Banana Prices Explained

According to the U.S. Bureau of Labor Statistics, banana prices experience an average inflation rate of 3.23% per year.

While this is a significant figure, Packer’s Fresh Trends 2023 posted bananas as the most purchased produced item among consumers. This is a market trend for growers, however, climate change continuously strikes its plantations which requires farmers to accelerate farming adaptation techniques.

Thus, this weather event openly impacts its prices. 

Why are banana prices fluctuating?

1. Competition from other Producing Countries

When multiple nations register healthy banana output, its total market price decreases depending on the demand percentage.

Additionally, when the need for bananas stays relatively stable, the surplus in supply frequently results in a decline in prices. This is because there is more product available than the market demands.

2. Consumer Preference

Customers’ choices for different banana varieties, especially those with special health benefits or nutritional characteristics, ultimately influence banana prices in the market.

Furthermore, growers change their banana farming practices in response to consumer preferences for healthier produce.

Overall, this will affect the quantity and price of available bananas.

3. Weather Conditions

Hurricanes, storms, floods, and droughts are examples of extreme weather occurrences that significantly affect banana farms.

These occurrences often result in lower crop yields, influencing the overall availability of bananas. Moreover, when the supply declines while demand stays constant, prices are prone to rise due to the shortage.

4. Quality

The quality of bananas directly influences their price due to consumer preferences and market demand. For example, higher-quality bananas are frequently in demand, which enables vendors to increase their prices.

On the other hand, bananas of lower quality, sell cheaper.

Which variables impact the price of bananas?

• Competition from other Producing Countries
• Consumer Preference
• Weather Conditions
• Global Demand and Supply
• Trade Policy and Tariffs
• Pests and Diseases
• Quality
• Economic conditions

Where does banana come from?

Bananas are tropical fruits and they are mostly eaten in tropical areas. Additionally, their year-round availability, nutritional benefits, and unique flavor make them popular around the world.

They are elongated and curved in shape. Moreover, they have soft and starchy flesh enveloped in a peel that can range in color from green and yellow to red, purple, or brown when ripe.

These are the common varieties of banana:

1. Cavendish Bananas – it is long, slightly curved, and cylindrical with a classic banana flavor Their skins are bright green when unripe and turn to a bright golden yellow when ripe.

2. Saba Bananas – often harvested while still green though they will mature from green to a deeper yellow color, it has a slightly sweet taste with hints of citrus and peach. Additionally, they have a thick peel and white flesh.

3. Burro Bananas – it has dark green peels that deepen to deep yellow with black spots when fully ripe. Furthermore, it has a creamy white or yellow flesh with a lemony banana flavor.

4. Manzano Bananas – short and chubby with thick yellow skins that turn completely black when ripe. They’re sometimes called apple bananas due to their apple-like flavor when picked immature, and taste like pineapple when fully ripe.

5. Nino or Baby Bananas – have thin green skins that turn bright yellow with some black spots when fully ripe. Additionally, they have a very dense creamy texture.  Once ripe, they taste rich and sweet vanilla and caramel undertones.

6. Red Bananas – have reddish-purple skin and a sweet flavor. They are smaller than the common yellow bananas and are often consumed as a fresh snack.

7. Pisang Mas Bananas – are small, squat, and straight to slightly curved. Additionally, its peel is green when immature which turns vibrant yellow when ripe, and the flesh inside tastes sweet honey.

8. Blue Javas – also known as Ice Cream Banana. This unique variety has a silvery-blue skin and a flavor reminiscent of vanilla ice cream and also known for its creamy texture and is often eaten fresh.

What are the uses of bananas?

Bananas are widely cultivated in tropical countries and valued for their many uses in the food sector, thus, it is one of the most important fruit crops in the world,

Additionally, its major byproducts help recycle agricultural waste by providing important raw materials for a variety of industries.

Furthermore, hygienic and nutritious food products become more important to customers due to ongoing advancements in the food and beverage industry and a growing focus on health-conscious choices.

Some of the industrial applications of bananas include:

1. Food Processing – In the food industry, banana extracts, pureed, and dehydrated chips are used as main ingredients in numerous products such as baby food, smoothies, baked goods, and desserts.

2. Animal Feed – Banana peels and leaves are examples of byproducts that are used to improve cattle feed.

3. Biofuel Production – Peels and pseudo stems from bananas are among the waste materials that are used to make biofuels. The organic content within banana waste undergoes fermentation, resulting in the production of biogas or bioethanol.

4. Cosmetics and Skincare Products – Banana extracts are used in cosmetic products because of their hydrating properties. Lotions, creams, and face masks are just a few of the skincare products that contain these extracts of bananas.

5. Fertilizer – Banana plants are recognized for their ability to accumulate nutrients efficiently. For example, composted banana peels produce an organic fertilizer that is rich in potassium and many other nutrients.

6. Biodegradable Plastics – Natural polymers found in banana peels can be isolated and utilized to make biodegradable plastics. These polymers are important in making packaging materials. Additionally, they are not harmful to the environment.

What is the future price of bananas?

Rising health consciousness and a preference for tropical fruits certainly drive up banana prices.

Additionally, the anticipated boost in banana production in the region, fueled by both increased local consumption and exports, contributes to the predicted growth of the banana market in the future.

Furthermore, the next phase of the banana market is anticipated to be shaped by the combination of increased demand and increased production.

Overall, the average price of bananas will be $0.57 to $0.60 per kilogram in 2028.