Page 30 - FoodFocusThailand No.176 November 2020

SPECIAL FOCUS

Need to Know

COVID-19 pandemic in the United States
has affected the national

economic growth, and disturbed a consumer
confidence. It is expected that
the fruit juice market in the United States
will drop to a USD 19.1 billion in 2020,
or down by 15.52%. After the pandemic

recovery, it is foreseen that the
fruit juice market will gradually improve
and stabilize for at least five years

(2021-2025) reaching the market value
of USD 25.1 billion in 2025,
or increasing 5.67% per year.

2. Thai producers have long been established, and highly other producers to penetrate U.S. market in the future.
proficient in fruit juice processing. They have been recognized for 3. American consumers look out for healthy food and beverage
the quality and safety of their products from U.S. importers. products without artificial additives or sugars added.
3. Most of the fruit juice production and processing plants in Threat
Thailand receive the international quality and production safety 1. The market demand of fruit juice products for American
standards. consumers is likely stable or slightly declined in the future. The reason
Weakness behind is the trend to avoid sweetened beverages even the fruit
1. For the highest consumption sector of orange and apple juices juices.
in U.S. market, Thailand has a limit resource of raw materials to feed 2. Most of fruit juice producers from Thailand are not eligible for
in the production. The production of these juices is not adequate to tax privileges from the United States. So, they are currently paying
the international market. the import duty at the rate 0.2-7.9 cents per liter. This tax makes Thai
2. There are limited players in fruit juice producers in Thailand. producers disability in battling with privileged competitors.
Majority of them have the production under OEM contracts. They 3. COVID-19 pandemic has been troublesome the export
are lacking of marketing competency to produce with their own brand. procedure to the United States. In addition, local pandemic restrictions
3. The long distance between Thailand and the United States is even put a further delay in customs clearance.
a major obstacle. Therefore, it makes a high logistics cost, losing
battle to the competitors located near the United States, especially Opinions and Recommendations
the competitors in America continent. 1. The consumption demand in fruit juice products after COVID-19
Opportunity spread in the United States tends down by 22.57% during Jan-May
1. Tropical fruit juice products from Thailand are well known and 2020. However, the importing value from Thai products has noticeably
well accepted by U.S. consumers. Besides, Thailand remains a raised up by 20.97% in the same period. Especially, the tropical fruit
major market share of the tropical fruit juice in U.S. market. juices without flavor additive such as mango, mangosteen, and guava
2. China is the major competitor of fruit juice products in U.S. juices have gained the exporting value by 34.07%. The tropical fruit
market. The fact is that China-the United States keep on raising the juice products still attract American consumers, and continue to grow
counter-trade policies. This situation can become an opportunity for in U.S. market in the future.

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