Global Market Update: Lemons and Limes

Published 2019년 8월 23일

The total exported value in 2018 was 3.6 billion USD, with a yearly growth of 7% between 2014 and 2018. Lemons originated around the 1st century AD in Asia, after which they became popular all over the world. There are many different cultivars and varieties, with the most popular ones being Meyer lemons, which are very sweet, and Eureka lemons, which is the most common lemon in the world.

The 6-digit Harmonized Tariff System code prefix for Lemons and Limes is 080550.

Price

Lemons are an inelastic product: the demand does not show strong changes when the price changes. However, due to a large supply this season, lemons prices have dropped significantly everywhere but Australia. In Australia, there is a shortage of supply, sending the prices up from approximately 4 USD per kg to 9 USD per kg. As of August 23, the average wholesale price of lemons is 1.10 USD/kg.

As of August 23, the global average wholesale price of limes is 1.48 USD/kg.

Production

In 2017, the total production of lemons and limes was around 17 million tons. The top lemon and limes producing countries in 2017 were:

Mexico (2.5 million tons)
India (2.4 million tons)
China(2.4 million tons)
Argentina (1.7 million tons)
Brazil (1.3 million tons)

Spain, the largest supplier to Europe, produced 923.2K tons and the United States produced 803.8K tons. The total production of lemons has risen by 15% over the last 5 years.

Supply and Demand

Demand has been rising slowly over the last few years, as lemons have become a popular ingredient in many kitchens. The supply is very dependent on weather conditions: heatwaves or cold snaps can severely affect the supply of lemons. The European market is showing the first signs of demand saturation. In the United States, the supply has risen by 10% to 20% compared to 2018.

Export

In 2018, the total value exported was $3.6 billion USD. The total quantity exported was 3.5 million tons, and the exported value grew by 7%. The main exporters in 2018 were:

Spain (833.0 million USD, 22.9%)
Mexico (552.1 million USD, 15.2%)
Turkey (329.7 million USD, 9.1%)
Netherlands (326.3 million USD, 9%)
South Africa (269.5 million USD, 7.4%)

Export value grew in all these countries, except for Spain, where it decreased by 1%, and South Africa, where it decreased by 8%. Over the last 10 years, the total export value has increased significantly.

Import

In 2018, the total value imported was 4.0 billion USD. The total quantity imported was 3.5 million tons, with total value growth of 10% compared to 2017. The main importers were:

USA (651.5 million USD, 16.2%)
Germany (367.5 million USD, 9.1%)
Netherlands (292.2 million USD, 7.3%)
France (269.4 million USD, 6.7%)
United Kingdom (195.9 million USD, 4.9%)

Import value grew in all countries, similarly to export value.

Trends

Spain and European Saturation

The European market for lemons is becoming saturated. With plentiful supply, not only from Spain but also from Italy, demand is slowly starting to level out. Argentina is a new big player in the European market and the Netherlands has started importing more from this country. The demand for Spanish lemons is no longer increasing, causing Spain to look for alternative markets. In other parts of the world, such as Canada, Brazil, and the Middle East, the demand for Spanish lemons is still rising. Spain is also looking into exporting to Asia. There is a high demand for lemons in China, Japan and Vietnam but as of yet, no trade deal has been made.

New Demand Trends

Over a decade ago, lemons were mainly used as ingredients in processed products, such as candy, lemon juice, lemon pulp, baked goods, etc. However, many exporters see the demand and thus export of fresh lemons rising. Furthermore, the demand for organic lemons is also rising.