In this article, we will be taking a look at the 12 countries that produce the most orange juice in the world. To skip our detailed analysis, you can go directly to see the 5 countries that produce the most orange juice in the world.
According to Market Watch, the global orange juice industry is currently worth over $6 billion, and by 2027, is expected to grow to $7.6 billion, at a CAGR of 3.91%, which while not bad, isn’t as strong as many other food industries, and we’ll discuss why this is the case later. Currently, the global orange juice industry spans most countries across the world, with the sight of a jug or glass of orange juice being a breakfast staple in most nations, especially in the West. Despite this global presence, the industry is mainly dominated by a few select companies.
Orange juice has a long and storied history, which can be traced back to the 16th century when it was first consumed by Spanish explorers, but it was only in the 20th century that orange juice became more publicly available in the United States and in other countries too. Frozen concentrate, one of the main types of orange juice, is where water in orange juice is evaporated, after which juice sugars and solids become concentrated. This concentrate is then frozen which allows for a much longer shelf life, while some concentrates mix frozen juice and concentrate in order to get sweeter flavors. This is why, more or less all shelf orange juice does not come close to tasting like real, freshly-squeezed orange juice and can often taste more sour or bitter as compared to freshly squeezed orange juice. Since most people have only ever tasted store-bought juice, they don’t realize the difference in taste. When orange juice is deoxygenated, the taste is negatively impacted, which is why chemicals are added, which are technically made of oranges. This is why juices can claim to be 100% real orange as technically it’s true.
Despite the global appeal of orange juice, only a few countries produce most of the world’s orange juice. In fact, just three countries produce the vast majority of orange juice in the world, accounting for over 60% of the total orange juice production. In the United States, which is among the countries that produce the most orange juice in the world, Florida is the biggest producer of orange juice by far. Oranges are generally picked and processed within 24 hours so that freshness and quality is maintained, before being boxed and sold. However, Florida has seen its orange production fall 90% from all-time highs in the 1990s.
Currently, the orange juice industry is facing several changes, which need to be worked on to ensure further growth. Rising concern for healthy items have resulted in many people switching from orange juice, which has sugar either added or present naturally in oranges, to energy drinks and sports drinks, which are a multibillion dollar industry which is also growing quite fast. Prices for oranges are continuing to rise as well, as the impact of climate change can be felt on the industry with erratic and severe weather patterns including hurricanes and droughts, which have led to a fall in the production of oranges. According to the US Department of Agriculture, orange juice production globally in 2022/2023 is expected to fall by 7% as the biggest producers in Mexico, the European Union, Brazil and the U.S. have seen a decrease in fruit available for processing. The forecast for the next year is of 1.6 million tonnes.
Frozen concentrated orange juice futures hit record highs of $2.67 a pound according to New York’s Intercontinental Exchange. Storms, crop greening, realty land grab and frost have all resulted in production falling significantly; two back-to-back hurricanes alone have devastated crop yield for oranges and citrus greening, a hard to fight plant disease, has contributed its fair share in impacting oranges growth. While this is great news for frozen-concentrate orange juice speculators, the price is a huge damper for the orange juice industry, as its supply is elastic. At the same time, sentiment is also suggesting that this is just the beginning and prices could increase much more in 2023. According to the director of agricultural research at AgriSompo North America “It can lead to a lot of volatility and we could see some downdraft. But this being orange juice, it’s not the most liquid commodity. Seeing it trade north of $3 a lb would not in any way surprise me.” Within this year alone, frozen-concentrate orange juice futures have increased by 30%.
While there are several small-scale producers and processors in the orange juice industry, they often do not have the necessary resources or infrastructure to compete with the bigger players who dominate market share in this industry. While these challenges are difficult to surmount, the industry’s response to these issues will determine its future. Currently, the biggest players in the orange juice industry include PepsiCo, Inc. (NYSE:PEP), The Coca-Cola Company (NYSE:KO) and Keurig Dr Pepper Inc. (NYSE:KDP). PepsiCo, Inc. (NYSE:PEP) owns several major juice brands including Tropicana and Naked Juice, though it sold 61% of its juice brand portfolio to PAI Partners in 2021, retaining 39%. Meanwhile, The Coca-Cola Company (NYSE:KO), which is the biggest producer of juices in the world, owns the Minute Maid brand, one of the most popular brands of orange juice in the world and the first company to market frozen orange juice concentrate. Nestle is another major player in this industry, marketing orange juices under the Nestle brand.
To determine the countries that produce the most orange juice in the world, we scoured statistics from the U.S. Department of Agriculture, which has data on everything related to orange juice, including production by country. We then ranked each country based on its production in 2020 and 2021, assigning 70% weightage to 2021 as it was the most recent year, and 30% weightage to 2020. So, let’s now take a look at the countries which ensure that orange juice supply is maintained globally.
12. Greece
Total orange juice production in 2020 (in metric tonnes): 887
Total orange juice production in 2021 (in metric tonnes): 750
Greek oranges are well-known for their flavor and in 2019, Greece exported orange juice worth $19 million.
11. Italy
Total orange juice production in 2020 (in metric tonnes): 1,773
Total orange juice production in 2021 (in metric tonnes): 1,500
Italy’s 2021 orange season saw prices remain low thanks to large harvested volumes and high yields, which were able to offset the impact of the Tristeza virus in Sicilian orange groves.
10. Spain
Total orange juice production in 2020 (in metric tonnes): 3,496
Total orange juice production in 2021 (in metric tonnes): 3,511
The largest producer of orange juice in Europe, Spain has registered a slight increase in production versus 2020, while prices have increased significantly in 2022. The reduction in volumes is partly because of inclement weather in the country.
9. Israel
Total orange juice production in 2020 (in metric tonnes): 2,800
Total orange juice production in 2021 (in metric tonnes): 4,300
Israel has seen the highest growth in orange juice production among all the countries that produce the most orange juice in the world. Israel exports around a third of all citrus foods produced in the country.
8. Morocco
Total orange juice production in 2020 (in metric tonnes): 5,000
Total orange juice production in 2021 (in metric tonnes): 5,500
Morocco has seen a 10% increase in orange juice production from 2020 to 2021.
7. Turkey
Total orange juice production in 2020 (in metric tonnes): 9,500
Total orange juice production in 2021 (in metric tonnes): 10,000
According to Market Research, the orange juice industry in Turkey is worth around $20.5 million. In 2022, Turkey’s fruit juice exports were expected to grow by 100%, cementing its place as among the countries that produce the most orange juice in the world.
6. Australia
Total orange juice production in 2020 (in metric tonnes): 17,400
Total orange juice production in 2021 (in metric tonnes): 16,500
The overall juice industry in Australia is worth $800 million and provides around 5,000 jobs. According to ABC Australia in 2020, citrus growers in the country said that the availability of orange juice in the nation would decrease because of low prices being paid to growers as the land dedicated to growing the main juicing varieties of oranges have already decreased by 30% in the last twenty years. Since citrus growers can make more money selling fresh fruit rather than for juice. Meanwhile, drinks such as kombucha and energy drinks have also increased competition against the orange juice industry.
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Disclosure: None. 12 countries that produce the most orange juice in the world is originally published at Insider Monkey.
