Why Global Orange Shortage is Forcing Industry to Innovate

November 18, 2024

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The orange supply chain faces an unprecedented crisis (Credit: freepik)

The orange supply chain faces an unprecedented crisis - a scarcity which has forced major producers and brands to rethink their strategies to meet demand

On 29 October, catastrophic floods hit parts of Spain, including Valencia, tragically claiming many lives and devastating agricultural lands.

With damages exceeding €1bn (US$1.05bn), citrus crops suffered the most, with losses estimated at €192m (US$202.8m), according to the Agricultural Association of Young Farmers (AVA-ASAJA).

This has had a ripple effect on the European market, which heavily relies on Spain’s citrus production.

Despite assurances from the Citrus Management Committee that Valencia’s packing facilities are fully operational, the situation adds pressure to an already strained global supply chain.

Brazil and the United States, responsible for in excess of 85% of the world’s orange juice production, face their own challenges.

Brazil, the leading orange juice exporter, anticipates its smallest crop in more than three decades due to severe drought and a prolonged battle with citrus greening disease. Similarly, Florida’s orange groves continue to struggle with the same disease, exacerbating shortages.

The British Fruit Juice Association has confirmed that orange juice availability is at its lowest point in more than 50 years, warning that this scarcity is likely to persist.

Creative solutions to meet demand

With the soaring cost of orange juice, up 130% year-on-year according to Mintec's Benchmark Prices, brands are turning to innovation to offset challenges.

In the UK, Coldpress, a pioneer in high-pressure processing (HPP) juice production, has introduced mandarin juice as an alternative to orange juice. Using its facility in Spain, the company transitioned from Valencia oranges to Spanish mandarins, which are abundant and nutritionally rich.

“Mandarins are a fantastic, low-calorie fruit packed with vitamins and minerals,” explains Andrew Gibb, Founder of Coldpress.

(Credit: Coldpress)

He highlights their high levels of vitamin C and antioxidant phytochemicals like beta-carotene and beta-cryptoxanthin, which support vision and immune health.

Mandarin juice, priced lower than orange juice, also offers broader appeal beyond breakfast, with potential for use in mocktails and all-day family consumption. Coldpress’s mandarin juices are now available in Lidl, Aldi and Ocado.

In the United States, organic orange juice brand Uncle Matt’s has diversified its portfolio by introducing teas and wellness shots.

Founder Matt McLean emphasises the need for adaptability, saying: “If citrus greening is still three, five, seven years away from being solved, we have to be innovative.”

The brand recently launched teas and expanded its wellness shot range, which includes a blend of organic orange juice, coconut water and ginger. Matt sees these offerings as a natural extension of their refrigerated product platform, enabling the brand to stay relevant to consumers.

Matt McLean, Founder, Uncle Matt's Organic

European and South American markets react

As Spain’s citrus supply falters, neighbouring Mediterranean countries like Morocco, Greece and Egypt are stepping in.

Greek Valencia oranges, for instance, saw improved demand and prices as South African imports became less competitive.

“The area of Laconia yielded around 170,000 tonnes this season - and prices stabilised at €0.30-€0.40/kg,” says George Mpekiaris of Sparta Valley Fruits.

However, Greek exporters remain cautious about increased competition from Egypt.

In South America, countries like Argentina and Peru are strategising to meet European demand. Meanwhile, Argentina grapples with export restrictions and strict EU sanitary requirements, which could reshape its approach if Spanish supply dwindles further.