The South America Lime Market Lime is expected to register a CAGR of 3.4% during the forecast period. Lime is used as one of the key raw ingredients for many food processing and other industrial applications. Certain beverage and chemical industries procure lime consistently. This is one of the major factors driving market consumption. Seasonal market behavior has increased with time-specific consumption of lime and lime products, keeping the market in line and moving forward. In Argentina, the highest lime producing country in the region, the lime harvest begins in the month of March, with most of the production concentrated in the northwestern region. The country is expected to have a favorable climate condition which is likely to boost the production of lime during the forecast period.
Key Market Trends
Chile is the Fastest Growing Exporter
Chile is one of the highest producers of lime in the region and its export value has grown significantly over the years. Major exporters of Chile Lime are Japan, Netherlands and Canada. Chile has joined as a new member of The International Lime Association (ILA) in 2018. Production of limes and lemons increased from 135,413 metric ton in 2016 to 151,083 metric ton in 2018. Chile's export of lemons and limes increased from 76,807 metric ton in 2017 to 94,859 metric ton in 2019. It is likely to increase the export of limes in the coming years, thus increasing the production values in the forecast period. Major importers of Chile lime were countries such as the United States, Japan, Korea, Netherlands, Spain, Italy and the United Kingdom. Chile is thus emerging as one of the most significant exporters of limes in the Latin America region, several initiatives to increase production, mainly for exports, is likely driving the market during the forecast period.
Argentina Dominates Production in the Region
Argentina is the highest producer of lime in South America. The production of lime in Argentina is distinctly concentrated, as the country contributed to about 65% of the lime production in the southern hemisphere in 2018, as per Federcitrus. According to the Food and Agriculture Organization (FAO), the total harvested area under limes was recorded at 55,667 hectares in the year 2018. Certain anticipated tree removal techniques and resetting are expected to increase the harvest area and productivity further for limes during the forecast period as reported by USDA. Argentina produced about 1989 thousand metric tons of limes and lemons in 2018, which has an impressive increase from about 953 thousand metric tons, produced in 2015, in the country. Spain, the Netherlands, Russia, Italy and Greece are the major importers of lime from Argentina. According to USDA, the European Union and Russia accounted for 70% and 15% of the total Argentine lime exports in 2018. The country has been leading the production of limes in the South American region for a long time and this trend is likely to continue during the forecast period, given the increase in both local and export demands.
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