Global Tomato Market: Increasing Popularity of Western-Style Fast Food In Asia To Buoy Market Growth

IndexBox has just published a new report "World - Tomato - Market Analysis, Forecast, Size, Trends and Insights". Here is a summary of the report's key findings.

The global tomato market revenue amounted to $228B in 2017, surging by 12% 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). The market value increased at an average annual rate of +3.7% over the period from 2007 to 2017; the trend pattern indicated some noticeable fluctuations in certain years. The pace of growth was the most pronounced in 2011, with an increase of 14% y-o-y. Global tomato consumption peaked in 2017, and is expected to retain its growth in the near future.

Tomatoes can be classed as one of the most important crops in the world, as a result of robust demand. Tomatoes are consumed in two main segments, in their fresh form and in their processed form, as tomato paste and other canned tomato products. Despite the fact that these two segments shape the demand for tomatoes as a product overall, each sector is developing in different ways: consumer segment growth is being generated by the requirements or demand in the processing segment; demand for tomato paste is set to be a tangible driving force on the tomato market.

In 2017, the global consumption of tomatoes amounted to 183M tonnes (IndexBox estimate), increasing by 3.1% against the previous year. The total consumption volume increased at an average annual rate of +2.9% over the period from 2007 to 2017; the trend pattern remained consistent, with somewhat noticeable fluctuations being observed over the period under review. The pace of growth appeared the most rapid in 2009, with an increase of 8.6% from the previous year. Over the period under review, global tomato consumption attained its maximum volume in 2017, and is likely to continue its growth in the near future.

The U.S., China and India Remain The Largest Tomato Consumers Worldwide

The country with the largest volume of tomato consumption was China (59M tonnes), accounting for 32% of total consumption. Moreover, tomato consumption in China exceeded the figures recorded by the world's second largest consumer, India (19M tonnes), threefold. The third position in this ranking was occupied by the U.S. (14M tonnes), with a 7.8% share.

From 2007 to 2017, the average annual rate of growth in terms of the volume of tomato consumption in China stood at +5.1%. The remaining consuming countries recorded the following average annual rates of consumption: India (+6.9% per year) and the U.S. (-0.5% per year).

As forecasted by IndexBox, China, India and the USA remain key consumers of tomatoes. Per capita incomes are expected to grow by around 8% in China with an increasing middle class. Given the ongoing process of urbanization, the above mentioned trend of the increasing popularity of western-type fast-food is particularly substantial for food market in China, thereby to a large extent sharpening the demand for tomatoes. In India, this is also a factor, along with a large and growing population and their incomes.

In the U.S., tomatoes remain a very popular product, with the main drivers of market growth being the popularity of tomato sauces and barbecues within the American cuisine, and the growing consumption of fast food, where tomato paste and ketchup are used widely. On the other hand, the increased attention to health and the environment is also generating interest in organically produced tomatoes. The tomato processing industry in the U.S. also will remain strong, driven by not only domestic, but also global demand. Thus, tomato consumption in the U.S. is to be shaped by population growth, not to mention a surge of new immigrants who eat vegetable-intensive diets.

Global Tomato Consumption Is To Continue Robust Growth

Since tomatoes are an established and popular product, there are currently no evident prerequisites for a change in consumer preferences. In this case, population growth and increases in household income are set to be key impetus factors with regard to the further expansion of the global tomato market. In addition, improvements in tomato harvesting and storage technology, combined with the establishment of more effective distribution networks will reduce crop losses and increase consumption.

Moreover, the processing segment will also continue to make a significant contribution to the further expansion of the tomato market. Tomato sauces remain a staple of global cuisine. It is forecast, therefore, that demand for tomato paste will remain steady, thereby supporting the tomato processing sector. Demand for processed tomatoes will increase in the traditional regions and countries of consumption, such as the USA, Canada and Europe, as well as in Asia. As a result of the rapid urbanisation process and the increasing popularity of Western-style cuisine and fast food in Asia, the ongoing use of both fresh and processed tomatoes for sandwiches, pizza and other products in "fast food" establishments should promote the growth of the tomato market.

Driven by increasing demand for tomatoes worldwide, the market is expected to continue an upward consumption trend over the next eight year period. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +2.2% for the eight-year period from 2017 to 2025, which is projected to bring the market volume to 218M tonnes by the end of 2025.

Do you want to know more about global tomato market? Get the latest trends and insight from our report. It includes a wide range of statistics on:

• tomato market share
• tomato prices
• tomato industry
• tomato sales
• tomato import
• tomato export
• tomato market forecast
• tomato price forecast
• key tomato producers

All data provided in this article covers the following product: HS 0702 - Tomatoes.

Source: IndexBox AI Platform