Fruit & Vegetable Processing Market Size, Share Global Analysis Report, 2022 - 2028

Industry Insights

[215+ Pages Report] According to Facts and Factors, the global fruit & vegetable processing market was valued at USD 310 billion in 2021 and is expected to reach USD 530 billion by 2028, growing at a CAGR of 7.5% between 2022 and 2028. The global fruit & vegetable processing market report offers a comprehensive analysis of the market. The report provides a thorough review of the main segments, market dynamics, drivers, limitations, competitive landscape, and characteristics that are significant in the market.

Market Overview

Fruit & vegetable processing is a method of enhancing the quality and storage life of products such as fresh fruits and frozen vegetables. Fruit & vegetable processing contributes to the increase in the production of goods for immediate consumption as food products. Processing aids in the preservation of vitamins, flavor, color, texture, and nourishment in food. Processed items are preserved in the form of fruit pieces or canned vegetables, juice, pulp, and other similar items. Processing contributes to the inclusion of vitamins and minerals in fruit & vegetable juice, which people who are health-conscious can consume for the same nutritive value as of fresh fruit.

The global fruit & vegetable processing market is expanding rapidly as a result of the rising demand for food processing services. In addition, the increasing rate of adaptation of processed food products in response to rising disposable incomes and changing lifestyles are some of the contributing factors to increased market growth.

COVID-19 Impact

The COVID-19 outbreak is believed to have had a major impact on the fruit & vegetable processing market, highlighting the importance of healthy, safe, and nutritious eating. Food safety, food security, and food preservation have been largely affected during the COVID-19 outbreak. Consumer behavior in relation to food consumption has shifted dramatically, with a greater preference for quality and safety. Manufacturers have been compelled by these factors to evaluate the safety requirements of their products in order to enhance the value of their products in the market.

Growth Drivers

• Market growth is to be driven by an increase in the demand for convenience food products

The global market is being driven by an increase in the need for convenience as a result of customers' hectic lifestyles. Furthermore, rising per-capita income has increased demand for on-the-go and ready-to-eat food items. As a result, demand for processed fruit & vegetable products has increased. Because of the rapid expansion in the fruit & vegetable processing industry, the outlook for the growth of the fruit & vegetable processing market is expected to remain positive.

Consumers benefit from the purchase of processed food products because they are easier to use, consume, and store for a longer period of time. Over the last few decades, customer preferences in developing nations such as India, China, and Brazil have gradually shifted away from traditional homemade breakfast & lunch meals toward ready-to-eat products. Comfort foods, such as fruit juices, saw an increase in demand. This has contributed to the expansion of the global fruit & vegetable processing market.

Restraints

• Food recalls are expected to stifle market growth

Food recalls occurring when food products become contaminated as a result of a gap or failure in the supply chain. A food recall is defined by Food Standards Australia New Zealand as "action taken to remove unhealthy food from the sale, distribution, and consumption that may pose a safety risk to consumers."

A food recall is initiated as a result of a review or criticism about the product's quality. The people associated with the product include wholesalers, manufacturers, government agencies, retailers, and customers. Recalls are performed to prevent potentially dangerous or unsafe foods from being consumed. Any food recall tarnishes the public image of the manufacturing business. This could lead to a drop in sales of the company's other products. Furthermore, the risk of consuming contaminated food at high prices discourages consumers from purchasing processed food and instead relying on unprocessed food products.

Opportunities

• Vegan food products are in high demand, creating new opportunities

There has been a surge in emphasis on the production and development of plant-based meat substitutes in recent years. The global market for plant-based substitutes is expected to reach USD 84 million. Plant-based food manufacturers are trying to capitalize on the use of fruits & vegetables, pulses & legumes; they are also considering fruit-based products due to their superior functionality and nutritional composition, which can result in flavor and textural enhancements.

Furthermore, the COVID-19 pandemic is hastening the pattern of consuming plant-based food across international markets, as it is especially appropriate for quarantine living and is recognized as nutritious and affordable.

Challenges

• Infections and physiological deterioration can be difficult to deal with

The fresh produce value chain is a monumental and basic aspect of agricultural production. It influences, among other things, the quality of products for consumers, farmer profit margins, and export situations & consequences for a country. Normal physiological changes induced by conditions that accelerate the amount of natural degradation, such as low atmospheric humidity, high temperature, and physical injury, can increase the risk of loss. When exposed to extremes of atmospheric modification, temperature, or pollutants, changes in physiological deterioration are often witnessed. This may result in failure to ripen, unpalatable flavors, or other changes in the product’s living processes, rendering it unfit for use.

Segmentation Analysis

The global fruit & vegetable processing market is segmented on the basis of form, type of product, technology, processing systems, type of equipment, operation, and region.

By form, the market is divided into fruit products and vegetable products. The fruit product category is further sub-divided into fruit syrup, fruit juice powder, dried fruit, candied fruits, pasteurized mash, frozen fruit pulp, fruit cheese, pasteurized fruit, fruit jellies, jam, frozen fruit, and others. The vegetable products category is sub-divided into the vegetable sauce, biological canned vegetables, marinated vegetables, sterilized vegetables, pasteurized vegetables, concentrated vegetable juice, vegetable juice, frozen vegetables, and others. The vegetable products category is expected to lead the global fruit & vegetable processing market in terms of revenue contribution during the forecast period due to rising demand for processed vegetables globally, particularly vegetable sauce, vegetable juice, and frozen vegetables.

By type of product, the market is divided into canned, dehydrated & dried, frozen, and others. Because of the rising demand for canned fruits and vegetables in both developing and developed countries, particularly for fresh-cut canned products, the canned segment is anticipated to account for the majority of market share over the forecast period. Furthermore, the rising demand for canned vegetables in salt brine, canned products in tomato concentrated juice, and canned products in vegetable oil, among other things, is expected to boost this segment's revenue growth.

By technology, the market is divided into Pulsed Electric Field (PEF) processing, High-Pressure Processing (HPP), and microwave processing. Due to the increasing use of HPP technology for processing jams and related items in order to maintain the original fruit flavor, the HPP segment is projected to dominate in terms of revenue contribution to the market during the forecast period. This technology is better suited for higher-priced, high-value products that must retain flavor and color. HPP is an important part of the process of ensuring food safety because the product is not reopened till it reaches the customer, which is anticipated to enhance the segment's revenue growth.

By processing systems, the market is divided into large-scale processing, intermediate-scale processing, and small-scale processing. Due to its rising use by small-scale farmers for sale or personal use in domestic or local markets places, the small-scale processing segment is estimated to hold the largest revenue share over the forecast period. In addition, low investment for this type of processing system is anticipated to enhance the growth of the segment going ahead.

By type of equipment, the market is divided into packaging & handling, seasoning, fillers, dewatering & washing, slicing/peeling/inspection, pre-processing equipment, and others. Due to its rising use by small-scale farmers for sale or personal use in domestic or local markets places, the small-scale processing segment is estimated to hold the largest revenue share over the forecast period. In addition, low investment for this type of processing system is anticipated to enhance the growth of the segment going ahead. Filling systems are an essential part of fruit & vegetable processing, as well as for filling processed products into pouches or bottles, based on the product. The fillers segment is projected to expand significantly in terms of revenue during the forecast period.

By operation, the market is divided into semi-automatic and automatic. During the forecast period, the automatic segment is projected to dominate the global fruit & vegetable processing market in terms of revenue. Factors such as increased traction, availability, and distribution of products via e-commerce channels and systematized retail, as well as the need for faster processing with higher product quality, are driving revenue growth in this segment.

Report Scope

Regional Landscape

During the forecast period, Asia Pacific is reported to witness the highest revenue growth rate. Governments in countries such as China, India, and Japan are prioritizing the production of fruits and vegetables over grains for agricultural development, which is boosting the market growth.

North America is expected to continue to account for the highest revenue share among other markets during the forecast period, owing to rising demand for processed fruits and vegetables in countries such as Canada, Mexico, and the United States as consumers' lifestyles change rapidly. Furthermore, the strong presence of domestic and international market players is anticipated to enhance market revenue growth. Owing to the strong existence of top market players in the region, Europe is anticipated to register substantially stable revenue growth during the forecast period.

Recent Development

• January 2020: Agrana invested more than USD 4.5 million in R&D, with USD 3.2 million going toward a new fruit preparation development center in Mitry-Mory, France. The remaining funds will be used to expand the Austrian Research Center in Tulln. This will allow the company to develop new products and gain a competitive advantage over its competitors.
• August 2020: SVZ International introduced New Gold Kiwi Puree, a tropically sweet cross between a strawberry and a mango. It is used in a variety of products, including dairy, smoothies, and ice cream. This is expected to strengthen SVZ's existing product portfolio, contributing to market growth.

Competitive Landscape

Some of the key players in the global fruit & vegetable processing market are :

• Kraft Heinz Company 
• Syntegon Technology GmbH 
• DelmMonte Foods Inc. 
• GFA Group AG 
• Greencore Group plc 
• Conagra Brands Inc. 
• Olam International Limited 
• JBT Corporation 
• The Buhler Holding AG 
• GEA Gropu AG

The global fruit &vegetable processing market is segmented as follows;  

By Form Segment Analysis

• Fruit
• Vegetable

By Type of Product Segment Analysis

• Canned
• Dehydrated & Dried
• Frozen
• Others

By Technology Segment Analysis

• Pulsed Electric Field Processing
• High-Pressure Processing
• Microwave Processing

By Processing Systems Segment Analysis

• Large-Scale Processing
• Intermediate-Scale Processing
• Small-Scale Processing

By Type of Equipment Segment Analysis

• Packaging & Handling
• Seasoning
• Fillers
• Dewatering & Washing
• Slicing/Peeling/inspection
• Pre-Processing Equipment
• Others

By Operation Segment Analysis

• Semi-Automatic
• Automatic

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America