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The Global Banana Market Size is projected to increase by USD 1.14 billion, accelerating at a CAGR of 9.32% between 2022 and 2027. In 2017, the size of the market was valued at USD 1.52 billion. The market is witnessing growth due to the rising utilization of banana flour in the baking industry, the expansion of the organized retail sector within the market, and the influence of blogs and digital media on consumer preferences for fruits and vegetables. However, challenges persist, including the adverse effects of natural calamities on banana production, concerns regarding water scarcity, and the volatility of prices for fruits and vegetables.
The increasing adoption of banana flour in the baking industry is the key factor driving the market. Owing to the high insoluble fiber content in banana flour, about 30% less flour is required in food preparation than regular flour. Banana flour is gaining wide acceptance in the preparation of brownies, cookies, and waffles. The flour has a mild, undistinguishable flavor. Moreover, it imparts a light, fluffy texture to the batter or dough, which is suitable for baked products. Thus, the increasing adoption of flour owing to its beneficial characteristics is expected to influence the market.
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The market share growth by the offline segment will be significant during the forecast period. The revenue from offline distribution channels has gradually declined due to the growing preference for online shopping platforms. Major retailers are expanding their stores in local and regional markets to overcome this challenge.
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The offline segment was valued at USD 1.10 billion in 2017 and continued to grow until 2021. Offline sales have declined gradually because of the high preference for online shopping. Players are expanding their stores in local and regional markets to increase their sales through the offline channel. Manufacturers sell their products through specialty stores and other retailing formats. Thus, to sustain in such a competitive market and due to the declining preference for offline shopping, retailers are introducing new business and retail strategies, which include better pricing strategies and wider assortments. Such factors will increase segment growth during the forecast period.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is expected to witness an accelerating growth momentum as consumer perception and preferences have been evolving. Consumers are inclined toward packaged food products owing to convenience, reliability, and ready availability. Furthermore, supermarkets and hypermarkets are playing a major role in promoting consumption in North America. The fruit is increasingly being used as a primary ingredient in baby food products. Thus, the regional market is expected to experience steady growth during the forecast period.
The market is being driven by several key factors and trends. Firstly, bananas are a staple food consumed worldwide, providing essential nutrients such as Vitamin B6, Vitamin C, manganese, potassium, and dietary fibers. This nutritional profile contributes to their popularity and demand. Additionally, bananas are versatile and can be processed into various products like banana powder, banana flour, milkshakes, protein powder, baby food, cakes, and instant foods, catering to diverse consumer preferences and lifestyles.
Furthermore, the increasing focus on health and wellness is fueling the demand for bananas and banana-derived products, as they are perceived as natural and nutritious options. Moreover, initiatives such as Fairtrade and organic certification are gaining traction, reflecting growing consumer awareness and preferences for ethically sourced and sustainable products. The rise of cluster development projects (CDP) and support from organizations like the National Horticulture Board are also contributing to market growth by promoting banana cultivation and improving supply chain efficiencies. However, challenges such as climate change, labor conditions, and deforestation pose significant risks to banana production and supply, necessitating sustainable practices and trade policies to address these issues and ensure the long-term viability of the banana market.
Our researchers analyzed the data with 2022 as the base year, along with the key trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
The global market is experiencing significant growth, driven primarily by the expansion of banana production worldwide. Bananas are cultivated in over 120 countries, with key production regions including Asia, South America, and Africa. Projections indicate a steady annual growth rate of 1.8% in global banana production between 2019 and 2028. In 2021, global banana exports, excluding plantains, reached a record high of approximately USD 14.5 billion, with major exporting nations like Ecuador contributing significantly.
Countries like India, China, Indonesia, and Brazil are among the top 15 banana-producing nations, collectively processing over 40 million tons annually. However, a considerable amount of banana waste, including damaged bananas and banana stems (pinzote), is generated during processing. Innovative utilization of this waste, such as converting it into paper products, presents a sustainable solution that not only reduces waste but also contributes to market growth. As environmental concerns rise, repurposing banana waste aligns with sustainability initiatives, further driving the market forward in the forecast period.
The impact of natural calamities on production is a major challenge impeding the growth of the global market. One of the challenges to the growth of the global market is the impact of natural calamities, which can affect the production. Climatic changes and weather conditions can affect the volume and quality of the crop yield. Globally, climatic conditions are changing fast with severe droughts and floods. Because of global warming, there is extreme heat in the deserts, monsoons, flooding in coastal areas, and extreme cold in the colder regions. Changing weather cycles such as El NiNo and La Nina cause severe weather conditions such as floods in the Eastern Pacific Ocean region.
The Dominican Republic and Ecuador were the largest producers globally in 2020. But the production of organic bananas in the Dominican Republic was affected by Hurricane Irma or similar disasters. This caused a reduction in a major proportion of exports from the Dominican Republic to other countries. Thus, the decrease in the production due to natural calamities such as hurricanes and floods can negatively impact the growth of the global market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Based on type, the market is segmented into inorganic/conventional, and organic. Inorganic/conventional dominate the market owing to the growth of the sector globally. This segment holds a significant market share due to the low cost of farming and fewer government regulations. Inorganic ones are produced in the conventional way, which includes using artificial chemicals, fertilizers, and pesticides, among others. Inorganic farming, chemical fertilizers promote plant growth, while insecticides are sprayed to reduce the risks of pest infestation and diseases.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing significant growth driven by various factors such as the increasing demand for wheat and maize, as indicated by data from ITC Trademap. Bananas are rich in essential nutrients like Vitamin B6, Vitamin C, manganese, potassium, and dietary fibers, making them highly valued by health-conscious consumers. The National Horticulture Board and Cluster Development Project (CDP) play vital roles in promoting fair trade practices and supporting sustainable banana cultivation.
However, challenges such as the impact of diseases like Black Sigatoka, labor conditions, climate change, and deforestation pose significant hurdles to banana production. Despite these challenges, banana products like banana powder find applications in milkshakes, protein powder, cakes, instant foods, beverages, and seasonings, catering to diverse consumer preferences. Additionally, the gluten-free nature of bananas makes them suitable for consumers with celiac diseases, contributing to the growth of the gluten-free product market. As a result, bananas remain a versatile and sought-after ingredient in various industries, including the food, retail, cosmetic, and feed industries, with increasing demand observed in modern trade channels and club stores.
Moreover, the market is influenced by various factors such as fair trade practices, trade policies, and supply chain dynamics. Land resources play a crucial role in banana cultivation, affecting both value and volume sales. Moreover, bananas are rich in starch, making them a potential gluten-free substitute for diet-conscious consumers. They also contain resistant starch, beneficial for digestion and nutrition absorption. Bananas are known to contribute to various health aspects, including bones, dehydration prevention, vision, and muscle health. Additionally, bananas find applications beyond food consumption, with uses in skincare and the cosmetic sector. With increasing demand, investment in technologies for banana production, processing, and distribution is on the rise, catering to diverse industries such as the feed industry for livestock like pigs and fish.
Banana Market Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.32% |
Market growth 2023-2027 |
USD 1.14 billion |
Market structure |
USD Fragmented |
YoY growth 2022-2023(%) |
8.24 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, Canada, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
7-Eleven Inc., Agro America, Agrofruit Holding Corp., Aldi Stores Ltd., Auchan Retail Portugal SA, Axfood AB, Chiquita Brands International Sarl, Co operative Group Ltd., Coliman, Dole plc, Federation of Migros Cooperatives, Fresh Del Monte Produce Inc, Fyffes Ltd., Global Banana, J Sainsbury plc, Koninklijke Ahold Delhaize NV, Lidl US LLC, Reybanpac, The Daiei Inc., and Waitrose Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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