Updated Jan 22, 2023 04:05

Clove Market in Guatemala

Market Overview
The Guatemalan clove market surged to $ in , increasing 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). Overall, consumption, however, saw a abrupt descent. Over the period under review, the market attained the maximum level at $ in 2009; however, from 2010 to , consumption stood at a somewhat lower figure.

In value terms, clove production dropped rapidly to $ in estimated in export price. Over the period under review, production saw a abrupt decrease. The pace of growth appeared the most rapid in 2019 with a decrease of -%. Clove production peaked at $ in 2008; however, from 2009 to , production failed to regain momentum.


Consumption
In , consumption of cloves in Guatemala soared to tons, picking up by % compared with figures. Over the period under review, consumption, however, recorded a abrupt curtailment. Clove consumption peaked at tons in 2009; however, from 2010 to , consumption failed to regain momentum.

The revenue of the clove market in Guatemala skyrocketed to $ in , picking up 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, showed a deep contraction. Clove consumption peaked at $ in 2009; however, from 2010 to , consumption failed to regain momentum.


Market Forecast
Depressed by shrinking demand for clove 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
Clove market in Guatemala consists almost entirely of imported products. In recent years, import price have increased sharply. Despite the hike in price, Guatemala relies completely on foreign supplies: the volume of domestic output remains insufficient to satiate market demand. The growth in the share of Guatemala imports of in the clove market structure from % in 2007 to % in is explained by a more substantial reduction in output, compared with a decrease in imports. 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 clove; 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.