Global Banana Market to Reach 158M Tonnes by 2025
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According to market research conducted by IndexBox, global banana market had total revenues of X million USD in 2015, seesawing over the last three years, after a steady growth from 2007 to 2012. In physical terms, the market showed positive dynamics, growing by +X% from 2007 to 2015. It finally reached X million tonnes in 2015, which was X% more than the year before. The banana sector as a whole is expected to continue with an upward consumption trend in the next six years. However, the performance of the market is forecast to continue an upward trend, with an anticipated CAGR of +X% for the ten-year period from 2015 to 2025, which is expected to drive the market volume to X million tonnes by the end of 2025.
There are a number of growth drivers for banana consumption in the medium term. The strong global demand for the product, fueled by the global population growth, is the most significant contributing factor.
Bananas are among some of the most popular fruits consumed globally due to their taste and nutritional value. Although they can be consumed fresh, bananas also have many other culinary applications, including juices, sauces, and baked goods. The popularity of bananas across the globe will fuel their demand in the medium term.
The health benefits of bananas have also contributed to the rise in consumption of this fruit, both in its fresh and processed state. Consumers have learned many health benefits of consuming bananas. The recommended daily fruit intake, particularly in the U.S., Canada, Australia, and Western Europe, has also influenced the growth in demand for bananas. In line with these health recommendations, juice manufacturers are providing constant product updates and innovations.
Different authorities in the sphere of agriculture are working hand-in-hand with independent growers in the developing countries, which happen to be the biggest producers of bananas. These organizations help the farmers develop and maintain good cultivation practices, prevent and help fight plant diseases, strengthen producer organizations, and develop marketing strategies for their products. This will help the industry grow in the medium term, allowing it to overcome some of the major difficulties for banana growers, including large post-harvest losses and fruit diseases.
Disease control is one of the main restraints for industry growth in the medium term. There are many diseases that harm crop yields, including Fusarium Wilt and a variety of fungal infections. Apart from diseases, logistical and infrastructure problems may lead to post-harvest fruit losses in some of the major producing countries, which can decrease output by X%. Developed countries have found solutions for these problems, but it will take a significant amount of time and a considerable amount of resources to reach the farmers in the developing countries, which may restrain industry growth in the medium term.
Weather is another substantial risk and a potential constraint of global banana production. Changing climatic conditions are a large concern for farmers. Rains, droughts, or too much humidity can cause significant challenges for growing and harvesting the fruit. This is another significant inhibition to industry development in the medium term.
Banana producers have been under a lot of pressure to ensure sustainable sourcing of their products. This requires additional investments from producing companies, which, in turn, can increase the bottom line price. This may be one of the biggest global restraints for growth in the industry in the medium term.
Although multinational companies have always been important players in the global banana trade, their involvement in actual fruit production has decreased significantly in the last few years. Companies have shifted their operations to favor other areas in the sector, thus opening the door to opportunities for smaller companies. As a result, big companies do not entirely dominate the market, making it a lot easier for new buyers to enter it. This shows that the scope of operations of large corporations has undergone a significant shift away from plantation ownership and production, leaning more towards post-production logistics, including sourcing from producers, transportation, facilities to ripen the fruit, and marketing. This will drive the growth in supply in the medium term and may contribute to lowering the price of bananas, which, in turn, can help the industry grow in volume terms, but decrease in value terms.
Large retail supermarket chains in developed economies have become important players on the global banana market. They dominate the retail market in the main banana-consuming countries and, at the same time, are purchasing directly from growers. This shift of market power away from the major banana brands towards retailers is another factor that will increase the product supply on the global market, which will help the industry grow in volume terms, but most likely, will restrain its growth in value terms.
Do you want to know more about the global banana market? Get the latest trends and insight from our report. It includes a wide range of statistics on
- banana market share
- banana prices
- banana industry
- banana sales
- banana market forecast
- banana price forecast
- key banana producers
Source: IndexBox AI Platform
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