Drought, limited supply, and high freight costs are reshaping the global onion market in mid-August 2026.

In Europe, a dry, hot summer marks the start of the new season. Tight supply is supporting steadily rising prices in the Netherlands, while Spain’s storage onion harvest, running up to 15 days ahead of schedule, is reviving export demand after months of oversupply. However, heat and water stress could reduce bulb sizes across several production areas, a point of attention for buyers in the months ahead.

In North America, freight costs of USD 10-12 per 50-pound bag remain a major challenge, opening the door to international suppliers: New Zealand onions are already reaching the East Coast at competitive shipping rates, with Japan and Spain also eyeing the market. Meanwhile, India’s production, estimated at around 20% below last year, could keep export prices firm through October, and its new free trade agreement with the UK is creating fresh export opportunities. As supply tightens globally, quality and post-harvest handling will be decisive for exporters seeking to stand out.