Mango Prices Explained
Mango prices skyrocket in the market as production from its top-growing countries suffers unseasonal rains and drastic swings in temperatures.
For example, the heavy rains and extreme heat that ravaged India ( the world’s largest mango producer ) during the mangos’ flowering stage, resulted in 25%-30% crop damage.
Why are mango prices fluctuating?
1. Supply and Demand
The price of mangoes depends on the equilibrium between the quantity supplied by producers and the quantity demanded by consumers.
Prices tend to decrease when there is an excess of supply and low demand, while prices tend to rise when there is a shortage of supply and high demand.
In the Philippines, mango prices experienced a decline in 2022 as a result of overlapping harvests from different regions, leading to an excess supply.
Conversely, in the U.S. mango prices rose in 2022 due to increased consumer awareness of the health benefits and versatility of mangoes.
2. Seasonal Variation
Mango prices go up and down because of how mangoes are grown. In some areas, there are times when many mangoes are available, like in the second quarter of the year.
Thus, this makes prices lower because there’s a lot to sell.
However, during seasons when there are fewer mangoes available, prices tend to be higher because there isn’t as much supply, and people still want to buy them.
3. Production Costs
The basic costs of production which include labor, land, water, fertilizer, pesticides, and packaging, have an impact on mango prices. These prices display changes according to the region, technology improvements, and production efficiency.
Overall, mango prices rise in response to increased production expenses, such as those incurred in Pakistan in 2020 as a result of higher labor and shipping costs during the COVID-19 pandemic.
4. Market Competition
The pricing dynamics of mangoes are subject to market competition, including factors like the quantity, scale, and quality of both sellers and buyers.
When there is intense competition, mango prices typically go down, benefiting both buyers and sellers. Conversely, when there is less competition, prices typically go up since there are fewer options.
For example, mango prices in Australia increased in 2018 as a result of less competition from other crops including oranges, pears, and apples.
Which variables impact the price of mango?
- Supply and Demand
- Production Costs
- Market Competition
- Weather Conditions
- Transportation Costs
- Export Demand
- Variety and Quality
Where does mango come from?
Mango originated in southern Asia, particularly in regions like eastern India and Bangladesh. Additionally, it has become one of the most widely cultivated fruit trees globally.
Furthermore, it’s a perennial evergreen tree that is known for its extraordinary longevity and continues bearing fruit for up to 300 years.
There are numerous varieties of mangoes cultivated around the world, each with its unique flavor, aroma, and characteristics.
1. Carabao Mango – It’s long and kidney-shaped with a thin yellow pulp that is mildly flavored and has a subtle scent.
2. Pico Mango – This variety is recognizable by a distinctive beak at the apex and possesses fibrous light orange-yellow flesh.
3. Katchamita Mango – This mango is a popular option for a quick snack because they are small, round, and has a sweet taste.
4. Apple Mango – They are small in size. Additionally, they taste sweet and are commonly enjoyed as a snack or incorporated into salads.
5. Indian Mango – It is cultivated in the Philippines, this variety is known for its medium size and sweet taste.
6. Alphonso Mango – Known as the “King of Mangoes,” Alphonso is valued for both its sweet, fragrant flavor and its rich, creamy texture.
7. Kent Mango – They have a sweet and slightly tart taste with a juicy, fiberless flesh. Additionally, they are often eaten fresh or added to salads and smoothies because of their medium to large size.
What are the uses of mango?
A ripe mango is rich in Vitamin A while the unripe variant is a good source of Vitamin C.
In addition to the flesh of the fruit, other parts of the mango tree and food industry byproducts are also used, however, their economic value may be limited. Some of the industrial uses of mangoes include:
1. Food Processing – Mangoes undergo processing to create diverse products, including mango puree, mango slices, mango concentrate, and mango pulp. These processed mango derivatives are used in the manufacturing of juices, nectars, jams, jellies, sauces, and desserts.
2. Confectionery and Snack Industry – Mangoes are used to make candies, dried mango slices, and snacks with mango flavor. A popular snack, dried mango is valued for its sweet and chewy texture.
3. Cosmetics and Personal Care Products – Mango butter from mango seeds is used in skincare and cosmetics because of its moisturizing qualities. Additionally, various personal care products contain mango extracts and scents.
4. Animal Feed – Waste materials from mangoes, including peels and seeds are recycled as livestock feed, offering a sustainable utilization of byproducts.
5. Textile Industry – Mango leaves contain tannins and their extracts are used in the textile industry for tanning and dyeing.
What is the future price of mango?
The growing demand for both fresh and processed mango products is one of the factors driving the increase in demand for fresh mangoes.
Moreover, the promotion of mango consumption through marketing campaigns, health awareness, and culinary innovations highlights the benefits and versatility of mangoes.
Overall, the price of mangoes will be around $3.52 per kilogram in 2028, with a global mango market of $8.84 billion in 2027.