The Rising Cost of Green Cardamom: What is Driving the Recent Increase in Price?

Kindi Lantz diciembre 17, 2024

Green cardamom, just thinking about it is enough to warm, comfort, and excite my senses. Iit’s prized for its pungent complexity of flavor, bright aromatic notes, and ability to enliven dishes and beverages around the world. A beloved spice whose culinary applications date back thousands of years, don’t be surprised if you find it to be “the secret ingredient” in frequently-requested recipes—both sweet and savory.

But things are changing for The Queen of Spices. Most spice enthusiasts, culinary professionals, and bulk buyers, have already experienced a surge in prices for this globally popular ingredient. If you haven’t noticed just yet, get ready, because the upward trajectory of the cost of cardamom is expected to continue (likely at an even more astounding rate). It isn’t just due to typical inflationary influencers, either; both economic and environmental factors are playing their role in what is expected to be a dramatic rise in the cost of green cardamom—bringing prices in the near future to record highs.

Why Are Green Cardamom Prices Expected to Rise?

Let’s break it down: Over the several years, global cardamom prices have climbed significantly and forecasts suggest the upward pressure will intensify in the coming months. The roots of this trend lie not in typical inflation but in a perfect storm of factors including environmental challenges, supply chain disruptions, and shifting demand dynamics. To better understand the forces at play, let’s dig into the details to get a closer look at the primary contributors of this upward trend.

Climate and Environmental Challenges are Impacting Green Cardamom Prices.

One of the most significant drivers of rising cardamom prices is the environmental toll on key production regions. Green cardamom is a labor-intensive crop that thrives under specific climatic conditions and is highly sensitive to large fluctuations in weather. Recent weather patterns due to climate change have wreaked havoc on harvests. Top-producing countries have experienced dramatic setbacks over the past couple of years.

When one thinks of regions known for frequent cardamom consumption, Guatemala is not probably a country that comes to mind. So it may come to you as a surprise that Guatemala is actually the foremost producer and exporter of this famous and beloved spice, followed by India.

Unfortunately, both countries have experienced extreme drought conditions in recent times which severely impacted the growth of the Elettaria cardamomum plant from which the cardamom pods are sourced. The extended period of drought wasn’t the only weather phenomenon that impacted production, though. Heavy rainfall and monsoons also brought travesty to crops, leading to extensive fungal and pest outbreaks and other disruptions to the crop cycle.

With reduced yields, the availability of green cardamom is dwindling, creating a classic supply-demand imbalance. As demand continues to rise globally, the limited supply is driving prices higher with no relief in sight.

Rising Costs Associated with Production of Cardamom

With weather events ravaging crops and dramatic global inflation rates, the production costs have risen substantially. Those who are able have started extending their area of cultivation as an attempt to maintain production levels, a substantial cost to the producers. The onset of unwanted organisms has brought forth the need for disease and pest management mechanisms. And of course, we have to consider the rising costs of fertilizers, tools, transportation, and labor, as well as other inflationary pressures. Each of these factors play a significant role in the overall cost of production and they add up quickly. Purveyors of cardamom have no other option than to offset their increased cost by increasing their own prices.

Cardamom’s Increased Popularity is Contributing to Increased Demand

While supply diminishes, demand for cardamom is on the rise. Social media activity is booming and culinary and wellness posts are driving interest and awareness surrounding spice applications. This tiny green pod has long been an essential ingredient in cuisines across the Middle East, South Asia, and Scandinavia, but the popularity has expanded to a global scale, becoming a cornerstone of the burgeoning specialty coffee and natural wellness industries.

In the food and beverage sector, cardamom’s use in premium coffee blends, exotic spice mixes, and for health-focused application has skyrocketed. Its perceived health benefits, including its antioxidant and anti-inflammatory properties, have made it a favorite in wellness circles, further driving demand.

Looking for a new way to use cardamom? Check out this recipe for cardamom macarons with vanilla orange buttercream, these hand pulled noodles with chili oil, or these low carb vanilla waffles.

Increased Stockpiling and Bulk Buying by Farmers, Retailers, and Exporters

Cardamom prices will rise substantially in 2025 and there is an expected compound annual growth rate of 6.10% over the next 5 years. In anticipation of further price hikes, some farmers are holding tight to their supply and many exporters and retailers are stockpiling the spice. This stockpiling behavior further drives the cycle: as prices rise, bulk buyers rush to secure more product, tightening the market and exacerbating the situation further.

Supply Chain Challenges and Trade Dynamics

Weather issues, stockpiling, production costs, inflationary pressures, and demand are not the only things impacting the supply chain. The current state of the world, with geopolitical unrest, wars, and economic uncertainty have altered the state of global trade. Trade restrictions, tariffs, and export taxes all contribute to the spice trade. Other supply chain disruptions range from shipping delays to increased transportation costs, making it even harder to move cardamom from farms to global markets.

What Does The Impending Rising Costs of Cardamom Mean for Consumers?

For everyday consumers and businesses alike, the rising cost of cardamom is already underway, but the issues facing the cardamom industry will lead to even higher prices in the near future. The coming months could see a significant spike in the price of whole green cardamom, ground cardamom, and cardamom-based products, from chai tea to spice blends and beyond.