Orange juice crisis: IFF explores citrus product reformulation with alternative fruits

11 Jun 2024 --- Amid an unprecedented orange juice shortage worldwide, processors are considering shifting to alternative fruit to overcome the issue. Unfavorable weather conditions and citrus greening in Brazil, whose harvest accounts for 70% of the world’s orange juice exports, are driving this crisis. 

Estimates published in May anticipated a significant 24.4% decrease in orange production from the previous season, highlighting the severity of the situation. The predicted poor crop in Brazil marks the third difficult global harvest in a row.

Suppliers had predicted this crunch as early as February this year and no sign of respite was expected before the 2024/2025 crop season.

As the industry looks toward science and considers alternative fruits to ensure breakfast tables are not devoid of the daily dose of orange juice, Food Ingredients First sits down with Karel Coosemans, global innovation program director for Re-Master Citrus at International Flavors & Fragrances (IFF), to understand the extent of the crisis and manufacturers’ response.

“The prices we’re currently seeing have more than doubled since last year, affecting both producers and consumers, indicating a sense of crisis,” he says. But the silver lining, he points out, is that the industry is being forced to rethink its approach.

“For IFF, a provider of solutions for manufacturers, we’re seeing new interest in our flavor technology, and our expert team has stepped up its efforts to help our partners find the best way through the storm.”

Industry experts have pointed out that juice processors are feeling the heat of the price hike. It is now costlier to process orange juice since its prices have increased significantly. As a result, the orange juice industry and businesses that offer orange-flavored ingredients are affected.

Cost pressures pose challenges — and opportunities
The shortage has brought changes, including challenges and opportunities, for businesses to consider.

“Given the stretch of orange resources, it is indeed costlier to produce our flavor and ingredient offerings. While we have not had supply issues as an active buyer of oranges, we are working with customers to adjust their orange portfolios to the current market conditions. This can also lead to a reformulation of the products,” Coosemans explains.

One notable outcome of the shortage has been the higher demand for Not From Concentrate (NFC).

“With Brazilian suppliers diverting more of their crops to supply NFC to the US, there have been shortages in the concentrate supply to Europe. Moreover, consumers are increasingly seeking NFC, as it’s perceived as fresher and better-tasting,” continues Coosemans. 

Considering cost pressures and the availability of the orange ingredients, this can be an active replacement strategy for industry players.

Another popular proposal is to mix the juice of other citrus fruits, such as mandarins, with orange juice to meet consumer demand until oranges’ market conditions improve.

As experts have pointed out, while the shift would have its own logistical challenges for processors, the solution holds promise for manufacturers.

Processors and manufacturers can use mandarins or fruit juices with a more “neutral” taste, like grapes.Turning to “neutral” fruits
For juice processors and manufacturers of food ingredients, the shift can mean using either mandarins or fruit juices with a more “neutral” taste, like grapes.

Coosemans explains how the switch to other juices could play out: “If you have 20% orange juice in your recipe, we could get that down to 10% by adding 10% white grape juice. The key is ensuring that your product retains its sensory appeal — doing that well requires a lot of expertise.”

The company’s IFF Flavor Fit taste modulation toolbox offers that.

“It can improve sweetness perception and bring back mouthfeel, while our texturants can improve consistency. For customers who need to keep a 100% juice content claim, we can accommodate that and help them navigate the regulatory implications,” says Coosemans.

With this approach, manufacturers and processors will still use orange juice or concentrate in their products from other parts of the world.

“They may not be as sweet, but we can supply modulators to make the juice taste sweeter or masking modulators to mask acidity and bitterness and improve flavor,” he concludes.

By Anvisha Manral