Ghee Market

The global ghee market is expected to see a steady increase in both consumption and value over the next decade, with India leading as the largest consumer and producer. Market performance is forecasted to grow with a CAGR of +2.3% in volume and +3.9% in value from 2022 to 2030. Countries like Pakistan, New Zealand, and Belgium are also significant players in production and exports. Ghee import prices are on the rise, with a noticeable increase in export prices as well. Overall, the ghee market is anticipated to experience continued growth in the coming years.

Market Forecast

Driven by increasing demand for ghee worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +2.3% for the period from 2022 to 2030, which is projected to bring the market volume to 5.9M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.9% for the period from 2022 to 2030, which is projected to bring the market value to $41.6B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Ghee

Global ghee consumption stood at 4.9M tons in 2022, almost unchanged from 2021. The total consumption volume increased at an average annual rate of +3.0% over the period from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being observed in certain years. Over the period under review, global consumption reached the maximum volume at 4.9M tons in 2020; afterwards, it flattened through to 2022.

The global ghee market revenue totaled $30.5B in 2022, rising by 2.4% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, the total consumption indicated a strong expansion from 2012 to 2022: its value increased at an average annual rate of +5.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption decreased by -0.2% against 2020 indices. Over the period under review, the global market hit record highs at $30.6B in 2020; however, from 2021 to 2022, consumption remained at a lower figure.

Consumption By Country

India (3.8M tons) remains the largest ghee consuming country worldwide, comprising approx. 78% of total volume. Moreover, ghee consumption in India exceeded the figures recorded by the second-largest consumer, Pakistan (524K tons), sevenfold.

From 2012 to 2022, the average annual rate of growth in terms of volume in India stood at +2.9%.

In value terms, India ($23.7B) led the market, alone. The second position in the ranking was held by Pakistan ($3.6B).

In India, the ghee market increased at an average annual rate of +4.8% over the period from 2012-2022.

The countries with the highest levels of ghee per capita consumption in 2022 were India (2.7 kg per person) and Pakistan (2.3 kg per person).

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the main consuming countries, was attained by Pakistan (with a CAGR of +2.2%).

Production

World Production of Ghee

In 2022, the amount of ghee produced worldwide totaled 4.9M tons, standing approx. at 2021. The total output volume increased at an average annual rate of +2.9% from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2013 when the production volume increased by 6.3% against the previous year. Global production peaked at 4.9M tons in 2020; afterwards, it flattened through to 2022. The general positive trend in terms output was largely conditioned by pronounced growth of the number of producing animals and a relatively flat trend pattern in yield figures.

In value terms, ghee production expanded to $31.7B in 2022 estimated in export price. Over the period under review, the total production indicated a resilient expansion from 2012 to 2022: its value increased at an average annual rate of +5.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production decreased by -1.8% against 2020 indices. The most prominent rate of growth was recorded in 2017 with an increase of 17%. Over the period under review, global production reached the peak level at $32.3B in 2020; however, from 2021 to 2022, production stood at a somewhat lower figure.

Production By Country

India (3.8M tons) remains the largest ghee producing country worldwide, accounting for 78% of total volume. Moreover, ghee production in India exceeded the figures recorded by the second-largest producer, Pakistan (524K tons), sevenfold. New Zealand (256K tons) ranked third in terms of total production with a 5.2% share.

In India, ghee production expanded at an average annual rate of +3.0% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Pakistan (+4.3% per year) and New Zealand (+1.5% per year).

Imports

World Imports of Ghee

Global ghee imports amounted to 401K tons in 2022, rising by 4.2% compared with the previous year's figure. Over the period under review, imports continue to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2018 with an increase of 14% against the previous year. Global imports peaked at 434K tons in 2016; however, from 2017 to 2022, imports remained at a lower figure.

In value terms, ghee imports soared to $2.8B in 2022. Overall, total imports indicated a resilient expansion from 2012 to 2022: its value increased at an average annual rate of +5.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +51.2% against 2020 indices. As a result, imports attained the peak and are likely to continue growth in the immediate term.

Imports By Country

China (41K tons), Belgium (36K tons), Italy (35K tons) and France (32K tons) represented roughly 36% of total imports in 2022. The United States (21K tons) took a 5.3% share (based on physical terms) of total imports, which put it in second place, followed by Germany (4.7%). The following importers - Denmark (17K tons), the Philippines (17K tons), Thailand (11K tons), Malaysia (11K tons), Indonesia (10K tons), the Netherlands (9.5K tons) and Australia (8.2K tons) - together made up 21% of total imports.

From 2012 to 2022, the biggest increases were recorded for Denmark (with a CAGR of +24.4%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, Italy ($279M), Belgium ($275M) and China ($268M) appeared to be the countries with the highest levels of imports in 2022, together accounting for 30% of global imports. France, Germany, the Philippines, Denmark, Thailand, Indonesia, Malaysia, the United States, the Netherlands and Australia lagged somewhat behind, together comprising a further 38%.

Among the main importing countries, Denmark, with a CAGR of +31.6%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

The average ghee import price stood at $6,905 per ton in 2022, growing by 29% against the previous year. In general, import price indicated a resilient increase from 2012 to 2022: its price increased at an average annual rate of +5.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, ghee import price increased by +43.6% against 2020 indices. The growth pace was the most rapid in 2017 an increase of 53%. Global import price peaked in 2022 and is likely to see steady growth in years to come.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Germany ($8,102 per ton), while the United States ($3,341 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the Philippines (+8.8%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Ghee

After three years of decline, overseas shipments of ghee increased by 11% to 436K tons in 2022. Over the period under review, exports saw a relatively flat trend pattern. Over the period under review, the global exports reached the maximum at 464K tons in 2015; however, from 2016 to 2022, the exports remained at a lower figure.

In value terms, ghee exports surged to $2.9B in 2022. In general, total exports indicated a buoyant increase from 2012 to 2022: its value increased at an average annual rate of +6.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +50.4% against 2020 indices. As a result, the exports attained the peak and are likely to continue growth in the immediate term.

Exports By Country

In 2022, New Zealand (191K tons) was the largest exporter of ghee, generating 44% of total exports. The Netherlands (66K tons) ranks second in terms of the total exports with a 15% share, followed by Germany (5.6%) and Belgium (5.3%). The following exporters - India (18K tons), France (17K tons), the United States (16K tons), the UK (13K tons), Spain (12K tons), Ireland (9.3K tons) and Denmark (9.2K tons) - together made up 22% of total exports.

New Zealand experienced a relatively flat trend pattern with regard to volume of exports of ghee. At the same time, Denmark (+82.9%), the United States (+17.4%), India (+11.8%), Spain (+8.7%), Germany (+4.4%) and the Netherlands (+2.0%) displayed positive paces of growth. Moreover, Denmark emerged as the fastest-growing exporter exported in the world, with a CAGR of +82.9% from 2012-2022. By contrast, Belgium (-1.4%), the UK (-2.2%), France (-3.0%) and Ireland (-9.8%) illustrated a downward trend over the same period. From 2012 to 2022, the share of the United States, India, the Netherlands, Denmark, Germany and Spain increased by +2.9, +2.7, +2.4, +2.1, +1.9 and +1.5 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, New Zealand ($1.2B) remains the largest ghee supplier worldwide, comprising 41% of global exports. The second position in the ranking was held by the Netherlands ($530M), with an 18% share of global exports. It was followed by Germany, with a 6.5% share.

From 2012 to 2022, the average annual growth rate of value in New Zealand stood at +5.8%. The remaining exporting countries recorded the following average annual rates of exports growth: the Netherlands (+7.7% per year) and Germany (+8.7% per year).

Export Prices By Country

In 2022, the average ghee export price amounted to $6,762 per ton, surging by 25% against the previous year. Over the period under review, export price indicated a buoyant expansion from 2012 to 2022: its price increased at an average annual rate of +5.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, ghee export price increased by +39.8% against 2020 indices. The pace of growth was the most pronounced in 2017 when the average export price increased by 52% against the previous year. Over the period under review, the average export prices hit record highs in 2022 and is likely to see steady growth in the near future.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Spain ($8,649 per ton), while the United States ($1,915 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Ireland (+8.3%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform