Onions and shallots market in South America

Earlier Report Observations

From 2018 to 2020, the South American market for fresh or chilled onions and shallots contracted in both volume and value. The market volume fell from 4.5 million tonnes to 4.2 million tonnes, while its value dropped more sharply from $2.3 billion to $1.9 billion. This decline coincided with expanded planting areas in Argentina and increased global onion production, which boosted supply and put downward pressure on prices.

The market recovered steadily from 2021 onward. By 2023, the market volume reached 4.4 million tonnes, and its value surged to $2.9 billion. This growth was primarily driven by global supply disruptions, including export bans in India and Egypt, which raised international prices and benefited South American exporters. Additionally, high packaging and logistics costs contributed to the increased market value. In Brazil, technological advances and year-round supply from diverse cultivars helped maintain production stability, while delayed harvests in 2023 increased demand for Argentine exports, supporting market growth.

Production onions and shallots in South America

In kind, 2017-2020, K t

Top producers of onions and shallots, 2017-2020

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

South America's production of onions and shallots has declined for the third year in a row. In 2020, the region produced 4 343 thousand tonnes, marking a modest year-over-year decrease of 5.7%. Looking at the period from 2017 to 2020, overall production fell by 8.4%, which translates to an average annual decline of 2.9%.

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

In value, 2017-2020, M $ US

The value of onions and shallots production in South America dropped for the second consecutive year. In 2020, output was valued at 1 978 million US dollars, reflecting an 11.4% decrease compared to the previous year. From 2017 to 2020, production value declined by 12.7%, with a compound annual growth rate of -4.4%. The peak value was recorded in 2018 at 2 352 million US dollars, which also saw the largest increase of 3.8%.

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

Exports onions and shallots from South America

Exports in kind, K t

Exports of onions and shallots from South America have increased for the third consecutive year. In 2020, exports reached 334.4 thousand tonnes, up 12.2% year-over-year. Between 2017 and 2020, exports grew by 78.3%, equating to an average annual increase of 21.3%.

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

From 2017 to 2020, the United States, Spain, and the United Kingdom were the main destinations for South American onions and shallots exports in volume terms. The United States accounted for 35.0% of exports, Spain for 10.0%, and the United Kingdom for 1.2%. Together, these three countries represented 46.2% of total export flows.

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

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

Exports in value, M $ US

The value of onions and shallots exports from South America has risen for the third year in a row. In 2020, exports amounted to 152.3 million US dollars, showing a 5.5% increase from the previous year. Over the period from 2017 to 2020, export value grew by 69.9%, with an average annual rate of 19.3%.

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

Between 2017 and 2020, the United States, Spain, and the United Kingdom stood out as the primary markets for South American onions and shallots in value terms. The United States held a 48.4% share of exports, Spain 14.3%, and the United Kingdom 1.7%. Collectively, these three countries accounted for 64.4% of total export value.

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

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

Imports onions and shallots to South America

Imports in kind, K t

Imports of onions and shallots into South America have increased for the third consecutive year. In 2020, import volume totaled 185.6 thousand tonnes, a slight rise of 1.4% compared to the previous year. From 2017 to 2020, imports surged by 114.9%, representing an average annual growth of 29.0%.

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

Throughout 2017 to 2020, the Netherlands and Spain were the leading suppliers of onions and shallots to South America in volume terms. Together, they accounted for 17.3% of total imports.

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

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

Imports in value, M $ US

After two years of growth, the value of onions and shallots imports into South America declined. In 2020, imports were valued at 82.1 million US dollars, a small reduction of 2.5% from the previous year. From 2017 to 2020, import value increased by 111.2%, with an average annual rate of 28.3%. The highest value was recorded in 2019 at 84.2 million US dollars, while the largest increase occurred in 2018 at 57.3%.

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

Over the period from 2017 to 2020, the Netherlands, Spain, and China were the top suppliers of onions and shallots to South America in value terms. The Netherlands accounted for 17.9% of imports, Spain for 5.5%, and China for 0.7%. Their combined share reached 24.1% of total import value.

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

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