The North America Orange Market is expected to register a CAGR of 3.6% over the forecast period (2020-2025). North America is one of the largest producerss of orange globally. In North America, the United States is generally the dominant country in orange production, followed by Mexico and Canada. In recent times both Mexico and the United States have similar production quantities. Oranges usually grow in tropical and subtropical climates that have warm to hot summers and mild winters. The primary varieties of oranges produced in the region are Navel, Hamlin, Pineapple, Amber sweet, and Valencia. In the US, around 65% of the orange is used for processing such as in concentrate form or powder, while around 35% of Mexican orange is used for processing. Increase in consumption of juices made from oranges in the region, the market is likely to increase steadily during the forecast period.
Key Market Trends
Continuous Increase in Production in Mexico
Mexico is one of the leading producers of oranges in North America. Mexico's orange production has increased significantly over the decade. Production in Mexico in 2000 was just 4051.6 as compared to 4738.0 thousand metric ton in 2018. Mexico has also been fulfilling the orange demand of the United States via increased exports, mainly after the decrease in the local production of the United States, which fell from 5.7 million metric ton in 2015 to 4.8 million metric ton in 2018 (FAO). This increase in production was brought about by adoption of new technologies, effective use of agro-chemicals and favorable policies. In 2018, Mexico exported 835,786 metric ton to countries across the globe (ITC Trade Map). Major importer of Mexican oranges are the United States and the Netherlands followed by United Kingdom, France and Japan. The local and regional demand is thus expected to drive the production of oranges in Mexico in the forecast period.
United States Dominates Export
The United States is the highest exporter of oranges among all the North American countries. It is also the largest processed orange consuming country in the world. Consumers in most of the countries buy oranges in fresh form and produce orange juice at home. The country is one of the major producers of oranges in the world, however, recently, the United States orange production witnessed a decline in the four major-producing States, Florida, California, Texas, and Arizona. The decline is caused mainly due to climatic hazards and the outbreak of diseases. The United States produced 4.8 million metric ton of oranges (FAO) and exported about 484.5 thousand metric ton of oranges in 2018 (ITC Trade Map). Major importers of United States oranges were countries such as Korea, Canada, China, Japan, Mexico, and Australia. Export ties with these nations combined with increased local and global demand are likely to drive the market during the forecast period.
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