Market Trends of Clove Industry
Increased Demand from Various Industries is Aiding the Production
The cloves market has experienced significant growth, particularly in developing economies, due to increasing demand for herbal and natural products. Cloves, renowned globally for their culinary and medicinal properties, are among the most valued spices. They are used not only to flavor curries, meats, fruits, and hot beverages but also for their health benefits, including aiding digestion, protecting the liver, boosting the immune system, and potentially defending against cancer.
Consumer preference for herbal and natural products has increased due to their effectiveness and minimal side effects, leading to higher demand for cloves. Manufacturers of natural, herbal, and organic products are increasingly using cloves as key ingredients in various items such as toothpaste, perfumes, skincare products, hair care products, and other scented goods. This expanding range of applications, combined with recognized health benefits, is driving the growing demand in the consumption market.
The market growth is further propelled by the rising demand for herbal supplements among middle-aged women and older adults. Additionally, the increased disposable income of consumers in developed countries, along with higher consumption of natural products, is anticipated to drive the cloves market during the forecast period.
Asia-Pacific Dominates the Global Clove Market
Asia-Pacific leads the world in clove production, with Indonesia at the forefront. Indonesia accounts for over 70% of global production, primarily driven by smallholder farmers. Sri Lanka and China follow as major producers. In 2022, Indonesia's clove production reached 133,955 metric tons, while Sri Lanka and China produced 5,722 metric tons and 1,320.19 metric tons, respectively. Despite its dominant production status, Indonesia exports only 10-15% of its total clove output.
Indonesia has experienced consistent growth in clove production. According to the FAO, Indonesia's clove harvested area increased from 575,813 hectares in 2020 to 577,328 hectares in 2022. This expansion reflects efforts to meet rising demand in both domestic and international markets. Domestic clove production in Asian countries, particularly Indonesia, primarily serves local demands, mainly as a raw material for the Kretek cigarette industry. Clove plants also yield three essential oils: clove oil, clove stalk oil, and clove leaf oil. Among these, clove oil is a significant commodity in the region. The surge in domestic consumption has led to increased imports from African countries to the Asia-Pacific region.
In 2023, key export destinations for Indonesian cloves included Saudi Arabia, India, Bangladesh, United Arab Emirates, United States, and Pakistan. Saudi Arabia and India emerged as the top importers of Indonesia's clove exports. Given the increasing global demand and robust production, the clove market in Asia-Pacific is expected to expand in the coming years.
