Grenada Nutmeg & Mace Market - Supply & Demand Analysis

Key Takeaway

Nutmeg and mace are the cornerstone of Grenada’s agricultural sector, accounting for over 20-25% of the country’s total agricultural export value. Renowned for their distinctive flavor and high quality, Grenadian nutmeg products have consistently enjoyed strong global demand. Besides nutmeg and mace, the country's agricultural exports also include cocoa, fresh fruits, vegetables, soursop, and other produce.

Historical Challenges & Industry Impact:

• Once the world’s second-largest producer and exporter of nutmeg, Grenada suffered a major setback following the devastation caused by Hurricane Ivan in 2004. Nutmeg production plummeted from over 4.87 thousand tonnes in 2003 to just 448 tonnes by 2006, as the hurricane wiped out approximately 90% of the country’s nutmeg trees and led to widespread nutmeg wilt disease. By 2017, the industry was still operating at only 20-23% of its pre-hurricane production levels.

Recovery & Recent Developments

• The Grenadian government has played a crucial role in the sector’s revival by focusing on replanting efforts and expanding cultivation areas. These initiatives helped increase the total plantation area to approximately 1.47 thousand hectares, with green nutmeg production rebounding to around 1.34 thousand tonnes by 2023.
• However, 2024 brought another significant downturn, with nutmeg and mace production declining by 26.52% and 40.95%, respectively. The supply of dry and shelled nutmeg stood at 491.20 tonnes, while dry mace output was recorded at 26.90 tonnes. This decline was driven by prolonged droughts, extreme weather conditions, labor shortages, rising input costs, and restricted farmland access. The situation worsened with Hurricane Beryl, which destroyed over 80% of the country’s nutmeg trees, posing a severe setback to recovery efforts.