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UNCTAD/ITCD/COM/Misc.7
27 June 1997

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UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT

WORLD TRADE IN PROCESSED TROPICAL FRUITS

By

Rudy Kortbech-Olesen
Senior Market Development Adviser
International Trade Centre
UNCTAD/WTO

This study is being made available in the form and language in which it was received. Th e
terminology is that of the aut hor, and the views expressed do not necessarily reflect the views of the
UNCTAD secretariat.

GE.97-51215
 1

A. INTRODUCTION

Tropical fruit products are sold in a variety of processed or semi-processed forms, th e

following three product groups being the main ones: Canned fruit (“prepared or preserved”);
Fruit juices, juice concentrates and fruit pulp/purée; and Dried/dehydrated fruit.

This paper will cover the most importan t tropical fruit, including the following: pineapple,
banana, passion fruit, mango, papaya and guava. Other less important tropical fruit will b e
covered, when relevant and to the extent inform ation is available, e.g. cherimoya/soursop, acerola
(Barbados cherry), pomegranate, lychee, rambutan, longan and starfruit.

B. WORLD SUPPLY

With the exception of a few major items there are no statistics on world production o f
tropical fruit. However, according to the FAO Production Yearbook, total world crop of bananas
amounted to 54.5 million tons in 1995, fol lowed by mango with 19 million tons, pineapples (11.5
million tons) and papayas or pawpaws (5.2 million tons). Plantains (30.2 million tons) an d
avocados (two million tons) are not included in this paper. For the pu rpose of comparison it should
be noted that the total world crop of oranges amounted to 58 million tons in 1995, and that o f
apples amounted to 49.7 million tons.

The FAO statistics provide a breakdown by regions and countries for the above fruit, but
does not specify other tropical fruit. The figures include total production of fresh fruit, whethe r
used for fresh fruit consumption or animal feed, or processed into various products, includin g
those covered by this paper. No figures are given on the utilization of the fresh fruit production,
and there are no figures on global production of processed tropical fruit products.

C. WORLD TRADE AND MARKET SITUATION BY PRODUCT GROUP

CANNED TROPICAL FRUIT

World trade

Pineapple is the most important canned tropical fruit, followed by tropical fruit cocktails
(tropical fruit salads), canned lychee, canned mango and canned papaya, and a few others.

With total world imports of canned pineapple amounting to $617 million in 1995, it is not
only the biggest canned tropical fruit in world trade but also the largest item of any processe d
tropical fruit traded. The United States is by far the biggest importer with $ 185 million in 1995,
corresponding to about 30% of total world trade, by value. Together the five biggest markets ,
including also Germany, Japan, the United Kingdom and the Netherlands accounted for 61.7%
of the total. See table 1.

The major supplying countries are Thailand (by far the biggest with about 43% of tota l
world exports in 1995), followed by the Philippines, Kenya, Indonesia, Mala ysia and South Africa.
Singapore, the Netherlands, Germany and Belgi um are re-exporters only, though they account for
a substantial share of world exports. See table 2.
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No figures exist for canned tropical fruit salads and other canned tropical fruit, thoug h
importers in some markets indicated that sales might correspo nd to about 5% of canned pineapple
sales. However, this estimate seems to be too high in most markets. Thailand appears to be by
far the largest supplier of most of these products.

Market characteristics

In most markets the retail sector absorbs between 50% and 75% of canned pineapple sales,
while catering and the food industry account for the balance. For canned pineapple the baker y
industry is a very important outlet. Tropical fruit sal ads and canned single fruit are sold mainly for
retail but also for catering (e.g. lychee).

Canned pineapple is sold in the following main forms: slices (mainly for retail), titbits ,
chunks, pieces and crushed (mainly for catering/industry). Tropical fruit cocktails usually contain
pineapple, papaya (red and/or yellow) , guava and banana in light syrup and/or passion fruit juice.
Some packs may include other fruit, e.g. rambutan, longans or mango. Traders in some markets
indicated a growing interest amongst consumers for tropical fruit cocktails.

It should be noted that some non-tropical fruit salads also include pinea pple. Such products
are packed, for example in Greece; since Greece is not producing pineapple, this fruit is imported,
usually in A 10 cans (3 kg) or bigger containers, for re-packing with other (non-tropical) fruit .
Similar products (e.g. peach/pear/grape/pineapple/cherry) are also imported from South Africa.

Apart from pineapple, mango (mainly slices) is probably the most im portant canned single
fruit product, followed by lychee, papaya, red or yellow (chunks or dice) and guava (quarters,
halves or dice). Other tropical fruit include, rambutan, jack fruit, pitahaya (slices) and kumquat.
In France, for example, there is a growing market for canned coconut milk.

Other canned fruit include two-fruit products. A Thai producer, for example, export s
papaya/pineapple, pineapple/ mango and papaya/mango, all packed 50/50. Rambutan stuffed with
pineapple is exported by Thailand and Viet Nam.

Distribution channels

In most markets the large retail organizations prefer to purchase canned pineapple direct,
either from the multinationals or other, often smaller, producers in the producing countries, which
may pack supermarkets’ own labels. However, most retail organizations also obtain canne d
pineapple through intermediaries. The catering sector and the food industry are supplied by the
multinationals as well as specialized agents and importers.

Canned mango, papaya, guava, etc. are imported mainly by specialized importers, wh o
supply the retail trade, while very little is supplied to catering and industry.

A considerable amount of canned tropical fruit imported into the European Union, i n
particular the Netherlands, Belgium and G ermany, is re-exported to other European markets; this
includes a considerable trade with the previous communist countries in Central and Eastern
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Europe (economies in transition). In Asia, Sing apore is a very important trading centre for canned
pineapple and some other fruit.
.
FRUIT JUICES, CONCENTRATES AND PULP/PUREE

World trade

In 1995, world imports in fruit juices and concentrates reached $ 5,748 million, havin g
fluctuated heavily in recent years, though it should be noted that world trade has increased very
considerably over the last two decades. By far the largest share of world trade in fruit juice s
consists of citrus juices (mainly or ange) and temperate-zone fruit juices, e.g. apple juice, whereas
tropical fruit juices and concentrates accounted for the balance (about 5%). These figures do not
include trade in pulp/purée.

Pineapple juice (mainly concentrate) is by far the most important tropical fruit juice. I n
1995, world imports amounted to $ 280 million, while they fluctuated enormously since 199 0
and peaked at $ 383 million in 1991. The fluctuations were caused by great variations in supply
rather than demand factors, though there has been a considerable increase in world trade i n
pineapple juice over the last decade. See table 3.

Imports into the five largest markets, i.e. the United States, the Netherlands, Italy, France
and Spain, amounted to $ 191 million in 1995 or 68% of world imports.The th ree largest producers
of pineapple juice/concentrate, Thailand, the Philippines and Kenya , together account for over half
of total world exports. Other important suppliers are Indonesia, Costa Rica, the United States and
South Africa. Again it should be noted that world trade includes a very large amount of re-exports
(mainly from the Netherlands). See table 4.

With the exception of pineapple, there are no reliable statistics on world trade in tropical
fruit juices, concentrates and pulp/purée. However, based on information from trade sources and
fragments of trade statistics, annual world trade in these products (excluding pineapple) can b e
estimated in the range of 175,000 to 200,000 to ns in single strength equivalent, valued at between
$175 and $225 million. The three most important tropi cal fruits, apart from pineapple, are banana,
passion fruit and mango. The major markets are the European Union and the United States.

Market characteristics

Though there is a certain trade in consumer-packed items, fruit juices, concentrates an d

pulp/purée are mainly traded internationally in bulk form and used as a raw material by various
industries. Though they vary with the fruit and market in question, a few end-uses are common
to most markets:

- The beverage industry is by far the biggest end-user of these products. It produces
juices, nectars, fruit juice drinks, multi-f ruit and multi-vitamin beverages, alcoholic
liqueurs, syrups, etc.

- The dairy industry produces such items as yoghurt, yoghurt drinks, ice-cream ,
pudding desserts and sauces. In addition to fruit juices/concentrates and
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pulp/purée, this industry also uses tropical frui t pieces, chunks, titbits, etc. in either
frozen or canned form.

- Other food industries produce a range of products, containing some tropical fruit,
such as bakery products, baby food, jams and confectionery. The baby foo d
industry is the largest end-user of banana purée.

Pineapple juice/concentrate - the largest item - is mostly traded as a 60°Brix concentrate,

frozen or aseptically packed. The main suppliers are mentioned above.

Banana is sold mainly as a purée (20-22°Brix) and as a concentrate (34°Brix); it i s

aseptically packed, canned or frozen. Main suppliers include Costa Rica, Ecuador, Brazil ,
Honduras, India, etc. Passion fruit is sold as juice (14-16°Brix) and mainly as a concentrat e
(50°Brix), preferably in frozen form because of quality reasons (aroma/flavour). Main suppliers
include Ecuador, Brazil, Peru and Kenya. Mango is sold as pulp (13-18°Brix) or concentrate (28-
32°Brix), mainly frozen and aseptically packed. Main suppliers include India, Peru and Ecuador.
Guava is sold mainly as purée (8-11°Brix) and as a concentrate (20°Brix), frozen but also i n
aseptic packs. Main suppliers include South Africa, Malaysia, India, etc. Papaya is sold as pulp
(9-10°Brix) and concentrate (21-25°Brix), in frozen form and aseptic packs. Main supplier s
include India, Peru, Brazil, etc.

Other tropical fruits, most of which are sold in fairly small quantities include: acerol a
(purée and concentrate), mainly from Brazil; cherimoya (pulp) from Venezuela, Brazil an d
Ecuador; guanabana/soursop (pulp) from Peru, Colombia and Venezuela; and lyche e
(concentrate), starfruit (concentrate) from Malaysia.

Distribution channels

Tropical fruit juices, concentrates and pulp are usually obtained through specialize d
importers, though big bottlers may buy some of their requirements direct. Importers with blending
facilities and compound houses supply raw material to end-users, for example blends to th e
beverage industry and yoghurt bases to the dairy industry.

The food and beverage industry is becoming more and more integrated acro ss the European
Union in terms of the manufacture, trade and distribution of fruit juices and similar products. Most
of the trade in fruit juice raw material with countries in Central and Eastern Europe is also done
through traders in the European Union. Like in the United St ates imports of tropical fruit juice raw
material is handled by a relatively small number of companies.

DRIED/DEHYDRATED TROPICAL FRUIT

World trade

As separate trade statistics on dried/dehydrated tropical fruit are not available, it i s

impossible to give a precise overview of world trade in this product group. However, roug h
estimates put total world trade at around 30,000-35,000 tons, valued at an estimated $ 65 million
(excluding coconut chips and dice). This constitutes only a small part (about 5%) of total world
 5

trade in all dried fruit, including tempera te-zone, subtropical and tropical. The major markets for
dried tropical fruit are the European Union (mainly Germany, France, the United Kingdom and
the Netherlands), the United States and Japan.

Market characteristics

Consumers in the main markets have a long tradition of eating dried fruit (i.e. sun-dried)
and nuts, whether temperate-zone or subtropical, e.g. dates and figs, sultanas, raisins and apricots.

Dehydrated (mainly hot-air dried) fruit, and tropical fruit in particular, fall into anothe r
category and offer, at least to som e extent, additional end-uses. Though they vary somewhat with
the type of fruit in question, the main end-users described below form market segments common
to most markets.

- The dried fruit and nut industry is probably the larges t end-user of dried/dehydrated
tropical fruit. It produces a wide range of products, the most popular being fruit and nut
mixes, though some tropical fruit are also sold in single-fruit packs, such as banana chips,
pineapple pieces or slices, and papaya pieces or spears.

- The breakfast cereal industry is believed to be the second largest end-user of

dried/dehydrated tropical fruit, e.g. in müsli. Tropical fruit is used more for
appearance (because of their strong colours) than for flavour.

- The confectionery industry uses dried/dehydrated tropical fruit in various products

like health bars, snack bars, müsli bars, fruit bars and chocolate bars, which ar e
often taken as a snack between meals.

- Several other food products may include some dried, dehydrated or even freeze -
dried tropical fruit, e.g. bakery products, dairy products, baby food, rice packs ,
prepared dishes, instant desserts and fruit teas.

Bananas in various forms are the most sold item. While banana chips are not a
dried/dehydrated product in the usual technical sense of the term, they are popular in all markets.
They are available in slices, wholes, strips, et c. The leading producer is the Philippines. Sun-dried
bananas are sold in whole fruit (fingers), slices and dice. The main supplier is Ecuador; othe r
suppliers include the Philippines and Thailand. Dehydrated bananas (hot-air dried) in small dice,
granules, etc. are also sold, though in much smaller quantities.

Dehydrated pineapple (second largest item after banana) is sold in a number of different
cuts (e.g. diced, in granules, tidbits, rings/slices). The colour should be light yellow or gold .
Thailand is by far the biggest exporter, but supplies are also coming from the Philippines, South
Africa, Taiwan Province (China) and other areas.

Papayas are likewise sold in all markets; though the fruit is less well known amon g
consumers, it is appreciated by food manufacturers and packers. Dehydrated papaya is imported
diced, in granules, chunks and spears. The colour should preferably be a natural red, which is
 6

supplied by Thailand. The lesser accepted white and other lighter colours ar e supplied by Thailand,
the Philippines and Taiwan Province (China).

Mangoes in dehydrated form are little known by consumers and are sold in much smaller
quantities than the above fruit. However, end-users in several markets have indicated an interest
in buying more of this fruit if prices were lower. Mango prices are usually up to twice as high as
those for pineapple and papaya. The leading suppliers are Thailand, India and the Philippines ,
followed by Taiwan Province (China) and Malaysia. Dehydrated mango is imported in dice ,
granules, chunks, slices, spears, and as powder. The colour sho uld preferably be yellowish orange.

Other tropical fruits are sold in very small quantities, though packers and end-users are
interested in experimenting with new fruit, if a vailable. Dehydrated fruit in this category includes:

Guavas, kumquats, durian, starfruit, jack fruit, guyabanos, longans, crystallized ginger and
stargooseberry.

Most importers and end-users often have their own, usually strict, specifications, whic h
suppliers have to meet. The buyer will specify cut/style, moisture content, sugar content, whether
the product should be with or without SO2, etc. Pin eapple, for example, is usually offered in three
forms: regular sugar (75-85%), low sugar (50-65%) and no sugar (40% natural sugar content).

It should be noted that tropical fruit is also offered by some producer s in freeze-dried form.
These products are of very high quality and are use d for special purposes, e.g. instant desserts and
müsli. Prices are high and the market is reported to be very small.

Distribution channels

Dried/ dehydrated fruit traded in comparatively small quantities are normally obtaine d
through specialized agents or importers. For tropical fruit there are two main categories o f
intermediaries. The first are companies that specialize in handling dried fruit and nuts. Most of the
trade goes through these companies. The second group comprises specialize d
importers/reprocessors of dehydrated vegetables. Both categories handle tropical fruit t o
complement their traditional range of products. The second category also purchases throug h
specialized agents and importers.

Packers of dried fruit and nuts of ten import direct, but most of them probably buy tropical
fruit through intermediaries because of the smaller quantities inv olved. Food manufacturers almost
always obtain their dehydrated tropical fru it through middlemen. The retail as well as the catering
sectors do not normally import dried/dehydrated tropical fruit direct. Processed foodstuff s
containing tropical fruit and packs of dried fruit and nuts are usually supplied b y
manufacturers/packers of such products.

D. MARKET PROSPECTS

Canned tropical fruit

In general, the world market for canned tropical fruit suffers from the overall stagnation
 7

in canned fruit sales, as consumers, and young consumers in particular, prefer to buy fresh fruit
or for certain end-uses even frozen fruit. However, canned pineapple is expected to remain th e
most important processed tropical fruit ite m for the foreseeable future. Both the United States and
the European Union markets for canned pineapple are expected to stabilize around their present
size, though considerable fluctuations wi ll continue, mainly as a result of supply conditions in the
major producing countries.

Other major markets are also expected to remain at least at their present size, while new
markets, for example, in Central and Eastern Europe, are more likely to offer growth possibilities.
However, the pineapple business is not just a result of demand forces and the development will,
to a very large extent, depend on the supply situation in the major producing countries.

There is a growing demand in several European markets for tropical fruit salads thanks to
a certain general interest in tropical products amongst consumers. Processors in developin g
countries also seem to be pushing this product more aggressively than in the past, as a means of
diversifying their exports. It helps them to better utilize their production capacity and keep their
unit costs down. As mentioned, two-fruit products, e.g. “Papaya/mango”, are increasingly being
introduced in major markets, which is likely to increase overall sales of these fruit, though from
a low level.

As shown above, the market for individually canned fruit (excluding pineapple) is small,
though a few products, e.g. canned mango, canned lychee and canned papaya, sell relatively well.
Again the growing interest in tropical products as such is likely to have a positive effect on future
sales.

Fruit juices, concentrates and pulp/purée

Though world trade in fruit juices (tropical and non-tropical) has fluctuated considerably,
in value terms, during recent years, most major markets have increased in volume terms during
the same period. In general, the world market for fruit juices is expected to show further growth
in the future, inter alia, because of a low per capita consumption in many markets and a growing
health consciousness in most markets.

Considering more specifically tropical fruit juices, concentrates and pulp/purée, trader s
generally expect sales of these products to grow at least at the same rate as the juice market as a
whole, and in some cases even more. Again the fr uit juice business and related food industries are
expected to benefit from the general interest in tropical fruit, including fresh produce, in mos t
markets.

The major markets in the European Union and the United Sta tes are expected to remain the
most important outlets for tropical fruit juices, concentrates and pulp/purée, whereas, for example,
Japan and the Republic of Korea are less interesting markets for this product group. On the other
hand there is a growing market in Singapore and some other markets in Asia and Latin America,
including some of the traditional exporting countries.
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Dried/dehydrated tropical fruit

As shown above, the dried/dehydrated tropical fruit trade is fairly sma ll compared with
the trade in the other processed tro pical fruit products discussed here. However, it is an important
business for those exporters involved in it. Though dried banana and banana chips have bee n
known in major markets for a lon g time, the market for dried/dehydrated fruit such as pineapple,
papaya and mango has developed only comparatively recently, say within the last decade. Thanks
to heavy promotion by dried fruit and nut packers and food processors, e.g. müsli manufacturers,
imports of this product group reached their current level fairly easily , but have not increased much
during the last three to four years.

Traders in Europe and the United States are generally of the opinion that the market is more
or less stagnant, and that little growth can be expected in the near to medium term. One of th e
impeding factors is that the taste of dehydrated tropical fruit is an acquired one for mos t
consumers. Another factor is the high sugar content of dehydrated tropical fruit, which, to some
extent, is detrimental to its success as a health food.

However, in the longer run, world trade in dehydrated tropical fruit may expand further.
This will depend on the world economic situation, on the emergence of new markets and, i n
particular, on innovative product development by producers of dehydrated fruit and the foo d
industries. It is interesting to note that some producers are actually experimenting with ne w
product forms, e.g. rehydratable fruit, products with longer shelf life, items with lower suga r
content, and new variations in product cuts. At the same time food producers are introducing more
products with dehydrated fruit as an ingredient. It is a lso encouraging that exports are taking place
to non-traditional markets, e.g. China is importing dehydrated papaya and pineapple.

Other processed tropical fruit products

In addition to the three major product groups, discussed above, there are several othe r
processed or semi-processed tropical fruit products.

There is, for example, a growing market for frozen tropical fruit, e.g. pineapple, mango,
papaya and banana, in slices, pieces, chunks, tidbits, dice, cubes, etc., dependent on the fruit in
question (mainly IQF as opposed to block-frozen). These products are used as ingredients i n
bakery products, dairy products, baby food, fruit salads, etc.

Smaller (much smaller) export markets exist for tropical jams, jellies, syrups, and other
retail-packed tropical fruit products, though such products are usually produced by domesti c
manufacturers, e.g. in Europe, from imported raw materials such as those mentioned above.

Summary on prospects for processed tropical fruit

In summary it can be concluded that total world trade in processed tropical fruit ha s
reached an estimated $ 1,250 million, an impressive figure by most standards, and its importance
is accentuated by the fact that it is supplied almost entirely by developing countries. Canne d
products are the most important category, in terms of total export value, with canned pineapple
accounting for over half of total sales in processed tropical fruit, followed by juices, concentrates
 9

and pulp/purée, which are mainly traded internationally in bulk form and used as raw material by
various industries. As shown, dried/dehydrated tropical fruit is tra ded in relatively small quantities.
Among these major product categories, fruit juices, concentrates and pulp/purée appear to offer,
by far, the best prospects for a long-term increase in exports.

E. MAJOR PROBLEM AREAS FOR EXPORTING DEVELOPING COUNTRIES

Problems related to the further development of the tropical fruit processing industr y
obviously vary considerably from country to country, depending on such factors as the genera l
stage of development of the country in question, the size of its fruit processing industry, it s
infrastructure, etc. Though the following major problem areas are known to be of particula r
relevance in the fruit juice industry, other forms of tropical fruit processing are likely to fac e
similar problems.

Agriculture and raw material supply

In many developing countries there is a major problem in relation to raw material supply.
In some cases, there is simply not enough fresh fruit available t o make a fruit juice industry viable.
In other cases, an increase in supply of raw material is strongly needed to expand existin g
production and exports of fruit juices, whereas in some countries the industry is dependent on only
one or two types of fruit for processing, usually resulting in a considerable and largely seasonal
overcapacity. The specific problems may include the following: low yields, unsuitabl e
types/varieties of fruit for processing, poor post-harvest handling, internal and externa l
transportation, etc. In most countries, government authorities and industry leaders are well aware
of the situation and are already undertaking corrective measures or planning to do so. However,
external assistance in this area would be welcome in several countries.

Processing

Developing countries with modern and efficient fruit processing plants generally seem to
face few major technical problems th ough it is likely that quality improvements could be made in
some cases. However, in many countries, plants are small, old-fashioned, inefficient and totally
inadequate for producing high quality fruit products.

It is also important to use the appropriate technology bearing in mind the requirements of
the market. For example, there is a general preference for frozen fruit juice raw material, an d
aseptic packs are accepted to a large extent, in particular for certain fruit. Canned products (hot-
packed), on the other hand, are generally of little interest to fruit juice bottlers and packers in the
major markets, due to handling and environmental problems, though cans are still used for some
products, e.g. banana purée.

Export marketing

A major problem facing exporters in developing countries is the identification of marketing

opportunities for specific products. Not only is the choice of target market of paramoun t
importance, but the selection of the most profitable market segments and the best suite d
distribution channels are also crucial elements in designing an overall export strategy.
 10

There is often a lack of product and market diversification. Many developing countr y
exporters are dependent on one or two fruits. Too much dependence on a single export item i s
obviously always a serious problem, but for most fruit juices and in particular for a product like
passion fruit juice, the problem is accentuated by very big price fluctuations over a fairly short
span of time, resulting in oversupply and low prices. Another problem, though smaller, is tha t
many developing countries export their fruit juice to just one or a few major markets, usually for
historical and/or geographical reasons. Typically a larger degree of market diversification would
be advantageous, though it must also be stressed that a company's marketing activities should not
be spread too thinly over too many markets, in particular when export quantities are relativel y
small.

A serious problem in most developing countries is the lack of information on marke t

requirements, market trends and world market prices . It is hoped that the ITC market surveys on
fruit juices and the Market News Service (MNS) on bulk-packed fruit juices/ concentrates an d
pulp/purée have helped to fill this information gap. In addition, a large number of othe r
publications, including market studies, trade journals, specialized news letters, etc., published by
public and private organizations, provide very useful information on market trends an d
requirements. It is likewise of great importance that exporters visit the major markets regularl y
to build up and maintain good contacts with importers and to follow market developments an d
trends direct.