7 Reasons Why Garlic Export is a Lucrative Business in 2024
Garlic is one of the most widely used spices in the world, with a history of over 5000 years. It has many health benefits, such as boosting immunity, lowering blood pressure, and preventing infections. But did you know that garlic export is also a lucrative business opportunity? Here are seven reasons why you should consider exporting garlic in 2024.
1. Garlic is in high demand globally
According to the World’s Top Exports website, worldwide garlic exports from all countries totaled US$3.09 billion in 2021. The top five garlic exporters were China, Spain, Argentina, Netherlands, and France, which collectively earned 91.4% of the revenues from garlic sales on the international market. The main importers of garlic were Indonesia, Brazil, United States, Vietnam, and India. The demand for garlic is expected to grow as more people become aware of its health and culinary benefits.
2. Garlic is easy to grow and store
Garlic is a hardy crop that can grow in various climatic conditions and soil types. It requires minimal inputs and care, making it suitable for small-scale farmers and exporters. Garlic can also be stored for long periods without losing its quality or flavor. It can be dried, frozen, pickled, or processed into powder, paste, or oil.
3. Garlic has a high profit margin
Garlic is a low-cost crop that can yield high returns for exporters. According to the Mordor Intelligence website, the average price of garlic in 2020 was US$1.5 per kg. The production cost of garlic varies depending on the region and the method of cultivation, but it is generally much lower than the selling price. For example, in India, the production cost of garlic was around US$0.2 per kg in 2019. This means that exporters can earn a profit margin of over 600% by exporting garlic.
4. Garlic has a diverse market potential
Garlic can be exported as fresh, dried, or processed products to different markets and industries. Fresh garlic is mainly used for cooking and medicinal purposes, while dried garlic is used for seasoning and flavoring. Processed garlic products include powder, paste, oil, pickles, and sauces, which have various applications in the food and healthcare industries. Exporters can target different segments and niches according to their preferences and capabilities.
5. Garlic has a competitive advantage over other spices
Garlic has a unique taste and aroma that distinguishes it from other spices. It also has a long shelf life and can be transported easily without losing its quality or value. Moreover, garlic has a strong brand recognition and loyalty among consumers, who associate it with health and wellness. These factors give garlic an edge over other spices in the global market.
6. Garlic has a favorable trade policy and support system
Garlic export is supported by various trade policies and initiatives that facilitate its movement across borders. For example, the World Trade Organization (WTO) has reduced the tariffs and quotas on garlic trade among its member countries. The Food and Agriculture Organization (FAO) has also developed standards and guidelines for the quality and safety of garlic products. Additionally, there are many organizations and associations that provide technical assistance, market information, and networking opportunities for garlic exporters.
7. Garlic has a positive environmental and social impact
Garlic export not only generates income and employment for farmers and traders, but also contributes to environmental conservation and social development. Garlic cultivation helps to improve soil fertility, prevent soil erosion, and reduce pest infestation. Garlic consumption helps to prevent diseases, enhance immunity, and improve nutrition. Garlic export also promotes cultural exchange, cooperation, and friendship among countries.
Garlic Export: A Global Overview
Garlic is a widely used vegetable that belongs to the onion family. It has a strong taste and smell and is used in cooking to add flavor. It is also used in herbal products, such as pastes and medicines, for its health benefits. Garlic is a crop that can grow in a variety of climates, but it prefers temperatures ranging from 12 to 24 degrees Celsius.
The global garlic market size was valued at USD 525.17 million in 2023 and is expected to grow to USD 600 million by 2028, at a CAGR of 2.70%, according to Mordor Intelligence. The rising consumer demand for healthy convenience foods without compromising on their flavor and taste, coupled with the ability of garlic to remain shelf stable without altering its taste, drives its market growth.
Major Producers and Exporters of Garlic
The world’s largest producer and exporter of garlic is China, which accounted for 65.9% of the total garlic exports in 2021, according to World’s Top Exports. China produced 20.7 million metric tons of garlic in 2020, according to the Food and Agriculture Organization. China’s main export destinations for garlic include Indonesia, Malaysia, Brazil, Vietnam, and Pakistan.
The second-largest exporter of garlic is Spain, which accounted for 15.7% of the total garlic exports in 2021. Spain produced 282,000 metric tons of garlic in 2020. Spain’s main export destinations for garlic include France, Germany, Italy, United Kingdom, and Brazil.
The third-largest exporter of garlic is Argentina, which accounted for 4.8% of the total garlic exports in 2021. Argentina produced 140,000 metric tons of garlic in 2020. Argentina’s main export destination for garlic is Brazil, which imported USD 109 million worth of garlic from Argentina in 2021.
Other notable exporters of garlic include the Netherlands, France, Chile, Italy, Mexico, Egypt, Peru, United States, Iran, Malaysia, Turkey, and Germany.
Trends and Challenges in the Garlic Export Industry
The garlic export industry is influenced by various factors, such as consumer preferences, production costs, climatic conditions, trade policies, and market competition. Some of the trends and challenges that affect the industry are:
- The increasing demand for processed garlic products, such as powder, paste, oil, and extract, due to their varied applications in the food and healthcare industries. These products offer convenience and longer shelf life to consumers and create value addition for producers and exporters.
- The fluctuation in the price of garlic owing to various climatic and political factors. For example, in 2019-2020, the price of garlic increased significantly due to reduced supply from China caused by unfavorable weather conditions and the COVID-19 pandemic. However, in 2021-2022, the price of garlic decreased due to increased supply from China and other countries as well as lower demand from some markets affected by the pandemic.
- The emergence of new markets and opportunities for garlic exporters. For example, some African countries have shown a growing interest in importing garlic from China and other countries due to their rising consumption and domestic production gap. Some Asian countries have also increased their imports of garlic from China due to their lower tariffs under the Regional Comprehensive Economic Partnership (RCEP) agreement.
- The competition from other garlic-producing countries that offer lower prices or higher quality. For example, some European countries have increased their production of organic garlic to cater to the growing demand from health-conscious consumers. Some Latin American countries have also improved their production efficiency and quality standards to compete with China and other exporters.
References:
http://www.fao.org/faostat/en/#data/QC/
http://www.fao.org/faostat/en/#data/QC
https://books.google.com/books?id=6AB89RHV9ucC&pg=PA24
https://www.worldstopexports.com/top-garlic-exports-by-country/
https://www.mordorintelligence.com/industry-reports/global-garlic-market
https://trendeconomy.com/data/commodity_h2/070320
https://www.mordorintelligence.com/industry-reports/global-garlic-market
https://connect2india.com/global/export-Garlic-from-india
https://pisumfoods.com/spices/garlic
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