Bananas fall into the category of food which makes them a necessity rather than a luxury. Bananas are a basic food like bread and milk which would have a more inelastic demand than steak, which falls into a higher end luxury food category. Bananas are the most popular fruit with no close substitutes.
Why are bananas in demand?
Despite Record Exports from Ecuador, Banana Prices Continue to Rise on Robust Demand. Despite record exports from Ecuador, which remains the world's largest banana supplier, prices in the largest import markets are rising due to strong demand and local COVID-related imbalances in supply chains.
Is there a high demand for bananas?
Bananas are increasingly more demanded over the world. They are currently the most traded fruit.
Why are banana prices increasing?
The banana sector faces several price hikes. The cost of fertilizers rose between 35 and 45%, and cardboard and plastic prices increased by 30% and 45%, respectively. Exporters have noted a significant increase in ocean freight prices too.
Why are bananas important economically?
They are a staple food and an export commodity. As a staple, bananas (including plantains and other types of cooking bananas) contribute to the food security of millions of people in much of the developing world, and when traded in local markets they provide income and employment to rural populations.
