Global Market Update: Sesame Seed

Published 2019년 9월 25일

Sesame seed is one of the oldest oilseed crops, domesticated over 3000 years ago. Sesame has one of the highest oil contents of any seed and with a rich, nutty flavor, it is a common ingredient in cuisines across the world. Sesame seed is also used to make sesame oil, which is used as a cooking oil or flavor enhancer in many cuisines.

The 6-digit Harmonized Tariff System code prefix for sesame seed is 120740.

Price

The average wholesale price as of September 24, 2019, is 2.51 USD per kg. The price of sesame seed varies significantly depending on the country of origin. For example, the price of sesame seed per kg in South Korea is around 9.06 USD, 2.70 USD in Russia, 1.52 USD in India, and 0.43 USD in Bangladesh. Sesame seed has annual price volatility of around 25% to 30%, which is mainly due to the supply issues.

Production

Sesame seed is mainly produced in the regions of South Asia and Africa. The global production volume has been steadily increasing over the last decade. Around 5.5 million tons of sesame seeds were produced in 2017, according to FAO. The top 5 producing countries in 2017 were:

Tanzania (805.7K tons)
Myanmar (764.3K tons)
India (751K tons)
Nigeria (550K tons)
Sudan (550K tons)

Supply and Demand

Global consumers in 2019 prefer a commodity that is high in nutritional value and has a low market price. Sesame seeds fit these requirements perfectly, and hence, the demand for sesame seeds is on the rise. The global sesame seeds market demand was valued at 12.07 USD billion in 2017 and is projected to grow with a CAGR of 4.9% from 2017 to 2025.

The growth in sesame demand is mainly driven by 4 factors. First, is the increasing consumer trends towards healthy eating: sesame is one of the main oil and protein sources in vegan, gluten-free, and other plant-based diets. Second, the pharmaceutical and cosmetics industry is demanding more sesame seeds due to their high antioxidant content. Third, more sesame is being consumed globally due to the growing population in Asian and African countries. Finally, the increasing popularity of Asian and African cuisine in Western countries has led to a surge in sesame demand in Europe and the Americas.

Export

In 2018, the global export volume of sesame seeds was 2.3 million tons valued at 3.1 billion USD. The top 5 exporting countries in terms of export value were:

Sudan (621.1 million USD, 20.0%)
India (530.7 million USD, 17.1%)
Nigeria (349.5 million USD, 11.3%)
Myanmar (246.6 million USD, 8.0%)
Tanzania (167.6 million USD, 5.4%)

Import

In 2018, the global import volume of sesame seed was 2.2 million tons valued at 3.0 billion USD. The top 5 importing countries in terms of export value were:

China (1.1 billion USD, 36.7%)
Japan (213.7 million USD, 7.1%)
Turkey (198.1 million USD, 6.6%)
South Korea (123.3 million USD, 4.1%)
Vietnam (107.5 million USD, 3.6%)

Trends

Tanzania Increasing Production Volume

A new crop season has started around May and June 2019. There were low carryforward stocks from the last production season due to high exports. Tanzania has become the leading sesame producing countries due to favorable government policies encouraging the production of sesame.

Poor Weather Condition Decreases Indian Supply

In 2019, Indian sesame seed export is expected to decrease by 10% to 15%. India’s sesame seed production for the current 2018/19 season is expected to be around 178K metric tons, forecasts IOPEPC. The main cause of this reduction is less monsoon rain during 2018. The 2020 Indian sesame seed production is also expected to be lower than the past averages due to a combination of drought and flood during the monsoon reason. To maintain the sesame hulling factories, India will most likely have to import sesame from Africa.

In addition, due to the low sesame seed volume in India, a major global supplier, importers from all across the world are turning towards alternative markets in Africa such as Sudan, Ethiopia, Tanzania, and Nigeria.