3.1. The Main Exporters
The global export volume of AJC decreased between 2005 and 2023. On average, the sales volume decline was 20,000 tons per year, assuming a linear trend function. In individual years, export fluctuations were significant, ranging from 3% to 18% year over year. The export volume is determined by the supply and demand for AJC. The export quantity is strongly correlated with AJC production [
87]. In years of lower harvests, lower-quality apples and apples from orchards typically geared towards processing are used for production. In seasons with higher yields, apples that cannot be sold in the fresh market are also used for processing [
49,
88]. Therefore, lower harvests translate into reduced export capabilities. The variability of exports from individual countries was even greater (up to 165 pp) for smaller exporters within the group of the world’s main suppliers.
Table 1 presents the countries that were the largest global exporters of AJC in recent years, ranked by sales volume in 2023. In 2023, these countries accounted for 91% of global AJC exports (
Table 1). The largest exporters are currently enterprises from China, Poland, Turkey, and Ukraine, which accounted for 63% of the export volume in 2023. Throughout the study period, more than half of the export exchange came from the countries that are the largest global suppliers. Among these countries, the significance of China in terms of export volume has decreased, while that of Poland, Turkey, and Ukraine has increased. The research analyzed primarily those countries that are net exporters of AJC (like Moldova or Hungary).
The largest decrease in exports was from China, averaging 26 thousand tons annually. In the peak year of 2007, China exported over 1 million tons of AJC, while in 2023 only 268 thousand tons were exported, causing China’s export volume to no longer be the highest for the first time in history. This is due to the growth of domestic consumption of apples in China, as well as a gradual reduction in apple acreage across China observed in recent years. This upward trend aligns with the growing demand for healthy food options among China’s expanding middle class. While fresh apples remain the primary choice, there is a notable rise in the consumption of processed apple products, such as juice and dried fruit [
81]. Evidence of changes in consumption habits is provided by previous studies. These studies have observed not only an increase in domestic consumption in China but also the adoption of Western habits, including juice consumption [
89,
90,
91,
92,
93]. When considering export volumes, it is important to recognize that China’s production potential significantly exceeds that of the other countries analyzed.
In 2023, larger shipments came from Poland (273 thousand tons). Throughout the study period, an upward trend in exports was observed for Poland and Turkey. The increase was stronger for Turkey (an average of 8.4 thousand tons annually) than for Poland (5.7 thousand tons). An upward trend in exports was also observed for Ukraine and Moldova and the trend was insignificant in the USA, while a downward trend was noted in Austria. The export quantities from Chile, Hungary, and Spain were relatively stable and low compared to the largest exporters.
Throughout the entire period, the USA has been a net importer of concentrated apple juice (AJC) with imports significantly exceeding exports. The USA imported from countries with lower production costs. Initially, most of the volume came from China, while in recent years the main suppliers have been Turkey, China, Poland, Chile, and Ukraine [
94]. The production of concentrated apple juice (AJC) in the USA has been declining for decades, while domestic demand has been increasing. This demand was met by more competitive (cheaper) imports from China, which eventually led to the imposition of tariffs on imports from China [
95]. The competitiveness of the U.S. industry was lower and the process of domestic producers being pushed out of the market was not halted. Only the structure of imports changed, and this was not solely due to tariffs. Austria was a net importer of AJC for most of the time, except for 2010 and 2011 when it had a small export surplus. Despite being a smaller country with limited raw material, Austria hosted one of the largest global AJC companies, with production facilities in several countries (Poland, Germany, Romania, Ukraine, and China). Initially, part of the AJC export produced in other countries was carried out through Austria (re-export), after achieving the required quality parameters (e.g., color, clarity) [
88,
96]. In recent years, re-exports from Austria have declined. This could be due to the achievement of higher quality standards at the production subsidiaries or economic factors, such as lower costs. Spain was not a significant net exporter. In some years, the balance of exports and imports was negative.
3.2. Competitiveness Measures in Selected Countries
From China, the largest producer and exporter (by 2022) of AJC, the product is sold to over 60 countries, including the USA, South Africa, Russia, Japan, and Australia [
56]. In 2023, China exported to 69 countries. The main recipients of Chinese concentrate were the USA (21%), South Africa (17%), Japan (16%), Australia (10%), Canada (10%), and Turkey (7.5%). Only 2% of the export volume from China was sold to Russia and 1.7% to Germany. Smaller quantities of the product were sent to the remaining 61 recipient countries [
97] (
Figure 1).
The competitive position of AJC exports from China declined during the analyzed period (
Table 2). This is evidenced by the values of all the adopted indicators. The share in the volume of world exports reached its highest value (55%) in 2007, after which a downward trend began. In the last years of the analyzed period, China’s export share fell below 30%, and in 2023 it was only 21% of global turnover. Similarly, the export orientation index decreased. It is worth noting that both the gross and net indices for China had the same values, indicating that AJC imports in China play a minor role relative to domestic production. The maximum values of the E indices reached 25% in 2007, and the minimum values were just under 6% in 2023. Therefore, the export of apples processed into AJC currently constitutes a relatively small percentage of apple harvests in China. Likewise, the comparative advantages of AJC exports from China have been declining. Until 2010, RCA values were >4, indicating that exports from China had strong comparative advantages. From 2010 to 2018, the advantages were average, and since 2019 they have been weak. The decline in the competitive position of China’s exports is attributable to multiple factors. Among the most significant are political influences, such as the increase in tariffs introduced in 2019 as a result of the escalating trade war between China and the United States. The improved performance of Chinese exports in the 2017/2018 season was the result of favorable conditions in the international market. In Poland—the world’s second-largest exporter—catastrophically low apple yields in 2017 led to reduced AJC production and higher prices, creating an opportunity for Chinese exporters to increase sales at more favorable prices.
In China, apples are cultivated on the largest area among fruits and have the highest production value, serving as the main source of income for farmers in two primary apple-producing regions: the Bohai Gulf region and the Loess Plateau region [
98]. It was predicted that the production and export of apples from China would increase and the industry would be strong [
99]. Scientists’ predictions regarding exports were rather overlooked, as it was unclear in which direction the market situation would develop. Some pointed out that domestic demand for AJC in China was increasing, which could lead to a decrease in exports, and attention was drawn to the growing importance of the fresh apple market in China, which is more profitable for apple producers [
49,
88]. The competitiveness of apple production in China, as demonstrated by previous studies, is varied. The Shanxi and Gansu provinces have shown an increase in indicators considered measures of production competitiveness, as these regions are located in areas with favorable natural conditions. Additionally, there has been technological and scientific progress [
100], which can effectively improve the supply chain [
101]. Other apple-producing regions in China have exhibited poorer performance [
100]. It has been demonstrated that a higher level of scientific and technological innovation in agriculture leads to more significant economic growth and sustainable agricultural development [
102].
The large potential of the Chinese market does not exclude problems, as orchardists in the country face sharp fluctuations in purchase prices and, consequently, unstable incomes. In China, a significant portion of apple production takes place on small-scale farms, which additionally results in high transaction costs, limited market access, and restricted access to technology and credit services [
103]. This makes it difficult for apple producers to alleviate poverty [
104].
Exports from China, during their period of high competitiveness, faced trade barriers. The large share of drops and damaged fruits destined for juice production in China led to an increase in patulin content, which prompted the European Union to impose import restrictions from this country [
49]. The large raw-material base, combined with the limited apple-processing capacity in China, resulted in apples often being stored for too long, leading to spoilage and making it impossible to guarantee high quality [
105]. Anti-dumping tariffs were imposed by the United States [
90].
It is possible that the export of AJC (concentrated apple juice) from China will continue to decline and that its competitiveness in the global market will decrease due to changes in the Chinese economy. This should not be interpreted negatively, as AJC is a semi-finished product, the export of which brings less profit compared to trading in dessert apples and industrial products, especially high-tech ones. The increase in domestic demand for juices and dessert fruits in China, as well as the increase in the export of fresh apples, seems more beneficial for the economy, especially for agricultural producers.
However, it is not excluded that the export of AJC from China will be higher in the coming years, as this will depend on several factors. Firstly, it will depend on the size of apple harvests, which vary from year to year. In the case of good yields, higher production and thus increased exports are possible. Secondly, it will depend on the capacity of the domestic and external markets. The global economic situation, especially in the markets of the main recipients of AJC and dessert apples, will also be significant. Economic policy will also be important. Particularly in the current geopolitical situation, difficulties such as increased tariffs or non-tariff barriers, as well as a decrease in purchasing power in some main markets for AJC (USA, Russia), are possible. It is also possible that the demand for AJC will be reduced in other major markets (e.g., Germany) due to changes in consumption patterns, such as the further increase in the consumption of NFC (not from concentrate) juices.
During the studied period, the competitive position of AJC exports from Poland, measured by Poland’s share in global trade, increased (
Table 3). However, competitiveness measured by export orientation indicators and RCA declined. Throughout the entire period, AJC exports from Poland were characterized by high competitive advantages (RCA from 11 to 19), but with a slight downward trend. The E indicators also declined slightly but remained at a high level. The average
Egr was 59%, and
Enet was 47%. This significant difference indicates that companies in Poland imported AJC from other countries. The imported product was often re-exported. The reason for the imports was most often the lower prices of imported AJC [
88]. To Poland, AJC was mainly imported from Ukraine and Moldova [
106]. The import of AJC results from the declining competitiveness of domestic production due to rising costs, combined with relatively strong export potential in global markets and the expansion strategies of AJC-producing entities operating in Poland. The international trade networks of companies based in Poland facilitate the handling of imported AJC, which in turn contributes to an increase in Poland’s net exports.
Poland is the largest apple producer in the European Union and ranks among the top global producers after China, the USA, and Turkey [
107]. Apple harvests in Poland have been increasing [
108], while consumption has been declining [
55,
88]. For Polish producers, it is important to acquire new markets and offer apple varieties that meet high consumer demands [
109,
110], both in fresh and processed forms. The increase in apple production in Poland and problems with marketing the crops in the fresh market led to a rise in the production and export of AJC from Poland. The export orientation index showed a downward trend, but this was due to the growing importance other forms of apple processing. The share of apples directed to processing increased, but the percentage of apples intended for the production of NFC and other applications also grew [
106]. A significant portion of NFC juices was also exported, mainly to EU countries, similar to AJC. The main recipient of AJC from Poland throughout the study period was Germany, but the share of sales to this country decreased from over 70% at the beginning of the study period to around 30% in recent years. Meanwhile, the importance of exports to other European countries and the USA increased [
97].
The competitive position of AJC exports from Turkey increased during the studied period. Since 2008, the share of AJC supplies from Turkey has systematically grown, exceeding 13% of the global volume in recent years (
Table 4). Similarly, export orientation indicators have risen, approaching around 30% in the case of
Egr and 20% in the case of
Enet. Turkey also imported AJC, hence the differences between gross and net indicators. Imports mainly came from Iran, China, and Ukraine [
97]. The RCA indicator in the early years of the study period fluctuated from weak to strong comparative advantages (RCA from 1.9 to 5.1), but since 2013, it has shown values indicative of strong comparative advantages for Turkey’s exports.
Turkey is characterized by favorable conditions for fruit cultivation and is one of the largest producers of species such as hazelnuts, pistachios, walnuts, apples, pears, quinces, apricots, and sweet and sour cherries [
111]. In reference to apples, the climate is more conducive to the production of sweet varieties, which results in lower acidity in the produced juice. This is sometimes perceived as a drawback, although there are also markets that value apple juice with lower acidity, such as the USA [
49]. The upward trend in exports from Turkey is expected to continue, along with the maintenance of high competitiveness, as the current geopolitical and economic conditions are favorable for producers from this country.
The export of AJC from Ukraine was competitive during the studied period. An increase in all competitiveness indicators was noted (
Table 5). The share of Ukrainian supplies in the global AJC trade increased to 7% in 2023. The export orientation index showed an upward trend, although it was highly varied, ranging from several percent in the case of
Enet to 76% in 2022. This may result from less systematic AJC sales from Ukraine and fluctuations in harvests. The indicators of net and gross export orientation were very similar in some years, while in others they reached several percent (e.g., 11% in 2008), which can be linked to lower harvests in this country caused by weather conditions. Some entities producing AJC in Ukraine have their branches in Moldova, from where (along with China) AJC was imported to Ukraine [
97], which undoubtedly had an impact on the volume of trade between the countries. The export of AJC from Ukraine throughout the entire period was characterized by high and growing comparative advantages. The RCA index reached 43 in 2022 and 39 in 2023.
The competitive position of AJC exports from Moldova increased the most significantly. All indicators showed an upward trend. The share in global trade reached 4% of the volume, the export orientation indices approached 90%, and the comparative advantage index was the highest among the studied countries and also showed an upward trend (
Table 6). The RCA index ranged from 81 to 202. Imports to Moldova were low, which is why the export orientation indices were similar. Throughout the entire study period, the selling prices of AJC from this country were among the lowest.
The gradual consolidation of Moldova’s position on the international AJC market is primarily due to the relatively low export prices of this product. This is due to low labor costs and lower burdens than in EU countries resulting from the need to apply restrictive environmental standards. It is worth emphasizing that in the adopted research period Moldova systematically increased AJC supplies to the European Common Market. Despite the small area of the country, Moldova has conditions favorable to the development of fruit growing, including both favorable climatic conditions and rich resources of fertile land. Therefore, a further increase in the harvest of apples intended for AJC production can be expected, especially since the production of apples for processing is easier than for dessert apples. In terms of profitability, it is a less risky direction than the production of dessert apples. The quantity of apples directed for processing in Moldova is among the highest in the world. In the case of Moldova, such high indicators result, on the one hand, from the country’s small size and, on the other, from the relatively high significance of AJC exports in relation to its overall export structure.
The competitive position of AJC exports from Hungary can be considered stable during the studied period. A significant part of apple harvests in Hungary is allocated for processing, and a slight upward trend was noted in this regard. On average, over half of the national harvest was exported in the form of AJC, although the values varied depending on the year. AJC exports from Hungary (except for the years 2007 and 2008) had strong comparative advantages, but the RCA values were not high (ranging from 2.8 to 6.6) (
Table 7).
The competitive position of the food industry in the European Union (and not only the European Union) is mainly determined by labor productivity, and to a lesser extent by production potential and labor costs [
15]. Labor costs and other factors, however, influence competitiveness, which is why countries with lower costs are advantaged. The production of AJC is not complicated. The production technologies are available, so with comparable efficiency, other costs can play a significant role in shaping competitiveness. Apple prices, the raw material for AJC production, are particularly important. In countries where it is possible to produce cheaper apples, there is a greater likelihood of gaining greater advantages over competitors. From this perspective, the level of development of the country and the availability of relatively cheaper production factors and means of production, such as mineral fertilizers, play a significant role. Lower costs allow for offering cheaper AJC, which translates into a competitive position. This can be seen in the example of exports from Moldova, where the export prices of AJC were the lowest among the studied countries. Lower AJC prices impact competitiveness, as demonstrated in earlier studies [
49]. In the case of semi-finished products with standardized parameters, prices play a significant role in shaping competitiveness. Exchange rates also affect export competitiveness [
15], which has also been confirmed in the context of the AJC market [
49].
Analyses of the competitiveness of countries are subject to certain limitations. As Porter stated, it is companies that compete, not nations or states [
112]. This is similar in the case of AJC. In today’s globalized world, the connections between countries are complex. Several international entities operate in the AJC market. There are companies that produce in China and Poland, or in Austria and other EU countries, as well as in Ukraine and China simultaneously. However, the competitive conditions between these entities are determined by the natural and economic conditions in specific countries. Countries and economic groups are also subject to trade policies that affect export competitiveness. The article mentions examples of anti-dumping duties and non-tariff barriers that were introduced, disrupting the freedom of competition. Non-tariff restrictions are particularly significant, as it is often difficult to determine whether they are barriers or measures serving other purposes, such as food safety.
In the case of the AJC market, restrictions were often imposed due to the occurrence of harmful substances, mainly patulin, which has a proven negative impact on health [
113] and is relatively frequently found in excess in AJC and other apple products [
114]. One may ask whether it is fair to impose restrictions on a country for detecting harmful substances in excess. Perhaps restrictions should apply to businesses. Monitoring food safety is very important, but using it as a trade policy is debatable. The same applies to the use of plant protection products and their residues. Monitoring apples for the quantity and level of pesticide residues and to provide information to exporters and regulators to ensure timely actions for the safe use of pesticides [
115] is also an important issue to avoid trade restrictions. The range of trade restrictions that affect international trade, and thus competitiveness [
116], is very large [
117], making it difficult in the case of global-trade analysis to precisely understand the requirements between individual countries and groups, which is also a major limitation when using econometric modeling. Protectionism slows the growth and development of the agricultural sector [
118].
In most countries, fruit farming is fragmented, which significantly affects the bargaining power of producers. The opposite situation is seen in the fresh apple market, where there is a higher degree of supply concentration, either around producer organizations, as in the European Union countries, or around trading companies, as in the Southern Hemisphere countries (New Zealand, Chile, etc.) [
49]. Therefore, the fruit juice industry is a source of income for many, mostly small-scale farmers.
A limitation of the study was that the analyses were conducted on an annual basis. During the course of working on the article, a gap was identified—namely, the lack of studies on price volatility in the AJC market. The authors also did not examine trade policy, which has recently gained importance due to increasingly protectionist measures. This is an issue worth addressing in the future, both in relation to AJC and other agricultural products. It is a topic that should be explored in future research.
The authors believe that further analyses are needed to monitor the AJC market and determine the competitiveness of exports from countries. Currently, this market is in a situation where it is difficult to predict future trends with high probability. A difficult but necessary topic seems to be the analysis of barriers in the AJC trade. In the context of environmental research, it seems interesting to determine and compare the energy consumption and emissions of exporting fresh apples and AJC. Fruit juice producers are observing increasing requirements related to sustainable production (environmental/social/economic). They indicate that consumers are the main driving force behind the implementation of sustainable development measures [
119].
3.3. Assessment of the Relationship Between Selected Competitiveness Indicators
Based on the conducted analysis, a strong positive correlation between Export Share and GDP per capita was observed in Moldova and Poland, whereas in the case of China, this correlation was negative (
Table 8). This indicates that despite the increase in GDP per capita, the export position of the first two countries in the context of the AJC has not diminished in significance. The positive correlation observed in the case of Moldova can be attributed to the fact that the country primarily operates in the international market as a supplier of low-cost raw materials to EU countries. Consequently, rising household income does not lead to increased domestic apple consumption, but rather serves as a basis for investments aimed at improving national infrastructure and expanding the raw-material base. In the case of Poland, domestic demand for apples has remained stable for many years. However, through sustained investment in the development of its raw material base, Poland has become one of the key suppliers of apple juice concentrate (AJC) to international markets. In contrast, in China, with the growing affluence of society, the country’s importance in AJC exports has declined. It is noteworthy that the correlation between Export Orientation and GDP per capita in China was strongly negative, which can be explained by the decreasing significance of AJC exports alongside improvements in the economic conditions of the population. However, a declining share of exports in production does not necessarily imply a loss of competitiveness among sector entities, especially if it becomes more profitable for producers to supply these goods to an increasingly absorptive domestic market. A similar interpretation can be applied to the relatively strong negative correlation between these indicators observed in Poland. Interestingly, a weak negative correlation was also found in the case of Moldova.
Considering the correlation between Export Orientation and RCA (Revealed Comparative Advantage), a strong positive relationship between these indicators was found in Turkey and Ukraine, while in Poland, Moldova, and Hungary, it was relatively weak. This suggests a significant export potential in the first two countries, underpinned by the achievement of high comparative advantages. It is also worth noting that, despite the strong positive correlation between Export Orientation and RCA in China, the country’s role in AJC exports has declined in recent years due to increased domestic demand resulting from the dynamic growth of societal wealth—this is reflected in the decreasing values of the correlated indicators.
An analysis of the correlation between apple procurement prices in the preceding year and the Revealed Comparative Advantage (RCA) in the subsequent year generally did not indicate the presence of strong relationships among the countries included in the study. Only in the case of Turkey was a moderate negative correlation observed, which may suggest that an increase in apple procurement prices could contribute to a decline in the revealed comparative advantage. In Poland, however, the rise in apple procurement prices did not result in a deterioration of the RCA indicator. This phenomenon may be attributed to increased demand for apple concentrate, which likely exerted upward pressure on the price of raw material for production.
It is important to note that in countries located in the northern hemisphere, apple harvests from a given year are largely exported in the following year. Interestingly, in both China and Poland, a negative relationship can be observed between rising levels of societal affluence and RCA in the apple sector. Conversely, in Moldova, an economically less developed country, this effect appears to be reversed.
Significantly weaker correlations between these variables were recorded in Ukraine, as well as in Hungary and Turkey. These findings support the hypothesis that economic development and growing societal wealth tend to diminish a country’s competitive position in the apple juice concentrate (AJC) sector. In such cases, other sectors—typically more technologically advanced—gain in importance and competitive standing, with China serving as a notable example. The situation is different in Moldova, where economic development is at a lower level compared to the fastest-growing economies. In this case, the export of relatively inexpensive AJC has increased, which is why the correlation between GDP and RCA was positive. However, even in the case of Moldova, a global trend becomes evident: economic development—understood more broadly than just economic growth—is associated with a decline in the share of raw material exports in the total value of foreign sales.