Banana Powder Price Trend and Forecast

Banana Powder Regional Price Overview

Get the latest insights on price movement and trend analysis of Banana Powder in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Banana Powder Price Trend for the Second Half of 2023

Dried and ground bananas are used to make banana powder, which in turn drives its price trend. Its main use in the food and beverage industry is as a natural flavoring agent in food production, such as smoothies, desserts, and baked goods. Due to its high nutritional value, it is also used in baby foods, nutritional supplements, and animal feed.
 

Banana Powder Price Chart

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The price of bananas surged continuously in the Indian markets during the H2 of 2023. The incline in the prices was only mild during the third quarter, but with the advent of the holiday season, the price trend inclined several folds in the fourth, surpassing ?100 per kilogram, as the harvest season concluded and demand spiked. The traders attributed the price hike to reduced supply, transportation variations, and quality issues.

Despite a 70% decrease in arrivals at wholesale markets compared to last year, demand remained high, particularly in the old Mysuru region and parts of Tamil Nadu. In view of rising consumer demand, the merchants started withholding the stock for festivals, further straining supply chains. Consecutively, the production of banana powder in Asian countries also became restrained, leading to an inclination in its price trend.

Analyst Insight

According to Procurement Resource, the price trend of Banana Powder is expected to incline further in the near quarters as the high tick will be supported by the constrained supply of raw materials and increasing interest of the consumers.
 

Banana Powder Price Trend for the First Half of 2023

Banana Powder is made from dried bananas, so the prices also depend greatly on the banana prices. And along with that, the downstream demands from the cosmetic industry also influence the market trend. During the first half of the year 2023, banana prices surged sharply. Several factors contributed to it, the primary one being lesser cultivation.

The market had tremendously downsized during the pandemic times, causing massive losses to banana farmers, because of which they pivoted to other crops to save their investments. But in 2023, not just the domestic demands heightened, but exports also boomed, shooting up the banana and its allied products, including banana powder prices. Overall, the market performed very well throughout the said time period.

Analyst Insight

According to Procurement Resource, the price trend for Banana Powder is likely to maintain its positive momentum as the supplies are constricted amidst heavy demands.
 

Banana Powder Price Trend for the Second Half of 2022

Given the successive exceptional events in the past two years, the world economy is deeply impacted causing the prices to reach astounding levels. The runaway inflation had a strong impact on agriculture, especially the banana sector. The production costs have increased around 30-40 times in the past two years which affected the banana producers drastically. However, the price rise was not transferred to the consumers as the producers feared demand destruction owing to low consumption levels.

Nonetheless, the banana prices were higher compared to the previous values as the producers and farmers were not immune to the rising prices. In Ukraine, the prices rose around 2.4 times in local currency since January’22. In terms of the US dollar, banana prices increased by 76% in a year- the highest of all the countries in the European region.

The negative impact on the profitability of the farmers/growers due to an increase in production costs and stagnant sales will make the activity unsustainable. Hence, all these problems looming over the banana sector affected the price trend for banana powder.

Analyst Insight

According to Procurement Resource, the price trend for Banana powder will likely remain volatile over the coming months. 2023 promises to be a challenging year for the banana industry. If the prices do not continue to rise, some of the market players will be forced out of the business.
 

Banana Powder Price Trend For the First Half of 2022

With the food prices rising at an alarming level, FAO warned that disruptions to the agricultural activities in Russia and Ukraine, one of the major exporters of staple commodities, could escalate food insecurity globally. This is evident from the escalated prices of bananas globally.

The banana prices went from 1162.19 USD/MT in January to around 1440.23 USD/MT in June 2022. In the Indian domestic market, the prices of various banana species crossed the 100 mark. The Singaporean variety was priced at 96-120 INR/kg, and the Martaman variety averaged 144 INR/kg.

These surging prices resulted due to rising inflation, high production and transportation costs and the delayed onset of the production cycle owing to fluctuating weather conditions. Since the banana powder is formed using the banana pulp, the inflated prices of feedstock bananas caused the prices of banana powder to surge globally. Hence, the price trend of banana powder remained strong throughout the first half of the said year.

Procurement Resource provides latest prices of Banana Powder. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.