Citrus Market Digest w51

Weekly updates on the citrus market

Citrus fruits: A key segment in global agriculture

Citrus fruits represent a vital segment in the global agri-food trade, which is marked by impressive production and export figures. With global production soaring to 130 million tons—a remarkable 125% increase over the last 30 years—exports have also risen significantly, reaching 88 million tons, up by 120%. In Europe, the citrus market is projected to generate over €26.5 billion in revenue by 2024, with a compound annual growth rate (CAGR) of 5.48% from 2024 to 2029. Per capita consumption is anticipated to average 15.1 kg in 2024. However, the citrus sector faces challenges that have resulted in a relative decline compared to the broader fresh fruits and vegetables market.

European citrus market dynamics

The European citrus market is experiencing limited growth due to evolving consumer preferences, climate challenges, and competition from alternative fruit varieties. Health-conscious consumers are increasingly seeking organic and sustainably sourced citrus options. Younger demographics are drawn to innovative products, such as citrus-infused beverages. The Mediterranean diet and cultural traditions continue to drive demand for fresh, locally sourced citrus. Nevertheless, macroeconomic factors, including purchasing power, trade policies, and agricultural regulations, present both opportunities and challenges for industry stakeholders.

European citrus production outlook 2024

For 2024, key European citrus-producing countries include Spain, Italy, Greece, and Portugal, where the Mediterranean climate is conducive to citrus orchard growth. Spain's production is forecasted at 6.18 million tons, reflecting a 3.3% decline from the previous season. Early ripening of mandarin varieties, particularly Orri, has led to a significant 30% production decrease. Lemon production has also declined sharply, with an overall drop of 21.01% and a 30% decrease for the Verna variety. Despite these challenges, Spain's overall citrus supply remains stable. Italy is expected to produce 2.77 million tons, a 12.32% decline, with oranges facing the steepest reduction at 17.51%. In contrast, Greece's citrus production is forecasted to remain stable at 1.09 million tons, demonstrating resilience. Portugal, newly included in forecasts, is estimated to produce 380,000 tons, marking a 3.37% decline. These figures underscore the challenges faced by European producers while highlighting the need for strategic management to mitigate losses and sustain market presence.

Price updates  in Europe

Market trends in Europe reveal that oranges, a key winter source of vitamin C, have seen declining demand in Germany since the pandemic. In 2023, households purchased an average of 7.9 kg of oranges, down from over 9 kg in 2019–2021. Rising prices, which have increased by 4.9% annually since 2019, combined with weaker harvests, have reduced buyer numbers to 61.3%, slightly below pre-pandemic levels. However, organic oranges have maintained stable demand, with average household purchases matching 2019 at 0.7 kg.

As our experts mentioned, recent wholesale market movements in Germany indicate strong citrus demand following St. Nicholas Day, supported by improved fruit quality. Supply was sufficient to meet demand. Spanish clementines, particularly Clemenules and Oronules, dominated the market, while Greek shipments faced criticism for excessive seeds, limiting sales. Italian clementines, often sold with leaves, were significantly pricier than their counterparts. Moroccan imports gained traction as the most affordable option but occasionally exhibited quality issues. In the mandarin sector, overseas shipments were nearly depleted, with only a few Peruvian offerings available. Italian deliveries increased slightly, featuring Tacle (a cross between Tarocco oranges and clementines), which were difficult to peel but praised for their flavor. For Satsumas, Turkish supplies dominated the market, consistently meeting high organoleptic standards. These developments highlight the evolving trends and challenges within the European citrus market, making it essential for B2B stakeholders to stay informed and adapt to the changing landscape.

As the holiday season gets closer, citrus fruits and fresh produce are in higher demand. This is due to festive celebrations and a focus on health and nutrition during this time. This surge presents both opportunities and logistical challenges for the agri-food sector. At Wikifarmer, we understand the complexities of this dynamic market and are committed to supporting the global agrifood trade. Our digital tools are made to simplify transactions,  help connect buyers and suppliers and also improve efficiency in the supply chain.