Updated Jan 15, 2023 23:38

Market for Spices Except Pepper or Ginger in Guatemala

Market Overview
In , the Guatemalan market for spices except pepper or ginger decreased by -% to $, falling for the second consecutive year after three years of growth. Overall, consumption, however, saw a buoyant expansion. Over the period under review, the market hit record highs at $ in ; however, from to , consumption remained at a lower figure.

In value terms, spices except pepper or ginger production amounted to $ in estimated in export price. In general, production posted a measured increase. The most prominent rate of growth was recorded in 2012 with an increase of %. Over the period under review, production hit record highs at $ in ; afterwards, it flattened through to .

In , the average yield of spices except pepper or ginger in Guatemala was estimated at kg per ha, approximately mirroring figures. The yield figure increased at an average annual rate of +% from 2007 to ; the trend pattern remained consistent, with only minor fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2018 with an increase of %. As a result, the yield reached the peak level of kg per ha. From 2019 to , the growth of the average spices except pepper or ginger 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 except pepper or ginger were harvested in Guatemala; standing approx. at the previous year. Over the period under review, the harvested area saw a mild downturn. The most prominent rate of growth was recorded in 2017 with an increase of %. The spices except pepper or ginger harvested area peaked at ha in 2007; however, from 2008 to , the harvested area stood at a somewhat lower figure.


Consumption
In , consumption of spices except pepper or ginger decreased by -% to tons, falling for the second consecutive year after two years of growth. In general, consumption, however, recorded a mild increase. Spices except pepper or ginger consumption peaked at tons in ; however, from to , consumption stood at a somewhat lower figure.

The size of the market for spices except pepper or ginger in Guatemala dropped notably to $ in , declining 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). Over the period under review, consumption, however, posted a prominent increase. Spices except pepper or ginger consumption peaked at $ in ; however, from to , consumption remained at a lower figure.


Market Forecast
Driven by increasing demand for spices except pepper or ginger in Guatemala, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to accelerate, 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
Driven by a growing demand, the share of imports in total supply in Guatemala increased significantly over the last fifteen years (from % to %). Total import supply of spices except pepper or ginger is expected to rise, though it will be moderately impacted by price increases. Spices except pepper or ginger 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. 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 spices except pepper or ginger; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a trade deficit of tons, which was equal to $. Those figures reflect the fact that neither imports nor exports don’t dominate the trade balance, and the country may export not only the product manufactured domestically, but also re-export some previously imported goods.