Market Trends of Mexico Lime Industry
Slight Decline in Production for 2023
- Due to the effects of Citrus Huanglongbing (HLB), previously termed citrus greening disease, which is acknowledged as one of the most devastating ailments for citrus and lime producers in Mexico, lime growers in Mexico are expecting a slight year-on-year dip in production volume. HLB has caused harm to both productive and non-productive trees. However, production is anticipated to rebound, driven by lucrative export opportunities stemming from high international market demand.
- In 2022, Michoacan led with 29 percent of Mexico's total planted lime area, followed by Veracruz at 24 percent, and both Oaxaca and Colima, each contributing 10 percent. Mexico's lime production revolves around three main varieties. While 28 states in Mexico participate in lime production, six states - Michoacán, Veracruz, Oaxaca, Colima, Tamaulipas, and Jalisco - each surpassed the 100,000 metric ton mark.
- According to the USDA, in 2023, the production of limes in the country was observed at 2.9 Million metric tons. Veracruz produced over 52 percent of the country's Persian Lime output, solidifying its position as the leading producer. The Mexican lime, commonly referred to as Key lime is grown nationwide but is mainly sold within Mexico. This lime plays a pivotal role in Mexican culinary traditions. In 2022, Michoacan was responsible for producing over 60 percent of the country's sour lime output. Meanwhile, the Italian lime, recognized as yellow lemons by U.S. consumers, boasts high quality and distinct characteristics, making it a strong contender in the global market.
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Rising Demand from Global Markets
- As of 2023, Mexico solidified its status as the globe's second-largest producer and exporter of lemons and limes, as reported by the Ministry of Agriculture and Rural Development. Due to a steady rise in cultivation, a strong phytosanitary reputation, and diligent efforts from producers, Mexico successfully catered to robust domestic and international demand.
- According to the data from the International Trade Center, Mexico's lime exports were valued at over USD 722 million. The United States, the top lime exporter globally, stands as the main purchaser of limes from Mexico. Data from the United States Department of Agriculture (USDA) reveals that over 95% of limes exported from Mexico are destined for the US, solidifying its position as the world's largest lime trade flow. In addition to the US, limes from Mexico are also sold to buyers in the Netherlands, the UK, France, Canada, Japan, Belgium, Germany, Spain, Italy, and Ireland.
- In the United States, limes play a crucial role, in enhancing the flavor of various foods and beverages. Beyond culinary uses, limes are also processed into extracts and essential oils, which find applications in perfumes, cleaning products, and other everyday items. The U.S. predominantly imports and consumes two lime varieties: Key limes and Persian limes (the latter being a type of Tahitian lime). Mexico is the primary cultivator of these Key and Persian lime varieties. Although both varieties are exported, the focus for Persian limes is primarily on the U.S. market.
