A 2024 University of Florida (UF) study showed that demand for orange juice (OJ) would have declined by 8% without the awareness of Florida Department of Citrus (FDOC) promotional activities. The study estimated consumption would have decreased by an additional 75.7 million single-strength equivalent gallons — equal to roughly 13.7 million boxes of Florida processed oranges — without FDOC promotions.
Lisa House, professor and department chair of the UF Food and Resource Economics Department, presented the study results at the Florida Citrus Commission’s (FCC) October meeting. The FCC is the FDOC’s governing board.
Other results of the study included:
- The domestic share of Florida OJ was estimated at 15% for the 2023–24 season, a reduction compared to previous seasons due to production losses associated with 2022’s Hurricane Ian for the past two seasons.
- More than one in five respondents demonstrated awareness of OJ promotions during the 2023–24 fiscal year. Heightened awareness was shown to have a positive impact, resulting in a 3.3% greater increase in market penetration for OJ within those households compared to those who were not aware.
- Consumers who were aware of OJ promotions exhibited a 6.6% increase in their willingness to pay for OJ, coupled with a 9% heightened perception of the health/wellness benefits associated with OJ.
- The study shows consumers’ perception of the health/wellness benefits of OJ was strong in 2023–24, with 37.4% of consumers citing health and wellness as a major factor influencing their purchase of 100% OJ.
- Results of the 2024 return on investment (ROI) analysis indicate that FDOC programs in the last year will have a benefit-cost ratio between 2.01 and 2.48. That signifies that each dollar expended on generic promotions of processed orange marketing returned between $2.01 and $2.48 to the Florida grower in added revenue at the grower delivered-in price level.
- The main factors impacting ROI in the study were associated with the decline in production and marketing spend over time. Benefits from FDOC promotions to Florida producers were negatively impacted by the decline in Florida’s share of product in the market.
- FDOC promotions improve consumer views on OJ prices and health benefits, boosting demand.
Source: FDOC
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