Lime is iconic. With its rich green color and tangy citrus taste, lime is one of the most recognizable items in the produce section - and one of the most unique in terms of its market dynamics.

To fully understand the incredible opportunities presenting themselves in the lime sector, let’s explore these market dynamics: where limes come from, where they go, and how the market fluctuates throughout the year. 

The U.S. Lime Market

Fresh limes have a well-established demand profile in the United States, and consumption rises steadily every year. Driven by a large immigrant population, a rising interest in ethnic foods, and the lime’s versatile use in foods, cocktails, and other recipes, lime consumption increased by 50% from 2010 to 2018 and an additional 25-30% through 2021. 

There are three main lime varieties in the US market: Key lime (Citrus aurantiifolia), Tahiti lime (Citrus latifolia), and Makrut lime (Citrus hystrix). While many think that Key limes from Florida are the most popular, Tahiti limes are by far the most widely consumed, and are prized for their absence of seeds, long storability, disease resistance, and superior flavor. Makrut limes are far less common in the Western hemisphere, though they still make their way onto some North American shelves.  

While the U.S. does produce limes domestically, particularly in Arizona, California, Florida, and Texas, this meager domestic production does not come close to fully supplying the market. The primary suppliers of U.S. limes are:

• Mexico: Exporting 1.4 billion pounds (635 million kgs) into the US each year, Mexico is the largest supplier of limes to the States by a wide margin. 
• Colombia: as a distant but growing second, Colombia exports 73 million pounds (33 million kg) to the U.S. on average, a figure which has grown around 400% over the past six years. 
• Peru: in third place, provides the U.S. with  imports totalling over 14 million pounds (6.3 million kg) annually. 

Other countries supplying limes to the U.S. include Guatemala, Vietnam, Honduras, Dominican Republic, Ecuador, Chile, and El Salvador. And while these countries produce significantly less than the three main producers listed above, they’re still seeing continuous growth. 

In all, 92% of all limes in the US are from Mexico. However, due to reduced harvest volumes from climate change, supply chain inefficiencies, and limited seasonal growth production, Mexico is unable to sustain the growing demand and saw an export decrease of 3% during 2022.  

The Market Opportunity

This creates an incredible market opportunity for developing South American countries in general, and Colombia in particular. In 2022, Colombia increased its exports of lime to the U.S. by 68%.

One significant advantage for Colombia is its access to trade routes. Limes are traded as a ‘small exotic’, to be sold within weeks of picking to maintain their classic coloration. While around 70% of Mexican limes come stateside through Texas, Colombia has superior transportation ability via sea lanes in both the Atlantic and Pacific oceans. The main ports include Buenaventura in the Pacific and Cartagena, Barranquilla, and Santa Marta in the Atlantic. Sea lanes through the Caribbean in particular allow Colombia to expand market options along the East Coast.

Seasonal Lime Market Fluctuations

In both the US and Europe, the consumption of limes remains strong throughout the year with a definite peak from May to October.

In Mexico and much of South America, lime production fluctuates greatly throughout the year depending on local rainfall and climate and can vary by up to three months in a single country. Not only does this create distribution difficulties for growers and retailers, but causes dramatic price spikes felt by both suppliers and consumers. 

In Colombia, however, Tahiti limes are a true “everbearing” fruit. The Colombian climate is perfectly suited to naturally grow limes all year round with a peak production that coincides with the US market needs. 

Colombian limes also have strong possibilities in the European Union. 

The European fresh lime market grew at a rate of 33% from 2013 to 2017. This equals an additional 81 million pounds (36.5 million kgs) into the region over a 4 year period, with most of the limes entering the continent via the Netherlands and the UK. Of the total 148 thousand tons of limes entering the country, 110 thousand tonnes passed through the Netherlands which re-exported 93 thousand tonnes to surrounding countries. 

While many countries around the world supply Europe including India, South Africa, Turkey, and Spain, the EU still relies heavily on South America. 

And while many Mexican limes make it to the EU, Brazil remains the dominant supplier from this region. Yet many of the dilemmas faced in the US market are prevalent in Europe (for example, Brazilian limes production peaks in March and April, which does not match the apex of European consumption during the summer). 

As with the US market, Europe remains a great marketing opportunity for Colombian and South American limes. The year-round harvest of Colombian limes, coupled with the growing production in the country, make Colombia a perfect candidate to compete in the broad international market. 

Conclusion

As the US and global markets begin to realize the problems of relying too heavily on Mexico, rising countries like Colombia stand ready to provide consistent, high-quality limes to the growing demand. 

And there is no doubt that the demand for limes is growing. While the heavy producers begin to lag, a need for new areas of production has created a unique opportunity for Colombia and others to step in. Expect this lime rush to create huge upside potential for lime farmland owners in Colombia here in the coming years.

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