Chia Seeds from Mexico Turning to Asia for Future Opportunities

Chia seeds are edible seeds native to Central America. They are used in desserts, smoothies, breakfast cereals, bread, snacks, and many other products. Chia seeds are rich in omega-3 fatty acids, protein, fiber, vitamins, and minerals. Due to its nutritious properties, chia seeds have become a staple commodity in a gluten-free and vegan diet. The global chia seed market was valued at around 66.5 million USD in 2018 and is projected to grow at a CAGR of 5.8% to around 88.1 million USD by 2024. The growth is mainly attributed to changing consumer trends towards healthier foods and endorsements from celebrities such as Miranda Kerr and Jessica Alba.

In 2009, the European Union recognized chia seed as a Novel Food, meaning that the product has not been consumed to a significant degree by humans in the EU before 15 May 1997, and approved the product to be marketed in the EU. Since the emergence of chia seeds in the EU in 2009, the annual import volume and value has been increasing rapidly. However, the import volume and value in the EU peaked in 2017 at 19.2K tons and 42.9 million USD and have been decreasing ever since. In 2018, the import volume decreased to 17.9K metric tons and the import value also decreased to 39.7 million EUR. As the European market is becoming saturated, many exporters are looking for new markets such as Asia.

Although the European chia seed market has matured, the global market value of chia seeds is still expected to increase and there still are promising opportunities for chia seed exporters. For many chia seed exporters, Asia seems to be the next target market. Unlike Europe’s saturated chia seed market, the Asian market is still in its developing stages. More and more Asian consumers are becoming health conscious and are starting to eat healthy “superfoods” such as chia seeds. According to Google Trends, of the top 5 countries with the highest proportions of search queries containing the words “chia seed,” 4 of them are Asian countries: Malaysia, Singapore, Indonesia, and Thailand.

The main target markets for Metztli, a Mexican chia seed exporter,  are Asian countries such as China, Japan, South Korea, and Vietnam. The company competes in these markets with superior quality. According to Astrid Ocon Santoscoy, export manager at Metztli, the company’s chia seeds are higher quality than chia seeds from other producing countries because the soil is sodium-free and high in nutrients. To make the soil more nutritious for chia seeds, the company applies organic pre-foliar potassium which contains 10% nitrogen, 10% phosphorus, and 30% potassium.

The EXW price of Metztli’s chia seeds is 2.95 USD per kg and the FOB price is 3.05 USD per kg for an order of 20 tons. To compensate for the higher quality and production cost, the company’s price is slightly higher than the prices of its competitors from Paraguay, Bolivia, Argentina, and Peru.

In addition, Mexico has a first-mover advantage in China because Mexico is the only country that is currently allowed to export chia seeds to China, whereas the other major chia seed producing countries such as Paraguay, Bolivia, Argentina, Peru, Mexico, and Uganda cannot. Having a big market presence in China can help Mexican chia seed exporters expand to other Asian countries.