The 2014 market for ginger was very strong, but attractive prices brought lots of new production into the global market in 2015. The glut of new product tanked prices, and prices are expected to remain depressed through next year.
“China flooded the market with ginger in 2015 and prices dropped substantially,” said Karen Caplan, President and CEO of Frieda's specialty produce. Supplies of ginger are currently coming from China, Brazil, Hawaii and Peru, but it's the latter's production that has most affected the global market.
“We're predicting the 2016 market will once again be oversupplied, so lower prices will continue,” added Caplan. “By 2017, everything should level out.” Should the market rebound in a couple of years, overall demand could be very favorable to those with product on hand. Organic ginger and demand from non-traditional sources has been growing overall consumption.
“Consumption is increasing due in part to health reasons and ginger's trending flavor,” said Caplan. “Demand seems to be growing every year, especially with juice bars, and we expect demand to keep growing every year.”
For more information:
Oakley Boren
Frieda's Specialty Produce
+1 714 733 7660