Cloves originated in Indonesia and widely spread to other countries like Tanzania, Madagascar & Srilanka; the majority of clove trade is determined by the exchange of these three markets, with Indonesia being its leading producer & exporter.
In the 60’s it is not wrong to say that cloves had a monopoly in Tanzania. Zanzibar, a remote state outside Tanzania, led the world production & export in that area, producing the crop twice a year. Later down the line, politics plus harsh weather conditions hampered the booming trade; now, the noncompetitive price has led producers to engage in the black market.
With the lack of an entirely free market, prices for cloves from Zanzibar are one of the most expensive in the global market. Zanzibar state trading corporation (ZSTC) keeps a keen eye on its exports
Indonesia has continuously increased the market share of cloves since the 1970's & 80’s while with the introduction of clove essential oil Madagascar also climbed to the top slots as a major clove market.
As far as trade dynamics between significant players are concerned with high domestic demand, Indonesia also imports from other producing countries to supplement any shortages. Indonesia has always been one of the top importer as well as exporters of cloves, but due to still a high domestic demand in India, both the countries give tough competition to each other. As far as clove oil is concerned, Madagascar exports its oil to the US & France.
After Zanzibar’s decline in production over recent years, To reclaim its global presence Tanzania is expected to form strategies accordingly. On the other hand, Indonesia, in current times, is also not expecting any decrease in production.
The fastest-growing, as well as the largest market of cloves, is the Asia Pacific region. In the year 2018, Indonesia, with the total production volume of 123,399 MT in the year 2018, was its largest producer and, on average, accounts for 73.7% of total global output.
The growth rate for the clove market is projected to be a compounded rate of at least 3% in the coming five years. Even though it can be hampered a lot with the global pandemic still citizens around the world are using cloves as a remedy to fight the disease.