Entering the European market for onions

The European market for onions is highly competitive. European countries dominate the onion market for a large part of the year. Competition from outside Europe comes from Egypt, Peru, New Zealand and Chile. It is important to stay up to date on the market dynamics. Stand out by offering off-season supply, quality, variety, sustainability or organic onions. Make sure to comply with all the legal and buyer requirements in the European market.

1. What requirements and certifications must onions meet to be allowed on the European market?

Fresh onions should comply with the general requirements for fresh fruit and vegetables. You can find these in the general buyer requirements for fresh fruit and vegetables on the CBI website. You can also use the My Trade Assistant tool by Access2markets, which provides an overview of the requirements of onions per country.

What are mandatory requirements?

Mandatory requirements cover food safety and quality. In this section, we discuss several aspects that you need to consider when exporting onions to the European Union (EU). These include legal rules (such as control of contaminants and pesticide residues), quality requirements, and packaging and labelling requirements.

Control of pesticide residues 

Regulation (EC) No 396/2005 sets maximum residue levels (MRLs) of pesticides in or on food and feed of plant origin. An MRL is the highest level of pesticide residue that is legally tolerated in or on food products when pesticides are used. If a product contains more pesticide residues than allowed, it will be taken off the European market. This also applies to onions. 

The EU Pesticides database provides information on the MRLs for all pesticide residues that apply to onions. For onions, there are three relevant product groups that you should take into account:

• Product code 0220020: Onions
• Product code 0220040: Spring onions, green onions and Welsh onions
• Product code 0220030: Shallots

Products that do not comply with European food legislation are reported through the Rapid Alert System for Food and Feed (RASFF). This tool allows food safety authorities to quickly exchange information on health risks associated with the food and to take immediate action to prevent the risk. For onions, most reports are related to pesticide residues. Overly high levels of pesticide residues were mostly found in spring onions, and a few in shallots. A few examples of reports of overly high levels of pesticide residues include:

• Chlorpyrifos in spring onions (MRL is 0.01 mg/kg)
• Lufenuron in spring onions (MRL is 0.01 mg/kg)
• Carbofuran in spring onions (MRL is 0.002 mg/kg)
• Dodine in spring onions (MRL is 0.01 mg/kg)
• Fluazifop-P in spring onions (MRL is 0.01 mg/kg)
• Acetamiprid in spring onions (MRL is 0.001 mg/kg)
• Ethylene oxide in ground onions and shallots (0.02 mg/kg)
• Iprodione in shallots (MRL is 0.01 mg/kg)

Last but not least: in some European countries (for example, the Netherlands and Germany), buyers use stricter MRLs than set out in European legislation. Because of this, always check with your potential buyer if there are additional MRL requirements.

Control of contaminants 

Contaminants are substances that are not added to food on purpose. They might end up in food due to the different stages it goes through (production, packaging, transport, holding) or through environmental contamination. As contamination has a negative impact on the quality of food and can cause a risk to human health, the EU has set maximum levels for certain contaminants in food, through Commission Regulation (EU) 2023/915. 

For bulb vegetables, which include onions, contaminants mainly concern heavy metals such as lead and cadmium. The following maximum levels of contaminants are allowed in onions:

• Cadmium: 0.030 mg/kg (the maximum level applies to the wet weight, and after washing and separating the edible part)
• Lead: 0.10 mg/kg (the maximum level applies to the wet weight, and after washing and separating the edible part)

RASFF received a few reports about lead in onions in the period from January 2020 to June 2024.

Plant health and phytosanitary regulation 

Regulation (EU) 2019/2072 requires onions to have a phytosanitary certificate before entering the EU. The exporting country's national plant protection authority issues the phytosanitary certificates. This certificate guarantees that the onions are:

• Properly inspected.
• Free from quarantine pests, within the requirements for regulated non-quarantine pests and practically free from other pests.
• In line with the plant health requirements of the EU, laid down in Regulation (EU) 2019/2072.

Product quality requirements

Onions exported to Europe have to comply with the general quality standards in the European market. There are multiple aspects that determine the quality of onions. These are set out in the product standards for onions, such as the UNECE standard for onions and the UNECE standard for shallots. Below, we give an example of the quality standard for onions.

As a minimum requirement, onions in all classes must be intact, free from flaws, defects or decay and clean, for example. More minimum requirements can be read via the standards mentioned above. 

The UNECE standards define two classes for onions: Class I and Class II. For fresh consumption, European buyers mostly require Class I standard. Class I onions should be firm, solid and practically free of root tufts (for onions harvested before complete maturity, root tufts are allowed). Slight defects are allowed; however, they should not affect the general appearance of the produce, the quality, the storage quality and presentation in the package. Slight defects that are allowed include:

• a slight defect in shape; 
• slight defects in colouring;
• light staining covering not more than one fifth of the bulb’s surface; 
• superficial cracks in and partial absence of the outer skins, provided the flesh is protected; 
• slight glassiness not exceeding the outer fleshy ring.

90% of a batch should meet the Class I requirements. This means that up to 10% of the onions in the batch are allowed to deviate from Class I requirements. 9% of the batch is allowed to meet Class II quality. No more than 1% of the batch may consist of onions that neither satisfy the Class II quality nor the minimum requirements, or of produce affected by decay. Within this 1% tolerance, the externally visible shoot growth may not exceed 1 cm in length.

Figure 1: Example of what is considered to be a clean (free of soil) onion

 Source: OECD (2012), Onions, International Standards for Fruit and Vegetables, OECD Publishing, Paris

Product size and uniformity

The UNECE standard for onions and the UNECE standard for shallots set out requirements concerning the size of onions. Size is determined by the maximum diameter of the equatorial (mid) section. 

Packaging and labelling requirements

All relevant requirements for packaging and labelling are also explained in the UNECE standard for onions and the UNECE standard for shallots. 

What additional requirements and certifications do buyers often have?

In addition to the legal requirements, European buyers often have other requirements. These include, for example, GLOBALG.A.P. certification and compliance with social and environmental standards.

Certification 

Food safety is essential in the European market. That is why European buyers will ask you to show certain certifications. A common certification programme for good agricultural practices is GLOBALG.A.P. Buyers in Europe will often request this certificate, especially those that supply to supermarkets. For these buyers, it has become a minimum requirement.

Sustainability compliance

Social and environmental compliance is increasingly demanded by European buyers. This often means that you will need to sign the buyer’s code of conduct or a third-party code of conduct. You can also opt for third-party certification schemes. Examples include:

• GLOBALG.A.P. Risk Assessment on Social Practice (GRASP): a GLOBALG.A.P add-on for the evaluation of the well-being of workers at the farm level.
• Supplier Ethical Data Exchange (Sedex): a global initiative to make global supply chains more transparent. Sedex has also developed a social auditing scheme – SMETA – to help companies assess the working conditions and environmental performance in their business and supply chains. 

In addition, some supermarket chains have their own certification schemes, such as Tesco’s Nurture (add-on module to GLOBALG.A.P.) and Marks & Spencer’s Field to Fork.

Organic certification 

For certain types of onions, an organic variety is available in European retail and wholesale channels. The volumes of organic onions are much lower than the volume of conventional onions. Organic certification is mainly available for yellow and red onions, shallots and sometimes spring onions. If you want to market organic onions, you should comply with Regulation (EU) 2018/848 that lays down the rules on organic production and labelling for organic products. One example of a company that sells organic onions is Dynamis France. 

2. Through which channels can you get onions on the European market? 

Most onions are conventional, consumed at home and bought at supermarkets, specialised food and vegetable stores or street markets.

How is the end-market segmented?

The market for onions can be divided into three quality segments: the high, mainstream and low segments, as shown in Figure 2 below. 

Figure 2: Market segments for fresh onions in Europe

Source: Globally Cool (June 2024)

Food retail

Supermarkets in Europe mostly require Class I onions. Sometimes Class II onions are offered in supermarkets for the popular onion varieties (for example, yellow onions), which are then branded as the cheaper, budget option. 

Organic onions are also available in several European supermarkets, although only for the most popular varieties: yellow onions, red onions, shallots and, in some cases, spring onions. For organic onions, it is also common to offer Class II quality. In the higher segment, for convenience purposes, supermarkets also offer sliced onions for the yellow and red varieties (conventional and organic). 

Food service

The same segments can be found in the food service sector. The difference from supermarkets is that there is a wider variety of ready-to-use onions available in the food service sector, such as diced onions, freshly cut onion rings and peeled onions. Also, the packaging units are larger, starting from 500 grams and going up to 2 kilograms. 

Food processing

Class II onions belong to the low segment and are mostly used in the food processing industry. Class II onions also end up in several food retail outlets, where they are marketed as the budget option. 

Variations per EU region

Note that the shares and the offer of onions differ per European region. In eastern Europe, not many organic onions are available in supermarkets. In southern Europe, more organic onions are available, especially in the specialised organic retail stores. However, far more organic-certified onions are available in the food retail channels in western and northern Europe. 

Through which channels do onions end up on the end-market?

There are different channels through which onions end up on the European market. Figure 3 shows the market channels for fresh onions in the European market. The most important channels are explained in more detail.

Figure 3: Market channels for fresh onions to Europe

Source: Globally Cool (June 2024)

Producer organisations

An important channel for onions is local growers and grower organisations and cooperatives (collectively referred to as producer organisations). Depending on the organisation, producer organisations can be involved in a variety of elements of the onion supply chain, such as the growing, storage, packing, processing, distribution and marketing of onions. For example, the Dutch company Gourmet grows, selects, packs and distributes all their onions and shallots themselves. It allows them to have fully traceable products from harvest to the consumer and to guarantee fresh supplies. 

Producer organisations are able to supply the local market for a large part of the year. When there are no local onions available, they purchase onions from other parts around the globe. For example, British companies P.G. Rix Farms and Stourgarden have a 3-week gap, during which they buy onions from New Zealand, Spain and Chile to complete the season. The France Allium Coopérative BCO cannot supply red, white, sweet yellow and organic onions for a short period and therefore relies on supplies from Spain, Italy, the Netherlands, New Zealand, Australia, Argentina and Egypt.

Grower organisations and cooperatives can have a broad set of clients, varying from selling directly to (large) retailers (i.e. supermarkets and specialised stores) to food manufacturers, wholesalers, restaurants and cash & carry stores. For example, Stourgarden, set up by P.G. Rix Farms to supply to retail trade, is one of the two suppliers of onions to the British supermarket chain Tesco. Moreover, all of their processed onions are supplied to Bakkavor, a leading manufacturer of fresh prepared food, which uses it as an ingredient in a wide range of products. 

For a limited period throughout the year, you have the opportunity to export to producer organisations. Be aware that the onions must meet the same high quality and food safety standards as theirs, which is also requested by their customers. Other producer cooperatives include Ferme des Arches (France), La cooperative Origine Cévennes (France) and GROKA (Germany).

Wholesalers (spot market)

Another channel through which onions end up on the European market is through spot markets. Countries have their own spot markets, such as Rungismarket in France, Mercabarna in Spain, Grossmarkt Hamburg in Germany, SogeMi Mercato Agroalimentare Milano in Italy and New Spitalfields Market in the United Kingdom. 

There are different types of wholesalers that offer onions on the spot market. While many offer a broad range of fruit and vegetables, some wholesalers are specialised in a few vegetables only, or specialised in organic produce. For example, Dynamis (France) is specialised in organic and biodynamic produce and the Spanish wholesaler G.V. EL ZAMORANO focuses only on selling potatoes, onions and garlic.

Wholesalers procure onions from local farmers or producer organisations, but some also buy from foreign suppliers (either European or sometimes non-European). Grupo Fernández offers Spanish onions from June until March, but imports from France and the Netherlands in April and May. Wholesalers then sell these onions to many different clients, such as other wholesalers (either domestic or EU-based), cash & carry stores, catering organisations, hotels, restaurants and cafés, central kitchens, supermarkets and schools. 

In addition to wholesalers, producer organisations may also be present in spot markets. For example, the cooperative GROKA has a stand on the Gross Markt Hannover (Germany), where they supply onions and potatoes to wholesalers and market traders. 

Importers 

Importers and traders purchase onions from the local and European market, complemented with onions from other supplying countries to ensure a consistent supply throughout the year. They may also re-export onions. They are familiar with the requirements of different clients across Europe. 

An example is Mulder Onions (the Netherlands), which is active in the trade (import and export) of onions and a few other vegetables. They supply to a broad client base, such as packaging companies, wholesalers, supermarkets and industrial peeling companies that are located all over the world. They complete the European onion range by importing fresh onions from, for example, Egypt (yellow and red onions), India (white and red onions) and Chile (yellow onions). 

Food service

In addition to wholesalers, the food service sector (hotels, restaurants and catering organisations) relies on cash & carry and food service distributors for the supply of fruit and vegetables. Cash & carry refers to wholesale stores where businesses can buy a broad range of food and non-food articles.

A food service distributor provides food and non-food products to the food service sector on a daily basis. It has large storage facilities and a fleet of trucks to deliver all kinds of food. It purchases fruit and vegetables from importers and wholesalers or directly from foreign suppliers. An example of a food service distributor is Bidfood. It sources onions from Van Gelder Groente en Fruit (Dutch wholesaler), Smits Uien (specialised in sliced onions) and Tuinderij Vers (vegetable processing company). 

What is the most interesting channel for you?

When choosing the most appropriate channel for you in the European market, you should make sure to search for buyers that are not completely focused on locally produced onions. As an exporter of onions from a developing country, you can supply the European market during a specific time of the year. This window of opportunity is important to consider. Other opportunities are supplying specific, niche varieties of onions.

There are several interesting channels you can look into, such as European importers and wholesalers of fruit and vegetables. This category also includes buyers that are specialised in trading onions. These buyers provide you access to different clients across Europe, including supermarket chains, and are familiar with the different requirements of these markets. Some supermarkets buy the majority of onions directly from local origin and use importers to fill in the gap. Others fully rely on an importer for the supply of onions. 

For example, Van der Lans is a Dutch importer of several fruit and vegetables and distributes to various customers in Europe. They aim to supply quality onions all year round. Dutch onions are prioritised but in the period from March to July, they import onions from outside Europe, such as from Chile, Egypt, Argentina and South Africa. Their range of products is primarily aimed to supply European food retail organisations. 

Alternatively, you can cooperate with grower organisations. They are experts in growing and distributing onions. They have good local market knowledge and a good distribution network and you can use their expertise to access the market more effectively. They add to their own range to be able to deliver multiple onions varieties all year round. So, they will only be interested if your supply is different from their own production. Examples include Bedfordshire growers, P.G. Rix Farms Ltd and France Allium Coopérative BCO. 

3. What competition do you face on the European onions market? 

European countries like the Netherlands and Spain dominate the onion market for most of the year. For suppliers from developing countries, there are opportunities to supply onions in the off-season, when there is a gap in the supply from other countries or when you can offer particular types of onions that are less commonly produced in Europe. 

Which countries are you competing with?

First of all, you are competing with European countries. Onions are the most grown crop in Europe. Therefore, Europe mostly consumes locally grown onions. In the off-season, Europe relies on imported onions. The season in which European countries import onions the most – either from other European countries or non-European countries – is during the months of March, April, May and June. 

The supply window to the EU differs per supplying country. For example, Egypt exports most onions in the period from March until July, with a peak in June. Morocco supplies most of the onions in the months of November, December and January. Figure 4 shows the months in which each country exports its onions to Europe. The dark blue colour shows the months in which the exported values to Europe are the highest.  

Figure 4: Indicative supply calendar for onions in Europe, European countries compared to main non-European supplying countries (based on monthly export volumes in 2023)

Source: Globally Cool, based on UN Comtrade monthly data for 2023

Looking at the non-European suppliers, Egypt is by far the largest exporter of onions to Europe. In addition, Peru, New Zealand and Chile are important competitors to consider. Figure 5 shows more details about these suppliers and the trend in the period from 2019 to 2023.

Source: Globally Cool (June 2024)

Throughout the year, prices can fluctuate due to various factors. For example, at the beginning of 2024, the onion prices were exceptionally high due to a market shortage. The European harvest fell short of expectations, boosting the demand for imported onions. However, major onion suppliers Egypt and India had to deal with export restrictions. Consequently, European importers switched to China. China suffered from delays in shipments that were caused by the Red Sea conflict, which increased the risk of spoilage. These factors drove up the prices. 

Price breakdown

Margins differ based on various factors, such as the type of onions, their origin and whether they are conventional or organic. For example, shallots and spring onions are more expensive and sold in lower volumes compared to yellow onions. 

In the German market, the wholesale prices for yellow onions lie between €0.60 and €1.32 per kg, depending on the origin (EU origin prices are significantly lower than those from Chile and New Zealand). German’s retail prices lie between €1.79 and €1.99 per kg. The wholesale prices for French shallots in the French market lie between €1.50 and €2.13 per kg, whereas the retail prices are between €3.98 and €5.96 per kg.

Globally Cool carried out this study on behalf of CBI.

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