Onions and shallots market in ASEAN

Earlier Report Observations

From 2018 to 2020, shallot production in ASEAN grew steadily, supported by agricultural forecasting studies in Indonesia and research into natural plant growth regulators like bamboo shoots and onion extracts that enhanced seed viability and yield. High market demand in Indonesia during this period drove overall market volume upward, though it also led to issues such as counterfeit shallots, prompting calls for better identification systems.

The introduction of high-productivity shallot varieties, such as IPB University's Tajuk and SS Sakato with yields three times the national average, helped sustain production levels from 2021 to 2023. Entry of new players, including hydroponic shallot farming startups in East Java, diversified production methods. Government actions, like large onion shipments to stabilize prices in Malaysia and import restrictions in the Philippines to address smuggling and storage issues, influenced market dynamics and contributed to fluctuations in market value.

Initiatives in 2024 aimed at reducing import dependency, such as Malaysia's pre-commercial phase for local shallot production targeting 1,000 metric tonnes and seedling production goals for 30% local onion production by 2030, alongside price monitoring in Indonesia due to supply shortages, indicate ongoing regional efforts to strengthen domestic supply chains.

Production onions and shallots in ASEAN

In kind, 2017-2020, K t

Top producers of onions and shallots, 2017-2020

World map of production of onions and shallots, 2017-2020

ASEAN's production of onions and shallots has grown for the third year in a row. In 2020, the region produced 3,740 thousand tons, marking a significant 10.3% increase from the previous year. Looking at the period from 2017 to 2020, production rose by 16.6%, with an average annual growth rate of 5.2%.

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

In value, 2017-2020, M $ US

Following a two-year decline, ASEAN's onions and shallots production saw an upturn. In 2020, the output was valued at 11,774 million US dollars, reflecting a 9.2% year-over-year increase. However, over the 2017-2020 period, production value fell by 31.7%, with a compound annual growth rate of -11.9%. The lowest value was recorded in 2019 at 10,778 million US dollars, while the largest drop occurred in 2018 with a 22.4% decline.

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

Exports onions and shallots from ASEAN

Exports in kind, K t

Onions and shallots exports from ASEAN have increased for the second consecutive year. In 2020, shipments totaled 101.8 thousand tons, showing a sharp 45.6% rise compared to 2019. Over the 2017-2020 period, exports grew by 2.2%, with an average annual rate of 0.7%. The lowest volume was in 2018 at 53.8 thousand tons, which also saw the largest decline of 46.0%.

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

From 2017 to 2020, ASEAN's onions and shallots were exported to a diverse range of markets. Bangladesh accounted for 7.6% of exports in volume, China for 4.1%, and Asia, not elsewhere specified, for 2.2%. Together, these three destinations made up just 14.0% of total exports, with the remaining 86.0% spread across numerous smaller markets.

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

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

Exports in value, M $ US

Onions and shallots deliveries from ASEAN have risen for the second year in a row. In 2020, exports reached 107.9 million US dollars, which is 58.8% higher than the previous year. Over the 2017-2020 period, exports surged by 122.1%, with a compound annual growth rate of 30.5%. The lowest value was recorded in 2018 at 43.1 million US dollars, which also experienced the largest decline of 11.2%.

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

The country composition of exports in value terms from 2017 to 2020 was highly dispersed. China led with 25.2% of exports, followed by Bangladesh at 7.5%, and Japan at 1.8%. Together, these three countries accounted for only 34.5% of total flows, while the remaining 65.5% was distributed among a wide array of other destinations.

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

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

Imports onions and shallots to ASEAN

Imports in kind, K t

After a two-year decline, ASEAN's volume of onions and shallots imports rebounded. In 2020, imports reached 921.6 thousand tons, up by 17.8% from the previous year. However, over the 2017-2020 period, imports decreased by 4.8%, with an average annual decline of 1.6%. The lowest volume was in 2019 at 782.1 thousand tons, which also saw the largest drop of 18.2%.

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

Between 2017 and 2020, India, China, and the Netherlands were the main sources for ASEAN's onions and shallots imports in volume. India accounted for 45.9% of imports, China for 23.0%, and the Netherlands for 11.3%. Together, these three countries represented 80.3% of total import flows.

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

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

Imports in value, M $ US

In 2020, cross-border shipments of onions and shallots to ASEAN reached 417.0 million US dollars, marking a sudden 28.8% year-over-year increase. Between 2017 and 2020, imports grew by 28.6%, equating to an annualized rate of 8.7%. The lowest value was recorded in 2019 at 323.7 million US dollars, which also experienced the largest decline of 6.8%.

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

From 2017 to 2020, India, China, and the Netherlands formed the primary group of sources for ASEAN's onions and shallots imports in value terms. India accounted for 37.1% of imports, China for 21.8%, and the Netherlands for 11.4%. Together, these three countries made up 70.3% of total import flows.

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

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