Clove Market Softens Amid Shifting Demand and Global Factors
The clove market is witnessing a shift as demand experiences a decline. A 20-50 percent surge in the prices of various spices in the local market has set the stage for potential bearish trends in the coming weeks. The recent arrival of the new crop in major clove-producing regions such as Indonesia, Comoros, and Zanzibar brings about fresh dynamics in the industry. Madagascar, a significant player in clove production, is poised for a major crop of 18,000-20,000 tonnes, with its harvest expected to grace the markets in November and December. Indonesia, which usually yields around a million tons in August, faces a 50-60 thousand tonnes reduction in this year's harvest.
Importing the coveted Lalpari Cardamom variety from Indonesia is already underway. Indonesia's clove production finds its stronghold in Sulawesi, an island renowned for yielding quality clove of around 10,000 tonnes. This year's imports from Sulawesi have commenced as well. To enhance their allure, green cloves are boiled to imbue them with attractiveness. Zanzibar contributes approximately 5,000 tons to the global clove market, while Comoros faces a yield deficit of 3,000-3,500 tonnes compared to projections.
Market dynamics indicate that the coming months may see subdued clove trading due to various factors. Rising local spice market prices, a prevalent cash crunch, the potential for a bumper crop from Madagascar, and changing attitudes towards cigarettes among the current generation collectively shape the trajectory of the clove market. With cigarette manufacturers focusing on tobacco purchases in the months ahead, the immediate future of the clove industry holds nuances of uncertainty and adaptation.
As the global spice landscape undergoes transformations driven by consumer preferences, market forces, and diverse factors, the clove trade navigates a complex journey characterized by shifts in demand and evolving industry dynamics. Thus, according to experts, clove softens despite low production.
Importing the coveted Lalpari Cardamom variety from Indonesia is already underway. Indonesia's clove production finds its stronghold in Sulawesi, an island renowned for yielding quality clove of around 10,000 tonnes. This year's imports from Sulawesi have commenced as well. To enhance their allure, green cloves are boiled to imbue them with attractiveness. Zanzibar contributes approximately 5,000 tons to the global clove market, while Comoros faces a yield deficit of 3,000-3,500 tonnes compared to projections.
Market dynamics indicate that the coming months may see subdued clove trading due to various factors. Rising local spice market prices, a prevalent cash crunch, the potential for a bumper crop from Madagascar, and changing attitudes towards cigarettes among the current generation collectively shape the trajectory of the clove market. With cigarette manufacturers focusing on tobacco purchases in the months ahead, the immediate future of the clove industry holds nuances of uncertainty and adaptation.
As the global spice landscape undergoes transformations driven by consumer preferences, market forces, and diverse factors, the clove trade navigates a complex journey characterized by shifts in demand and evolving industry dynamics. Thus, according to experts, clove softens despite low production.