Updated Oct 23, 2022 18:55

Spice Market in Qatar

Market Overview
In , after eight years of growth, there was significant decline in the Qatari spice market, when its value decreased by -% to $. Overall, consumption, however, recorded a buoyant expansion. As a result, consumption attained the peak level of $, and then reduced in the following year.

In value terms, spice production contracted slightly to $ in estimated in export price. In general, production recorded a sharp descent. The pace of growth appeared the most rapid in when the production volume increased by %. Over the period under review, production reached the maximum level at $ in 2009; however, from 2010 to , production stood at a somewhat lower figure.

In , the average yield of spices in Qatar was estimated at less than kg per ha, remaining constant against the year before. Over the period under review, the yield saw a relatively flat trend pattern. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

The spice harvested area in Qatar stood at less than ha in , remaining relatively unchanged against figures. Over the period under review, the harvested area showed a relatively flat trend pattern.


Consumption
In , consumption of spices in Qatar totaled tons, growing by % against figures. Overall, consumption saw a strong expansion. As a result, consumption reached the peak volume of tons. From to , the growth of the consumption remained at a lower figure.

The value of the spice market in Qatar was estimated at $ 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). Over the period under review, consumption showed a prominent expansion. As a result, consumption attained the peak level of $. From to , the growth of the market remained at a lower figure.


Consumption by Type
Ginger ( tons), spices except pepper or ginger ( tons) and anise, badian, fennel and coriander ( tons) were the main products of spice consumption in Qatar, together accounting for % of the total volume. Pimenta pepper, nutmeg, mace and cardamoms, piper pepper, cinnamon (canella), cloves and vanilla lagged somewhat behind, together comprising a further %.

From 2007 to , the biggest increases were recorded for nutmeg, mace and cardamoms (with a CAGR of +%), while consumption for the other products experienced more modest paces of growth.

In value terms, spices with the largest market size in Qatar were spices except pepper or ginger ($), nutmeg, mace and cardamoms ($) and pimenta pepper ($), with a combined % share of the total market.

Nutmeg, mace and cardamoms, with a CAGR of +%, saw the highest growth rate of market size among the main consumed products over the period under review, while market for the other products experienced more modest paces of growth.


Market Forecast
Driven by increasing demand for spices in Qatar, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

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 .


Market Structure
Spice market in Qatar remained dependent on supplies from foreign countries. In , the share of imports in total consumption was % in value terms and % in physical terms.


Trade Balance
Qatar remains a net importer of spice; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.