Market Trends of North America Orange Industry
Rising Seasonal Demand Drives Orange Consumption
Fresh oranges are primarily used in beverage production, including fruit drinks and juices. The consumption of these beverages increases during the summer months, leading to higher seasonal demand. Orange demand peaks during November, December, and January when temperatures are lower. The North American market, particularly the United States, Canada, and Mexico, has shown strong demand for oranges in recent years. Oranges are used in various food preparations, including fruit salads, alcoholic beverages, marinades, and desserts. Consumer preferences are shifting toward orange juice consumption. The per capita consumption of fresh oranges continues to improve, especially during winter months, due to high availability.
Mexico's Valencia orange demand reaches its peak during winter, specifically from December to April, coinciding with the harvest season. The festive period, including Christmas and New Year celebrations, contributes to increased fresh fruit consumption. Valencia oranges are valued for their sweetness and versatility in juices and desserts. During winter months, consumers also seek vitamin C-rich fruits to support immune health. According to the United States Department of Agriculture, Mexico's orange production reached 4.94 million metric tons in 2023. Valencia oranges dominate the national production at 96%, followed by Hamlin at 3%, while Marrs, Navel, and Criolla (sour orange) varieties collectively represent 1% of total production.
The retail price of oranges fluctuates with seasonal demand. During winter, prices typically increase due to higher consumption driven by holiday celebrations and health-conscious consumer behavior. According to the Bureau of Labor Statistics, the retail price of navel oranges in the United States increased from USD 0.67 per kilogram in 2022 to USD 0.72 in 2023.
The United States Dominates Orange Export
The United States is the largest orange exporter in North America and the world's biggest consumer of processed oranges. While consumers in most countries purchase fresh oranges for home juice production, the United States maintains its position as one of the world's major orange producers. According to the ITC Trade Map, United States orange exports reached 350,569 metric tons in 2023, increasing from 344,704 metric tons in 2022. Oranges represent the most cultivated citrus fruit in the United States, comprising approximately 60% of all United States citrus exports. The country exports oranges to over 100 countries globally, with South Korea being the primary export destination, representing 25.8% of orange exports in 2023. Other significant importers include Canada, Japan, China, Mexico, and Australia. The established export relationships with these nations, coupled with growing domestic and international demand, are projected to drive market growth during the forecast period.
According to the ITC Trade Map, Canada was the second-largest importer of U.S. fresh oranges in 2023, importing 92,747 metric tons. Similarly, Mexico, a North American Free Trade Agreement (NAFTA) partner, imported 40,629 metric tons of U.S. fresh oranges in the same year. Under NAFTA, U.S. orange exports to both Mexico and Canada benefit from a zero percent tariff. Without this agreement, exports to Mexico would face a 20 percent tariff. Orange exports depend on fruit quality, variety, trade agreements, and harvest timing that aligns with off-seasons in importing countries. The United States-Korea Free Trade Agreement (KORUS FTA) demonstrates this impact through its influence on U.S. orange exports to South Korea. The agreement's Tariff Rate Quota (TRQ) reduces tariffs on U.S. oranges entering South Korea, enhancing their market competitiveness.
