Spend Matters welcomes this guest post by Liliana Gonzalez from Mintec.
Who doesn’t like a glass of cranberry juice? A lot of press has been dedicated to the health benefits of drinking cranberry juice, from improving cardiovascular health to preventing urinary tract infections. Cranberries are a major commercial crop in both the US and Canada. Most of the cranberry crop is used to produce concentrate, and the US is the largest supplier of cranberries with 75% of global share.
It may not be surprising to hear that consumption of cranberry juice in the US is estimated at over 2 pounds per person in 2012, although this is still dwarfed by orange juice at around 25 pounds per person. Yet cranberry juice consumption is on the rise due to the health benefits and it’s unique taste.
Cranberry juice concentrate prices have had a steady decline since the start of 2013. This fall is a result of the record cranberry production in the US in 2013, when output reached record highs. Although, the 2014 crop was lower than the previous season, but only slightly. Price rises have been held at bay by the very large stocks left over from the 2013 season. US cranberry production in 2014 was estimated at 857m pounds, down 4% year-over-year, but that’s still the second largest in history, and 11% up on the 5-year average.
Despite favorable weather conditions experienced in 2014 for most US states, the weather was not great for growing cranberries in Wisconsin, the No. 1 producing state with around 60% of US production. Generally cooler than average weather, along with the hail that fell in July, worked together to limit berry size and cause a reduction in overall yields.
For the season ahead, large inventories are expected to continue in the 2014/15 season. Large imports against a weak demand for processing products are not thought to dent stocks very much, and so the market will continue to be well supplied. Consequently, prices are unlikely to rise in the very near future.
So, if you have a New Year resolution to be healthier, maybe drinking cranberry juice is the option that’s also good for your pocket.