Market Trends of Fresh Apple Industry
This section covers the major market trends shaping the Fresh Apple Market according to our research experts:
Increasing Demand for Organic Apples
The demand for organic apples is gaining traction among consumers across the globe, bolstered by consumers' growing concern for health and wellness. For instance, according to the US Department of Agriculture, per capita consumption of fresh apples in the United States in 2020 is 17.59 pounds which have increased from 16.8 pounds in 2019. In comparison with other fruits and conventionally grown apples, organic apples are naturally lower in sugar and higher in fiber. Therefore, this fruit is witnessing immense demand from global consumers, especially in the United States, Canada, and the European region. According to the USDA Foreign Agricultural Service, in the marketing year of 2020/21, the volume of organic apples imported to Canada accounted for approximately 14,510 metric tons an increase of 3,500 metric tons compared to 2019 which accounted for 11,460 metric tons.
The higher-income groups in these regions are even willing to pay additional amounts, with an aim to safeguard their health conditions. While US acreage and production of apples have declined in recent years, consumer demand has spurred a fast-growing organic apple sector. According to Ag Marketing Resource Center, in 2021, apples managed under certified organic farming systems accounted for about 7% of total US apple acreage. While conventional apple yields tend to be higher than organic yields, organic apples commanded a price premium at every level of farm-gate, wholesale, and retail of the supply chain. Despite the drop in total apple production over the last decade, the United States apple sector has seen fast-growing demand for new varieties of apples and for organically produced apples that garner price premiums.
Asia-Pacific Leads Apple Consumption
Asia-Pacific leads the global consumption of fresh apples, with a share of 62% of the global market. The rise in consumption as well as the increased strength of distribution channels in the region is one of the major drivers for market growth. China is the largest producer of apples in the world. Apples are the most popular fruit consumed in China. China remains the largest apple-consuming country worldwide, with a consumption rate of 40 million metric ton, which comprises approximately 48% of the total volume. Moreover, apple consumption in China exceeded the consumption recorded by the United States by tenfold. China was the second-largest consumer, with 4 million ton of apple consumption.
Along with this, in 2019, South Korea's per capita consumption increased by 12% due to the increased domestic supply and consumers' high preference for apple fruit due to various health benefits over other domestically grown fruits. According to the Ministry of Agriculture, Food, and Rural Affairs (MAFRA), in 2019, the per capita consumption of apples in South Korea is 10.3 kilograms, which is the second highest after citrus. In addition to this, India is also one of the most potential markets for apples as the health consciousness among consumers in the country is increasing at a faster pace. For instance, Indians have developed a taste for fresh apples during the pandemic, which has resulted in a sharp increase in the import of fresh apples in the first 9 months of the current fiscal year 2022. Imports of apples during April- December have more than doubled from a year earlier and were also 14% higher from the whole of fiscal 2020 when there were Covid-related restrictions on the movement of goods.
