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Fruit pulp market faces oversupply & price crash in 2025
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Friday, 01 August, 2025, 13 : 00 PM [IST]
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Our Bureau, Mumbai
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The Fruit Pulp Market is experiencing significant turbulence in 2025, driven by an oversupply crisis that has led to a sharp price crash. This shift is reshaping the landscape for consumers, food manufacturers, retailers, and other stakeholders in the food and beverage industry, according to Persistence Market Research.
Understanding the Fruit Pulp Market Oversupply in 2025
What Is Driving the Oversupply?
The Fruit Pulp Market is grappling with an unprecedented oversupply in 2025, fuelled by a combination of increased production and uneven global demand. Key factors contributing to this imbalance include: Bumper Harvests: Favourable weather conditions in major fruit-producing regions, such as Asia-Pacific and Latin America, have resulted in record-high yields of fruits like mango, banana, and guava. Countries like India, Brazil, and Thailand, which are leading exporters, have significantly ramped up fruit pulp production. Technological Advancements: Innovations in fruit processing, such as advanced pulp extraction technologies introduced by companies like SHJUMP in 2024, have boosted production efficiency, enabling manufacturers to produce larger volumes at lower costs. Improved Global Logistics: Eased trade restrictions and enhanced supply chain networks have facilitated the export of fruit pulp, flooding markets like North America and Europe with surplus inventory. Declining Demand in Key Regions: Economic uncertainties in markets like Germany and reduced consumer spending have dampened demand for pulp-based products, particularly in the beverage, confectionery, and packaging sectors.
This supply-demand mismatch has led to a surplus of fruit pulp, particularly in North America, which holds a significant share of global consumption.
The oversupply in the Fruit Pulp Market has triggered a notable price crash, with some reports indicating a price drop of 15-20% in certain regions. This decline is driven by: Excess Inventory: Global fruit pulp inventories have surged, with producers struggling to clear stock. While data from the chemical pulp market (e.g., a 48-day supply in January 2025) highlights similar trends, fruit pulp markets are facing parallel pressures due to oversupply. Competitive Pricing Pressures: To move excess stock, manufacturers are engaging in aggressive price reductions, particularly in competitive markets like the U.S. and Europe. Currency Fluctuations: In key exporting countries like India, currency depreciation has made fruit pulp exports more affordable, exacerbating the global price decline.
For consumers, this translates to more affordable fruit pulp products, such as juices, smoothies, and desserts. However, for businesses, particularly small and medium-sized enterprises (SMEs), the reduced margins pose significant challenges to profitability.
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