Updated Jan 1, 2023 18:31

Vanilla Market in Guatemala

Market Overview
The Guatemalan vanilla market contracted rapidly to $ in , with a decrease 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). In general, consumption recorded a pronounced contraction. As a result, consumption reached the peak level of $. From 2015 to , the growth of the market remained at a lower figure.


Consumption
Vanilla consumption in Guatemala declined significantly to kg in , falling by -% on the previous year. Over the period under review, consumption showed a pronounced descent. Vanilla consumption peaked at tons in 2014; however, from 2015 to , consumption remained at a lower figure.

The value of the vanilla market in Guatemala contracted notably to $ in , reducing 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 recorded a pronounced shrinkage. As a result, consumption reached the peak level of $. From 2015 to , the growth of the market remained at a lower figure.


Market Forecast
Depressed by shrinking demand for vanilla in Guatemala, the market is expected to continue its downward consumption trend over the next eight years. The performance of the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to depress the market volume to kg 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
Vanilla market in Guatemala consists almost entirely of imported products. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports increased moderately ( percentage point) over the period under review.


Trade Balance
Guatemala remains a net importer of vanilla; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of kg, 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.