A Positive Tomato Paste Season Concludes, Driven by Rising Demand and Shifting Consumer Habits

Tomato Paste and Puree

Published Dec 22, 2022

Tomato paste continues to be the chef's trusted ingredient and a significant part of home-cooked meals around the world. In the past decade, global consumption has grown from 29 million mt to over 37 million mt, a 28% increase. Major industry players such as China and Chile capitalised on this growing demand. China continued its trend of steady export growth, shipping most of its 883,640 mt of tomato paste to Indonesia, India, and the Philippines. This volume was 51,229 mt more than the previous year and 12,300 mt above the previous three-year average. Earlier on in the year, tomato production in Europe was interrupted due to rising energy costs and drier weather conditions. Production in major supplier countries, Portugal, Spain, and Italy was impeded. Another country that increased production in 2022 is the USA. The US exported 322,958 mt of tomato paste this year, a slight increase of 3.6% from last year due to late-season rains and good water management aiding production despite another dry year.

Tomato paste continues to be the chef's trusted ingredient and a significant part of home-cooked meals around the world. In the past decade, global consumption has grown from 29 million mt to over 37 million mt, a 28% increase. A shift in consumer preference towards packaged convenience meals has driven global demand for tomato paste. Furthermore, the increased application of tomato paste in food processing industries, including baby food, bakery products, and beverages, have propelled the global market forward. Consequently, in the 2021-22 season, global exports of tomato paste amounted to 3.5 million mt, over 6% more than the previous three-year average, and are forecast to increase at a CAGR of 5% over the next five years.

Source: Trade Data Monitor

Major industry players such as China and Chile capitalised on this growing demand. China continued its trend of steady export growth, shipping most of its 883,640 mt of tomato paste to Indonesia, India, and the Philippines. This volume was 51,229 mt more than the previous year and 12,300 mt above the previous three-year average. Chile exported 157,492 mt of tomato paste over the past twelve months, 9,260 more than last year, most of which went to Guatemala and Vietnam.

Earlier on in the year, tomato production in Europe was interrupted due to rising energy costs and drier weather conditions. Production in major supplier countries, Portugal, Spain, and Italy was impeded. Turkish exporters snapped up the opportunity and increased their production of tomato puree. The transcontinental country shipped 300,496 mt of tomato paste this year, 51% more than in 2021 and an increase of 83% compared to the previous three-year average. In September, Turkish shipments peaked at 41,102 mt, 11,431 mt more than last year, prompting the Turkish government to contemplate placing an export ban on tomato products to maintain domestic supply and ensure price stability in the domestic market.

Another country that increased production in 2022 is the USA. The US exported 322,958 mt of tomato paste this year, a slight increase of 3.6% from last year due to late-season rains and good water management aiding production despite another dry year. In 2023, a fourth consecutive year of drought is expected in the Golden State, the country’s tomato production hub. However, the impact could be short-lived as analysts from the California State Board of Food and Agriculture expect it to be a drought-ending season.

The usage of tomato paste in clean and organic label foods is set to drive exports in the coming year. Furthermore, robust demand from an expanding health-conscious consumer base favouring tomato paste as a healthy natural ingredient could contribute to the continued expansion of the market in the near future.