Grenada Nutmeg & Mace Market- Trend Analysis & Forecast to 2030

Grenada nutmeg (dry) production reached 561.87 tonnes in 2022 and is projected to grow at a CAGR of 3.52% from 2020 to 2030. The market for Grenadian nutmeg and mace is being driven by the rising demand for high-quality nutmeg and mace used as raw materials in meat processing and spice product manufacturing. The country dependability on nutmeg and mace export revenues is to continue to attract the government efforts in plantation area expansion and productivity improvement. However, the adverse weather factor is likely to remain as a major restrain to the growth of Grenada nutmeg & mace supply.

Grenada’s Significance in the Global Nutmeg & Mace Supply

Grenada, often called the "Isle of Spice," is one of the world's leading producers and exporters of nutmeg and mace. These spices are critical to Grenada's economy, contributing significantly to its GDP and employment. Nutmeg and mace accounted for 13-15% of total exports by value and 36-40% of Grenada's total agricultural exports in 2022.

Nutmeg is derived from the seed of the Myristica fragrans tree, while mace is the aril surrounding the seed. Both spices are valued for their unique flavors and aromatic properties, finding use in culinary, beverages, pharmaceutical, and cosmetic industries.

Grenada is a pivotal player in the global nutmeg and mace market, accounting for a substantial share of global production and exports. The country's favorable tropical climate and fertile volcanic soil create ideal growing conditions for these spices. Historically, Grenada has maintained a reputation for producing high-quality nutmeg and mace, which has helped it secure a steady demand in international markets.

Grenada Nutmeg & Mace Supply & Demand Trend

Supply/ Production Trend: Grenada's nutmeg production has experienced fluctuations due to various factors, including natural disasters like hurricanes, which have periodically devastated nutmeg plantations. However, efforts to rehabilitate and modernize the sector have led to a recovery in production levels. Technological advancements and sustainable farming practices are being adopted to enhance yield and quality.

Grenada's nutmeg harvested area was 1.23 thousand hectares in 2022 and is projected to witness an increment towards ** thousand hectares by 2030 at a CAGR of 2.78% (2020-2030). The Grenada nutmeg harvested area stood at ** in 2023 and production reached ** thousand tonnes.

Demand Trend: In Grenada, the domestic demand for nutmeg and mace is low, with the majority of the crop being exported to North America and Europe. Internationally, Grenada's nutmeg and mace are preferred by buyers due to their superior quality. Grenada exported US$ 5.47 million valued nutmeg (dry) in 2023 and is projected to witness a CAGR of 5.04% during the forecast period (2020 to 2030). Canada, Netherlands, and USA were the major importers of nutmeg and mace from Grenada.

Global demand for nutmeg and mace is driven by their diverse applications. The culinary sector remains the largest consumer, with increasing use in processed foods and beverages. Additionally, rising awareness of the health benefits associated with nutmeg and mace, such as their anti-inflammatory and antioxidant properties, is boosting demand in the pharmaceutical and nutraceutical industries.

Market Growth Factors

■ Rising Health Consciousness: Growing consumer awareness about the health benefits of nutmeg & mace is driving their demand in the global health & wellness sectors.
■ Culinary Uses: Increasing demand for exotic and flavorful ingredients in global cuisines is boosting the consumption of nutmeg and mace.
■ Export Opportunities: Expanding export markets, particularly in Europe and North America, are contributing to the market growth.
■ Tourism: Grenada's tourism industry also promotes the spices, attracting culinary tourists and boosting local sales (luggage trade).

Grenada's "nutmeg tourism" trend attracting visitors keen to experience the spice's cultivation and cultural significance firsthand. Key attractions include guided tours of estates like Belmont Estate and the Gouyave Nutmeg Processing Station, where tourists can engage in harvesting, processing, and culinary activities. Culinary tourism also thrives, with local dishes and products highlighting nutmeg's uses. Museums and cultural centers offer historical insights, while retail opportunities for nutmeg-based products support local economies. Integrated tourism packages combine nutmeg experiences with other attractions, making Grenada an appealing and educational destination for travelers. This trend supports sustainable agriculture and boosts local businesses.

Market Restraints & Challenges

Despite its growth prospects, the Grenada nutmeg market faces certain challenges:

■ Climate Vulnerability: Grenada's nutmeg industry is highly susceptible to climate change and extreme weather events, which can disrupt production.
■ Pests and Diseases: Outbreaks of plant diseases and pest infestations can significantly affect yield and quality.
■ Market Competition: Increasing competition from other nutmeg-producing countries like Indonesia and India poses a challenge.
■ Supply Chain Issues: Logistics and supply chain inefficiencies can lead to delays and increased costs.

Grenada Nutmeg & Mace Industry: Supply Chain Constraints & Value Chain Challenges

Grenada's nutmeg and mace supply/value chain faces several significant bottlenecks that impact its efficiency and profitability. One primary issue is inadequate infrastructure, particularly for processing and storage, which leads to considerable post-harvest losses and affects the overall quality of the spices.

Transportation logistics also present a challenge; many nutmeg plantations are located in remote areas with poor road conditions, complicating the timely and cost-effective movement of goods to processing facilities and export points. Furthermore, there are gaps in quality control mechanisms, making it difficult to consistently meet international standards, which can limit market access and erode Grenada's reputation for premium-quality spices.

Additionally, the industry suffers from limited access to modern agricultural technology and best practices, which hampers productivity and resilience against pests, diseases, and climate-related disruptions.

These bottlenecks collectively hinder the efficiency of the supply chain, increase operational costs, and pose barriers to market expansion and competitiveness on the global stage. The Grenadian government’s vision to halt the export of raw nutmeg and focus on developing high-value, processed products like nutmeg oil, nutmeg fat, and nutmeg-based syrups is expected to significantly enhance the country’s nutmeg industry in the coming years. By investing in local processing and value-added production, Grenada aims to capture a larger share of the global nutmeg market, create jobs, and drive sustainable economic growth. This strategic shift not only strengthens Grenada’s competitive edge but also positions the nation as a key player in premium nutmeg-derived products.

Grenada Influence on Global Nutmeg & Mace Prices

Grenada has some degree of price-setting power due to the premium quality of its nutmeg and mace. However, prices are also influenced by production levels in other major suppliers, such as Indonesia and India. Market prices fluctuate based on supply and demand dynamics, which are affected by factors like climate, government policies, and global economic trends. While Grenada’s high-quality nutmeg provides a pricing advantage, the country remains sensitive to these external market influences, necessitating careful monitoring and strategic pricing adjustments.

Nutmeg & Mace Trade (Export & Import) Trend

International buyers favor Grenada's nutmeg and mace for their superior quality. In 2023, Grenada exported dry nutmeg valued at US$ 5.47 million, with exports expected to grow at a CAGR of **% from 2020 to 2030. Mace exports from Grenada experienced a CAGR of 5.98% between 2010 and 2020, and in 2023, the country exported mace worth US$ 539.80 thousand. The primary importers of Grenada's nutmeg and mace were Canada, the Netherlands, and the USA.

Grenada nutmeg farm gate prices have declined from their historic high in 2012 prices at US$ 3.70 per kg (annual average) to US$ 2.22 per kg in 2020 due to a gradual increase in domestic production along with increased supplies from the competitive producing countries. Currently, the Grenada nutmeg export prices are hovering in the range of US$ 8 – 9 per Kg.

Nutmeg & Mace End-use Industries

The demand for nutmeg and mace is robust in several key industries:

■ Food & Beverage: Used as a spice in cooking, baking, and beverage production
■ Pharmaceuticals: Incorporated into medicinal products for its therapeutic properties
■ Cosmetics: Used in fragrances, skincare, and personal care products
■ Nutraceuticals: Growing use in health supplements and functional foods

Grenada Nutmeg & Mace Market Competitive Analysis

Grenada's nutmeg and mace market is characterized by a mix of local cooperatives, private enterprises, and government-supported entities. The competitive landscape is shaped by efforts to maintain high quality, ensure sustainable production practices, and expand market reach.

Grenada Cooperative Nutmeg Association (GCNA), founded in 1947 under the Grenada Nutmeg Industry Act, is a quasi-co-operative established by farmers to support the nutmeg industry. It operates as a cooperative that supports local nutmeg farmers through procurement and processing, and helps farmers market their produce locally and internationally.

In February 2024, Grenadian Prime Minister proposed halting raw nutmeg and chocolate exports to unlock their potential and encourage MSMEs to invest in advanced technology for higher value-added processes. This includes products such as nutmegs, cocoa, herbs, spices, fruits, vegetables, and marine goods. The government is prepared to partner with the GCNA to secure at least two years of funding for acquiring and stockpiling raw nutmegs and establishing a processing facility for local products like nutmeg oil, syrups, and fat. This initiative aims to significantly transform the nutmeg and mace value chain in international markets.

Companies Importing Nutmeg and Mace from Grenada (Processors/ Spice Traders/ Importers),

■ Catz International B.V.
■ Koninklijke Euroma BV (Intertaste BV)
■ Verstegen Spices & Sauces B.V.
■ Fuchs Group
■ Shashi Foods Inc.

Future Outlook

The future outlook for Grenada's nutmeg and mace market is optimistic, driven by advancements in sustainable farming, modern agricultural practices, and value-added product development. Efforts to expand into new markets and enhance product quality are key strategies. Government support and international partnerships will help address supply chain challenges. Despite climate risks and competition, Grenada's reputation for high-quality spices positions it well for growth and increased global market share.