Tomato Paste Price Trend and Forecast

Tomato Paste Regional Price Overview

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

Tomato Paste Price Trend for the First Half of 2024

The global demand for tomato paste has surged, driven by crop failures in China and global supply chain issues with staggering rises in freight costs. In recent times, China, which typically dominates the market faced rising costs for energy, seeds, and labor; it is losing its competitive edge to benefit markets like Turkey and created opportunities for Indian tomato paste manufacturers. India's competitive labor and improved processing technologies have allowed it to meet increasing global demand. Despite currently processing only 1% of its total tomato production, India's tomato paste exports have grown significantly, with key markets in Europe, the U.S., and South America.
 

Tomato Paste Price Chart

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Government initiatives such as the Pradhan Mantri Kisan Sampada Yojana (PMKSY) are further boosting India's processing capacity to enhance both domestic and international supply. Low vessel availability and delays caused by the long ongoing conflict in the Red Sea saw China losing its stronghold in key markets like Europe due to inflated freight rates. Meanwhile, Turkey benefitted from lower production costs, thanks to a depreciation in lira and lower freight rates, positioning it well for Middle Eastern and some European markets. Spain remains less affected by freight costs, giving it some edge in Europe with strong production and stable pricing. Overall, positive market sentiments were observed.

Analyst Insight

According to Procurement Resource, with a positively inclined demand graph for Tomato Paste, the market is projected to grow globally, and the prices are also projecting improvements.
 

Tomato Paste Price Trend for the Second Half of 2023
 
Tomato paste prices registered frequent variations in prices during the second half of the year 2023. In the month of July, tomato prices soared in the Indian market. Heavy rainfalls and flood-like situations in the major producing regions curtailed domestic supplies drastically. However, with this, a surge was seen in the demand for tomato pastes.

Packaged tomato paste was cheaper compared to tomatoes and thus saw a staggering growth in demand during the monsoon season of the third quarter. This rise in demand also pushed tomato prices up in the third quarter. However, as the tomato prices normalized in the country in the fourth quarter tomato paste prices also backtracked in the country. Overall, mixed market trends were observed.

Analyst Insight

According to Procurement Resource, the Tomato Paste prices are expected to remain stable in the coming quarter. The supply and demand outlooks are likely to maintain parity going forward.
 

Tomato Paste Price Trend for the First Half of 2023

Tomato Paste is a thick paste made out of tomatoes by continuously cooking them for several hours. It is usually preserved and used as a readymade substitute for fresh tomatoes in various food-related sectors like pizzas, sauces, soups, and jams.

Since tomatoes are the prime ingredient for making Tomato Paste, their price trend align closely with each other. During the first half of the year 2023, the Tomato Paste prices remained inclined for the entire duration. The adverse weather conditions, like uneven and unforeseen rainfalls, severely disrupted the crop cycles.

The tomato yield was depleted to such levels that the United Kingdom had to almost double up its imports to sustain supplies in the vegetable market. Such supply shortage for tomatoes further fueled the Tomato Paste demands, and the price trend remained on an uphill trek throughout the said period.

Analyst Insight

According to Procurement Resource, the Tomato Paste prices are likely to continue growing for some period. However, the market will strive for some stability after that.

Procurement Resource provides latest prices of Tomato Paste. 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.