The global poppy seed market is set to grow within the next 10 years, as there has been an increase since 2012.
In 2016, 111,000 tonnes of poppy seeds were produced, which was up by 6 per cent from the year prior, a report published by IndexBox explains.
The World: Poppy Seed – Market Report, Analysis and Forecast to 2025, shows and increase across the globe, after a noticeable slump in 2012.
The market fluctuated over the next four years within an overall upward trend.
In value terms, the global poppy seed market had total revenues of $183.4 million in 2016 in wholesale prices, which was about at the level of the previous year.
Prior to that it fluctuated wildly due to price changes reflecting yields of poppy.
That figure refers to the total revenue of producers and importers, excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price.
India, Germany, Hungary and the Czech Republic were the leading consumers of poppy seeds.
India, accounting for 14 per cent of global poppy seed consumption in 2016, the Czech Republic and Germany accounting for 9 per cent each, and Russia and Hungary accounting for 8 per cent each.
The highest annual growth rates of consumption from 2007 to 2016 were recorded in Hungary, with 11.6 per cent growth.
India and Poland followed with 8.8 per cent and 7.2 per cent growth, respectively.
Following robust consumption growth rates, India significantly strengthened its share in terms of global poppy seed consumption from 12 per cent in 2007 to 19 per cent in 2016.
In the European market, poppy is used mainly by the food and confectionery industry, while in the largest poppy consuming country – India – it is a popular spice and an integral ingredient in the preparation of some national dishes.
The market is largely determined by the supply of poppy, the yield of which is subject to strong fluctuations due to adverse weather conditions.
The need to obtain licenses for growing poppy, as well as strict control over its production, also limits the expansion of production.
But, the population growth contributes to the growth of the food industry, which in turn will ensure the growth of poppy consumption.
The world poppy market is expected to grow for the next ten years at a rate of 1.2 per cent per year.
This will bring the market to a level of 123,000 tonnes by 2025.