Global Ginger Market Faces Shifting Dynamics as Production Rises Amid Quality Concerns

Peru’s Ginger Output Set to Rebound, but Quality Issues Loom

Peru is anticipating a 40-70% surge in ginger production this year, marking a recovery from last year’s supply shortages. However, industry experts warn that plant diseases could compromise quality, potentially limiting export opportunities. While shipments to the U.S. remain strong, Peru’s market share in Europe has declined, with Brazil and China emerging as fierce competitors in the global ginger trade.

Brazil Gains Edge in U.S. Market with Efficient Supply Chain

Brazilian ginger exporters are making inroads in the U.S. market, leveraging shorter shipping routes and mechanized farming to deliver fresher produce at competitive prices. Despite facing weather disruptions and port delays, Brazil’s increased harvest this year is expected to influence global pricing. Meanwhile, Costa Rica, traditionally a niche supplier of premium ginger, has seen prices spike due to limited availability, raising questions about its long-term reliability.

U.S. Importers Adapt as Supply Chains Shift

With Brazil’s exports temporarily paused since January, U.S. buyers have turned to Costa Rica, China, and Peru to meet demand. However, some importers report declining quality in Costa Rican ginger, while Trump-era tariffs could soon impact Chinese imports. Brazilian shipments are expected to resume in May, potentially stabilizing North American supply.

South Africa’s Price Volatility Eases as Supply Improves

Earlier this year, South Africa faced a severe ginger shortage, driving prices for imported Chinese and Thai ginger to record highs (USD 10.60–16/kg) despite inferior quality. Recent new shipments and domestic harvests have since halved wholesale prices, though retail costs remain elevated due to earlier procurement expenses. Analysts predict further declines as market conditions normalize.

China Adjusts Strategy Amid European Demand Shifts

China, the EU’s top ginger supplier, has maintained stable export prices (USD 1,800/metric ton) despite falling freight costs—shipping rates for a 40-foot container dropped from USD 5,600 in December 2024 to USD 3,000 in March 2025. However, European imports have declined seasonally after a winter demand peak, with Germany reporting quality issues due to premature harvesting and 60-day shipping delays.

Peru Loses Ground in Europe as Quality Dips

Peruvian ginger has suffered an 80% drop in European market share this year, attributed to declining quality and competition from China. Meanwhile, Italy continues to rely on Chinese imports, while Brazil experiments with air-freighted young ginger—though its short shelf life complicates storage. Thailand is poised to re-enter the Italian market, albeit at higher costs.

EU Imports Surge, Driven by China and Rising Prices

The European Union’s ginger imports have jumped 43.4% year-over-year, totaling 1,759 metric tons in early 2025. China (+78.1%) dominates, followed by India (+19.6%) and Vietnam (+65.8%), while Nigeria’s exports fell 37.7%. Germany, the Netherlands, and Belgium lead EU demand, with Germany more than doubling its imports. Soaring prices have pushed the total import value to EUR 5.35 million—an 80% annual increase.

Outlook: Balancing Supply Growth with Quality Control

While global ginger production is rebounding, quality concerns, logistical bottlenecks, and geopolitical factors continue to shape the market. Peru’s output recovery could help stabilize supplies, but maintaining quality will be critical to regaining lost market share. Meanwhile, Brazil and China remain dominant players, capitalizing on cost efficiencies and established trade routes to meet rising demand.