The global clove market continues to demonstrate notable resilience and forward momentum, weathering the impact of supply-side pressures while benefiting from steady, broad-based demand. As a prized aromatic spice cherished for both traditional and emerging applications, cloves are sustaining robust price levels—most prominently in India, where domestic consumption absorbs a large share of global supply. Current average prices in India are steady at around $9.07 per kilogram (or roughly €9.55/kg for whole, certified-organic cloves FOB New Delhi), underscoring the strength of the local demand and limited downside for global prices. This stability is mirrored in major trading hubs such as Kerala’s Thodupuzha, reflecting persistent appetite from food, Ayurvedic, and personal care sectors.
Industry prospects appear bright, with market forecasts projecting global valuations to soar to $7.47 billion by 2035. However, challenges loom on the production side: Key suppliers like Indonesia and Madagascar are navigating unpredictable weather and climate-driven disruptions that threaten output and logistics. Going forward, the market will be shaped by the evolving preferences for sustainable sourcing and traceability, as ethically certified cloves begin to command significant premiums in international trade. India’s pivotal role—as the world’s second-largest clove importer and a significant consumer—continues to anchor the global balance, ensuring that underpinning demand remains healthy even amid wider volatility.
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📈 Prices
| Product | Origin | Location | Type | Price (EUR/kg) | Price (USD/kg) | Weekly Change | Market Sentiment |
|---|---|---|---|---|---|---|---|
| Cloves (whole, organic) | India | New Delhi | FOB | €9.55 | $10.34 | ▲ +€0.05 | Firm/Bullish |
| Cloves (ground, organic) | India | New Delhi | FOB | €9.65 | $10.45 | ▲ +€0.05 | Firm/Bullish |
| Indian Spot Market | India | Thodupuzha | Spot | — | $9.07 | No Change | Firm |
🌍 Supply & Demand
- India: Stable and high domestic demand maintains significant import requirements; not a major exporter but a global demand anchor.
- Indonesia: The world’s largest producer; weather disruptions are affecting flower and bud development, tightening exportable surplus.
- Madagascar: Faces risk of lower yields due to variable rains and cyclone threats; increased focus on traceability and certification.
- Global: Robust demand from food, beverage, pharma, and natural product sectors; tightening supply likely to reinforce elevated prices short-to-medium term.
📊 Fundamentals
- Global Market Size: Forecast to reach $7.47 billion by 2035.
- Demand Drivers: Rising consumer preference for natural preservatives, therapeutic oils, and sustainable foods; strong Asian/Indian cuisine and traditional medicine sectors.
- Speculative Positioning: Trade houses and importers securing forward contracts; slight uptick in speculative interest on medium-term bullish price scenario.
- Sustainability: Certified, traceable and organic cloves trending at a premium; reputation and compliance boosting market share in Europe and North America.
🌦️ Weather Outlook
- Indonesia: Unseasonal dry spells and sporadic heavy rainfall have delayed main harvests; forecast signals continued mixed weather for main producing islands in the coming weeks, keeping risk elevated for flower drop and lower bud set.
- Madagascar: Recent cyclone threats and rainfall deficits could cut yields by up to 10–15% vs. last year if dry patterns persist through flowering phase.
- India: Favorable pre-monsoon rainfall in Kerala and Tamil Nadu supports upcoming import demand but domestic production remains limited.
🌏 Global Production & Stocks
| Country | 2024 Output (est. tonnes) | 2024 Stocks (est. tonnes) | Role |
|---|---|---|---|
| Indonesia | ~95,000 | Low | Largest producer; main supplier |
| Madagascar | ~14,500 | Moderate | Top exporter; weather-impacted |
| India | ~2,200 | Minimal | Major importer/consumer |
| Tanzania | ~7,100 | Low | Key regional supplier |
📌 Trading Outlook & Recommendations
- Buyers: Secure forward contracts, especially for certified/organic grades; anticipate continued firmness with upside risk on any fresh supply shock.
- Exporters: Prioritize early shipments and capitalize on current price stability before seasonal volatility rises.
- Importers (India/Asia): Maintain higher operational stocks given logistic uncertainties from top origins.
- Speculators: Favor a mildly bullish stance in the short to medium term; closely monitor Indonesia and Madagascar weather updates.
📆 3-Day Regional Price Forecast
- India (Thodupuzha, Delhi FOB): Flat to slightly higher; €9.55–9.70/kg ($10.34–10.50/kg)
- Indonesia (export FOB): Stable, with risk of upward correction if adverse weather persists.
- Madagascar FOB: Firm, underpinned by supply concerns and strong import demand.