Exporting dried ginger to Europe

Europe is a potential market for dry ginger exporters. Demand is predicted to increase in the coming years and prices are also rising.

China is currently the main supplier of both ground / ground or ground / ground ginger to Europe. This is also the biggest competitor of Vietnamese exporters in this market.

Ginger is commonly grown in tropical regions. Major producing countries include China, India, Nigeria and Peru. Ginger is mainly used in recipes of the East and India, in baking and sweets, and in wine making …

Europe – Potential market for dried ginger

World consumption of ginger is on the rise. The global ginger market in general and Europe in particular is expected to increase significantly at least until 2020.

In the European market, in 2016 the total volume of imported dried ginger reached 154 thousand tons. Since 2012, the import value of ginger has increased about 16% per year, the import volume has increased by about 12% per year.

Due to the decline in global ginger supply since early 2015, demand for ginger outstrips global ginger supplies. Due to the large quantity of ginger purchased by some companies, this leads to a shortage of ginger in the Chinese market and an increase in selling prices.

In 2015, 73% of the total EU imports of ginger were imported directly from developing countries. Chart 1 below does not include non-EU countries or non-developing countries.

In 2015, these countries only accounted for about 0.7% of the total amount of imported ginger in Europe. As ginger is not produced in Europe, the European ginger supply shown in the Figure below is based on the amount of re-exports.

The amount of re-exported from Europe accounted for 27% of the total imported ginger in 2015.

The European ginger market is growing, providing opportunities for Vietnamese ginger exporters. Buyers are willing to invest in long term or supplier partnerships to ensure an efficient supply of ginger.

Figure 1: Ginger imports in Europe, 2011 – 2015

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Therefore, Vietnamese ginger exporters should also consider establishing long-term commercial relationships with buyers.Enterprises need to show that they can ensure a stable supply of ginger, meet food hygiene and safety and product quality requirements.

The Netherlands, UK and Germany are the most potential markets for dried ginger. Figures 2 and 3 below show the top European importers of dried gingerand how these countries consume (by calculating imports minus exports).

You should note that the figures in these tables are only an indicator of the European ginger market and may include both industrial and personal consumption.

Actual consumption figures may vary, due to issues such as long-term inventory and informal trade. In addition, consumption may include the use of ginger in the processing industry

This consumption can be huge, as a large portion of ginger is used in the industry (e.g., bakery products such as gingerbreads and cookies,Asian food products and various drinks such as ginger ale and ginger beer). The tables below show the most potential European markets for ginger including the Netherlands, UK and Germany.

Figure 2: Top ginger importing countries in Europe, 2011 – 2015

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Figure 3: Ginger consumption per capita in top importing countries, 2011 – 2015

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Vietnamese ginger exporters can consider the following potential markets in the EU:

The Netherlands is the largest importer and trader of ginger in Europe. The country’s imports increased by about 16% per year in volume from 2011 to 2015.

In 2015, 97% of imported ginger from the Netherlands came from developing countries. The country has a high per capita consumption of ginger, but it is relatively unstable.

This instability is due to the fact that the country plays an important role as a hub of intra-European trade, since consumption is calculated here by subtracting exports from imports.

Although consumption is not stable, ginger re-exports have also changed dramatically over the years and could affect ginger consumption.

– The UK imports up to 94% of ginger from developing countries, which can also be a potential market for Vietnamese ginger exporters.

The country is also the second largest importer of ginger in Europe, possibly due to the large number of Asians living in the country.

Its per capita consumption is much higher than the European average. This number was stable from 2011 to 2015, and increased slightly from 2014 to 2015.

Germany is the third largest importer of ginger. The country’s total imports have grown by an average of 6.3% since 2011. German per capita consumption is slightly higher than the European average.

France is a major importer of ginger and the import volume has been relatively stable in recent years. Total French imports have increased by 9% in volume terms since 2011. In 2015, the country’s import volume of ginger reached 5 thousand tons.

Italy is an important trade hub for ginger. Since 2011, the volume of Italian ginger imports has increased significantly with an average annual increase of 20%.

Denmark is rapidly increasing its ginger imports. Although in 2015, the country imported only 2.5 thousand tons, but the average annual growth rate in volume has been 28% since 2011. Imports from developing countries increased 23% during the same period. In 2015, 60% of Danish imported ginger was imported directly from developing countries.

Many other smaller importers are also increasing their imports of ginger directly from developing countries over the years. Examples are Belgium (growing 29% annually), Switzerland (55%) and Greece (43%).

Vietnamese businesses should spend their resources participating in trade shows to find out if the market is open to your products, gather market information and find potential customers.

Some of the relevant trade shows in Europe include Food Ingredients Europe (http://www.foodingredientsglobal.com/), Biofach (http://www.biofach.de/en) and SIAL (http: / /www.sialparis.com/).

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