Market Trends of Peaches And Nectarines Industry
Expansion of Global Peach and Nectarine Production
- Global production of peaches and nectarines is on the rise, fueling the growth of the peaches and nectarines market. China stands out as a top producer, with Spain, Italy, and the United States trailing closely. Data from the USDA indicates that global production of peaches and nectarines climbed to 24.94 million metric tons in 2023, up from 24.05 million metric tons in 2022.
- According to the USDA, the European Union (EU) is set to boost its production of peaches and nectarines by 201,000 metric tons, bringing the total to 3.6 million metric tons. This increase is largely due to favorable growing conditions, especially in Spain, the EU's top producer. With this anticipated rise in output, exports are projected to jump by 63,000 metric tons, reaching a total of 200,000 metric tons - the highest level in five years. Major EU producers of peaches and nectarines include Spain, Italy, Greece, and France, with Hungary, Portugal, Bulgaria, and Poland playing a lesser role. Spain stands out, accounting for a significant forty percent of the EU's total production. Even with inflation impacting purchasing power, EU consumption of peaches and nectarines is projected to rise, driven by greater domestic availability and a boost in tourism activity.
- Turkey's production is projected to hit 1.2 million metric tons in 2024, driven by expanded acreage, the adoption of higher-yielding varieties, and favorable growing conditions. Over the past five years, nectarine production has doubled, spurred by both local and foreign consumer demand. However, in the 2023/24 period, it constituted just a quarter of the total peach and nectarine output. With supplies on the rise, exports are set to climb, bolstered by increased shipments to Russia and Iraq.
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China Takes the Lead as Asia Pacific Dominates the Market
- In 2023, Asia Pacific dominated global peach and nectarine production, accounting for nearly 70% of the total volume, while the European Union trailed with a 14% share. The region's success can be attributed to its fertile, well-drained soil and favorable weather conditions, complemented by abundant sunshine. Furthermore, heightened health consciousness among consumers and a surging demand for organic products, especially in key markets like China, South Korea, and India, are driving this trend. Countries such as China and India are at the forefront of peach and nectarine production in Asia. Specifically, in 2023, China produced 17.5 Million metric tons of peaches and nectarines. These combined factors are fueling the market's growth.
- In marketing year (MY) 2024/25, USDA projects China's peach and nectarine output to reach 17.6 million metric tons (MMT), marking a slight increase from the prior year. Peaches and nectarines thrive in northwestern provinces like Shaanxi and Shanxi, as well as in southern regions such as Sichuan, Yunnan, Guizhou, and Anhui. Additionally, while Shanghai, Jiangsu, and Zhejiang contribute smaller volumes, they are renowned for their high-value honey peaches.
- China's expanding peach production is being propelled by modern agricultural technologies. Bolstered by support from local governments and institutions, a growing number of peach farmers are adopting these innovations. These advancements encompass sensor-based tree growth monitoring, proactive pest and disease alert systems, and soil-analytical irrigation methods, all optimized for peach cultivation. Thanks to enhanced farming technologies, including greenhouse facilities, and the introduction of new varieties, China's domestic peach and nectarine supply season now spans from early May to late October, peaking with the majority of supplies in July and August.
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