The global onion market is currently facing significant challenges, with oversupply, fluctuating demand, and price instability affecting multiple regions. In Europe, high stock levels continue to weigh on prices, with sluggish sales reported in France, Germany, Spain, and the Netherlands. Italy is experiencing one of its most difficult harvest seasons in recent memory due to adverse weather conditions, leading to significant quality issues and high levels of waste. In Austria, school vacations have slowed domestic sales, while exporters face increasing competition from Dutch suppliers. Meanwhile, Spain's onion acreage has declined, but concerns over potential oversupply persist as production remains high across Europe. In Switzerland, poor weather during the harvest season significantly affected onion yields.
In North America, Mexico's large crop is contributing to an oversupplied market, with strong volumes also coming from Canada and Peru. South Africa's onion prices have remained steady despite increased volumes, while exports are limited to the Ceres region. In Egypt, stable production levels are expected for the upcoming season, with growers anticipating stronger demand from Europe and Africa. At the same time, traders are closely watching potential tariff decisions that could impact cross-border onion trade between North America and key suppliers.
In Asia, China's onion prices have fluctuated due to shifting domestic and international demand. The entry of new onions from India and Pakistan further affected Chinese exports, with Southeast Asian and South Asian buyers reducing orders due to high prices.
North America: Oversupply pressures onion market as demand slows
There is currently more supply than demand for onions. Mexico has a large crop and has begun crossing, with early yellow onions marketed as sweet onions. Additionally, there is a good supply from Canada and Peru this year, along with strong volumes of domestic storage crop onions.
The quality of Mexico's onions is good, but some quality issues are beginning to emerge with products from Washington, Idaho, and Oregon. However, these issues are addressed before shipping.
Demand was strong for most of January but slowed toward the end of the month, which is typical for this time of year. Looking ahead, the yellow onion market remains depressed and is not expected to improve until at least May. The white and red onion markets are also weakening. Growers and shippers are awaiting potential decisions on tariffs for onions from Mexico and Canada.
Netherlands: Onion exports slow in the second half as red onion set shortages emerge
As is customary, Dutch onion exports have entered the second half of the season at a slower pace. In recent years, export volumes have been more concentrated in the first half of the season. While the initial months saw strong export performance, the outlook for the remainder of the season is more uncertain.
Due to relatively low prices, Dutch onions continue to reach a wide range of markets. However, organic onion prices remain exceptionally high. Meanwhile, the distribution of onion sets for the new season is in full swing. As expected, overall yields have been disappointing, with a particular shortage of onion sets for red onion production.
Belgium: Challenging market because of quality problems
"The onion market is still a bit challenging this year", explains a Belgian trader. "The yield was a lot less because everyone was forced to plant late. Moreover, the rain has also caused quality problems. You can see that the market is searching. Because of all the quality problems, prices are not really picking up and it is searching to get all the lots placed. We also have shallots, but there is a real shortage there. France has harvested less because of the rain. Especially in the Loire region, many lots have remained in the field, so we are working with very high prices there at the moment."
Austria: Onion sales slow amid school vacations and Dutch competition
School vacations in parts of Austria have led to quieter sales in the domestic food retail sector. Exporters are facing increasing competition from the Netherlands.
There has been no change in producer prices. For onions that are cleaned, sorted, and packed in crates with the right quality and size, prices range between EUR 22–25 per 100 kg. Lower-quality or smaller lots are priced at a lower level.
Italy: Challenging onion harvest amid quality issues, but household demand remains strong
The 2024/25 harvest presents many challenges, confirmed by a leading trader from northern Italy, who describes it as one of the worst seasons in living memory. The issues stem from last summer when repeated rains and high humidity disrupted the harvest. Farmers had to weed the bulbs in a hurry, though the difficulties were beyond their control. The product now faces significant quality issues, leading to high levels of waste, with several pallets discarded daily. Storage has become increasingly difficult. While most defects are cosmetic, customers are unwilling to accept onions that do not meet aesthetic standards. In the coming weeks, some may have to adjust their expectations if they want Italian onions.
Onion prices are significantly lower than last season. Unlike last year's shortage across Europe, supply is now more stable. In some cases, prices have dropped by half compared to 2023.
Despite these production challenges, the Italian onion market is thriving, with a notable increase in household purchases. According to data from the YouGov Shopper Intelligence Permanent Observatory, the number of households buying onions has risen by 3% in the last twelve months. While the average quantity purchased per household decreased (from 0.80 kg in 2022 to 0.70 kg in 2024), spending per household has risen significantly. In 2022, the average expenditure per purchase was about €1.30, increasing to nearly €1.60 in 2024—reflecting higher prices and a growing preference for premium onion varieties.
Spain: Onion acreage declines, but oversupply concerns persist amid sluggish sales
Early onion sowing in Spain was completed about a month ago and is expected to decrease by 10–12%, with a significant drop of more than 30% in Andalusia, the country's main early onion-growing region. In contrast, the area dedicated to medium and late onions is expected to remain similar to last season, with a slight decrease.
"It is surprising that, despite the generally disastrous commercial results for onions this season, there is still a significant area planted with storage onions. We had expected that, as with early onions, late onion planting would also decrease," says a representative of Spain's largest onion growers' association. "It is worth remembering that sales prices have not covered production costs throughout the season."
"With a similar planted area to last year, we fear that, if optimal conditions for high yields are met, we could once again face overproduction next season," he warns. "Onions grown outside planned programs are adding pressure to supply, which has remained very high across much of Europe this season."
Currently, sales of Spanish onions remain sluggish, and prices are below profitability, despite high quality and large sizes this year. The market continues to face pressure from abundant stocks from multiple sources.
France: Gloomy onion market persists in Europe amid high stocks and low prices
Europe is currently experiencing a gloomy onion market due to several factors, including relatively high stocks in multiple producer countries. These stocks vary significantly in quality, with some poor-quality products still present due to bad weather in the last summer and autumn, which directly impacted storage conditions. However, onions available for sale in the spring should be of much better quality.
Sales remain sluggish, and prices have been very low since December. Despite strong exports toward the end of the year, the Netherlands did not increase prices, likely due to their still-high stock levels. Today, their prices continue to decline. The situation in Spain is also unfavorable, with prices unusually low for this time of year. The market remains slow but may see some improvement at the beginning of March with the arrival of Ramadan.
Germany: Weak onion demand and falling prices amid abundant supply
Demand for high-quality export onions remains weak, as does demand in the domestic market. Prices for Dutch imports continue to decline, while exports to Eastern Europe are also slow. Overall, abundant supply has made customers more selective, with only good-quality onions finding buyers.
Switzerland: Onion stocks threatened by rot, imports expected from mid-April
The poor weather during the harvest significantly affected onion yields in Switzerland. Now, high losses due to increased rotting are threatening stocks. Supplementary imports will be necessary and are expected to enter the market from mid-April onward.
South Africa: Onion prices steady amid higher volumes, with exports limited to Ceres
The onions currently on the market mainly come from the Free State, the Northern Cape, and the Ceres area in the Western Cape. More than half of the nation's onions sent to municipal markets are delivered to Johannesburg.
Onions are currently trading between R35 (1.9 euros) and R45 (2.4 euros) per 10kg bag, depending on the province. Over the past week, the average price for a 10kg bag at the Gqeberha (Port Elizabeth) municipal market was R55 (2.9 euros). In the same period, Durban's average price was nearly R49, while in Tshwane (Pretoria), it was R35. The Johannesburg municipal market recorded an average price of R40 (2.16 euros), and the Cape Town private market saw prices around R44 (2.38 euros).
Average onion prices are 1% higher than a year ago, but volumes have increased by approximately 12%. In fact, January 2025's onion tonnages exceeded those of the past four years. Brown onion prices are higher than white onions, while red onions, a much smaller category primarily sold in retail, had an unusually low average price of R33.32 (1.7 euros) per 10kg on the municipal market.
Onion prices are expected to rise gradually from March, peaking in late winter. Lower volumes are anticipated this year, according to an AMT agricultural market analyst, but a repeat of the extreme prices seen in Q2 2023 — when a 10kg bag of onions sold for an average of R152 (8.2 euros) — is unlikely. The only region exporting onions is Ceres, which ships around 1.3 million 10kg bags of long-day brown onions annually to Europe, the UK, and nearby countries like Angola.
Egypt: Stable onion volumes and stronger export demand anticipated
In Egypt, the onion season begins in a few days for yellow varieties and in April for red varieties. Growers report stable volumes compared to the previous season, which saw a production of three million tons, while the local market requires nearly 1.2 million tons.
Stable volumes result from a reduction in cultivated area and improved yields. The season before last was marked by a global onion shortage, which boosted Egyptian exports until the government intervened with an export ban to protect the local market. This led many growers to increase acreage last season, anticipating a continued shortage. However, prices then dropped sharply, discouraging further expansion for the upcoming season. As one grower noted last season, "Demand is almost non-existent for Egyptian onions, and we ended up with a lot of onions on our hands." Yield improvements this season are attributed to warmer temperatures.
As the new season approaches, industry sources anticipate stronger demand. According to one exporter, "There will be a shortage of red onions in many parts of the world. We are already seeing reports of reduced production and strong demand." Egyptian exporters are particularly targeting markets in the Netherlands, Germany, Belgium, Spain, the UK, and the Balkan countries. Exports to Africa, especially West Africa, will be supported by export subsidies for the continent.
Prices are expected to remain stable at last year's levels. One exporter stated, "I don't see prices changing in the near future, or any change won't exceed 2%."
At Fruit Logistica, onions were among the most prominently displayed products at Egyptian stands. Several companies specializing exclusively in onions participated, attracting significant attention. One exhibitor commented, "We had very good traffic and many visitors, mainly from Europe." Another noted a new trend: "Many visitors asked about organic onions. It's a very risky market, but we are studying it."
China: Onion prices fluctuate amid shifting demand and rising supply
Recently, onion prices have experienced an initial increase followed by a decline, with fluctuations in demand as the primary driver of price changes. Demand in both domestic and international markets has shifted from strong to weak, leading to rising prices followed by a drop.
In January, the market was mainly supplied by stored onions, with a limited supply of high-quality onions. However, from February to March, as new onions entered the market and stored onions deteriorated, the negative impact on supply became more pronounced, increasing the likelihood of price declines.
Following the National Day holiday, most vegetable prices in the domestic market remained high, and demand for onions — positioned as a mid-priced vegetable — was strong. In early November, as the transfer of goods from production areas concluded, storage companies were reluctant to ship in the short term, creating temporary supply constraints that pushed prices higher. However, from late November, the supply of winter vegetables, particularly cabbage and radish, increased significantly at lower prices. As a result, onions lost their price advantage, leading to a sharp decline in terminal demand and weaker domestic sales.
Since late November, new onions from India and Pakistan have also entered the market. Due to the high price of Chinese onions, some trading partners in Southeast Asia and South Asia reduced their orders from China, leading to a decline in exports. The combination of weakening domestic sales and reduced export demand caused Chinese onion prices to fluctuate and decline from mid-November to late December.
January, traditionally a peak period due to the Chinese New Year, saw a general increase in vegetable prices, providing some support for onion prices. Additionally, since mid-November 2024, domestic traders have been navigating a volatile and downward-trending market. To minimize risks associated with future shipments, many traders accelerated the sale of their existing inventory. Consequently, by early January 2025, traders had largely depleted their stocks. As mid-January approached and downstream markets prepared for the holiday, demand for high-quality onions temporarily increased. This led to a tightening supply of high-quality onions from production areas and cold storage, driving prices upward.
After the Chinese New Year, the supply of new onions from Yunnan has increased daily. Regarding the onion market supply in February and March 2025, some traders indicate that China's total supply exceeds previous years. As the availability of new onions continues to grow, supply and demand dynamics are gradually stabilizing, creating a risk of further price declines.
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