Strawberries
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Global Market Outlook on Strawberries 

The US, Europe, and Asia are expected to produce over 70 percent of the global fruit supply. Highest growth can be expected in the minimal processed sector, with APAC having the highest CAGR, owing to increased demand for convenient food and rise in the living standard.

Strong volume output in the overall North American continent is expected to keep the stocks high

• Due to supportive weather in both US and Mexico, supplies in 2020 is expected to be high
• The Californian growers, despite favorable and improved harvests, are facing a challenge of rising labor costs and availability, due to trade conflicts with Mexico, one of the top labor sources for the U.S.
• A supply glut for strawberries in Australia has led to mass dumping of small-sized strawberries over preference for larger strawberries and a sharp dip in prices, owing to a rise in winter temperature, leading to early harvest
• Reduction in acreage, labor unavailability, and unfavorable weather conditions are challenges faced by the major growing regions

Industry Drivers and Constraints 

Drivers

Year around Availability and Convenience

•  Given factors like seasonality and perishability, processing makes it possible to preserve and consume fruits throughout the year
• Wide Product Portfolio: Processing offers a range of opportunities for value addition and widening product portfolio, which help the players stay competitive in the market
• Reduces Perishability and Wastage: Processing increases shelf life, facilitates transport worldwide, helps expand export base with reduced spoilage
• Globalization: Increasing consumer awareness and immigration of varied ethnic groups drive imports and processing of non-locally produced fruit products that need to be transported and stored efficiently
• Rise in per capita income: Urbanization, changing lifestyle, increasing focus on health and wellness, higher disposable incomes, and evolving consumption habits has spurred the need for convenient food that is easy to consume and also wholesome and nutritious

Constraints

• Supply Uncertainty: There is no guarantee of consistent supply of fruits, which depend on weather and harvest. The producing region’s economic condition could cause price volatility, especially fruits imported from developing countries
• Capital Intensive: Decrease in conventionally processed fruits, owing to increasing preference for minimally processed fruit products call for processors to keep up with evolving trends. The switching cost is very high and can be afforded only by large players, leaving the small and medium level processors at a disadvantage
• Access to Raw Materials: New entrants face challenges in securing raw materials supply at early stages of operations and are prone to high cost fluctuation risks