The garlic market in Greece faces a consumer landscape shaped by health and wellness and the growing influence of clean labels. While the market is well-positioned for growth through product innovation, it faces significant challenges from economic instability and climate change.
Greek Garlic Market Size 2018-2022
The garlic market in Greece increased at a compound annual growth rate (CAGR) of 17.80%. As a result, it reached 19.42 million EUR in 2022.
The consumption per capita of garlic in Greece showed an overall increase in the period 2018-2022. Until 2022, it grew at a CAGR of 18.34% to reach 1.863 EUR per capita.
In 2022, the garlic market in Greece was dominated by non-organic garlic, which accounted for 93.80% of the total volume. It was followed by organic garlic with a share of 6.20%
Broken down by retail distribution channels, the garlic market in Greece was led by supermarkets and hyper markets. In 2022, they accounted for 56.10% of the total volume. That left 43.90% to all other retail distribution channels in the same year.
Imports and Exports of Garlic in Greece
The imports of garlic to Greece in the period 2018-2022 grew at a CAGR of 32.20% to reach 5.08 million EUR.
The exports of garlic from Greece in the period 2018-2022 grew at a CAGR of 46.44% to reach 2.24 million EUR.
As a result, the trade balance of garlic in Greece was negative and recorded an overall increase during the analyzed period. Until 2022, the trade balance increased at a CAGR of 24.69% to reach -2.85 million EUR.
Key Trends in the Greek Garlic Market
Consumers increasingly prioritize their health and are more aware of the ingredients in their food. That leads to a surge in demand for "clean label" products – those made with natural ingredients, free from artificial additives, and with proven health benefits.
Garlic is well-suited to this trend due to its health properties, such as lowering blood pressure and cholesterol, boosting immunity, and possessing antimicrobial qualities. As people become more health-conscious, they will continue to opt for food that not only nourishes but also contributes to their overall well-being.
Garlic is deeply ingrained in Greek culinary traditions, used in a wide array of dishes from local favorites to international cuisine. Its importance in the diet of Greeks ensures a steady domestic demand.
Beyond Greece, the European Union also demonstrates a robust appetite for dried garlic. Whether in flakes, granules, or powder, dried garlic is favored for its convenience and long shelf life, aligning well with consumer desire for practicality and convenience without compromise on flavor or health benefits. The dual demand in both fresh and dried forms reinforces garlic’s staple status in European kitchens.
The clean label movement, which calls for transparency in food labeling and the elimination of artificial ingredients, continues to gain traction. Consumers are more informed and skeptical of food with long, unpronounceable ingredient lists, driving them toward simpler, more natural products.
Garlic naturally fits into the clean label category, being a wholesome, minimally processed ingredient. Additionally, as consumers seek ingredients that offer more than just basic nutrition, garlic stands out. Its natural health benefits and its compatibility with dietary trends further boosts its appeal.
The COVID-19 pandemic significantly influenced consumer behavior, particularly in the realm of cooking at home. As lockdowns and health concerns kept people indoors, many turned to cooking to ensure their meals were healthy and safe. The shift led to increased demand for staple ingredients valued for versatility and health benefits. Moreover, home cooking persisted even as restrictions eased. Some consumers continue to prefer home cooked meals, sustaining the elevated demand for garlic.
Drivers for the Greek Garlic Market
The garlic market is poised to benefit from ongoing innovations in food processing and product development. Companies focus on meeting consumer demand for healthier, more functional food, leading to the introduction of new garlic-based products. These innovations include new forms of garlic such as powders, pastes, or infused oils, most often incorporated as a key ingredient due to its taste and health benefits. The push towards innovation caters not only to health-conscious consumers but also to those looking for convenience and variety in their culinary options.
The rise of e-commerce has revolutionized the way consumers shop. Online grocery shopping is more prevalent, especially in the wake of the pandemic, making it easier for consumers to access a wide range of products from the comfort of their homes. The accessibility expanded the Greek garlic market, allowing producers to reach a broader audience, increasing overall sales. Moreover, the direct-to-consumer model facilitated by e-commerce platforms enables companies to respond quickly to consumer preferences and trends, further driving market growth.
Garlic's affordability, combined with its well-documented health benefits, is an attractive option for consumers across various demographics. An inexpensive ingredient, garlic provides a cost-effective way for consumers to enhance the flavor and nutritional value of their meals. Its ability to manage high blood pressure and cholesterol, along with its immune-boosting properties, continue to drive its popularity. The dual appeal of being both affordable and healthy ensures that garlic will remain a staple in households, further solidifying its position in the market.
Restraints For the Greek Garlic Market
The Greek garlic market, like many others, is not immune to the challenges posed by high-impact global events like the COVID-19 pandemic and the Russian invasion of Ukraine. These events caused significant disruptions in supply chains, leading to volatility in production and distribution. The economic fallout also resulted in increased public debt and financial instability, dampening consumer spending and reducing market growth.
Furthermore, extreme weather conditions present a serious challenge to garlic production in Greece. The higher frequency of wildfires, droughts, and other climate-related events severely impact agricultural yields, leading to shortages in supply and higher costs for garlic producers and processors. These environmental challenges not only threaten the sustainability of garlic farming but also contribute to increased prices for consumers. As climate change continues to disrupt traditional farming practices, the garlic market in Greece must adapt to ensure consistent supply and manage rising costs on thinner margins.
Forecast for the Greek Garlic Market
Under the base forecast scenario, the Greek economy is expected to show steady growth in the medium term. As a result, the Greek garlic market is expected to reach 24.57 million EUR by 2028.
If the Greek economy does not reach expectations, it will show declining rates in the medium term. In this case, the garlic market in Greece will fall to 15.20 million EUR by 2028.
If the Greek economy exceeds expectations, the garlic market in Greece is forecast to reach 27.55 million EUR by 2028.
