China Garlic & Processed Products Market- Trend Analysis & Forecasts

Market/ Product Overview

China's garlic industry is unparalleled in scale and integration, with the country producing 23 million tonnes of garlic in 2023, representing nearly 70-73% of global output, according to FAOSTAT. Shandong, Henan, and Jiangsu provinces dominate this landscape, contributing over 85% of the national production due to favorable soil, climate, and infrastructure. The domestic market includes fresh garlic, dehydrated garlic, garlic paste, powder, flakes, and oil. As of 2024, processed garlic accounted for **% of total market value, up from 12% in 2018, driven by increasing demand from the foodservice and packaged food sectors.

China’s market is influenced by both seasonal and export-driven dynamics, with prices fluctuating based on planting cycles, inventory levels, and international trade tensions. For example, the average wholesale price of fresh garlic ranged from US$ ** to US$ ** per kilogram in 2023. Additionally, China's garlic processing sector has grown rapidly, with over 350 active companies, many located near primary production zones to reduce logistical costs and enhance freshness in processing. As garlic becomes integral in health supplements and ready-to-eat products, Chinese firms are scaling up production, automation, and traceability, positioning the market for solid long-term growth.

Significance of China in Global Garlic Supply Chain

China’s dominance in the garlic value chain makes it the most influential player globally. The country exported ** million tonnes of garlic and related products in 2023, generating US$ ** billion in revenue. Key destinations include Indonesia (29%), Vietnam (**%), the Philippines (**%), and Brazil (**%), showcasing Asia and South America as strategic export corridors. Notably, over **% of garlic used globally in dehydrated or flake form originates from Chinese factories, underlining the country's unmatched processing capacity.

China’s integrated model — from farming to processing and port shipment — offers cost efficiencies that few competitors can replicate. The average FOB export price for Chinese garlic was US$ 1.08/kg in 2023, compared to US$ 1.60/kg from other suppliers like India and Egypt. Furthermore, Chinese exporters leverage forward contracts and on-demand delivery networks to maintain client relationships across 150+ countries, highlighting China's structural advantage in garlic logistics and scale.

China Garlic Supply & Demand Trend

China’s domestic garlic demand reached ** million tonnes in 2023, primarily for culinary, processing, and medicinal use. Of this, over ** million tonnes was consumed in fresh form and ** million tonnes in processed derivatives such as garlic powder, paste, and oil. The remaining volumes were either used for seed or export.

On the supply side, ** million hectares are devoted to garlic cultivation, with yields averaging 24–26 tons per hectare. However, in years of lower price realization (such as in 2022), some acreage shifts to other profitable crops like onions or corn, creating volatility in supply. The Chinese government and provincial cooperatives have promoted cold storage infrastructure expansion, now capable of holding over ** million tonnes of garlic, which helps stabilize year-round supply.

Seasonality plays a crucial role, with peak harvest in May and June driving short-term supply gluts and subsequent price corrections. For instance, June 2023 saw a 17% drop in prices compared to April due to early harvesting and excess supply. On the demand side, rising popularity of garlic-infused sauces and health-focused food supplements has pushed up industrial demand, with garlic oil production alone growing at **% CAGR since 2019.

China Garlic Market Growth Factors

China Garlic & Processed Products Market Segmentation

The Chinese garlic market can be segmented by product type, application, processing method, and distribution channel.

By product, the market includes fresh garlic, dehydrated garlic (flakes, granules, powder), garlic oil, and garlic paste. Fresh garlic dominated with a **% market share in 2024, followed by dehydrated garlic at **%. Dehydrated products have seen consistent growth, especially garlic powder, which registered 6.1% CAGR between 2019 and 2024, supported by rising use in sauces and seasoning mixes.

By application, the market spans food processing, HoReCa (hotels, restaurants, cafes), pharmaceuticals, animal feed, and household cooking. In 2024, food processing accounted for **% of demand, driven by fast-moving consumer goods (FMCG) and the rise of cloud kitchens. Pharmaceutical and nutraceutical segments grew 8.7% in 2023, with garlic tablets and capsules gaining traction among aging urban populations.

Processing method segmentation reveals that cold-dried garlic and spray-dried garlic are gaining market share due to their higher quality and aroma retention. Spray-dried garlic powder alone constituted US$ ** million in revenue in 2023. Traditional sun-drying is being phased out in favor of mechanized dehydration, which cuts processing time by **% and reduces contamination risk.

Distribution channels include wholesale markets, e-commerce, retail chains, and export supply chains. Online sales of garlic-based sauces and oils grew by 13.5% in 2023 through platforms like JD.com and Alibaba’s Tmall. Export-centric companies focus on B2B models, often leveraging long-term supply contracts with FMCG majors in Southeast Asia and the Middle East.

Influence of China on Global Prices

China's role as the primary supplier of garlic gives it significant sway over global price trends. In 2023, Chinese garlic export prices ranged between US$ ** and US$ ** per kilogram, significantly influencing global wholesale and import prices. When China releases large volumes from cold storage, global prices tend to dip by **–**% in the short term.

Historical data show that garlic prices follow a four-year boom-bust cycle. For instance, a surge in planting during 2016 led to a glut and **% price crash in 2018. Conversely, a shortfall in 2020 due to floods in Shandong resulted in a 28% spike in global prices.

As of 2024, China is increasingly using digital auction systems and regional trading hubs to set real-time price benchmarks. Yutai Garlic Exchange in Shandong, for example, handles over ** million tonnes in electronic transactions annually, effectively acting as a global price discovery platform.

China Garlic Trade (Export & Import) Trend

China remains a net exporter of garlic, with over ** million tonnes of outbound shipments in 2023. Major export destinations include Indonesia (** thousand tonnes), Vietnam (** thousand tonnes), the Philippines (** thousand tonnes), and Brazil (** thousand tonnes). These four markets accounted for over 56% of total exports, reflecting China’s regional dominance in Asia and growing reach in Latin America.

Export revenues reached US$ ** billion in 2023, with average FOB prices at US$ 1.08/kg. By contrast, China's imports are minimal, typically below ** thousand MT annually, mostly specialty garlic from Spain or Egypt for niche culinary use. Tariff rates on Chinese garlic vary by destination; for example, India levies a 30% duty, while ASEAN countries offer zero or preferential rates under FTA agreements.

Exporters benefit from port-side processing facilities in Qingdao and Lianyungang, which handle **% of garlic shipments. However, in 2023, global freight disruptions led to temporary slowdowns, particularly in Q3, when average shipment time to Latin America increased from 35 to 52 days.

Regulatory standards for pesticide residue, microbial load, and packaging are growing stricter globally. Chinese exporters have responded by investing in third-party certifications such as Global GAP, HACCP, and ISO22000, which now cover **% of garlic exporters by volume. Yet, non-tariff barriers such as phytosanitary inspections and documentation requirements continue to challenge smaller exporters.

Market Competitive Landscape

Future Outlook

The China garlic and processed products market is expected to reach US$ ** billion by 2032, expanding at a CAGR of **% from 2024. Demand will be fueled by processed product diversification, growing domestic consumption, and expanding export footprints, especially in health and functional foods. Processed garlic will constitute over **% of market share by 2032, with garlic oil and paste projected to grow at over **% CAGR.

Policy support for agricultural exports, coupled with AI-led supply chain management, will further bolster production efficiency. However, maintaining global quality standards and mitigating environmental impacts will be crucial. If China sustains its innovation trajectory and overcomes trade and sustainability challenges, its dominance in the garlic market will remain unshaken through 2032 and beyond.