IndexBox has just published a new report: ‘World – Concentrated Lemon And Other Citrus Fruit Juice – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.
Only a Slight Growth of the Global Concentrated Lemon Juice Market is Expected, As The Pandemic Hit Major Importing Countries
The value of the global concentrated lemon and other citrus fruit juice (excl. orange and grapefruit juice) market stood at approx. $647M in 2019, declining by -6.0% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).
In physical terms, global concentrated lemon and other citrus fruit juice consumption also declined slightly the last year, amounting to 258K tonnes in 2019. From 2015-2018, the market increased steadily, but in 2019 the growth lost its momentum due to a slight decrease in the lemon harvest in Argentina, which remains the largest lemon juice producing country.
The countries with the highest volumes of consumption of concentrated lemon and other citrus fruit juice in 2019 were the U.S. (31K tonnes), Argentina (16K tonnes) and Japan (15K tonnes), with a combined 24% share of global consumption (IndexBox estimates). These countries were followed by Canada, Spain, Germany, China, India, Peru, France, Brazil and Mexico, which together accounted for a further 38%.
From 2007 to 2019, the most notable rate of growth in terms of consumption of concentrated lemon and other citrus fruit juice, amongst the key consuming countries, was attained by Spain, while consumption of concentrated lemon and other citrus fruit juice for the other global leaders experienced more modest paces of growth.
In value terms, the largest concentrated lemon and other citrus fruit juice markets worldwide were the U.S. ($79M), Japan ($56M) and Argentina ($47M), with a combined 28% share of the global market. These countries were followed by Germany, Spain, China, Canada, France, Brazil, India, Mexico and Peru, which together accounted for a further 37%.
The countries with the highest levels of concentrated lemon and other citrus fruit juice per capita consumption in 2019 were Canada (371 kg per 1000 persons), Argentina (354 kg per 1000 persons) and Peru (298 kg per 1000 persons).
Concentrated lemon juice is a well-known product in South America and in Southern Europe, as well as, being imported, in the U.S., Canada, and across Western Europe. By contrast, in Southern and South-Eastern Asia, the market is relatively underdeveloped; however, China emerges as the fastest-growing lemon juice importer – rapid urbanization and the rising popularity of the western-style cuisine drive the use of lemon juice here.
Apart from the other types of juices which are largely consumed as a beverage, concentrated lemon juice is used as an ingredient in various recipes in baking, grilling, and as an ingredient in marinades and salad dressings, in cocktails, hot tea, lemonade, and hot lemonade. It also may have some non-food applications like home deodorization and cleaning. Therefore, population growth remains a fundamental market driver, combined with increases in disposable income, which in turn will contribute to enhanced consumer spending.
The major downside risk for market growth comes from the possible contraction of incomes due to the COVID pandemic. In the context of falling incomes, consumers primarily tend to exclude non-staple goods from purchases, which include concentrated lemon and other citrus fruit juice.
Concentrated lemon and other citrus fruit juice is a widely traded commodity, with the share of exports in total global output increased from near 72% in 2007 to about 86% in 2019 (IndexBox estimates). This is conditioned by the rising demand for tropical and citrus fruit juices in those countries that don’t grow many lemons like the U.S., Europe, and Canada, on the one hand, and Argentina’s (together with some other countries) specialization in lemons, on the other hand.
The largest concentrated lemon and other citrus fruit juice importing markets worldwide were the U.S. ($102M), the Netherlands ($87M), and Japan ($63M), with a combined 40% share of global imports. Germany, France, Spain, Canada, Italy, the UK, China, Israel, and Belgium lagged somewhat behind, together accounting for a further 37%. The hit of the pandemic in the U.S. and Europe was severe, which leads to a dramatic drop in terms of GDP and consumer spending. This is to affect the consumption of concentrated lemon juice which is largely supplied by imports.
In Latin America, the impact of the crisis on domestic demand should be less significant because concentrated lemon and other citrus fruits and concentrated lemon and other citrus fruit juice are available locally. However, the concentrated lemon and other citrus fruit industry in large producing countries (Argentina, Brazil, Mexico) are largely export-oriented, therefore, the decrease in demand in Western countries can damage local producers and cause further disruption of supply chains.
Accordingly, the market is expected to decrease somewhat in 2020 and then to start recovering gradually. Over the next decade, the market is expected to grow modestly, with an anticipated CAGR of +0.3% for the period from 2019 to 2030, which is projected to bring the market volume to 265K tonnes by the end of 2030.
Source: IndexBox AI Platform
