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Apple Concentrate - Liquid Concentrate Segment Anticipated to Register the Highest CAGR

10-06-2017 02:35 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: PMR

North America anticipated to dominate the global apple concentrate market in the next 10 years

Though the apple concentrate market in the U.S is expected to drop in value during the assessment period 2016 – 2026, the North America region is expected to remain dominant in terms of revenue contribution. According to a new analysis by Persistence Market Research, North America consumes almost all the locally produced apple concentrate and exports few thousand tons because of trade relations. The apple concentrate production in the region is estimated to be more than 140 thousand tons by 2016 end. In 2016, the market in the region was valued more than US$ 500 Mn and is expected to expand at a CAGR of 3.4% during 2016-2016 to reach a valuation of more than US$ 800 Mn by the end of 2026.

Growth in the production of apple concentrate in North America is expected to be primarily driven by various application segments, where apple concentrate is largely consumed in the juice and cider industry. According to the report by Persistence Market Research, the North America apple concentrate market is flat but new innovation breaking into the market can shift the growth trend upwards.

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Limited availability of raw material expected to hamper the growth of the apple concentrate market in North America

Availability of apples is the biggest challenge these days in North America. Farmers are facing challenges in apple production because of changing climate and natural disasters. Production of apple depends on water availability and favorable climatic conditions. Limited availability of apples is creating hurdles in expansion of business in North America. In North America region, apple is consumed in both raw and processed form. However, most of the population prefers to consume apple in raw form, which limits the supply of apples for processing industries. Another factor creating negative impact on the global apple concentrate market is a change in the currency values. It has became a major concern that is shifting the export and import patterns of major concentrate producers throughout the globe.

The report indicates that the currency appreciation of Latin American countries in 2016 reduced the export of apple concentrates to other countries, especially the countries in North America region. Being the leading region in the consumption of apple concentrate, North America will certainly suffer due to continuous fluctuation in the currency. This particular factor is anticipated to restrain market growth.

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Juice Concentrate segment is expected to dominate the North America apple concentrate market during the forecast period

Among the three liquid concentrate sub-segments, the largest is juice concentrate, which is estimated to represent more than 90% of the market in 2016, and is expected to remain the same through 2026. Although juice concentrate is not the fastest growing segment, it is estimated to grow more than US$ 20 Mn annually over the course of the forecast period in North America and this absolute growth is larger than the other liquid concentrate segments, although it registers a lower CAGR in the North America region. Apart from juice concentrate, the new application of powder concentrate will flourish the solid concentrate market growth during the projected period in the North America region.

Tree Top is bringing out new product varieties to cater to the U.S. market

Major players are consistently launching new innovative products in the market and also strengthening their market share by pitching their existing line of products due to increase in demand. For instance, Tree Top is bringing out new product varieties to cater to the U.S. market, including low-calorie and reduced-sugar selections, flavored applesauce, blended juices, bagged fresh apple slices, and fruit snacks. Welch Foods is focusing on launching a new juice powder variety that can replace liquid concentrates. This company is also looking for expansion of its soda range in the next year aiming at a higher demand for the product, which has exponentially increased since its launch. Tree Top focuses on apple concentrate and cider sale in the U.S. owing to decent market share of the company in the U.S. apple concentrate market.

About PMR

Persistence Market Research (PMR) is a third-platform research firm. Ourresearch model is a unique collaboration of data analytics and market research methodology to help businesses achieve optimal performance

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