Tomato Powder Price Trend and Forecast

Tomato Powder Regional Price Overview

Get the latest insights on price movement and trend analysis of Tomato Powder in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Tomato Powder Price Trend for the First Half of 2024

In the first half of 2024, the price trend for tomato powder followed a similar path to the processing tomato market. After two years of notable price increases, the average price for crushed tomatoes, which are used to produce tomato powder, saw a slight decrease of approximately 11% because of improved crushing technologies. However, this still placed the crushing price level about 16% higher than the average of the preceding three years.
 

Tomato Powder Price Chart

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With production levels stabilizing across key regions such as California, China, and southern Europe, the supplies in associated regions were secured. While prices have eased from the record levels seen in previous years, they remain elevated due to the ongoing impact of fluctuating input costs and global supply chain challenges. Despite this softening, the market for tomato powder continues to be shaped by high demand and production adjustments. The projected global harvest for crushed tomatoes intended for processing, including tomato powder production, is estimated at 33.9 million tonnes.

Analyst Insight

According to Procurement Resource, the market projections look promising for the coming months of next quarter. The freight issues continue to pose challenges for market stakeholders.
 

Tomato Powder Price Trend for the Second Half of 2023

In the second half of 2023, tomato powder prices surged in response to severe disruptions in fresh tomato supply caused by extreme weather conditions in India. A combination of intense heatwaves from April to June and erratic rainfall significantly reduced tomato yields, leading to a spike in fresh tomato prices. This, in turn, increased demand for processed alternatives like tomato powder as both consumers and businesses sought more affordable options.

Pests and diseases, such as the aggressive tomato fruit borer, further aggravated the situation by reducing crop quality and quantity. As a result, tomato powder became a vital substitute in the market, pushing its prices higher. Additionally, supply chain challenges and rising input costs contributed to the sustained price increases. These factors collectively created an environment of price volatility, where tomato powder prices remained elevated throughout the second half of 2023, mirroring the broader instability in the fresh tomato market.

Analyst Insight

According to Procurement Resource, given the current supply and demand challenges and the recently emerging conflict in the Middle East, the supply chains are likely to constrict even more, and the markets are likely to get further inflated.
 

Tomato Powder Price Trend for the First Half of 2023

The prices of tomato powder were dependent on the market activities, and the cost of tomatoes, as tomato powder is the dehydrated form of tomatoes. It has the natural flavor, color, and nutritional profile of tomatoes. Tomato powder is a rich source of vitamins A & C, potassium, and lycopene, which acts as an antioxidant. It is widely employed in various culinary applications such as soups, sauces, stews, etc., which dictate its price trend in the global markets.

The first two quarters of 2023 witnessed an unexpected surge in the prices of tomatoes, which was driven by extreme weather conditions, such as heavy rainfall and floods in various parts of the world. This caused the stockpiles to deplete, which, along with a strong reduction in the rates of production, affected the market. This problem was further accelerated by constrictions in the supply chains and high demand from consumers, which eventually resulted in an incline in the prices of tomato powder.

Analyst Insight

According to Procurement Resource, the price of Tomato Powder is expected to follow the market trend of tomatoes, which is supported by high demand from the consumers and restricted supply rates.
 

Tomato Powder Price Trend for the Second Half of 2022

The powder is made from ground, dried tomatoes and can be used as a spice, garnish, or seasoning. Tomato powder is used to manufacture tomato sauce and tomato paste and thus is a popular choice in the food business. As it is made from tomato plants, the price trend of tomatoes globally is expected to affect the prices of tomato powder.

In the European and Asia-Pacific regions, the prices oscillated due to the acute energy crises and inflation. In the Asian region, the prices were also affected by the slow growth of the market due to imposed covid-19 restrictions and oversupply issues. The traders were thus compelled to sell their produce at lower market rates. The market struggled in both the third and fourth quarters of 2022 to gain momentum. The prices were, however, positively impacted by the rise in demand and limited supply during the late months of 2022 in the European region.

The US market, however, saw a stable trajectory in the price trend of tomato powder. The market was impacted badly as tomato producers were worried about the strong weather. But tomatoes being a year-round farmed crop, provided more consistent margins than fruit crops grown only during certain seasons, thereby stabilizing the tomato prices in US domestic market.

Analyst Insight

According to Procurement Resource, the price trend for Tomato Powder are likely to remain volatile in the upcoming months. The stable demand, rise in inflation levels and weather conditions globally will dictate tomato powder prices.

Procurement Resource provides latest prices of Tomato Powder. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.