Bananas market in Central America

Earlier Report Observations

The Central American banana market saw significant fluctuations between 2018 and 2023. Starting at 4.3 million tons in 2018, volume dipped the following year before entering a period of steady growth, reaching a peak of 4.8 million tons in 2022.

Throughout this period, the market remained dominated by large state and private producers in key countries like Guatemala, Costa Rica, and Honduras, which supplied consolidated export flows to the United States and Europe.

In 2023, market volume fell sharply to 3.2 million tons. This contraction was primarily caused by adverse climatic conditions across producing regions, logistical restrictions in the Panama Canal that increased export costs, and a temporary suspension of purchases by Russia over phytosanitary measures.

Production bananas in Central America

In kind, 2017-2020, K t

Top producers of bananas, 2017-2020

World map of production of bananas, 2017-2020

In 2019, banana production in Central America reached its lowest point at 9 758 thousand tonnes, marking a 6.3% decline from the previous year. Production peaked in 2018 at 10 408 thousand tonnes. By 2020, output had recovered to 10 358 thousand tonnes, showing a modest 6.1% increase compared to 2019. Over the period from 2017 to 2020, production grew by 2.3%, which translates to an annualized growth rate of 0.8%.

Annual dynamics of production in Central America in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2019, the value of banana production in Central America hit its minimum at 3 887 million US dollars, reflecting an 8.8% drop from the prior year. The highest value was recorded in 2018 at 4 264 million US dollars. By 2020, production value had risen to 4 110 million US dollars, indicating a modest 5.7% uptick compared to 2019. From 2017 to 2020, overall production value decreased by 2.4%, equivalent to an annualized decline of 0.8%.

Annual dynamics of production in Central America in value, 2017-2020, M $ US

Exports bananas from Central America

Exports in kind, K t

Banana exports from Central America have grown for the third year in a row. In 2020, exports reached 6 644 thousand tonnes, representing a modest 4.5% increase year-over-year. Between 2017 and 2020, exports expanded by 9.9%, with an annualized growth rate of 3.2%.

Annual dynamics of product's exports from Central America in kind, 2017-2020, K t

From 2017 to 2020, the United States was the leading destination for banana exports in kind, accounting for 61.5% of the total. The Netherlands followed with 7.5%, and the United Kingdom with 5.0%. Together, these three countries made up 74.0% of all export flows in kind.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Central America in kind, 2017-2020

Exports in value, M $ US

Central America's banana export value has increased for the third consecutive year. In 2020, exports amounted to 2 637 million US dollars, showing a controlled 4.1% rise compared to 2019. Over the 2017-2020 period, export value grew by 4.8%, with a compound annual growth rate of 1.6%.

Annual dynamics of product's exports from Central America in value, 2017-2020, M $ US

Between 2017 and 2020, the United States remained the top buyer of bananas from Central America in value terms, representing 62.6% of exports. The Netherlands accounted for 7.7%, and the United Kingdom for 5.1%. Collectively, these three markets took 75.4% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Central America in value, 2017-2020

Imports bananas to Central America

Imports in kind, K t

Banana imports into Central America showed volatile changes, indicating an unstable market environment. In 2019, imports peaked at 15 thousand tonnes, marking a sharp 227.7% increase from the previous year. However, by 2020, imports plummeted to just 2 thousand tonnes, a dramatic 89.0% decline compared to 2019. This resulted in a 9.1-fold difference between the maximum in 2019 and the minimum in 2020.

Annual dynamics of product's imports to Central America in kind, 2017-2020, K t

From 2017 to 2020, the United States played a minor role in banana imports in kind, accounting for only 0.6% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Central America in kind, 2017-2020

Imports in value, M $ US

In 2018, banana imports into Central America were at their lowest, valued at 8 million US dollars. Imports then surged to a peak of 12 million US dollars in 2019, representing a 51.4% increase. By 2020, import value had dropped to 8 million US dollars, a 31.2% decrease compared to 2019. Over the 2017-2020 period, imports overall increased by 3.2%, with an annualized growth rate of 1.1%.

Annual dynamics of product's imports to Central America in value, 2017-2020, M $ US

Between 2017 and 2020, Peru was the leading source for banana imports in value terms, accounting for 1.6% of the total. Ecuador followed with 1.4%, and the United States with 0.9%. Together, these three countries contributed 3.9% of total import flows in value terms.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Central America in value, 2017-2020