the other consumed products, the following average annual rates of growth were recorded: cinnamon (canella) (+% per year) and anise, badian, fennel and coriander (+% per year).


Market Forecast
The spice market is expected to start a downward consumption trend over the next eight years. The performance of the market is forecast to decrease slightly, with an anticipated CAGR of -% for the eight-year period from to , which is projected to depress the market volume to tons by the end of .

In value terms, the market is forecast to contract 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 .


Market Structure
In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Guatemala remains a net exporter of spice; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.