Global pineapple juice market revenue amounted to US$829 million in 2017 which was down by 4.1% from the previous year. A dip in raw material prices for pineapple concentrate and producer uncertainty in Thailand resulted in the price drop and subsequent fall in market value. The market value figure reflects the total revenue of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).
Market value increased by an average annual rate of 1.5% from 2007 to 2017; the trend pattern remained relatively stable, with only minor fluctuations observed in certain years. The best growth rate was in 2011, when it surged by 19% year-to-year. In 2013, however, a fall in consumption in Thailand pulled back the prices. Over the period under review, the global pineapple juice market attained its maximum level of US$916 million in 2012; however, from 2013 to 2017, it failed to regain its momentum.
Pineapple juice is a juice produced from the flesh of the sound, ripe pineapple. It is a rich source of essential vitamins and minerals, such as Manganese, Vitamin C and Vitamin B-6. It is popular in tropical countries, and its popularity has been growing in Western countries, with a demand for new exotic products. The global market has been increasing as global population keeps rises. The total consumption volume increased by an average annual rate of 1.4% from 2007 to 2017; the trend pattern remained relatively stable, with some noticeable fluctuations observed over the period under review.
World demand for pineapple juice has grown since post 2013. In 2017, about 1.1 million tons of pineapple juice was consumed worldwide (IndexBox estimate) roughly mirroring the previous year. The pace of growth appeared the most rapid in 2012 when it surged by 7.3% year-on-year. However, there followed a sharp decline of 8 percentage points (-1.3%). Pineapple juice is relatively sensitive to price and income fluctuations. Thus, the 2013 decline can be attributed to the slowdown in global demand and a recession in Thailand, the major consuming country, due to the expiry of public investment programmes that followed the 2011 flood and to growing social and political uncertainty. Global pineapple juice consumption peaked in 2017 and is expected to retain its growth in the short term.
Leading consumers of pineapple juice
Countries with the highest volumes of pineapple juice consumption in 2017 were Thailand (208 000 tons), Indonesia (164 000 tons) and the Philippines (142 000 tons), with a combined 47% share of global consumption. These countries traditional consumers of pineapple juice, located as they are in the tropics, where growing pineapples is relatively easy.
Thailand has had a negative compound annual growth rate (CAGR) of 1% for the last ten years. Since 2013 Thailand has faced unstable export and consumption patterns. Although 2017 was a period of economic growth, household debt remained high and acted as a constraint to consumption. Since 2013 political instability has led to decreased investment and reduced consumer confidence in the market. These factors reduce consumption and production volumes.
In the period 2007 to 2017, the most notable growth in pineapple juice consumption came from Angola (21.6% per year), while countries like Indonesia and the Philippines experienced more modest growth. An increase in consumption in Angola is associated with its growing agricultural sector. The country sees agriculture as a leading sector of the economy and has high expectations of its future growth. Local stores, restaurants and supermarkets are marketing a cheaper domestically produced pineapple juice and consumption is on the rise.
Global forecasts
The forecast for the pineapple juice market depends on three major determinants. Consumption in the three major consuming countries is expected to grow in the medium-, to long-term. GDP in Indonesia, the Philippines and Thailand is expected to increase as the population expands. The current figures for the annual GDP per capita growth are 4% for Indonesia, 5% for the Philippines and 3.6% for Thailand. Despite the fact that consumption in Thailand is sloping downward right now, credit constraints are expected to lift as soon as debts are paid off. The IMF suggests that this is not a long-term concern.
A rise in the populations of China and India and the relatively low consumption of pineapple juice in these countries means their markets are unsaturated. The US population is growing too; by 2025 it is expected to be boosted by 20 million people. The Indian market has grown by almost 15% since 2015, and the US pineapple juice market grew by 25% in the same period. It should, therefore, be expected that the emerging economies and the USA would contribute to a steady growth of the market as well.
At the same time, rising global consumption patterns could be impacted by the negative media focus on the sugar content of some soft drinks, including juices. Pineapple juice is said to have a high sugar and calorie content which has an adverse effect on consumer choice for this product. This is expected to affect mainly western countries.
According to IndexBox, the market is expected to continue an upward consumption trend over the next eight-year period, driven by increasing demand for pineapple juice worldwide. Market performance is set to retain its current trend pattern, expanding with an anticipated CAGR of 1.5% for the eight-year period from 2017 to 2025, which is projected to bring the market volume to 1.2 million tons by the end of 2025. – IndexBox
