The market for processed fruit and vegetables is estimated to surpass USD 392 billion by 2025; according to a new research report by Global Market Insights, Inc. The report shows that North America held the largest market share in 2018 and Asia-Pacific is expected to show the highest growth.
Strong outlook along with versatile applications across beverages, jams, dairy & ice cream, bakery, snacks, and confectionery industry are among key factors driving the processed vegetables and fruits market. Shifting consumer preference towards RTE food, and canned products will supplement market expansion. Additionally, technological innovation in dispensation techniques has enabled the manufactures to launch new products with a higher amount of nutritional content.
Longer shelf-life can be achieved by subjecting fruits and vegetables to various forms of processing such as freezing, fresh-cutting, and canning. This procedure offers a higher convenience factor and enhances the product scope in various food applications. Technological advancements by means of incorporating a high degree of automation at various stages of processing are providing a positive outlook for the product demand.
Key aspects such as prolonged shelf life, ease of preservation & storage, and openness in the global market for trade will promulgate the processed fruits and vegetables business. Additionally, rising consumer demand for exotic, healthy and fresh products that are readily available and require minimum preparation time are expected to gain higher importance in the future which will give an impetus to the business growth.
Growing health consciousness among consumers has led to the appropriate intake of vitamins and nutrients rich foods which has resulted in increased adoption of canned fruits and vegetables, thereby fueling industry expansion. Additionally, processed products can be stored and preserved for a longer duration of time and are available even during the off-season thereby providing the market with improved growth avenues.
Processed fruits is expected to hold over 35% of the overall market in 2018. Growing awareness among the consumers regarding intake of fruits daily owing to its nutrient-rich profile and high fiber content will propel the demand for the product. Increasing consumption of jellies, jams, confectionery, and marmalades, etc. by the young generation and will further support industry expansion for processed fruits over the forecast timeframe.
North America dominated the overall market in 2018 owing to high consumer spending on convenience foods coupled with growing awareness regarding the benefits of consuming fruits and vegetables. Additionally, increasing adoption of vegan & flexitarian diets owing to the increasing health issues along with demand for organic fruits & vegetables will provide strong growth prospects for the future. Extensive investments in automation technologies along with the presence of organized retail and e-commerce distribution channels will supplement the growth of processed vegetables and fruits market share.
Asia Pacific is expected to witness the highest growth over the forecast period owing to rapid urbanization, penetration of organized retail, and foodservice industry across the region. Additionally, factors such as favorable industrialization policy, emphasis on novel technologies, and increasing cultivation of fruits and vegetables in countries such as India, China, and Indonesia will boost the product demand.
The processed vegetables and fruits market share is highly fragmented with the presence of many regional players and multinational corporations. The key manufacturers include Dole Food Company, SVZ, Archer Daniels Midland Company, Sysco Corporation, Conagra Foods, and Nestle. The industry participants are involved in product innovation, collaborations, M&A, and capacity expansions to gain competitive advantage. For instance, in October 2018, Dole Food Company announced a new partnership with Safeway Fresh Foods to expand its product portfolio.