Analysis of Ginger Market Trends in Europe: Peru’s Decline and Opportunities

Peru has lost around 80% of its ginger market share in Europe this year. Ralf Settels from Jiahe Food Europe GmbH highlighted challenges such as quality issues and decreased sourcing alternatives. Despite these challenges, demand for ginger remains stable in Europe. The company has also seen growth in sweet potatoes from Portugal, indicating overall successful sales in 2024.

This year, Peru has experienced a substantial decline in its market share for ginger in Europe, losing approximately 80 percent. Ralf Settels, managing director of Jiahe Food Europe GmbH, stated that while demand for ginger remains stable after Carnival, fluctuating weather conditions could lead to a significant drop in sales. Challenges have emerged in procurement, particularly due to quality issues with the recent Chinese ginger harvest, which has experienced delays leading to longer transit times.

Settels elaborated that the young ginger from China, harvested without skin, is proving to be more delicate than older varieties. Initially, prices were low, but adjustments were necessary due to reduced yields and increased processing costs, which have stabilized prices recently. In addition, as supplies from Peru diminish, many European customers have shifted to purchasing larger-sized Chinese tubers, significantly reducing demand for Peru’s ginger. Settels noted that demand for ginger is expected to remain steady until early 2024, with an early season closure anticipated due to slow sales.

The options for sourcing ginger from alternative countries remain limited, as Thai ginger does not meet European quality standards, and Brazil’s output finishes by December. Settels pointed out that ginger from Nigeria and Ghana is smaller in size, while South African produce primarily serves the domestic market. Despite challenges, ginger and turmeric consumption remains high in Germany and Europe since the pandemic.

Jiahe Food Europe GmbH is also focused on importing organic sweet potatoes and has ceased collaborations with Israel and Spain, favoring Portuguese sources. The first conventional sweet potatoes from Portugal have arrived, likely available until late May before transitioning to South African goods. High prices driven by reduced availability from the USA have been noted, with a recent increase in prices in March.

Overall, the management of Jiahe Food Europe GmbH perceives 2024 as a successful year, showcasing growth across all product areas and the acquisition of new customers in both industrial and fresh food sectors.

Peru’s ginger market share in Europe has drastically decreased by approximately 80% this year, driven by inferior quality and competition from larger Chinese products. While demand for ginger and turmeric remains stable, the search for alternative sourcing countries yields limited options. Jiahe Food Europe GmbH reports successful sales growth across all product areas during 2024, particularly with organic sweet potatoes from Portugal.

Original Source: www.freshplaza.com