The popularity of orange juice, long considered a 'breakfast staple' in the United States, is gradually waning. As a result, Tropicana, a leading orange juice manufacturer, is facing a financial crisis.
On the 5th (local time), The Washington Post (WP) reported, "Tropicana, one of the leading orange juice brands, is currently experiencing serious financial difficulties," adding, "This is a sign that orange juice is falling from a staple to a luxury item."
Founded in 1947, Tropicana has recently seen a decline in both sales and profits. According to financial services media Debtwire, the fourth-quarter revenue of Tropicana's parent company, Tropicana Brands Group, decreased by 4% compared to the same period last year, while net profit dropped by 10%.
Earlier, CNN reported on the 26th of last month that "Tropicana is on the brink of bankruptcy," stating that "Tropicana Brands Group has experienced deterioration in both sales and profits in recent years." Debtwire's credit survey chief Tim Hines noted, "Tropicana is facing a tough battle."
The decline in orange juice's popularity stems from changing consumer preferences. Melanie Janozza Bartelme, a global food analyst at Mintel, noted that young consumers are seeking more novel tastes and interesting beverages, stating, "Competition is intensifying as people consider what drinks to fill their tumblers, from energy drinks and coffee beverages to matcha and bubble tea."
The 'low-sugar trend' has also impacted the decline of orange juice. As more consumers look for 'sugar-free' products as part of their dieting strategies, the beverage industry is introducing products with reduced or no added sugar. However, orange juice still contains higher sugar content and calories compared to other beverages.
WP reported, "Consumers are now looking for drinks that are low in sugar yet provide hydration, vitamin supplementation, energy enhancement, and gut health benefits," noting that "as beverages featuring a variety of ingredients from elderflower to probiotics emerge, orange juice sales continue to decline."
Moreover, orange juice is losing price competitiveness. According to the U.S. government's Consumer Price Index (CPI), as of January 2025, the average price for a 16-ounce (about 473mL) can of concentrated orange juice is $4.48 (about 6,500 won), a 64% increase compared to $2.73 (about 3,900 won) in 2014.
The orange production in Florida, a major global orange source, has recently fallen to historic lows due to hurricane damage and other factors in recent years. Hurricanes Ian in 2022 and Milton in 2024 dealt significant blows to orange farms, and an orange disease known as 'citrus greening' has also emerged.
Due to various natural disasters, orange production is unlikely to recover any time soon. The U.S. Department of Agriculture (USDA) estimates that Florida's orange production for 2024-2025 will drop by 36% compared to the previous season, totaling 11.5 million boxes. This is significantly lower than the peak production of 244 million boxes recorded in the 1997-1998 season.
Scientists at the University of Florida are developing orange varieties resistant to the disease, but even if they succeed, it is expected to take considerable time before they reach the market. WP reported, "The orange industry hopes for expanded research support to increase production and for legislation regarding sugar adjustment to pass at the federal level."