Onions and shallots market in South-eastern Asia

Earlier Report Observations

Between 2018 and 2020, the market volume for onions and shallots in South-eastern Asia expanded from 4.2 million tonnes to 4.6 million tonnes, supported by rising domestic production and sustained import levels.

Market volume stabilized near 4.6 million tonnes in 2021. Large onion shipments were used in Malaysia to maintain consumer supply amidst significant price hikes for Indian shallots. Volume then climbed to a peak of 4.7 million tonnes in 2022. This growth occurred as India imposed a 40% export tax on onions, prompting Malaysia and other importers to seek diversified sources while initiating domestic cultivation projects on approximately 100 hectares.

A slight contraction to 4.7 million tonnes followed in 2023. Supply in Malaysia remained sufficient despite trade restrictions, while Philippine onion farmers contended with market access challenges and competition from smuggled onions. Efforts to boost local production accelerated into 2024, with Malaysia launching its 'Bawang Perak' shallot variety and targeting 1,000 tonnes of domestic output to reduce a substantial import bill.

Production onions and shallots in South-eastern Asia

In kind, 2017-2020, K t

Top producers of onions and shallots, 2017-2020

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

Onion and shallot production in South-eastern Asia has increased for the third consecutive year. In 2020, the region produced 3 740 K t of onions and shallots, marking a 10.3% year-over-year rise. Between 2017 and 2020, production grew by 16.6%, which translates to an annualized growth rate of 5.2%.

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

In value, 2017-2020, M $ US

Following a two-year decline, onion and shallot production in South-eastern Asia saw an increase. In 2020, the output was valued at 11 775 M $ US, reflecting a measured 9.1% year-over-year rise. Over the 2017-2020 period, however, production value decreased by 32.9%, with a compound annual growth rate (CAGR) of -12.5%. The lowest value was recorded in 2019 at 10 791 M $ US, while the largest decline occurred in 2018 with a 23.4% drop.

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

Exports onions and shallots from South-eastern Asia

Exports in kind, K t

Onion and shallot exports from South-eastern Asia have increased for the second consecutive year. In 2020, the region exported 101.8 K t of onions and shallots, representing a 45.7% increase compared to 2019. Over the 2017-2020 period, exports grew by 2.3%, with a CAGR of 0.8%. The lowest export volume was recorded in 2018 at 53.8 K t, which also saw the largest decline of 46.0%.

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

Between 2017 and 2020, onions and shallots from South-eastern Asia were supplied to a diverse range of markets. Bangladesh accounted for 7.6% of exports in kind, China for 4.1%, and Asia, not elsewhere specified, for 2.2%. Together, these three destinations made up only 14.0% of total exports in kind, with the remaining 86.0% distributed among numerous smaller markets.

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

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

Exports in value, M $ US

Onion and shallot exports from South-eastern Asia have increased for the second consecutive year. In 2020, export value totaled 107.9 M $ US, indicating a 58.8% improvement relative to the prior year. Over the 2017-2020 period, exports surged by 122.1%, with a CAGR of 30.5%. The lowest value was recorded in 2018 at 43.1 M $ US, which also experienced the largest decline of 11.2%.

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

From 2017 to 2020, China was the largest buyer of onions and shallots from South-eastern Asia, accounting for 25.2% of exports in value terms, followed by Bangladesh at 7.5% and Japan at 1.8%. Even combined, these three markets represented just 34.5% of total exports in value terms, highlighting a broadly diversified partner base.

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

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

Imports onions and shallots to South-eastern Asia

Imports in kind, K t

After a two-year decrease, onion and shallot imports into South-eastern Asia have increased. In 2020, the region imported 950.5 K t of onions and shallots, which is 21.4% greater than in 2019. The lowest import volume was recorded in 2019 at 783.2 K t, which also saw the largest decline of 18.2%.

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

Throughout 2017-2020, India, China, and the Netherlands remained the key partners for imports in kind. India accounted for 45.6% of imports, China for 23.6%, and the Netherlands for 11.2%. Together, these three countries represented 80.4% of total import flows.

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

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

Imports in value, M $ US

In 2020, onion and shallot imports into South-eastern Asia stood at 417.6 M $ US, which is 28.8% higher than the previous year. Between 2017 and 2020, imports increased by 28.4%, equating to an annualized growth rate of 8.7%. The lowest value was recorded in 2019 at 324.3 M $ US, which also experienced the largest decline of 6.7%.

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

From 2017 to 2020, India, China, and the Netherlands were the largest suppliers of onions and shallots to South-eastern Asia in value terms. India accounted for 37.1% of imports, China for 21.9%, and the Netherlands for 11.3%. Together, these three suppliers formed 70.3% of total imports in value terms.

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

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