Iconic American beverage brand on brink of collapse amid series of setbacks: 'Cornucopia of challenges'

Yahoo

11-04-2025

Shifting environmental conditions and plant diseases are posing a threat to the orange industry. Meanwhile, evolving consumer habits are reducing demand for orange juice, putting the iconic orange juice brand Tropicana in a tough spot, CNN reported.
Tropicana has been dealing with sales and profit drops in recent years, and now it could be headed for bankruptcy. The company's revenue dropped by 4% last quarter, and income fell by 10%, according to Debtwire data cited by CNN.
Tropicana is struggling with a "cornucopia of challenges," said Beverage Digest publisher Duane Stanford, per CNN. The company is facing financial difficulties amid a crisis in the orange juice industry.
There are various factors hitting the orange juice industry hard. Rising temperatures, unpredictable weather conditions, and plant diseases like citrus greening are affecting orange production, leading to supply shortages and price hikes.
For instance, Florida experienced a decline in orange production due to Hurricane Milton last year. Per CNN, a scientific analysis revealed that the storm was strengthened by the shifting weather patterns. The storm affected "probably 70% of the most productive citrus acreage" in the state, according to Florida Citrus Mutual CEO Matt Joyner.
The industry is also affected by changing consumer habits. Consumers are now more mindful of their sugar intake and exploring other beverages like energy drinks, sparkling water, and teas.
While there is less demand for orange juice, the industry is experiencing price hikes due to supply shortages. According to the Bureau of Labor Statistics, the average price of a 12-ounce orange juice bottle was $4.50 as of January, nearly double the price from January 2020, which was $2.30.
The orange juice industry is worth billions of dollars, with its market size expected to be worth $7.29 billion by 2029, according to the Orange Juice Global Market Report 2025 by The Business Research Company. Its decline could lead to job losses, supply shortages, and price hikes.
Beyond rising prices and job losses, the orange industry crisis also draws attention to the rising global temperatures, which make it difficult to grow oranges and other crops. According to the Environmental Protection Agency, agriculture relies heavily on water, soil, and other natural resources easily affected by climate. The warming climate could also affect the production of other crops, leading to supply shortages of other agricultural produce as well.
Citrus greening disease significantly impacts orange production, and there is no cure for it, but researchers are exploring ways to prevent it. Scientists at the University of Florida are looking into genetically modifying citrus trees to make them resistant to it.
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The best thing individuals can do is to explore critical climate issues and find ways to support sustainable farming, like supporting citrus research and buying sustainably grown oranges. These actions can make a big difference and help agriculture thrive amid the changing climate.
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