GLOBAL MARKET OVERVIEW LIMES

Italy: High prices continue to weigh on demandThe lime market is currently facing a complex situation, with high purchase prices ranging from €11 to €13, depending on size and quality. This price increase, which has persisted for approximately one and a half months, is being driven by several factors, including limited availability at origin, certain quality issues, and the diversion of supplies to other markets, such as the United States, due to the impact of the World Cup. As a result, Brazil has effectively become Europe's sole source of supply. Although the first shipments from Mexico and Colombia have arrived, and the Spanish season is expected to begin in around 15 days, prices are expected to remain high over the next two weeks, with only slight fluctuations depending on weekly demand.The Italian market is finding these conditions particularly difficult due to weak and inconsistent demand. Sales have generally been slow in recent weeks, and the high price of limes has further reduced consumption. In response, buyers are holding back on purchases or opting for batches of "lighter" fruit, which is of lower visual quality than the "super green" grade, in order to reduce costs. As a result, despite the actual shortage of fruit, domestic demand remains sluggish, a pattern that typically emerges when market prices reach levels that consumers perceive as too high.Netherlands: Volatility continues to shape the marketOver the past 18 months, the lime market has been characterised by significant fluctuations in availability, prices, and market sentiment. "For many market participants, 2025 was a challenging year. Supply from Brazil was abundant, putting the market under pressure for extended periods. Low prices and limited margins made it difficult to achieve satisfactory returns throughout the supply chain."The start of 2026 presented a very different picture. In January and February, availability was limited, causing prices to rise rapidly and resulting in temporary shortages. The situation changed again from March onwards. From March until mid-June, high volumes from Brazil led to a structural oversupply and a prolonged period of low prices. It was only from mid-June that the market began to recover, supported by a better balance between supply and demand, as well as improving consumer demand," says a Dutch importer.According to him, the extremes in the lime market are becoming increasingly pronounced. "Where market corrections were once relatively short-lived, we are now seeing longer periods of both oversupply and shortages. At the same time, global production continues to grow, and more players are entering the lime market. This creates additional market dynamics, but also increases competition and results in greater price volatility."Spain: Demand recovers after spring oversupplyThe start of the year was atypical for the lime market in Spain. The first few months were marked by solid demand, but between April and May the market faced an oversupply. From June onwards, with the arrival of summer across Europe, higher temperatures, and the overlap with major sporting events such as the football World Cup, demand recovered to the levels typically seen at this time of year. The World Cup, like other major sporting events, tends to boost lime consumption, especially when it takes place during the summer. During these periods, gatherings in bars, terraces, and homes increase, with limes widely used in drinks and cocktails.On the supply side, Brazil remains the main supplier to the European market, sometimes complemented by Mexico, Peru, and Colombia. However, the availability of Brazilian fruit has declined in recent weeks due to weather conditions. Although Brazil's growing regions are normally in a drier period of the year, the effects of El Niño have brought excessive rainfall, affecting production and reducing available volumes. As a result, origin prices have risen sharply, and these increases have been passed on to selling prices in Europe.The higher product cost is being driven mainly by origin prices rather than logistics. Import costs remain at levels similar to those of this time last year. Although sea freight has become more expensive due to higher fuel costs and related surcharges, tariff reductions under the Mercosur trade agreements have partly offset these increases.In recent weeks, stronger seasonal demand combined with higher origin prices has supported a recovery in selling prices across Spain and the rest of Europe. "Prices are currently at levels we haven't seen for a couple of years, ranging between €11 and €13 per box depending on size and brand," says a major importer and trader in Spain. To meet current demand and complement its sea freight supply, the company is increasing its programmes for airfreighted lime imports.Germany: High demand keeps prices elevatedThe lime season has so far performed better than last year, with two price peaks recorded during the first seven months of the year. Many importers suffered losses last year due to high FOB prices and low market prices in Europe, prompting a more cautious approach this season. In the spot market, most importers reduced their volumes, allowing the market to return to more typical price fluctuations. However, as participants seek to recover previous losses, rising prices have quickly led to increased purchasing, helping to sustain higher price levels for longer."In recent weeks, we faced big shortages, supermarket promos were underway, and the demand was pretty high and stable until last week. As of this moment, due to the vacation season, we expect it to decrease. As for the prices, it will all depend on the interaction between supply, which is again increasing, and the demand in Europe, which is difficult to foresee at this right moment," an importer says.As in previous weeks, limes remain very expensive on German wholesale markets, mainly due to strong demand from the foodservice sector driven by seasonal weather conditions. The largest price increase so far occurred in calendar week 26. Supplies have come mainly from Latin America and South Africa.Demand for limes traditionally increases during the summer months. At the same time, unfavourable weather conditions in Brazil and Colombia have reduced yields, particularly in the organic sector. This year's FIFA World Cup has also supported demand in the U.S. market, resulting in fewer export volumes being available for Europe.In addition to supplies from Latin America, imports from Morocco and Spain are expected to increase from mid-August to diversify sourcing and help ease pressure on the market.North America: Ample supply, lower demandLime supplies from Mexico remain abundant. However, quality is expected to change with the upcoming shipments, which is typical for this time of year. This follows excessive heat in Mexico and sporadic rainfall during the growing season. As a result, some fruit has developed oil spotting, while lime sizes are expected to increase week by week, also due to the recent rains.Mexican limes are currently sourced from Veracruz, Tabasco, Oaxaca, Michoacán, Jalisco, Colima, the Yucatán, and Tamaulipas. Guatemala and Honduras are also supplying the market.At the beginning of the year, supplies were tighter, and prices were very high. Although fruit was available, the market reached exceptionally high levels, and there was a perception that prices might not fall below €22 to €26 throughout the year.Demand is currently soft, however, and the anticipated surge in demand during the FIFA World Cup in North America did not materialise. As a result, prices declined throughout the tournament. Large fruit (110 and 150 count) is averaging €12 to €14, 175 count fruit is averaging €11, 200 count fruit is averaging €10, and smaller limes (230 and 250 count) are averaging €9 to €10.Brazil: Exports continue to growBrazil continues to consolidate its position as the leading exporter of Tahiti limes to Europe, supported by a consistent year-round supply. Annual exports are approaching 200,000 tons, well above Mexico's 30,000 to 40,000 tons.In the first half of 2026, export volumes increased by 3%, while export value rose by 9%, reflecting a slight improvement in prices. European demand remains positive. The main challenges are rising logistics costs and the EU import tariff of 12.8%. A potential Mercosur-EU agreement would reduce this tariff gradually over approximately seven years.Peru: Heavy rainfall remains a concernPeru's Tahiti lime sector remains on alert due to a strong to very strong El Niño event forecast to persist until April 2027, following several years of annual growth of around 30%. Companies have stepped up measures to prevent fungal diseases and are reviewing drainage systems in response to the risk of excessive rainfall.By the end of August, the percentage of successful fruit set is expected to be known, providing a key indicator for estimating production volumes for November and December. The United States remains the main export destination, while access to the European market continues to be constrained by long ocean transit times and competition from Brazil.Colombia: Prices remain under pressureThe Colombian Tahiti lime market is experiencing one of its most volatile periods in recent years. Following a favourable season in the United States, when prices reached as high as €51 per 40-lb box between March and May, the trend reversed, with prices falling to historic lows.Oversupply from Mexico, at around 1,000 containers per week to the U.S., and from Brazil in the European market, combined with the appreciation of the Colombian peso, has reduced the competitiveness of Colombian exports. A severe winter reduced domestic production by between 30% and 40%. Prices are expected to recover towards August and September.South Africa: Low stocks support pricesLime stocks are currently low, unlike other citrus categories at the wholesale markets, with only around 1,000 3kg bags available on the Johannesburg market floor. As a result, wholesale prices are about €2.49 per kilogram, or €7.46 to €8.00 per 3kg bag, for out-of-season limes.Volumes are expected to increase towards the end of the year as temperatures rise, with peak supply from March to May. Traders describe limes as a stable category with little year-to-year growth."When the high volumes come in, prices can drop down as low as €0.80 to €1.00 per 3kg bag. Then you're looking at only €0.27 to €0.33 per kilogram," says a trader. Restaurants are the main buyers, using limes for cocktails, guacamole and salsa.Another lime trader says direct sales to restaurants and retail programmes performed well this past season and reports that supermarket purchases of limes are increasing among home cooks.Due to the summer holidays, the next Market Report will be published in week 33.Next Topic: OnionsPublication date: Fri 24 Jul 2026© FreshPlaza.com / Stefan Jansen van Nieuwenhuizen