North America Beverage Fruit Concentrate Market Size, Share & COVID-19 Impact Analysis, By Fruit Type (Mango, Apple, Orange, and Guava) and Forecast, 2022-2029

The North America beverage fruit concentrate market size was valued at USD 2.27 billion in 2021. The market is projected to grow from USD 2.33 billion in 2022 to USD 3.29 billion by 2029, exhibiting a CAGR of 5.04% during the forecast period. Based on our analysis, this market exhibited an average growth of 1.58% in 2020 as compared to 2019. 

Fruit concentrate has been primarily consumed in the beverage industry for making different products, including soft drinks, nectars, and ready-to-drink products. The rising demand for fruit juices across North American countries propels the product demand. Furthermore, companies are emphasizing market penetration activities, including merger & acquisition, production capacity expansion, and geographical expansion to increase their footprint in the global market.

COVID-19 IMPACT

Industry Experienced Positive Growth due to Increased Price of the Product

During the COVID-19 crisis, the industry exhibits average growth. In the early days of the coronavirus pandemic, trade restrictions and the closure of several stakeholders in distribution channels impacted the availability of raw materials and the final price of the product. COVID-19 restrictions also impacted the production of beverage fruit concentrate. It affected businesses with varying degrees of intensity across the value chain. It impacted the prices of the final product across North America. According to the U.S. Department of Agriculture Economic Research Service report, the average price of frozen concentrate orange juice in April 2020 increased by 5% from the previous month, reaching USD 2.40 per 12 oz can. The price increase of the product positively impacted the North America beverage fruit concentrate market growth during the pandemic period. 

LATEST TRENDS

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Rising Manufacturers Penetration Activities to Push Product Demand to Next Level

Consumers are increasingly demanding high-quality, tasty, and on-the-go products, which are suitable for their busy lifestyles. Given its expanding growth pace, the beverage fruit concentrate sector is anticipated to adopt cutting-edge technologies to keep up with customers' requirements. Therefore, the market is more open to making incremental innovations that allow them to implement higher levels of technology and increase their productivity. The manufacturers are adopting several strategies including merger & acquisition, partnership, and geographical expansion to expand their clientele base, which will eventually push the market to the next height.

For instance, in January 2020, Agrana Group, an Austrian food company specialized in producing and marketing sugar, starch, fruit preparation, juice concentrate and ethanol fuel, acquired 100% of shares of the U.S. distribution company Marroquin Organic International Inc. Marroquin has 20 years of experience in supplying organic and non-GMO ingredients. The acquisition can help Agrana Group to supply its products in the North American market, and also help to expand its clientele base in the market.

DRIVING FACTORS

Increasing Fruit Juice Consumption will Propel Beverage Fruit Concentrate Demand  

The consumption of fruit juices has been increasing at a steady pace across North American countries. Fruit concentrates are commonly used in the beverage industry to produce various beverage products, including energy drinks, fruit juices, and smoothies. According to the U.S. Department of Agriculture, orange juice consumption in the U.S. increased from 497,000 metric tons in January 2022 to 540,000 metric tons in July 2022. Therefore, the high demand for fruit juice in the U.S., Canada, and Mexico will intensify product consumption across the region. Furthermore, the fast-paced modern lifestyle and consumers' willingness to try different tastes led to consuming ready-made or ready-to-drink (RTD) fruit juices. Fruit concentrates are available in different forms, including liquid and powder concentrates, which contain extended shelf life and provide an exotic taste. Therefore, beverage manufacturers use concentrates for producing RTD fruit juices. This factor positively surges the demand for beverage fruit concentrate from the ready-to-drink fruit juice industry.

Investment in Novel Technologies and Research & Development to Propel the Market

The consumers' shift toward a healthy lifestyle is expected to drive the global juice concentrates market growth. The same trend is reflected in the North America market. This trend has created a wider space for the key players in the industry to develop novel technology and to invest in R&D. Furthermore, the beverage fruit concentrate companies are also acquiring small-scale companies to expand their operations. For instance, in June 2022, Prodalim Group, a multinational company in the beverage industry, acquired a German food tech company Flavologic GmbH. Flavologic has developed a proprietary technology to produce quality natural aroma concentrates with outstanding concentration and sensory properties. This acquisition helps Prodalim to produce concentrates with the highest sensorial quality.

RESTRAINING FACTORS 

High Dependency on Raw Material Imports to Impede Market Growth  

Fruit concentrate manufacturers from the U.S. and Canada are highly dependent on raw material imports from Mexico, Brazil, China, India, and European countries. Since the companies depend on imports, trade disputes and increasing taxes & tariffs negatively impact the market. According to the U.S. Apple Association, U.S. apple juice concentrate import increased by 6.5% in 2021 over 2020. China is the major exporter of apple juice concentrate to the U.S. Therefore, a trade war with China can significantly impact the supply and prices of apple juice concentrates. Furthermore, the adverse effect of climate change even hampers the industry by creating a scarcity of raw materials. It may slow down the growth of the market in the upcoming years. According to the USDA, orange production in the U.S. reached 3.8 million tonnes in the 2021-22 period, which declined nearly 15% from the last season. Low yield and adverse climatic conditions in major orange-producing states such as Florida, California, and Texas impacted production decline.

SEGMENTATION

By Fruit Type Analysis

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High Nutritional Benefits Paired with the Ample Availability of Apple Concentrate Propel Segmental Growth 

On the basis of fruit type, the market is divided into mango, apple, orange, and guava. The apple segment holds the largest market share among all other fruit types. Apple contains ample pectin, which helps promote gut health, aids in weight loss, helps to reduce sugar levels in the blood, and improves iron absorption. Furthermore, the wider application of apple juice concentrates as a sweetener or as an alternative to corn syrup and as a sugar substitute in several beverage products, including soft drinks, sparkling drinks, and juices, will drive the demand for the product. Therefore, manufacturers offer apple concentrates in different forms, including liquid and powder concentrates.

Concentrate made from mangoes holds the third highest proportion in the North America beverage market. Mango offers an exotic and unique taste to the consumers, thus, canned and ready-to-drink beverage manufacturers are engaging in offering products by adding mango juice concentrate. It will positively impact the product demand in the upcoming years. For instance, in March 2021, PepsiCo, Inc., an American multinational food and beverage company, launched Pepsi Mango in the U.S. market. The product is produced from mango juice concentrates and is available in both regular and zero-sugar options in the market space.

REGIONAL INSIGHTS

The U.S. holds the largest North America beverage fruit concentrate market share. The country is expected to dominate throughout the forecast period owing to increasing demand for fruit juice and other ready-to-drink fruit-based beverages. Beverage fruit concentrate contains beneficial components, such as carotenoids, anthocyanins, and flavonoids, which improve heart health and reduce inflammation. Therefore, it takes part in the consumers' healthy lifestyle, which positively affects the market. Furthermore, favorable government policies to promote regional concentrate production while aiming to create better value for the regional fruit growers are becoming a supportive factor for the U.S. market growth. For instance, in July 2021, the Florida government announced nearly USD 27.7 million in funding to promote the regional orange industry to improve research and production.

The Canada market will show steady growth during the forecast timeframe owing to the rising demand for convenience foods, including bottled soft drinks and fruit juices. According to the United States Department of Agriculture (USDA), in 2021, Canada imported approximately USD 1,047 million of non-alcoholic beverages, including fruit juices, coffee, and tea. The increasing fruit juice and soft drinks consumption across the country drives the demand for juice concentrates and Not From Concentrate juices (NFC juices).

Mexico is one of the leading producers of tropical fruit, including mango and orange. Over the last decade, the market has been intensifying with merger & acquisition, collaboration, and partnership activities, carried out by manufacturers. For instance, in July 2018, Prodalim Group, a global company specializing in processing fruit juices, purees, and concentrates, announced a strategic collaboration with Jugosa, a Mexican organic orange juice processing company. This joint venture includes an investment plan to upgrade and expand the processing, storage, and distribution capacities of Jugosa.

KEY INDUSTRY PLAYERS

Focus on Expanding Production Capacity Helps the Companies to Serve Effectively

The North America beverage fruit concentrate market is moderately fragmented and competitive. The large beverage fruit concentrate manufacturing companies and small players are competing against each other to increase their market share. Some of the major players in the industry such as Kerry Group Plc., Agrana AG, Ingredion Incorporated, Prodalim Group, and Dohler Group are reframing their strategies to increase their footprint in the market and achieve competitive advantages. The companies emphasize expanding their production capacity to serve a larger customer base. It is significantly impacting the market expansion. For instance, in July 2022, Prodalim Group, an Israeli company, inaugurated its new production and processing site in Los Angeles, California. Along with existing two other plants, in New Jersey and Florida, the company focuses on serving its clientele base effectively in the U.S. market.

LIST OF KEY COMPANIES PROFILED:

• Agrana AG (Austria)


• Citrofrut SA de CV (Mexico)


• Dohler Group (Germany)


• Grupo Fruxo (Mexico)


• Grupo Jumex, S.A. de C.V. (Mexico)


• Ingredion Incorporated (U.S.)


• Kerry Group Plc. (Ireland)


• Lemon Concentrate SL (Spain)


• Mexifrutas S A de C V. (Mexico)


• Prodalim Group (Israel)

KEY INDUSTRY DEVELOPMENTS:

• September 2021: Global Concentrate Inc., an American producer and supplier of traditional and organic fruit and vegetable juice concentrates and other products, invested USD 121 million to purchase approximately 170 acres of industrial land in Franklin to establish their largest processing and operation plant in the U.S.


• September 2020: Kerry Group, a multinational food ingredients manufacturing company, introduced a best-in-class extraction technology "New! Citrus Extract technology", which is more effective than traditional methods at retaining great aroma, and flavor characteristics and can be applied to a variety of citrus fruits. The "New! Citrus Extract" portfolio was developed with the support of Kerry's non-thermal liquid/liquid extraction process that delivers highly concentrated extracts with a greatly reduced level of terpenes and sesquiterpene.


• August 2020: Peace River Citrus Products, Inc., an American company that produces juice products from citrus fruits, invested USD 98 million to expand its Bartow processing plant. The company renewed its 10-year contract with a global beverage company, Coca-Cola, to manufacture juice products.


• January 2020: Mexifrutas S A de C V., a Mexican fruit processing company, opened a new factory to produce banana puree and pineapple juice NFC as well as concentrate in Costa Rica, Central America.

REPORT COVERAGE

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The research report includes quantitative and qualitative insights into the market. This market intelligence report also offers a detailed analysis of the North America beverage fruit concentrate market size and growth rate for all possible market segments. This report provides various key insights on the market, an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, regulatory scenario in critical countries, and key industry trends.

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