Turkey Emerges as the Largest Producer of Tomatoes in the Middle East

IndexBox has just published a new report: 'Middle East - Tomatoes - Market Analysis, Forecast, Size, Trends and Insights'. Here is a summary of the report's key findings.

The revenue of the tomato market in the Middle East amounted to $18.6B in 2018, declining by -8.5% 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 +1.6% from 2007 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations being observed throughout the analyzed period. The pace of growth appeared the most rapid in 2017 with an increase of 25% against the previous year. In that year, the tomato market attained its peak level of $20.3B, and then declined slightly in the following year.

Consumption by Country

The countries with the highest volumes of tomato consumption in 2018 were Turkey (12M tons), Iran (6.5M tons) and Syrian Arab Republic (658K tons), together accounting for 86% of total consumption. Jordan, Saudi Arabia, Israel and Iraq lagged somewhat behind, together comprising a further 7.9%.

From 2007 to 2018, the most notable rate of growth in terms of tomato consumption, amongst the main consuming countries, was attained by Jordan, while tomato consumption for the other leaders experienced more modest paces of growth.

In value terms, the largest tomato markets in the Middle East were Turkey ($10.5B), Iran ($5.3B) and Israel ($559M), with a combined 88% share of the total market. These countries were followed by Iraq, Jordan, Syrian Arab Republic and Saudi Arabia, which together accounted for a further 6.4%.

The countries with the highest levels of tomato per capita consumption in 2018 were Turkey (144 kg per person), Iran (79 kg per person) and Jordan (57 kg per person).

Market Forecast to 2030

Driven by increasing demand for tomato in the Middle East, the market is expected to continue an upward consumption trend over the next decade. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.6% for the period from 2018 to 2030, which is projected to bring the market volume to 27M tons by the end of 2030.

Production in the Middle East

The tomato production stood at 22.2M tons in 2018, remaining constant against the previous year. In general, tomato production continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2009 when production volume increased by 5.3% year-to-year.

In value terms, tomato production stood at $19.8B in 2018 estimated in export prices. The total output value increased at an average annual rate of +1.6% from 2007 to 2018; the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The most prominent rate of growth was recorded in 2017 with an increase of 36% y-o-y. In that year, tomato production attained its peak level of $21.5B, and then declined slightly in the following year.

Production by Country

The countries with the highest volumes of tomato production in 2018 were Turkey (12M tons) and Iran (6.6M tons), with a combined 84% share of total production.

Harvested Area in the Middle East

In 2018, approx. 415K ha of tomatoes were harvested in the Middle East; standing approx. at the previous year. Over the period under review, the tomato harvested area continues to indicate a mild curtailment. The pace of growth was the most pronounced in 2008 with an increase of 4% y-o-y. In that year, the tomato harvested area reached its peak level of 493K ha. From 2009 to 2018, the growth of the tomato harvested area remained at a lower figure.

Yield in the Middle East

In 2018, the average yield of tomatoes in the Middle East stood at 53 ton per ha, stabilizing at the previous year. The yield figure increased at an average annual rate of +2.1% from 2007 to 2018; the trend pattern remained consistent, with only minor fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2009 with an increase of 7.2% year-to-year. The level of tomato yield peaked in 2018 and is likely to continue its growth in the near future.

Exports in the Middle East

In 2018, the exports of tomatoes in the Middle East stood at 782K tons, rising by 14% against the previous year. In value terms, tomato exports amounted to $618M (IndexBox estimates) in 2018.

Exports by Country

Turkey (379K tons) and Jordan (258K tons) represented roughly 81% of total exports of tomatoes in 2018. It was distantly followed by Iran (84K tons), committing an 11% share of total exports. Syrian Arab Republic (32K tons) followed a long way behind the leaders.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by Iran, while exports for the other leaders experienced mixed trends in the exports figures.

In value terms, Turkey ($339M) remains the largest tomato supplier in the Middle East, comprising 55% of total tomato exports. The second position in the ranking was occupied by Jordan ($168M), with a 27% share of total exports. It was followed by Iran, with a 12% share.

In Turkey, tomato exports increased at an average annual rate of +1.2% over the period from 2007-2018. In the other countries, the average annual rates were as follows: Jordan (-0.4% per year) and Iran (+33.5% per year).

Export Prices by Country

The tomato export price in the Middle East stood at $791 per ton in 2018, leveling off at the previous year.

There were significant differences in the average prices amongst the major exporting countries. In 2018, the country with the highest price was Iran ($913 per ton), while Syrian Arab Republic ($463 per ton) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Jordan, while the other leaders experienced more modest paces of growth.

Imports in the Middle East

In 2018, the tomato imports in the Middle East totaled 602K tons, jumping by 6.9% against the previous year. In value terms, tomato imports amounted to $366M (IndexBox estimates) in 2018.

Imports by Country

Saudi Arabia (155K tons) and the United Arab Emirates (143K tons) represented roughly 50% of total imports of tomatoes in 2018. Kuwait (68K tons) took the next position in the ranking, followed by Iraq (67K tons), Qatar (49K tons), Oman (32K tons), Israel (31K tons) and Bahrain (31K tons). All these countries together accounted for a 46% share of total imports.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Israel, while imports for the other leaders experienced more modest paces of growth.

In value terms, Saudi Arabia ($98M), the United Arab Emirates ($86M) and Kuwait ($49M) constituted the countries with the highest levels of imports in 2018, together accounting for 64% of total imports. Qatar, Iraq, Israel, Oman and Bahrain lagged somewhat behind, together accounting for a further 32%.

In terms of the main importing countries, Oman recorded the highest rates of growth with regard to the value of imports, over the period under review, while imports for the other leaders experienced more modest paces of growth.

Import Prices by Country

The tomato import price in the Middle East stood at $608 per ton in 2018, reducing by -13.2% against the previous year.

Prices varied noticeably by the country of destination; the country with the highest price was Israel ($725 per ton), while Iraq ($369 per ton) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by the United Arab Emirates.

Source: IndexBox Market Intelligence Platform