Market Trends of Tomato Industry
China Dominates the Market in Term of Production
Tomato (Lycopersicon esculentum Miller) is an important vegetable crop widely cultivated in China. The tomato production in China has been increasing gradually over the last decade. The country is the world's largest tomato producer with 68.2 million MT total production in 2022, according to FAOSTAT. The good quality of the soil has favored the high production of tomatoes in the country. Additionally, China has a well-established agricultural industry and is known for producing a wide variety of crops, including tomatoes. Tomato cultivation is carried out in four ecological districts of the country namely the southern district, middle and eastern District, northern district, and northeastern District. Tomatoes are grown mainly in plastic tunnels or open fields including varieties with large fruit, red or pink.
Moreover, in recent periods, Chinese consumers are increasingly looking for product quality as their living standards improve, and the regular, large, fleshy tomato is no longer able to please their developed taste which has made flavored tomatoes more popular in the Chinese market, according to Beijing Crown Vegetable Agricultural Science and Technology Co., Ltd. Strawberry persimmon, iron skin persimmon, or alkaline soil persimmon are some of the flavored tomato cultivated in the country. Thus, the increasing demand for tomatoes due to the increasing product quality in the country as well as in the international market has driven the production of tomatoes, which is further anticipated to drive the market in the coming years.
Asia-Pacific is the Fastest Growing Market
Asia-Pacific is one of the fastest-growing regions in the market. Increasing the high-intensity cultivation of tomatoes is the major factor driving market growth in the region. Tomato is one of the third most important crops under the Indian government's top priority list of horticultural crops after potatoes and onions. These three staple crops are found across the country with the government of India's initiative called 'Operation Greens' to improve the living conditions of farmers.
China is witnessing continuous growth of tomato acreage owing to increased farmers' interest in planting as the tomato market price has risen, and high yield promoted the expansion of planting area. According to the Ministry of Commerce, in 2021, retail sales of consumer goods, including fruits and vegetables, hit USD 6.8 trillion, which is an increase of about 12.5% from 2020. In the fresh produce segment, tomatoes are one of the major vegetables that contributed to the higher sales. Moreover, India has embraced tomato farming, with various states contributing significantly to its production. The major tomato-producing states include Bihar, Karnataka, Uttar Pradesh, Orissa, Maharashtra, Andhra Pradesh, Madhya Pradesh, and West Bengal.
Furthermore, the use of artificial intelligence (AI) technology in tomato cultivation is one of the important emerging trends in the region, especially in Japan. Recently, in June 2021, NEC Corp. and Kagome Co. announced that the companies have jointly developed an AI-equipped agricultural support system for tomato farmers in the country. According to the company, the newly developed AI technology has resulted in reduced fertilizer use by 20% from the average while increasing tomato crop yield by 30% in the trial run at farms. Therefore, the use of modern technologies such as AI technology is anticipated to drive the tomato market, which is anticipated to grow during the forecast period.
