Updated Jan 10, 2023 15:55

Melon Seed Market in Mexico

Market Overview
In , the Mexican melon seed market was finally on the rise to reach $ for the first time since 2019, thus ending a two-year declining trend. Overall, consumption, however, continues to indicate a abrupt curtailment. The growth pace was the most rapid in 2016 with an increase of % against the previous year. Melon seed consumption peaked at $ in 2012; however, from 2013 to , consumption failed to regain momentum.

In value terms, melon seed production amounted to $ in estimated in export price. Over the period under review, production continues to indicate a deep setback. The most prominent rate of growth was recorded in 2015 with an increase of % against the previous year. Melon seed production peaked at $ in 2012; however, from 2013 to , production failed to regain momentum.

The average yield of melon seed in Mexico was estimated at kg per ha in , approximately equating figures. Overall, the yield continues to indicate a abrupt shrinkage. The pace of growth was the most pronounced in 2017 when the yield increased by %. Over the period under review, the average melon seed yield attained the peak level at tons per ha in 2012; however, from 2013 to , the 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 , the melon seed harvested area in Mexico amounted to ha, remaining constant against figures. Overall, the total harvested area indicated a buoyant expansion from 2012 to : its figure increased at an average annual rate of +% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, melon seed harvested area decreased by -% against 2019 indices. The pace of growth was the most pronounced in 2014 when the harvested area increased by % against the previous year. Over the period under review, the harvested area dedicated to melon seed production attained the peak figure at ha in 2016; however, from 2017 to , the harvested area failed to regain momentum.


Consumption
Melon seed consumption in Mexico rose modestly to tons in , surging by % compared with figures. Overall, consumption, however, continues to indicate a deep setback. The most prominent rate of growth was recorded in with an increase of % against the previous year. Melon seed consumption peaked at tons in 2012; however, from 2013 to , consumption stood at a somewhat lower figure.

The revenue of the melon seed market in Mexico was estimated at $ 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). In general, consumption, however, showed a deep contraction. The growth pace was the most rapid in 2016 with an increase of % against the previous year. Over the period under review, the market reached the maximum level at $ in 2012; however, from 2013 to , consumption stood at a somewhat lower figure.


Market Forecast
Depressed by shrinking demand for melon seed in Mexico, the market is expected to continue its downward consumption trend over the next eight-year period. 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 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
Melon seed market in Mexico consists almost entirely of imported products. The growth in the share of Mexico imports of in the melon seed market structure from % in 2012 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
Mexico remains a net importer of melon seed; in physical and value terms, imports consistently exceeded exports from 2012 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.