Spices Market Update Q3 2025

United States

Supply Update

• Crop Progress: Weather variability early in the season delayed the California harvest by approximately 3 weeks. Crop maturity caught up by mid-summer. The US onion crop harvest is ~75% complete as of late September. The California harvest is currently taking place in Central California and is projected to continue through October. Northern California and Oregon/Washington harvest started in early September and is planned to last through November.
• 2026 Planting: Preparation for the 2026 planting season is taking place, scheduled to start the first part of October.

Onion harvest in the Central Valley of California

Demand Update

• Demand piece fractions remain extremely strong. Micro sensitive fractions, especially extra low bacteria onion powder, are in high demand coupled with lower historical production levels for this point in the season. Granulated and ground onion is experiencing a strong surge in demand amid an overall tight supply in the market. Value added products, such as toasted and blended items, are also experiencing strong sales growth. Prices for these fractions and specialty processes will likely remain elevated.

Cost Pressures

• Fertilizer prices have increased +30% due to the higher tariffs. Growers continue to manage higher labor costs, fuel plus overall input costs while evaluating competitive crop returns for onion and garlic compared to other crops. As a result, there is strong resistance from growers to accept lower returns.
• Irradiation costs have risen ~7-8% from a year ago with periodic capacity constraints.
• Higher inventory holding costs due to interest rates continue to influence costs moving forward.

United States

Supply Update

• Crop Progress: Harvest was delayed by nearly two weeks due to adverse weather conditions experienced in early summer. The initial fields experienced variable yields particularly impacting production of granulated and ground fractions. Harvest is expected to continue through mid-November. Planting for crop year 2026 is scheduled to begin at the end of September in the Central Valley of CA.

Demand Update

• The market continues to diversify sourcing from offshore origins to the US to reduce supply concerns. Another significant factor contributing to the shift in demand to US garlic is the documented supply chain traceability to the field and seed crops for garlic grown in the US (including onion). Demand for granulated and ground garlic continues to strengthen. Tighter supplies are anticipated in minced, ground, and granulated fractions. 

Cost Pressures

• Similar to the US onion market, growers continue to resist lower returns due to rising costs related to labor, agricultural input costs,
  and fuel.

Garlic harvest in the Central Valley of California

China

Total garlic flake availability continues to decline. 2025 production is around
200k tons against the annual demand of 300k tons. Most of the garlic flake
speculators don’t want to sell their stock due to their high carrying costs.
Therefore, the transaction of garlic flakes was significantly less in the last few
weeks, but the garlic flake prices remain stable.

Cold storage fresh garlic total availability is much higher than last year, but less than the market forecast.

Garlic seed planting in Central Oregon

Green Chiles / Jalapeño

2025 summer harvest is in full production. We are currently about 60% through the harvest. Summer monsoons have been favorable to aggressive crop growth, and the farm yields have been better than expected. Temperature patterns continue to be in the normal range, and we expect harvest to extend out to the end of October through early November.

Green chiles

Green chile harvest

Red Chiles

Crop progressing well towards maturity. Slight hail/weather related damage
reported in some areas but crop is expected to be good enough to meet
contracted quantity. Expected deliveries from October onwards. Demand
for Paprika/Chili powder remains robust. High tariffs on Indian imports might
dampen demand for high heat chilies. EU/China tariffs might lead to a
moderate bump in prices from Q4 2025/Q1 2026 once existing inventories
are over.

Pepper

Harvest has completed in Indonesia. Yields are reported to be lower with offers limited. Lower stocks and increased local demand hasn’t resulted in prices coming down. Para in Brazil is nearing completion of its harvest season. The next big crop from Brazil is only expected towards the end of the year. 

Prices in Vietnam have moved up to VND 150k after dropping to VND 135k
in Q2 due to uncertainty around a tariff. Limited supply and stable demand
have continued to provide support to the prices. Stocks continue to deplete in Vietnam and with the next harvest still 4 months away, prices are expected to remain firm.

Up until August, Vietnam exported 165k MT vs 181k MT in 2024. Asia is the largest destination importing 42k MT (+31%) followed by North America 37k MT (-32%). Exports to Europe were 35k MT (-20%). China has imported 13k MT compared to 8.4k MT during same period in 2024.

Pepper plants

Pepper plants

Cassia (Vietnam)

We are entering the autumn season in northern Vietnam with availability of high VO cassia expected to increase. Prices continue to remain stable.

Nutmeg (Indonesia)

Weather has improved in the growing regions leading to better quality arrivals in the market. Harvesting has started in Manado for the second half of the year. Demand is increasing while the prices remain stable.

Chili

Chili crop transplantations are in progress with 45 – 55% of area being
completed. Observed drop in acreage between 30% - 45% in all the major
growing belts for 2025-26 crop, field survey is underway to get more accurate
sowing trends.

Chili seedlings demand is normal, farmers mostly shifting to alternate crops for better remuneration. All the growing areas have received good rainfall, reports of crop damage also being observed in a few areas due to excessive rainfall.

Cumin

Pre-sowing survey for cumin is underway to understand the expected acreage for the upcoming season. Currently, growing regions are receiving good rainfall. 

Market arrivals have been low due to rainy weather. More movement in the
market is expected during the upcoming festival season. IPM compliant material has seen little downturn in prices. Markets are expected to be stable in the short-term depending mainly on stockists activity. In the long term, prices will depend on sowing data. 

Coriander

Growing regions received normal to excess rainfall in August. Dry weather is
currently prevalent across all the regions. Current post-monsoon weather seems conducive for coriander crop growth leading to an estimated 2% rise in sowing this season.

IPM availability is expected to be good with lower spraying due to favorable
weather. Imports of European coriander is expected to decrease this year
due to stricter government regulations. Prices will move in a narrowly confined range, but long-term prices will depend on sowing acreage which is expected to decrease for 2025-26 season. Carry forward stock for next season is lower compared to 2024-25 season. 

Turmeric

Growing regions experiencing favorable weather and no major pests and
diseases observed so far. Dams are having good water levels compared to last year. Overall crop acreage is expected to increase by 20-25% for 2025-26.

Market arrivals have increased as few farmers are now releasing material. IPM compliant material availability seems low versus demand. Current prices are stable and range bound. Long term view on prices seems bearish due to good sowing but carry forward stocks are low. 

Turmeric