Market Trends of Cranberries Industry
Increasing Demand from the Processing Industry
- As demand for processed cranberry products surges, processing industries increasingly turn to cranberries, particularly in North America. Processed cranberry offerings encompass juices, jams, jellies, sauces, dried cranberries, powders, and extracts. While cranberries, native to North America, are enjoyed in diverse forms, fresh, ground, mashed, or even baked with cornmeal, dried cranberries are uniquely paired with dried meats. For instance, Ocean Spray has over 700 farmers who produce 65% of cranberry production. In 2023, the company invested USD 75 million and expanded its Wisconsin Rapids facility, doubling its size to 440,000 square feet. The upgrade incorporates advanced energy-efficient technologies, aligning with the growing global demand for sweetened dried cranberries.
- Cranberries are increasingly sought after in their fresh form and as poultices, medicinal teas, and dyes. In the United States, a mere 5% of the harvested cranberries are sold fresh, with a dominant 95% being processed, predominantly into juice and juice blends. Driven by heightened demand from the processing industry, North America's cranberry production surged from 476,822 metric tons in 2021 to 577,519 metric tons, marking a notable 21.11% increase as reported by FAOSTAT. This significant boost in production can be attributed to market-operating companies' rapid expansion of processing facilities.
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North America Dominates the Market
- North America dominates cranberry production, accounting for 98.5% of the global share. Cranberries thrive predominantly in the northern regions of North America, with significant cultivation taking place in states such as Massachusetts, Wisconsin, New Jersey, Oregon, and Washington. North America boasts an annual harvest of approximately 200 billion cranberries, translating to sales surpassing USD 1.50 billion. FAOSTAT data indicates that in 2022, the area dedicated to cranberry cultivation reached 23,898 hectares, marking a 2% increase from the previous year.
- The United States is the world's foremost cranberry producer, with Canada trailing behind. In 2022, US farmers cultivated cranberries across 15 thousand hectares, yielding a production volume of 365,500 metric tons. As per FAOSTAT, the United States accounted for 63% of North America's total cranberry output. While cranberry production has seen a steady uptick, consumption patterns have shifted from seasonal to year-round, largely fueled by the growing use of cranberries in processing.
- Also, the United States leads in cranberry exports, sending shipments to nations such as India, the Philippines, and Peru. USDA reports highlight that in 2022, US cranberry exports were valued at USD 293.6 million, with Wisconsin emerging as the top-producing state and the European Union recognized as the primary export market. Ocean Spray, the United States's largest processing entity, also sources significant volumes from Eastern and Western Canada. The company boasts a diverse product range, manufacturing fresh cranberries, cranberry concentrate, sweetened dried cranberries (SDCs), cranberry-based juices, and cranberry sauce. This broad product portfolio underscores the heightened demand driving the North American cranberry market.
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