Grapes Market Digest w30

Weekly updates on the grapes market

The European grape season has begun, with a notable increase in demand for seedless varieties in the German wholesale market. Major grape-producing countries in Europe, including Italy, Spain, Greece, and France, have already entered the market, with Italy and Spain providing increased varieties. According to the USDA, the EU holds 5% of global grape production, with total yields reaching 1.3 million tons for the 2023/2024 season. Globally, the grape market size is expected to reach USD 215.17 billion in 2024 and is projected to grow at a CAGR of 7.10%, reaching USD 303.20 billion by 2029. Despite China and India being the main producers of table grapes European countries are very promising players in the market due to the seasonality of the product and the lack of overlapping with them. 

Competing in Europe's Growing Seedless Table Grape Market

The European table grape market is highly competitive, with local producers in Italy and Spain dominating during the European season. Italy and Spain contribute significantly to Europe’s estimated 1.7 million tonnes of table grape production, accounting for 59% and 18%, respectively. Italy, the leading supplier with over a million tonnes annually, has been slower in adopting the preferred seedless varieties, although this trend is changing, especially in the Puglia region. Spain, on the other hand, is advancing rapidly in upgrading to high-yielding, seedless club varieties, which are more expensive but increasingly favored in the market. Spain's production season is extending, and Spanish grapes are about 30% more expensive per kilo compared to Italian grapes, primarily focusing on seedless varieties. Italy also holds an advantage with its large organic grape cultivation, with over 2,177 hectares dedicated to organic production as of 2017.

Outside of Europe, major competitors include counter-seasonal suppliers such as South Africa, Peru, Chile, and India, which influence the market dynamics by filling supply gaps when European production wanes. Additionally, Egypt and Brazil pose competition at the edges of the European season. Exporting grapes to Europe can exert downward pressure on prices due to increased supply, highlighting the importance of diversifying export markets beyond Europe and maintaining a strong domestic market. While European production costs are rising, competition from nearby regions like Egypt and Morocco is also intensifying, making it essential for foreign suppliers to focus on high-quality, seedless varieties to stand out in this competitive market.

Price movements in the EU

For the European grape market, our focus is on the German and French wholesale markets, which are significant players in the trade of European grapes. Germany is the largest consumer market for table grapes in Europe. In 2021, 93% of the total import volume of 326,000 tonnes remained within the country, making Germany the largest European market for fresh grapes. Unlike the United Kingdom, which imports directly from countries like South Africa, Egypt, and Peru, Germany sources a significant portion of its grapes from Italy and Spain, as well as through logistical hubs in the Netherlands. Germany's grape consumption peaks during the European season. France, with a population of over 66 million, is the third-largest destination market for imported grapes. However, its preference for local and in-season fruit makes it a smaller market for foreign grapes compared to Germany or the United Kingdom. Most of France's grape supply is sourced within Europe.

Wikifarmer Marketplace’s activity and our experts have also provided insightful information about the market movements and highlighted the growing demand for seedless grapes. To provide a comprehensive view of the market, we have gathered pricing data from German Federal Ministry of Food and Agriculture and the French Market News Network.

In the Central European market, the variety of European grapes has expanded significantly, with numerous varieties now arriving from Italy and Spain. Italian varieties such as Victoria and Black Magic are predominant, followed by Sugra and Arra. There is a strong demand for light and red seedless varieties, which are priced between €3.60 and €4.40 per kilo due to their flawless appearance and delightful aroma. Italy introduced a new variety, the red Red Globe. In Frankfurt, the French blue Prima variety launched the new season, available in 5 kg cartons at relatively low prices of €20 to €24. In Berlin, the Italian Michele Palieri variety is once again available. Despite a well-stocked market, price reductions have been inevitable, even though the summer weather has positively impacted turnover. Italian Crimson Seedless and Italia varieties are expected to arrive next week.

The demand for Spanish table grapes has been growing, particularly in Eastern European countries, as supply increases with the progression of summer. The favorable weather has enhanced production, and a leading producer expects to produce nearly 80,000 tons this year due to new varieties and expanded acreage. Spanish grapes players are observing a significant rise in off-season imports, driven by increased consumption of seedless grapes in Spain, and are exploring new markets in Eastern Europe due to logistical challenges in Asian markets. Despite inflation causing a slight drop in fresh produce consumption, Spanish table grapes are distinguished by their quality, service, logistics, and variety.