Global Vinegar Market: Export Opportunity Analysis

Global Market Forecast

The vinegar market was estimated to be valued at USD 1.3 billion in 2019 and expected to reach USD 1.4 billion by 2025, at a CAGR of 1.4% during 2020-2025.

The market is segmented into the following product types: balsamic vinegar, beer vinegar, cider vinegar, rice vinegar, white vinegar, wine vinegar and more. Balsamic vinegar dominates the largest market share, followed by wine vinegar, cider vinegar, and white vinegar. Vinegar has a variety of applications such as it acts as a marinade, preservative, flavor balance, stain remover, and hair conditioner. MarketWatch reports, in the next five years, the growth of the market will be driven due to its rich source of vitamins B-1, B-2 and mineral salts.

Export/ Import Analysis

The Observatory of Economic Complexity reports the market generated a total value of USD 665 million in 2017. Italy was reported to be the world’s largest exporter with 46% of the global vinegar exports, followed by the United States with 9.4% and Spain with 5.5%. Italy is the major producer and supplier for the United States with 29.9% of its total exports, Germany with 18.3%, and France with 7.9%. While there are dozens of types of vinegar produced in Italy, Balsamic vinegar is the most popular vinegar, generating USD 1.2 billion annually. Italy was reported to continue dominating the market in the next five years.

In 2017, the United States was reported to be the world’s largest importer with 19% of the global vinegar imports, followed by Germany with 11% and Canada with 6.7%. It heavily relies on imports from Italy dominating 74.7% of its total imports, followed by Spain dominating 5.2%, and France dominating 4.2%. Of all the types, white vinegar, cider vinegar, wine vinegar are the most common vinegars found in the United States’ kitchen.

Global Growth Opportunity Analysis

Europe was reported to dominate the market, accounting for 91% of the global vinegar market, due to the world’s largest production of vinegar. In 2018, it produced 1.2 billion liters of vinegar, increasing by 2.8% against the previous year, and it is expected to experience steady growth in the next five years. The largest producer in Europe is Germany producing 211 million liters of vinegar, followed by Italy and France. Of all the major European producers, major growth will be witnessed in France in the next five years. Europe is also the world’s largest consumer, and European vinegar consumption is expected to reach 1.2 billion liters with a CAGR of 1.1% during 2019-2025.

The Asia-Pacific region was reported to be one of the fastest growing regions with a CAGR of 4.7% during 2020-2025. The rising awareness of health/ medical benefits of vinegar consumption plays an important role in the growing popularity of vinegar, specifically in China, Japan, and India. While the Asia-Pacific region is traditionally known for cider vinegar, coconut vinegar, and aged vinegar, China and Japan are witnessing the growing popularity of black vinegar which is often used in a health tonic or drink, at a CAGR of 4.64% during 2019-2020.

Trend Analysis

Vinegar demand is significantly increasing on a worldwide scale. One of the factors is the increasing health/ medical benefit awareness of vinegar consumption. It contains antioxidants that help prevent cardiovascular diseases and improve the immune system. Vinegar is not only used in food applications, but also in non-food applications such as disinfectants, antiperspirants, and photographic materials. Other factors include the growing disposable incomes and changing lifestyles and consumer preferences for diet.

As consumers ’ eating behavior shifts toward healthier eating habits, the growing demand for vinegar increases the competition in the market and requires manufacturers to develop their products. It has been achieved by the following strategies: launching exotic flavors, gluten-free and organic vinegar, and flavored vinegar pills. The variety of vinegar products will keep boosting the demand and the market of vinegar.

The vinegar market is currently experiencing higher prices due to the poor harvest and low supply in Europe; the retail prices for vinegar, especially balsamic vinegar, is expected to go up by 50%. As Spain and Italy struggle with the coronavirus, supply chains have been interrupted and distributors are looking to diversify their networks. With a diversified portfolio, a firm can protect itself from the risk imposed on them by factors such as the coronavirus.

United States Market Analysis

The United States was reported to be one of the world’s largest markets of vinegar, at a valuation of USD 298 million in 2018. The increasing health/ medical benefit awareness of vinegar consumption and changing consumer preferences for diet will keep fueling the demand of vinegar in the United States. In order to meet the growing demand, the United States heavily relies on imports from around the world, especially from Europe, with a 0.5% tariff on vinegar.

The United States is also the world’s second-largest exporter, at a valuation of USD 63.19 million. It is the major supplier for Canada with 38% of its total export, Germany and Philippines with 6.9% each, and the United Kingdom with 5.9%. The U.S. vinegar export has increased by 81% during 2015-2019 and is expected to grow in the next five years. Major vinegar producing states are California, accounting for around 60% of the total exports of the United States, followed by Georgia, New York, and Wisconsin. While the vinegar trade deficit is significantly growing in the United States, the wide gap between imports and exports makes it difficult to meet the growing demand for vinegar.

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Source: Statista, World's Top Export