Trader Joe's has increased the price of bananas for the first time in more than two decades — the price is now 23 cents apiece up from the 19-cent price set in place in the early 2000s
Trader Joe's has increased the price of bananas for the first time in more than two decades — the price is now 23 cents apiece up from the 19-cent price set in place in the early 2000s, per Axios.
Trader Joe's recently increased the price of a single banana to 23 cents, a 4-cent (21%) increase from the previous rate that had been unchanged for over 20 years.
“We only change our prices when our costs change, and after holding our price for Bananas at 19¢ each for more than two decades, we’ve now reached a point where this change is necessary,” a spokesperson for the chain based in Monrovia, California, said.
Despite some recent increases, bananas have remained relatively affordable over time, with average global prices never exceeding more than about 80 cents per pound (0.45 kilograms).
In the U.S., the cost of a pound of bananas averaged about 63 cents last month, only 3 cents more than a decade ago, but about 6 cents higher than prices reported at the start of 2020, before COVID-19 was declared a global pandemic.
Around the world, banana prices saw significant spikes in 2022 due to the pandemic, with the global average price per metric ton increasing by more than $520 over the course of that year. While prices have eased somewhat in 2023, they remain elevated.
“Bananas are a very popular fruit among consumers, so retailers try to keep prices low,” said Neil Saunders, managing director at research firm GlobalData. “However, prices cannot defy gravity forever and (we are) now starting to see retailers like Trader Joe’s make adjustments.”
One of the main reasons for these increases is the rising cost of farming bananas, according to Saunders. Fertilizer, pesticide, and transportation prices have all increased due to general inflation. Additionally, demand for bananas has been growing, creating an imbalance with supply as exporters face pressures of higher costs, greater prevalence of disease impacting plants, and unfavorable weather conditions.
The World Banana Forum, part of the United Nations’ Food and Agriculture Organization, has pointed to growing effects of global warming, including higher instances of drought and natural disasters, that make banana production “increasingly difficult, uncertain and costly.”
These concerns extend beyond bananas, as researchers expect food prices and inflation overall to rise as temperatures climb due to climate change.