Sesame Seed Prices Explained

Warming weather conditions and strong storms affected sesame prices. Rising temperatures and changing precipitation patterns reduced Chinese sesame yield. In India, erratic rainfall and prolonged dry spells impacted seed germination and growth, leading to lower yields. 

Tanzania faces similar challenges with climate change, where droughts and floods disrupt sesame production. Japan experiences shorter warm weather conditions during the growing season, diminishing the country’s sesame production.

Demand for sesame increases in the Asian, European, North American, and Middle Eastern regions because of its rich nutritional profile (calcium, magnesium, and fiber). This growing demand is fueled by health-conscious consumers (millennials), who mix these seeds into their diets for health benefits.

Moreover, the growing industrial applications and changing culinary trends drive the global demand for sesame seeds. The rising usage of sesame in non-food items like cosmetics and pharmaceuticals provides another segmented market for this commodity.

Why are sesame seed prices fluctuating?

1. Global Demand

Demand and pricing are influenced by changes in pharmaceutical and cosmetic usage as well as consumer preferences for healthier diets.

For example, the Chinese market’s demand increased sesame seed prices as its local market has little stock. This resulted in an additional $20 to $30 per metric ton price increase. In addition, demand from China, Turkey, and other European countries contributed to its fluctuating market value as these countries continue to shift to sustainable consumption.

2. Crop Yields

Farming practices, pest infestations, and disease outbreaks influence the commodity’s output. These affect supply levels and costs of sesame seeds.

For instance, sesame seeds were sold for roughly $1,700-$1,950 per tonne FOB in Nigeria (the continent’s second-largest supplier of sesame in the Northern Hemisphere). However, the country’s local farmers are faced with growing (traditional farming methods and no subsidies from the government) and marketing problems due to logistical issues and increased input costs.

3. Energy Costs

The energy costs involved in moving sesame seeds vary depending on infrastructure, fuel prices, distance traveled, and mode of transportation.

For example, Ethiopia (one of Africa’s major producers) exports 130,000 tons yearly. However, the country’s sesame shipments are affected by internal conflicts in the northern region, high rates of inflation, lack of containers, and rising gasoline prices. These resulted in higher sesame prices in the African regions.

4. Sesame Seed as a Functional Ingredient

The food and beverage industry posted steady inquiries for sesame seeds as a natural ingredient in their food processing. The commodity’s ability to facilitate digestion and reduce hypertension passed the guidelines for health-conscious customers.

Sesame seeds are rich in polyphenols and antioxidants which is important in pharmaceutical and skin care formulations. These properties are aligned with consumers’ inclination toward natural and wholesome ingredients.

5. Pure Sesame Oil Extract

The rising trend of healthy consumption increases the demand for organic and clean-label products. Edible oil is an essential ingredient in cooking and rising inquiry and marketability of cold-pressed oil joins the trend.

Sesame in cold-pressed form enhances flavor in various dishes (particularly salads). As a result, the commodity’s distinct taste helps its increasing utilization in restaurants and food processing industries.

Which variables impact the price of sesame seeds?

• Global Demand
• Crop Yields
• Energy Costs
• Sesame Seed as a Functional Ingredient
• Pure Sesame Oil Extract

Where does sesame seed come from?

The majority of the world’s supply of sesame seeds comes from areas with suitable climates for farming. Some of the leading countries that produce sesame seeds include:

1. India – The world’s largest producer of sesame seeds. It grows sesame seeds (both black and white) in states like Madhya Pradesh, Uttar Pradesh, Gujarat, and Rajasthan.

2. China – Sesame seeds are also produced in large quantities in China, especially in the provinces of Shandong, Hubei, and Henan.

3. Sudan – The country is known for its high-quality sesame seeds, which are primarily grown around the Blue Nile and in the Gezira region.

4. Myanmar – Sesame seeds are a major export from Myanmar, where most of the country’s agriculture is mainly concentrated in the northern and central regions.

5. Tanzania – Singida, Dodoma, and Manyara are just a few of the places in Tanzania where sesame seeds are cultivated, making it one of the leading African producers.

6. Nigeria – Sesame seeds are also produced in substantial quantities in Nigeria. These are mostly grown in the northern states of Jigawa, Katsina, and Kano.

What are the uses of sesame seeds?

1. Culinary – Sesame seeds are frequently added to food as a garnish. They enhance the taste and texture of bread, bagels, buns, and crackers with their nutty flavor. For added flavor and visual appeal, sesame seeds are frequently sprinkled over salads, sushi rolls, noodles, and stir-fries.

2. Condiments – Tahini is a paste created from ground sesame seeds. It is used in sauces, salad dressings, halva, baba ganoush, and hummus.

3. Baking – For flavor and decoration, sesame seeds are frequently added to baked goods such as breadsticks, cakes, muffins, and cookies. Before baking, they are sprinkled on top or combined with dough.

4. Snacks – When paired with other ingredients like almonds, dried fruits, and honey, roasted sesame seeds are eaten as a snack on their own or as part of snack bars or trail mixes.

5. Cooking Oil – Sesame oil is widely used in Asian and other cooking cuisines. With its high smoke point and nutty flavor, it works well for sautéing, deep-frying, and stir-frying.

6. Non-culinary Uses – There are various non-culinary uses for sesame seeds. Because of its moisturizing and antioxidant properties, sesame oil is a common ingredient in skincare products, massage oils, and hair care products.

Additionally, sesame seeds are utilized in traditional medicine practices due to their potential health benefits.

What is the future price of sesame seeds?

As global warming continues to impact key producing countries, the cultivation of sesame seeds faces challenges from rising temperatures and unpredictable rainfall patterns.

These climate changes lead to reduced yields and increased production costs, prompting farmers to adopt climate-resilient agricultural practices. The demand for sesame seeds is expected to rise due to the growing trend of clean labeling and healthy consumption.

On the demand side, evolving global demand trends have a significant impact on sesame prices. Consumers are increasingly seeking natural and nutritious ingredients. In addition to whole sesame seeds, product derivatives like sesame oil cake and sesame oil extract contribute to the market’s profitability.

Sesame oil cake (a byproduct of sesame oil extraction) is gaining popularity as a high-protein animal feed. Sesame oil extract is widely used in the food, cosmetics, and pharmaceutical industries.

Companies like Dr. Axe and Nutiva use sesame seeds and their derivatives to promote sustainable consumption and support health-conscious lifestyles. They emphasize the nutritional benefits of sesame seeds and their role in reducing environmental impact, aligning with the global shift toward sustainable and healthy food choices.

As a result, the global sesame seed market is expected to increase at a profitable rate to $15.1 billion by 2030, growing at a compound annual growth rate of 3.9%. Hence, the expected wholesale price range for sesame seeds will be from $4.96 to $6.61 per kilogram in 2030.