Pomegranate Cultivation Market and Why Investing in it is Lucrative in 2021 and Beyond

The global market for pomegranate cultivation has demonstrated significant potential. Over the past few decades, the fruit’s demand has significantly increased in countries like India, Russia, and North America. This demand is expected to further increase considerably in the future as more people are educated about its benefits.

Demand for pomegranate is primarily driven by the fruit’s health benefits. It has a wide variety of uses in its fresh and dried forms. Due to the fruit’s antioxidant properties, it is known to help promote cardiovascular health, digestive problems, and healthy blood pressure levels. Moreover, these benefits are complemented by the high fibre content of pomegranates. 

Besides the aforementioned, there is a huge demand for pomegranates in the pharmaceutical industry for anti-tumour drugs and inflammation treatment. These factors have provided an opportunity for investors to explore growth trends in the global market for pomegranate cultivation.

Market opportunities

For investors looking to invest in pomegranate cultivation, it may be best to focus on regions already consuming high-quantity every year. Some of these regions include India, China, Bangladesh, Egypt, and Mexico. Another aspect to note is the rising demand for pomegranates in the pharmaceutical sector.

The global market for pomegranate cultivation can be segmented geographically into North America, Asia-Pacific, South America, Europe, and the MEA (the Middle East and Africa). Among these regions, Asia-Pacific has been dominating the global market for a long time. However, regional markets for pomegranate cultivation in MEA have been growing rapidly and are even tipped to take over Asia-Pacific sometime in the future. 

As per the projections, it is expected that the pomegranate market would be touching the USD 23 billion mark by 2026. This is a notable increase considering the fact that, in 2018, the market was valued at USD 8 billion — precisely reflecting upon a CAGR of 14.0 per cent at present and in the times to come. 

Some top names operating in this market include Driscoll’s, Del Monte Fresh Produce, Inc., Mucci Farms, Dole Food Company, Mission Produce Inc., and Western Growers. Some of these firms are entering new markets and are investing in research & development to produce high-quality pomegranates that attract consumers. In fact, these firms also represent a good investment opportunity due to their high growth potential.

Has COVID-19 affected this market?

As the global market for pomegranate cultivation is growing rapidly, it is not expected to come across any major hurdle in the near future. It should, however, be noted that COVID-19 may have some repercussions on this market. It’s critical to monitor the developments and what this virus might do to the prices of pomegranates going forward.

What are the key constraints?

As touched upon earlier, COVID-19 may have some impact on the global market for pomegranate cultivation. It’s noteworthy that not all regions growing pomegranates have been affected by this virus; hence, we can expect a slight impact on prices at present. 

In addition, with the rising demand and production of pomegranates, it may be assumed that the supply will also increase. Hence, it is imperative for growers to invest in crop rotation programs as part of their management strategies to maintain their yields. 

Why investing in the pomegranate market is a great idea?

There is a wide range of opportunities for investors looking to enter this market. For starters, we can expect an increase in demand for pomegranates in the pharmaceutical industry as consumers show interest in health benefits from pomegranates. 

New product development is another aspect that can help businesses succeed in this market. With the increasing health awareness among consumers, it may be good to look at niche products or even create new products such as frozen pomegranate.

As pomegranates contribute to consumers’ health, their demand will likely increase in the years to come. Hence, investors can expect growth not just in value but also in volume terms. Increasingly, producers are looking at diversifying their crop base as well. This, in turn, will help them provide a better-quality product.

Last but not least, investments in research and development can prove to be beneficial. Firms such as The Land O’Lakes and the Driscoll’s Cooperative have demonstrated their commitment in doing so. This will help companies work towards the creation of new products that are likely to be adopted by the market quickly. 

Wrapping up

Pomegranates are grown worldwide and have numerous health benefits, especially for those who are suffering from heart diseases. Therefore, the demand for pomegranates is rising in every region globally, thus, making it a lucrative market expansion option for investors. 

With investments in production, diversification, and product development, companies can make the most of this market and become profitable while also bringing about a positive health outcome to consumers. 

Undoubtedly, pomegranate cultivation represents a significant opportunity for investors who look at long-term growth.