As of June 2023, Pink Lady® apple shipments to all regions, with the exception of Europe, are surpassing initial forecasts.
This indicates a rising global demand for Pink Lady® even though the global apple market continues to experience considerable shifts due to the adverse weather conditions that have affected the 2023 southern hemisphere crop and related global volume growth targets.
However, new markets continue to show a growing demand for Pink Lady® apples, with untapped opportunities in Asia and the potential for growth in alternative markets. Licensees looking to the future and a diversified customer base are benefiting from investment in new markets.
As previously specified, the adverse weather conditions have led to a 12 per cent reduction in the total SH crop, decreasing from 170.5K MT to 150K MT.
Total southern hemisphere forecast 2023:
The primary market impacted by this volume decline is Europe, the initial estimated drop of 27 per cent (from 89.5K MT to 66K MT) has been well documented – a result of the longer-than-usual northern hemisphere season and shortage of desired fruit sizes from the southern hemisphere supply. However, this presents a compelling opportunity for markets with the correct size profile to step in and fill the gaps in the European market.
Opportunities in the UK
Despite the overall reduction in the SH crop, the UK has had a solid start to the southern hemisphere season and is expected to maintain a robust demand for Pink Lady® apples. Amongst the macro-economic challenges, the season target has been increased to 38K MT, surpassing the original forecast. There is an opportunity for markets like New Zealand and Chile and other southern hemisphere suppliers to address the potential shortage and meet the stronger demand.
Growth in the Alternative Markets
Regardless of a smaller southern hemisphere crop, shipments to alternative markets are projected to increase by 12 per cent this season, building on the 48 per cent growth experienced in the previous season. This reflects a positive shift in market share for Pink Lady® apples in the new regions, demonstrating popularity and acceptance of the brand.
Exploring the potential in Asia
Asia was the largest apple import market in 2022, accounting for approximately 29.8 per cent of global imports, with Europe following closely at 26 per cent. The significant opportunity is obvious for Pink Lady® apples to establish a strong presence in Asia and secure greater market share for the future.
Whilst Pink Lady® apples experienced an incredible 48 per cent growth in the past year and 20 per cent in the year prior, Pink Lady® still only represents 0.6 per cent of the apple import market in Asia. The majority of Pink Lady® is supplied during the peak of the southern hemisphere season, between May and November. During this time, the market share doubles to just over one per cent. Well short of potential, and the levels reached in established markets.
Considering that many regions in Asia have yet to be exposed to Pink Lady®, the potential for future growth in the region is undeniable. The new market development team are creating the roadmap to establish and build the Pink Lady® brand in the Asian market. The early positive results we are seeing are only just the beginning.
Total IHS apple category imports 2022:
Building the brand in South America
APAL, Pink Lady® and South American exporters continue to invest in a collective effort to rapidly build the distribution base, and the Pink Lady® brand in the South American markets. The response has been incredibly positive with declared season volumes to South America up 10,000 MT (+160 per cent). Early shipment results have gained substantial traction, with Pink Lady® shipments up +30 per cent compared to the previous year.
APAL is committed to doing what’s needed to help South American exporters create a strong South American domestic market for the medium to long term.
The below chart demonstrates that volumes to South America are ahead against both the 2023 forecast and the prior season:
Creating value in North America
Similarly, we are observing an increase in shipments in North America, up 10 per cent on the previous year. APAL have increased inspections at destination through partners and 3rd party agencies to encourage participation in the brand and higher value for US importers and retailers. Success in North America will be measured by creating greater demand for the global Pink Lady® brand in selected retailers who support higher value, higher quality brands.
In summary, the current market landscape for Pink Lady® demonstrates a blend of challenges and opportunities for the brand. While the hostile weather’s impact on the southern hemisphere crop presents some opportunities for suppliers, exporters should take a balanced and managed approach to the full-season distribution to maximise value.
In addition, we welcome the opportunities that continue to arise in the alternative markets and Asia specifically, with a largely untapped market for Pink Lady® to acquire market share and solidify brand presence and customer loyalty.
Please reach out to your Territory Manager or APAL via [email protected], for further information on the market opportunities highlighted in this article.
