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Brazil Produces 80% of the World's Orange Juice; to Dominate Market in Years to Come.

January 2008 - A new report from financial services provider Rabobank examines the changing dynamics of the global orange juice market, which is the most globally-consumed juice with a 50% world market share followed by apple, pineapple, grape and grapefruit juices.

According to Rabobank, the market is clearly dominated by Brazil, which accounts for roughly 80% of the global orange juice trade.

It is expected that Brazil will continue to dominate the world orange juice market in the years to come as the country is faced with growing demand for orange juice from the international market.

Moreover, Brazil is also benefitting from the structural reduction of US orange juice production.

Due to the combined effect of citrus plant diseases, hurricanes and rapid real estate development in Florida, US orange juice producers have a declining output and have increased their prices. Thanks to its leadership status, Brazil has few other potential contenders to supply the US market.

Rabobank describes the orange juice market as mature driven by the consumers concern for health and quality as well as the rising interest in new natural, fresh and organic products.

Orange juice also benefits from the consumers perception of the product as natural, even when it has been processed.

The ongoing introduction of new orange-based drinks is the result of a growing consumer demand. Some new products include fruit-based alcoholic beverages, fruit flavoured milk drinks, fruit-flavoured soy drinks, fruit-based carbonates and fruit juice with yoghurt.

However, Rabobank believes that this wide range of products can threaten orange juice consumption as they contain a large share of orange juice or even the pure juice.




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