Analysis by Type (Fruits and Vegetables); by Product (Fresh, Fresh Cut, Canned, Frozen, Drying, and Dehydration); and by Processing Equipment (Pre-Processing, Processing, Washing, Filling, Seasoning, and Packaging) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
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The global processed fruits and vegetables market is estimated to garner a revenue of ~USD 600 Billion by the end of 2035 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 400 Billion in the year 2022. The growth of the market can be attributed to the growing demand for convenient food products owing to busy lifestyle. For instance, since of their busy schedules, about 80% of Indian households now prefer rapid food. Moreover, the age also plays a crucial role in the demand for ready to eat products. Large number of young population who are working mostly prefer convenient food products. For instance, about 15% of respondents who were 65 years of age and older reported eating convenient food once a month. However, the percentage of respondents from the youngest age group represented who just stated they did so a few times a week was greatest, coming in at about 20%.
Moreover, the disposable income of the population is also growing. Hence, there has been a boost in the purchasing power of the consumer, which has influenced them to purchase ready to eat products. Therefore, this factor is further estimated to boost the growth of the market. Also, owing to the covid19 pandemic the change in eating patterns of the consumer has been observed. As a result, many people are consuming less fresh food, particularly fruits and vegetables, and traditional grocery shopping forms and locations have become more scarce. They have been replaced by more processed goods such as convenience foods, which would help the market for processed fruits and vegetables develop to a certain extent in the future. Additionally, purchases of processed food products also benefit consumers since they're easier to use, eat, and store for a longer period of time. Hence, this factor is also estimated to boost the market growth over the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~6% |
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Base Year Market Size (2022) |
~USD 400 Billion |
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Forecast Year Market Size (2035) |
~ USD 600 Billion |
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Regional Scope |
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Growth Drivers
Growing Consciousness Regarding Health Among People - More people are observed getting conscious regarding their health. Hence, their preference for healthy diet is growing. In America, about 49% of participants stated they actively strive to eat healthily. Therefore, the demand for fruits and vegetables is growing owing to their various advantages on health. However, the time needed for preparation, the availability, and the shorter shelf life of natural products are all barriers to increasing the intake of fruits and vegetables. Other barriers include culture, education, lifestyle changes, and other reasons. Therefore, the demand for processed fruits and vegetables is expected to increase.
Rising Disposable Income - In 2021, Americans' personal disposable income was about USD 15 trillion in total. In the same year, the per capita personal disposable personal income was approximately USD 47,700 dollars. Hence, they are expected to spend more on processed fruits and vegetables.
Surge in Exports of Processed Fruits and Vegetables- In 2021–2022, India exported processed food worth USD 5,559.84 million, which included a portion of items which includes mango pulp (USD 124.11 million), processed vegetables (USD 534.98 million dollars), processed fruits, juices, and nuts (USD 486.58 million dollars), and more.
Growth in Wastage of Fruits and Vegetables - Owing to outdated harvesting methods and poor cold chain infrastructure, India experiences yearly fruit and vegetable wastage of between 4.6–15.9%. Hence, the demand for processing fruits and vegetables is growing as it extends the shelf life of the fruits and vegetables while preserving them in their original state.
Upsurge in Investment Food Processing Sector - The Food Processing Industry, in India received about USD 700 Million in FDI equity from April 2021 to March 2022. From April 2000 to September 2022, approximately USD 10 billion in FDI was attracted to the food processing industry.
Challenges
The global processed fruits and vegetables market is segmented and analyzed for demand and supply by type into fruits and vegetables. Out of which, the fruits segment is anticipated to garner the largest revenue by the end of 2035. The growth of the segment can be attributed to increase in the number of people consuming more fruits, followed by the growing people being conscious regarding health. Moreover, the taste that fruits contain makes it more preferable than vegetables. About 9% of individuals consume the recommended daily dose of vegetables, and approximately 11% of adults consume the recommended daily serving of fruit in America. However, most fruits only last for about 4 days after being sliced. Further, humidity and high temperature also make fruits rot within a few hours of slicing. Hence, the demand for processed fruits is anticipated to increase, further boosting the market’s growth.
The global processed fruits and vegetables market is also segmented and analyzed for demand and supply by product into fresh, fresh cut, canned, frozen, drying, and dehydration. Amongst these, the fresh segment is anticipated to hold the largest market share over the forecast period, backed by growing wastage of food which needs to be controlled. To avoid wasting or spoiling (by microbiological contamination) during transport, fruits and vegetables are treated with preservation techniques and packaged. Food preservation lowers the amount of food wasted, garbage disposed of in landfills, and environmental impact. The majority of fruits and vegetables produced worldwide are wasted, according to the most recent data. This amounts to over 2 billion tons of wasted food and is the second-largest source of greenhouse gas emissions, accounting for about 5 gigatons of greenhouse gas emissions. Further, although eating food right away is unquestionably the best option, freezing fresh fruits and vegetables offers several advantages. One could maintain control over the food ingredients that they eat all year long by canning, drying, and freezing. Moreover, to encourage the consumption of fruits and vegetables, a number of government programmes and food policy councils have been established, which has raised the demand for fresh produce.
Our in-depth analysis of the global processed fruits and vegetables market includes the following segments:
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By Type |
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By Product |
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By Processing Equipment |
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The North America processed fruits and vegetables market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035, backed by growing import of processed fruits and vegetables, along with rising awareness regarding benefits associated with consuming fruits and vegetables. Additionally, the population in this region is also spending more on convenient food. Almost 35% of Americans bought ready-to-eat meals in 2020. This could be owing to the growing income of the people in this region. Moreover, large number of Gen-Z are estimated to live independently and hence the demand among them is estimated to increase further boosting the market growth. Furthermore, owing to their relative longer shelf lives than fresh products, customers choose canned and other processed fruits and vegetables. In the US, Canada, and other nations, a large number of businesses provide machines for processing fruits and vegetables. The majority of these manufacturers are small and medium-sized businesses (SMEs), and a number of big, publicly traded organizations and well-known US brands conduct international business. Hence, this factor is estimated to boost the market growth in this region.
The Asia Pacific processed fruits and vegetables market, amongst the market in all the other regions, is projected to grow with the highest CAGR during the forecast period. The growth of the market in this region can be attributed to growing wastage of fruits and vegetables in this region which is further leading release if excessive amount of greenhouse gases. Also, the most waste comes from urban area hence growing urbanization could be responsible for the wastage. However, growing urbanization is also responsible for boosting the market growth in this region owing to greater demand for processed fruits and vegetables. Moreover, large number of people situated in urban area belongs to working population and known for having a busy lifestyle. Hence, people living here are expected to prefer more preserved fruits and vegetables.
Further, the market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of market in this region is estimated to be influenced by growing import of processed fruits and vegetables. Moreover, the demand for processed fruits and vegetables is also growing in this region. Additionally, growing government initiatives facilitating technology development is also estimated to influence the growth of the market in this region.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The major factors driving the growth of the market are growing consciousness regarding health among people, rising disposable income, surge in exports of processed fruits and vegetables, and others.
Ans: The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2035.
Ans: Growing cost of power & energy, high capital investment, and rise in health issues owing to processed fruits and vegetables are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are GEA Group AG, Krones AG, Heat and Control, Inc., Finis, Inc., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, product, processing equipment, and by region.
Ans: The fresh segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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