Guanabana Market - Forecasts from 2022 to 2027

The Guanabana market is expected to grow at a compound annual growth rate of 14.43 % over the forecast period to reach a market size of US$167.550 million in 2027, from US$65.213 million in 2020. The change in consumer preferences, which has resulted in a shift towards higher consumption of tropical fruits in developed regions is expected to drive the guanabana market globally. Moreover, globalization is at the core, which is expected to drive the market to a new echelon. This is mainly due to the ensuing creation of a single global market that is free of protectionism and is promoted by trade agreements among various nations. To this end, it is important to note that 303 regional trade agreements (RTAs) were in effect as of June 2020. The European Union Vietnam Free Trade Agreement (EVFTA) & EU-Vietnam Economic Integration Agreement (EVIPA) between the EU and Vietnam are the most recent. Under the aegis of this trade agreement, 65% of EU exports to Vietnam will be reportedly abolished. In contrast, the remaining will reportedly be phased out over the next 19 years.

Further, 71% of duties levied on the exports originating from Vietnam will be abolished while the remaining will be eliminated over the next 7 years. In a quest to do away with almost 99% of customs duties between Vietnam and the EU, it is an ambitious agreement which is expected to facilitate further strategic investments not only in the food and beverage industry but also in the case of Guanabana, in other industries like pharmaceuticals and personal care, where it is increasingly finding its application. The labour-intensive industries and agri-food sector in Vietnam are competitive and the EU is globally renowned for its quality management and technological expertise. These two factors complement each other and are expected to render the prevailing market conditions favourable particularly for the processed food sector. Another benefit that is reportedly mentioned in a report by the Delegation of the European Union to Vietnam is that food preparations will become duty-free after 7 years, as a result of tariff elimination for EU exporters. Within the purview of the processed food category, Nafoods Group (HOSE: NAF), which is known for its portfolio of fresh and processed fruits, among others, and also offers Soursop Puree/NFC Juice along with the Finnish Industrial Cooperation Fund (Finnfund), has reportedly signed a financial cooperation agreement in the form of a long-term loan with collateral worth 5 million USD within 6 years. The investment is reportedly intended for a production line system for value-added agricultural products at its factory located in Long An province.

Another factor that will aid in the growth of the Guanabana market is the characteristic property of high levels of salt tolerance of the Guanabana plant. This is particularly pertinent to areas that are susceptible to salt-water intrusion. To this end, it should be noted that in March 2019, farmers of the Tân Phú ?ông District of Ti?n Giang Province reportedly transformed approximately 500ha of low-yielding rice paddies into soursop (Guanabana) farms, among others, because of drought and saltwater intrusion.

Further, secondary product development resulting in large-scale commercialization is expected to facilitate the growth of the Guanabana market. This is dependent partly on the growing rate of urbanization which has resulted in the rapid adoption of lifestyles that have increasingly accommodated the inclusion other personal care products that are derived from food products like guanabana. It is the result of the increasing availability of disposable income that would ensure the facilitation of transition, from the traditional way of living to lifestyles that are common among urban dwellers.

Rapid urbanization is expected to lead to the receipt of quality education and achieve higher levels because of the comparatively larger size of the population, which in turn would result in a high-income generation capability. This in turn would lead to diligent investment in activities pertaining to personal grooming through the employment of a variety of personal care products that are increasingly integrating food products as well as ingredients derived from food products like Guanabana, consequently facilitating the healthy growth of the market. As far as the global nutricosmetics market is concerned, the publisher estimated that it was valued at US$6.358 billion in 2019.

This is also based on the fact that the food and beverage industry has experienced a convergence of cosmetics and food which has allowed the successful integration of food ingredients in cosmetic applications, resulting in the plethora of developments in the nutricosmetics space, especially due to synergistic results. This resulted in the adoption of the beauty-from-within trend, which is partly expected to drive the guanabana market growth. With respect to urbanization it is pertinent to note that according to the UN by 2030, 60 % of the world population is forecasted to live in urban areas, which was in the order of 55% in 2018. Furthermore, during 2018, North America was assessed to be the most urbanized region wherein 82% of its population was registered to be living in urban areas, whereas 74% of the population of Europe was living in urban areas as of 2018 and 81% of the Latin American population was reported to be living in urban areas.

However, the lowest levels of urbanization were registered across Asia and Africa in 2018, which by 2050 is poised to increase, whereby Africa is expected to witness its population triple. Besides, urbanization would also add to the steady growth of the working female population, which in turn would fuel the demand for nutricosmetics through both offline and online channels. The spread of the internet to tier 2 and tier 3 cities, as well as the proliferation of e-commerce, have all contributed to the aforementioned. These were already in the order of 25 trillion USD in 2018, which, according to UNCTAD, was reportedly equivalent to 30% of the global GDP (gross domestic product) in 2018. In the same year, global B2C eCommerce registered a value of $4.4 trillion, with China, the United States, and the United Kingdom is reportedly the top three countries that registered the highest B2C sales. Secondary product developments also extend to the processed food and beverage category, which has been recently exemplified by the launch of the new Soursop juice by Nilo®Brand in October 2020 in the US. The product is reportedly made out of 100% real fruit juice and pulp with antioxidants and is devoid of added sugar and GMOs.

Covid-19 Impact

During the initial breakdown of the virus, almost every industry in the globe has suffered a setback. This can be ascribed to severe disruptions in their respective manufacturing and supply-chain operations as a result of various precautionary lockdowns and other limitations imposed by governments all over the world. The global Guanabana market is no different. Furthermore, consumer demand has decreased as people are now more focused on removing non-essential expenses from their budgets as the general economic situation of most people has been badly impacted by the outbreak. Over the projected period, the aforementioned factors are expected to weigh on the worldwide Guanabana market's revenue trajectory. However, after individual governments lifted the imposed curfews, the situation improved.

Segmentation

By Cultivation Type

• Conventional
• Organic

By End-Use

• Food and Beverage
• Pharmaceutical
• Personal Care

By Distribution Channel

• Online
• Offline

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• UK
• France
• Middle East and Africa
• Saudi Arabia
• South Africa
• Asia Pacific
• Japan
• China
• South Korea
• India
• Indonesia