5 Reasons Why the US Apple Market Is Booming

The US apple market is booming and is expected to grow even more in the coming years. Here are 5 reasons why this is happening:

1. The overall US economy is doing well and consumers have more disposable income to spend on apples.

2. Apples are considered a healthy snack option, and with the current focus on health and wellness, more people are looking to buy them.

3. There is an increasing number of apple growers in the US, which has led to greater availability of the fruit.

4. New apple varieties are being developed that are sweeter and more flavorful than ever before.

5. Apples can be used in a variety of recipes, making them a versatile ingredient that home cooks can experiment with.

U.S. Apple Market Outlook

The U.S. apple market expanded notably to $4.7B in 2021, surging by 11% 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). The market value increased at an average annual rate of +1.3% from 2012 to 2021; the trend pattern indicated some noticeable fluctuations being recorded in certain years. Apple consumption peaked at $5.7B in 2014; however, from 2015 to 2021, consumption remained at a lower figure.

Driven by increasing demand for apple in the United States, the market is expected to continue an upward consumption trend over the next decade. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +1.3% for the period from 2021 to 2030, which is projected to bring the market volume to 4.7M tons by the end of 2030.

Apple Production in the United States

In 2021, the amount of apples produced in the United States expanded modestly to 4.8M tons, increasing by 4.1% on the previous year. The total output volume increased at an average annual rate of +1.9% from 2012 to 2021; the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2013 when the production volume increased by 16%. Over the period under review, production hit record highs at 5.4M tons in 2014; however, from 2015 to 2021, production failed to regain momentum. Apple output in the United States indicated slight growth, which was largely conditioned by a modest expansion of the harvested area and a noticeable increase in yield figures.

In value terms, apple production expanded markedly to $5.4B in 2021. In general, production continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2016 with an increase of 33%. Over the period under review, production reached the maximum level at $6.5B in 2014; however, from 2015 to 2021, production failed to regain momentum.

Harvested Area

The apple harvested area in the United States fell to 118K ha in 2021, standing approx. at the previous year. In general, the harvested area showed a slight setback. The pace of growth was the most pronounced in 2015 when the harvested area increased by 1.8%. The apple harvested area peaked at 133K ha in 2016; however, from 2017 to 2021, the harvested area failed to regain momentum.

Yield

The average yield of apples in the United States expanded sharply to 41 tons per ha in 2021, surging by 5.5% compared with the previous year. The yield figure increased at an average annual rate of +3.2% over the period from 2012 to 2021; the trend pattern remained consistent, with only minor fluctuations being recorded in certain years. The growth pace was the most rapid in 2013 when the yield increased by 17% against the previous year. Over the period under review, the average apple yield attained the maximum level at 42 tons per ha in 2019; however, from 2020 to 2021, the yield failed to regain momentum.

Apple Exports from the United States

In 2021, shipments abroad of apples decreased by -7% to 750K tons, falling for the third consecutive year after two years of growth. In general, exports saw a mild decline. The pace of growth appeared the most rapid in 2017 when exports increased by 17% against the previous year. The exports peaked at 989K tons in 2015; however, from 2016 to 2021, the exports remained at a lower figure.

In value terms, apple exports stood at $914M (IndexBox estimates) in 2021. Overall, exports showed a mild descent. Over the period under review, the exports attained the maximum at $1.1B in 2013; however, from 2014 to 2021, the exports failed to regain momentum.

Exports by Country

Mexico (302K tons) was the main destination for apple exports from the United States, with a 40% share of total exports. Moreover, apple exports to Mexico exceeded the volume sent to the second major destination, Canada (146K tons), twofold. Taiwan (Chinese) (54K tons) ranked third in terms of total exports with a 7.2% share.

From 2012 to 2021, the average annual rate of growth in terms of volume to Mexico totaled +2.5%. Exports to the other major destinations recorded the following average annual rates of exports growth: Canada (+0.4% per year) and Taiwan (Chinese) (-2.4% per year).

In value terms, Mexico ($349M) remains the key foreign market for apple exports from the United States, comprising 38% of total exports. The second position in the ranking was occupied by Canada ($173M), with a 19% share of total exports. It was followed by Taiwan (Chinese), with an 8.1% share.

From 2012 to 2021, the average annual rate of growth in terms of value to Mexico amounted to +2.3%. Exports to the other major destinations recorded the following average annual rates of exports growth: Canada (-2.0% per year) and Taiwan (Chinese) (-1.6% per year).

Export Prices by Country

In 2021, the average apple export price amounted to $1,218 per ton, with an increase of 15% against the previous year. Over the period under review, the export price, however, recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2016 an increase of 16% against the previous year. The export price peaked at $1,258 per ton in 2013; however, from 2014 to 2021, the export prices failed to regain momentum.

Average prices varied somewhat for the major overseas markets. In 2021, the countries with the highest prices were Vietnam ($1,602 per ton) and Taiwan (Chinese) ($1,355 per ton), while the average price for exports to India ($1,093 per ton) and Mexico ($1,155 per ton) were amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Taiwan (Chinese) (+0.8%), while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform