Pineapple Prices Explained
Pineapple prices soared in the market due to the low production input from Thailand and India. The affected countries suffered severe weather systems that reduced the crop yield.
Additionally, premature ripening of the fruit disrupted the usual supply and dynamics, leading to its price variation.
Why are pineapple prices fluctuating?
1. Harvesting and Labor Costs
Changes in labor costs or the availability of labor significantly influence the overall cost of harvesting pineapples, thus, influencing the price of pineapples in the market.
Pineapples are a labor-intensive crop, requiring a significant workforce for various tasks involved in the cultivation and harvesting process.
Overall, if labor costs rise due to minimum wage adjustments or increased demand for labor in the region, the entire value of harvesting pineapples goes up.
2. Weather Condition
Intense weather events such as hurricanes and storms cause physical damage to pineapple plants such as uprooting, broken stems, or damaged fruit.
Consequently, it reduced its supply due to adverse weather events, leading to a supply-demand imbalance.
Thus, when supply decreases, and demand remains constant, scarcity drives up pineapple prices in the market due to higher need and lessened availability.
3. Transportation Costs
Fuel price fluctuations and subsequent changes in transportation costs have a direct impact on the overall cost of delivering pineapples to markets.
Thus, these increased expenses contribute to higher production costs which may be passed on to consumers in the form of elevated pineapple prices.
4. Consumers Demand
Changes in consumer preferences, health trends, and marketing efforts significantly influence the demand for pineapples.
When demand increases rapidly and exceeds supply, prices may rise due to the scarcity of pineapples in the market, ultimately affecting the cost consumers pay for pineapples and pineapple-based products.
Which variables impact the price of pineapple?
- Harvesting and Labor Costs
- Weather Condition
- Transportation Costs
- Consumers Demand
- Global Trade
- Exchange Rate
- Economic Condition
- Market Competition
Where does pineapple come from?
Pineapples are native to South America, particularly the region between southern Brazil and Paraguay. Historians believe that the pineapple was first domesticated by the indigenous peoples of these areas.
Additionally, pineapple varieties have slight differences in taste, color, size, and overall appearance. Here are some common types of pineapples:
1. Smooth Cayenne Pineapple – The most popular and commonly cultivated pineapple varieties. It has a sweet, juicy, and vibrant yellow flesh that is commonly used for canning and juicing.
2. Queen Pineapple (Queen Victoria) – Smaller in size compared to other varieties, however, it has a sweet and aromatic flavor with golden-yellow flesh.
3. Red Spanish Pineapple – Recognizable by its red exterior and green-tipped leaves. Additionally, it is known for its sweet and tangy flavor with yellow flesh.
4. Sugarloaf Pineapple – This variety is relatively small and has a sweet and low-acid flavor with white or pale yellow flesh.
5. Singapore Red Pineapple – Known for ornamental purposes, it is eaten fresh and has a sweet taste.
6. Kona Sugarloaf Pineapple – This type of pineapple is grown in Hawaii. Additionally, it is known for its sweet taste, low acidity, and tender texture.
Top Applications of Pineapple
Pineapple is a versatile fruit and a good source of vitamin C, fiber, potassium, and other nutrients. Generally, it is consumed fresh or processed through canning, dehydration, and other culinary applications.
Moreover, its skin, leaves, and fibers are used locally in garment and furniture manufacturing. Here are some common uses of pineapple:
1. Cocktails and Beverages – Pineapple juice is a key ingredient in many tropical cocktails, mocktails, and beverages. No wonder your favorite piña coladas, pineapple mojitos, and other refreshing drinks have a tinge of sweetness.
2. Desserts – Desserts like pineapple upside-down cake, pineapple tarts, pineapple ice cream, and fruit parfaits use pineapple to add a burst of sweetness and flavor.
3. Preserves and Jams – Pineapple can be used to make jams, jellies, and preserves. A perfect spread on toast or used as a topping for desserts.
4. Sauces and Marinades – Additionally, it is used to make sauces and marinades for meats and seafood, providing a tangy and tropical flavor.
5. Canning and Drying – Its flexibility finds its way into preservation through canning or drying processes, extending its shelf life for future use in various recipes.
6. Baking – It is a common ingredient in baking, including pineapple cakes, muffins, bread, and pastries, adding a unique sweetness and moisture to the baked goods.
Presently, this sweet and delightful fruit mainly comes from Costa Rica, Indonesia, the Philippines, Brazil, and China.
What is the future price of pineapple?
The pineapple market has immense opportunities owing to the demand for the product, increased awareness among consumers, and growth in investments from private investors and companies.
Thus, pineapple consumption is expected to rise due to its popularity as a refreshing tropical fruit with a sweet and tangy flavor. The estimated price of pineapple in 2028 is $346.00 per ton.
Furthermore, the Pineapple Market size is projected to grow from $27.08 billion in 2023 to $36.80 billion by 2028, at a CAGR of 6.33% during the forecast period of 2023-2028.