Europe has become a much more interesting market for exporters of dried ginger (kion), as the demand is expected to continue increasing in the following years (at least until 2020) with relatively stable prices. This is the opinion of the Center for the Promotion of Imports from Developing Countries (CBI).
In a recent report, the institution points to China as Europe's main supplier of ground ginger and considers it the most serious competitor for emerging economies, such as Peru; a country that is a well-known producer, just like India and Nigeria.
European consumers mostly use this product to prepare oriental and Indian food, as well as confectionery and bakery products, and even liqueurs.
The study, which focuses on dried and whole dried ginger, says that European imports of dried ginger reached 160 thousand tons in 2017. "Since 2013, the import volume has increased by 12% per year. The import value grew in the same period by 13% per year, reaching 250 million Euro in 2017," he explains.
He adds that last year, more than 70% of imports came directly from developing countries. It is also worth noting that ginger cannot be produced in Europe.
The three markets that the CBI identifies as the most attractive to exporters are the Netherlands, the United Kingdom and Germany.
In fact, the Netherlands is the largest importer and marketer of ginger in Europe, and its imports have grown significantly in terms of volume, at a rate of 13% per year between 2013 and 2017. This market has a high and relatively stable per capita consumption.
For its part, the United Kingdom gets 93% of its ginger from developing countries and is the second largest importer in Europe, which may be explained by the substantial population of Asian descent. Also, its per capita consumption is significantly higher than the European average and has been increasing slightly since 2014.
Meanwhile, Germany is Europe's third largest importer of ginger, with a volume that is growing by 14% annually since 2013. Its consumption per capita is slightly higher than the European average.
According to the document, other markets of interest in this region are France, Italy and Spain, and there are some smaller buyers, such as Portugal, Austria, Sweden and Poland, which are increasing their imports from developing countries.
The CBI says that Peru was Europe's largest supplier of whole dried ginger in 2017 (excluding China), way ahead of Brazil, Nigeria and Thailand.
"Many countries have increased their exports of ground ginger to Europe. Between 2013 and 2017, Peruvian exports to Europe grew from 1.4 tons to 285 tons (+280% per year), while Indonesian shipments increased by 45%, Thailand's by 26% and Burkina Faso's by 280%," highlights the CBI.
Another factor driving the demand for dry ginger is the search for healthier ingredients, as consumers perceive that ingredients such as salt, sugar and synthetic additives are unhealthy. These products are being increasingly replaced by others that add flavor, such as spices and herbs.
Lastly, the CBI considers that although countries such as the United Kingdom, the Netherlands and Germany show a special concern for sustainable production, which causes some buyers to demand specific certifications (organic, fair trade, etc.,), this type of ginger is still considered a niche product and accounts for a small share of the total European import. Also, in the current market, most buyers are not yet willing to pay more for certified products. In any case, if a producer decides to certify their crops, the most interesting market is the United Kingdom.
Source: agraria.pe
