Rising Global Demand for NFC Orange Juice Continues to Drive Brazilian Exports

Orange Juice

Brazil

Published Nov 25, 2022

Health consciousness continues to spread amongst consumers globally, shifting preferences from frozen concentrate orange juice (FCOJ) to the natural tasting and sugar-free Not-From-Concentrate orange juice (NFC OJ). Brazilian companies have further upgraded their infrastructure and machinery in order to have the capacity to increase production and exports. In Q1 of MY 2022-23 (Jul-Sep 22), Brazilian NFC OJ exports reached 292,700 tons, a 14% increase compared to the previous year, while FCOJ exports amounted to 276,212 tons, a slight 3% YoY increase. Over the past 18 years, Brazilian exports of NFC OJ have jumped 296% in volume, peaking at 1.5 million tons in the 2017–18 season. In comparison, shipments of FCOJ fell by 46%. In Q2 2022-23, demand for NFC OJ is set to remain strong in major markets such as the US, as the impact of Hurricane Nicole, which recently swept across Florida, could leave the country in greater need of citrus imports.

Health consciousness continues to spread amongst consumers globally, shifting preferences from frozen concentrate orange juice (FCOJ) to the natural tasting and sugar-free Not-From-Concentrate orange juice (NFC OJ). As a result, Brazil has increased its focus on NFC OJ shipments to capitalise on this growing demand. Brazilian companies have further upgraded their infrastructure and machinery in order to have the capacity to increase production and exports. In Q1 of MY 2022-23 (Jul-Sep 22), Brazilian NFC OJ exports reached 292,700 tons, a 14% increase compared to the previous year, while FCOJ exports amounted to 276,212 tons, a slight 3% YoY increase. Over the past 18 years, Brazilian exports of NFC OJ have jumped 296% in volume, peaking at 1.5 million tons in the 2017–18 season. In comparison, shipments of FCOJ fell by 46%.

Source: National Association of Citrus Juice Exporters

A similar trend exists in the US, Brazil’s largest market, accounting for 76% of the total orange juice volumes. In the 2021/22 season, the US imported 9% less FCOJ than in the previous season; however, the imports of NFC OJ rose by 43.9%. Other markets, such as Japan and China, also witnessed a decrease in FCOJ demand. Consequently, between July and September, Brazilian FCOJ exports to Japan fell to 7,987 tons, a 9% decrease compared to last year, and shipments to China contracted by 9%, dropping to 15,313 tons.

The increase in the global demand for NFC OJ has led Brazilian companies to upgrade their infrastructure and machinery. Agrotenas, a leading Brazilian orange juice processor, made significant investments in equipment, logistics, tanks, and team training, to produce NFC OJ that is as close as possible to the freshness and taste of the fruit in the groves. By 2023, Louis Dreyfus Company (LDC) plans to construct new storage tanks in Matao, São Paulo, to meet the growing global consumer demand for high-quality NFC orange juice. This would bring the company’s NFC orange juice storage capacity at the site to 30 million litres and raise its annual juice production capacity to 300 million litres.

Between July and September 2022, the EU was the leading market for Brazilian orange juice exports, accounting for 65.03% (369,793 tons) of the total volume, followed by the US at 23.23% (132,158 tons), and China at 5.56% (31,632 tons). In Q2 2022-23, demand for NFC OJ is set to remain strong in major markets such as the US, as the impact of Hurricane Nicole, which recently swept across Florida, could leave the country in greater need of citrus imports.