A beginner’s guide to orange juice: Price, uses & market overview

Explore a thorough overview of the orange juice market, learn how it works in simple terms and get to grips with its significance as a popular global commodity.
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Updated on Aug 28, 2024
Reading time 5 minutes

On this page, we explore everything you need to know about orange juice. Gain insights into orange juice market trends, pricing mechanisms, and the environmental impact of orange juice. 

Read on to learn more about this popular commodity and find links to beginner friendly guides explaining how you can get involved in orange juice. 

What is orange juice?

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Orange juice is a popular beverage extracted from oranges. It has long been a staple in households around the world. Thanks to its refreshing taste, high nutritional value, and versatility, orange juice is a popular choice for breakfast. 

Beyond its appeal as a beverage, orange juice has significant economic value and is a globally traded commodity. It plays a vital role in both the agricultural and beverage industries. 

There is evidence that orange juice has been consumed for thousands of years and its history dates back to ancient civilizations. The modern orange juice industry came around in the 19th century thanks to new technologies in preservation and processing. Today, the orange juice industry is worth around $33 billion annually. 

Orange juice market overview

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The orange juice market is complex and its price is impacted by various factors such as supply and demand dynamics, agricultural practices, and the wider global economy. In recent times, the orange juice market has experienced both growth and difficulties. Demand has risen in the past few years thanks to a shift towards more health-conscious choices. 

However, supply disruptions driven largely by weather disruptions including hurricanes and droughts have impacted production and driven prices higher. 

There are several ways to trade orange juice, however, the most popular way is on futures exchanges. The Intercontinental Exchange (ICE) and the Florida Citrus Exchange (FCOJ) are two of the largest orange juice exchanges in the world. 

Is orange juice valuable? 

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Yes, orange juice is a valuable commodity and there are numerous reasons why investors are attracted to the market. We have highlighted some of these key fundamentals below, explaining what they are and why they matter.

  • Global demand. Orange juice is one of the world’s most consumed beverages and has a market size in the tens of billions. The sheer size of the orange juice industry indicates a strong and consistent demand for the drink making it an attractive commodity investment. 
  • It’s considered a healthy beverage. Many people are now focusing on their health and switching to nutritious drinks like orange juice. As more people become more health conscious, there is likely to be more demand for orange juice. 
  • It’s a good option for diversification. Orange juice is a good way to add some diversification into your portfolio. Its price is not correlated with other commodities or asset classes like stocks and bonds. This can make it a good choice if you want to spread your money around. 
  • It’s a liquid market. Orange juice is a liquid commodity and is actively traded on futures exchanges like ICE and FCOJ. Liquidity is important because it allows investors and traders to easily enter and exit positions. 
  • OJ is a hedge against inflation. Orange juice can act as a hedge against inflations. During times when prices of other goods are rising, orange juice may also increase in value. This provides some protection against the erosion of purchasing power. 

How to invest in orange juice

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You can invest in orange juice by using a commodity trading platform. These platforms offer a range of commodities and are very easy to use. There are different platforms suitable for specific requirements. 

Some let you buy orange juice, others let you trade orange juice, and many are designed for investing in the grain. Visit our dedicated guide to discover how to invest in orange juice.

Orange juice in your investment portfolio

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A diverse investment portfolio can help protect you during market uncertainty, and the inclusion of orange juice can add value while allowing you to spread your money across various markets. 

Orange juice often moves independently to traditional investments like stocks and bonds. You can include orange juice in your portfolio as a hedge against potential losses. During times of economic uncertainty, investors view commodity grains such as orange juice as attractive options. 

Orange juice’s long history and the fact it is a food staple for over half the world, makes it a good long term play.

Orange juice vs other commodities

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Orange juice is an agricultural commodity like wheat, corn, and cocoa. Each commodity is unique in its own way and offers different features for investors and traders. You can learn more about specific agricultural commodities using our dedicated guides below. 

  • Wheat. Wheat is a grain that is grown around the world and is used for various foods. 
  • Corn. Corn is one of the most versatile commodities with many uses, including livestock feed, biofuel, oil, and food. 
  • Rice. Rice is the most popular grain commodity and a staple for half the world’s population 
  • Soybean. Soybean is a major global commodity used for livestock feed and cooking oil.
  • Cocoa. Cocoa is the key ingredient in chocolate and a globally important commodity. 

FAQs

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01

What is the market for orange juice?

02

Where does the UK get its orange juice?

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Where does the United States get its orange juice?

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What country drinks the most orange juice?

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What is the orange juice outlook for 2025?


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