Pomegranate Prices Explained

Pomegranate prices remained high in the global market due to the fluctuating weather systems experienced by its top producers.

In India, pomegranate prices spiked to 20%-30% in its retail market due to supply shortages caused by the country’s unpredictable rainfall. Additionally, Turkey’s heavy spring rains led to lower pomegranate production. This resulted in a fruit shortage of 30%. Furthermore, the country’s inflation reached over 100%, making exports even harder due to double logistics costs.

Moreover, Peru’s pomegranate industry dropped by 40% as farmers replaced the commodity with blueberry or patented grape varieties because of low returns.

Why are pomegranate prices fluctuating?

1. Seasonal Variation

Generally, pomegranate prices are expensive because they are seasonal fruits that have a high demand and a low supply. Additionally, they have a specific growing season and the timing of the harvest plays a crucial role in determining supply.

However, its prices tend to decrease during the peak harvesting season when there is an abundance of fresh pomegranates in the market. Pomegranates grow in regions where the winter temperatures do not exceed 28 degrees Celsius, such as Iran, India, Turkey, Mexico, Israel, and the US.

2. Weather Conditions

Extreme weather conditions like heat waves, frost, storms, hailstorms, and floods affect pomegranates. These events have the potential to harm, destroy, or lower the amount and quality of the crops.

For instance, pomegranates wilt or turn brown during droughts while they rot during floods. Overall, weather-related issues impact the balance of supply and demand which eventually result in pomegranate price fluctuations.

3. Quality

Pomegranates undergo grading based on factors such as size, shape, color, weight, firmness, juiciness, and the presence of defects. Thus, cultivation, harvesting, processing, handling, storage, and marketing all have an impact on the fruit’s quality. Those that meet the quality standards, displaying vibrant color, minimal blemishes, and well-formed pomegranates usually demand higher prices.

4. Transportation and Distribution Costs

They thrive in specific regions and their transportation to distant markets incurs higher costs. The cost of gasoline, labor, and vehicle maintenance goes up when orchards are farther away from consumer markets. Overall, changes in the cost of gasoline, variations in transportation expenses, or supply chain interruptions all have an impact on the final retail price of pomegranates.

Which variables impact the price of pomegranate?

• Seasonal Variation
• Weather Conditions
• Quality
• Transportation and Distribution Costs
• Pests and Diseases
• Consumer Preference
• Supply and Demand
• Market Speculations

Where does pomegranate come from?

Pomegranate grows to a height of 5 to 10 meters and it has been cultivated for generations. Also, India is the world’s greatest producer of pomegranates leading the way in pomegranate farming across the nation. Here are the common types of pomegranate fruit, and their unique characteristics:

1. Granada – This medium-sized fruit is sweet to lightly tart with dark red skin.

2. Pink Ice – Also known as Sin Pepe, it is soft-seeded with a flavor like fruit punch from its light pink arils.

3. Sweet – It is sweet and has a large fruiting variety with light red/pink pomegranates.

4. Eversweet – has medium-sized, pinkish-red fruit. Additionally, it is recognized for its sweetness.

5. Parfianka – Another soft-seeded variety with bright red skin and pink arils that have a sweet and aromatic taste.

6. Angel Red – It is a very juicy fruit with bright red rind and arils.

7. Salavatski – has a dark red color and a sweet, slightly acidic taste, often used for making juice.

8. Mollar de Elche – Known for its deep red color and sweet, juicy arils, often used for juicing.

9. Sienevyi – has large, soft-seeded fruit, sweet in flavor much like a watermelon, and its skin is pink with dark purple arils.

What are the uses of pomegranate?

The growing demand for pomegranate juice concentrate and powder, propelled by their recognized health benefits drives its market’s rise.

Moreover, this expansion is attributed to increased consumer knowledge of pomegranate’s health benefits as well as a growing preference in the food and cosmetics industries toward natural ingredients. Some of the main uses of pomegranate are:

1. Food products – Pomegranates are used in many kinds of culinary applications such as juice and concentrate, jam, candies, toppings, and canned arils. Furthermore, its peel and seed extracts are used as functional ingredients or food additives to improve the nutritional value of a variety of products such as dairy, meat, and baked goods.

2. Pharmaceuticals – Its seed oil has anti-inflammatory, anti-allergic, anti-cancer, antidiabetic, and antioxidant qualities. To further increase its adaptability and possible uses, the oil also works well as a medicine or supplement carrier.

3. Cosmetics – Also, its peel extract has many skincare advantages, including wound healing, anti-aging, anti-acne, and skin-brightening properties. Furthermore, the extract is a natural way to color cosmetics or preserve cosmetics.

4. Textile industry – Extracts from pomegranate peels are used as natural dyes in the textile industry, allowing the chemicals in the peel to give textiles and fabrics color.

What is the future price of pomegranate?

The pomegranate market is expanding due to the increased demand for nutritious and health-conscious foods. One of the main factors driving pomegranate demand is the rising consumer knowledge of the benefits they have for health.

For instance, the wide incorporation of pomegranate juice and powder in various functional foods and processed foods, like cookies, cakes, and pastries adds a profitable market value.

Additionally, the pomegranate peel and seed oil industry bolstered its market due to its versatile applications in the food processing and beauty industries.

Pomegranate seed oil (extracted through cold-press method) is rich in antioxidants, vitamins, and essential fatty acids, making it an important ingredient in skincare products. The Body Shop and L’Oréal use pomegranate seed oil in their moisturizers and anti-aging creams because of their skin-nourishing properties.

Pomegranate peel extracts are utilized as natural colorants, flavor enhancers, and preservatives in the food processing industry. Naturhouse and Hippocrates Health Institute incorporate these extracts in their health foods and supplements, capitalizing on the oil’s anti-inflammatory and antioxidant benefits.

Overall, the estimated price of pomegranate will be $4.00 per pound in 2028, at a CAGR of 5.3%.