The global fruit and vegetable processing market size was USD 342.4 Billion in 2022 and is likely to reach USD 629.4 Billion by 2031, expanding at a CAGR of 7% during 2023–2031. The market is driven by the growing demand for processed food items and high demand for food processing machines and services.
Growing consumer shift toward buying convenience food items is leading to high utilization of fruit and vegetable processing services and solutions by the food & beverages industry. The adoption of modern lifestyle is resulting in increased reliance on food that can be easily and quickly prepared, without further having to wash, cut, or dry. The rise of urbanization and the expansion of physical and e-commerce stores is expected to boost the demand for processed fresh produce, thereby, fueling the market. For instance
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According to a report published by FMI-The Food Industry Association, a US-based Non-profit Organization in March 2022, convenience is one of the key factors in consumers' considerations, when buying fresh produce. This has led to 14.4% sales of precut (value-added) items of the total fresh product sales in 2021. The FMI survey further revealed that about half the surveyed shoppers mentioned frequently purchasing value-added produce.
Processed food is highly demanded in urban households, with the busy lifestyle of working professionals. The growing disposable income strongly supports market growth, as consumers can conveniently buy them from offline and online stores by spending a few extra bucks. The worldwide expanding trade of processed fruits and vegetables is anticipated to support the growing demand in the market.
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According to the Government of India’s Agricultural and Processed Food Products Export Development Authority (APEDA), in 2022-2023, Indian exports of processed fruits and vegetables including pulses were worth USD 2,248.96 million. It comprised processed vegetables including pulses worth USD 1,511.14 million and processed fruits and juices worth USD 737.81 million.
The research report finds that the COVID-19 pandemic affected the fruit and vegetable processing market. The infection prevention protocols imposed by various governments around the world affected the supply chain. The logistical delays, panic among consumers, and restrictions on trade activities to ensure the quality of the produce further impacted the market.
Artificial Intelligence (AI) Impact of Fruit and Vegetable Processing Market
Artificial Intelligence advances are expected to support the market during the projection period. Several AI-powered solutions are emerging to streamline and enhance food processing operations, which normally consume significant resources and time. As AI can learn and adapt, the processing of fresh produce including drying, cutting, washing, seasoning, and packaging can be highly optimized. Machine Learning and Computer Vision technology are set to play a crucial role in creating fruit and vegetable processing solutions, as these technologies give real-time assistance based on observations. For instance
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Tetra Pak, a major food processing and packaging solution provider worldwide, utilizes artificial intelligence solutions to simulate the performance of packaging solutions to test their viability. This solution cuts the need for further physical testing of the packaging, which can save up to 50% of the time and costs required to develop packaging and test packaging materials.
Fruit And Vegetable Processing Market Dynamics
Major Drivers
Increasing demand for convenience food due to changing lifestyles is a key driver of the market. With growing urbanization and improvements in living standards, consumers have considerable disposable income to spend on increasing convenience that supports their busy lifestyles. The growing availability of pre-processed fruits and vegetables from supermarkets and online stores is driving their demand, as consumers are readily spending extra bucks to save time on food preparation.
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According to the State of the Industry 2022 report released in April 2023 by the National Association of Convenience Stores (NACS), the sales of the industry were USD 906.1 billion. Of these, USD 302.8 billion, which is 33.4% of total sales, were from in-store purchases. Rising number of convenience stores and increasing in-store sales of restaurant-quality prepared food factors supported the growth of the convenience food industry.
Increasing demand for healthy food products is another major factor driving the demand for processed fruits and vegetables. The emergence of COVID-19 has fueled health awareness among consumers. More and more people across age groups are consciously making their food choices. This is resulting in growth in demand for processed fruits including dry fruits, green powder supplements, precut fruits and vegetables, and other such items. Various products containing processed vegetables and fruits are emerging in the market to meet the growing demand.
Existing Restraints
Gaps or failures in supply chain activities are likely to pose restraints for the market. Fruit and vegetable products are time and environment-sensitive, hence, need precise logistics and selling processes. Failure to follow a timeline can result in degradation in product quality, which results in recalls. Although the commercial trade for processed fresh produce is increasing, these items are required to go through quality checks as per regulations and standards set by the authorities of the particular region or country. These procedures consume extra time, thereby, increasing the time taken to put these products in stores, which can affect the product quality.
Emerging Opportunities
Increasing consumers for vegan products is expected to create substantial growth opportunities for the players in the market. Factors that are fueling the vegan product demand are concerns about animal cruelty, expanding awareness about the health benefits of plant-based foods, and a growing focus on environmental preservation.
Taking a cue from increasing vegan product popularity, manufacturers in the food industry are developing various products through fruit and vegetable processing. Availability of such products is increasing in online and offline stores, leading to a steady increase in their consumer base over the years.
Development of advanced technologies and machines for food processing is projected to expand opportunities in the market. Innovation and improvement of the current machines are the major strategies implemented by key players operating in the fruit and vegetable processing market. New processing technologies including pulsed electric fields, pulsed light, ultrasound, and hurdle systems are being utilized for food products' texture and freshness maintaining purpose. Thus, increasing the shelf life of the processed products.
Scope of the Fruit and Vegetable Processing Market Report
The market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Fruit and Vegetable Processing Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Vegetables, Fruits, and Others), Product Type (Fresh, Dried & Dehydrated, Freshly-cut, Canned, Convenience, and Frozen). System (Small Scale, Intermediate Scale, and Large Scale), Mode of Operation (Automatic and Semi-automatic), and Equipment (Pre-processing, Washing, Filling, Processing, Seasoning, Peeling, Packaging & Handling, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Nestlé; GEA Group Aktiengesellschaft; Bühler; JBT; Dole plc; Marel; ALFA LAVA; Krones AG; Sysco Corporation; Bigtem Makine A.S.; B&G Foods, Inc.; The Kraft Heinz Company; Syntegon Technology GmbH; FENCO Food Machinery S.R. L.; Conagra Brands, Inc.; ANKO FOOD MACHINE CO.LTD; Heat and Control, Inc.; Greencore Group; and FINIS, INC.
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Market Segment Insights
Type Analysis
On the basis of type, the fruit and vegetable processing market is classified as vegetables, fruits, and others. The fruits segment is expected to hold a large share of the market during the forecast period, owing to the growing popularity of various fruits-based products among consumers. The demand for freshly cut fruits is further rising with a high preference for ready-to-eat products in urban areas. Various fruits, that are freshly cut, are becoming available in physical stores. Consumers are readily spending extra dollars to buy such fruit products, as it suits their busy schedules.
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According to the data published by the US Department of Agriculture in May 2023, apples, bananas, and oranges held the top rank in US consumers’ fruit choices in 2021. Apple took the first spot in overall fruit available for consumption purposes. The loss-adjusted per-person availability of apple juice stood at 14.7 pounds (i.e. 1.7 gallons); fresh apples at 9 pounds; and dried, canned, and frozen apples at 3.1 pounds. Banana was ranked as the most popular fresh fruit, while orange held the top spot in the fresh fruit juice category.
The vegetables segment is projected to grow at a considerable pace in the coming years, as the demand for ready-to-cook vegetables is steadily expanding. Some of the highly sold processed vegetable products include concentrated vegetable juice, sauce, marinated vegetables, and pasteurized vegetables, among others. Such products provide the comfort of speedily preparing a meal or can be consumed directly. The growing vegan population and focus on consuming various vegetables in a regular diet is likely to further increase the demand for processed vegetable products.
Product Type Analysis
Based on product type, the fruit and vegetable processing market is divided into fresh, dried & dehydrated, freshly-cut, canned, convenience, and frozen. The canned segment is anticipated to expand at a robust CAGR during the projection period, owing to growing sales of canned food products in various parts of the world. Consumption of these products enables individuals to maintain healthy eating habits and keeps away risks including cancer, heart disease, and high blood pressure.
A variety of canned product offerings are available in the market and new variations are also being launched to support consistent demand growth. Canned fruits and vegetable products that have significant demand include peas, corn, potatoes, apples, beet, spinach, tomatoes, apricots, and cranberries, among others. The canning process does not affect the nutritional contents of that particular fruit or vegetable. They are preserved in such a way that the nutritional value remains intact throughout its life.
System Analysis
On the basis of system, the global market is trifurcated into small scale, intermediate scale, and large scale. The small scale segment is projected to register a considerable CAGR during the forecast period, owing to cost benefits and direct selling to retailers advantages. During the COVID-19 pandemic, the business of small scale industries flourished significantly. The gap created in the market with out-of-stock products from large-scale companies, owing to supply chain hurdles allowed small fruits and vegetables processing businesses to enter their offering in the market, which propelled the segment.
The large scale segment is projected to grow rapidly, with growing demand for convenience food products. The growing consumerism trend is fueling the demand for a variety of food products that are easy to prepare or can be consumed directly without further preparation. The large-scale fruit and vegetable processing system is viable for meeting the growing demand for juices, sauces, jams, and other such products.
Mode of Operation Analysis
On the basis of mode of operation, the fruit and vegetable processing market is bifurcated into automatic and semi-automatic. The automatic segment held the major share of the market in 2022 and is expected to register a robust growth rate during the forecast period. The segment growth is attributed to speedy production and the cost-saving benefits of food processing automation. The availability of e-commerce channels for machine distribution and advancement in food processing technologies solutions are likely to further expand this segment.
As the global food industry manufacturers are developing various fruits and vegetable-based processed products, maintaining their nutritional value intact or even furthering it is being highly focused upon. The automation and robotics technologies' entry into the food industry is likely to enable the creation of nutrient-rich processed products and optimize losses caused by the manual handling of the procedures. The automatic operation mode can bring high efficiency to fruit and vegetable cutting, pulping, seasoning, and other procedures, thereby, saving time and costs.
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In February 2023, KRONEN, an innovative fruit technology developer, unveiled its new machine KUJ HC-220 for cutting fruits in cube and strip & slice shapes. This machine can process fruits, vegetables, and other foods with a high capacity, scaling up to 8,000 Kg/Hour.
Equipment Analysis
Based on equipment, the fruit and vegetable processing market is divided into pre-processing, washing, filling, processing, seasoning, peeling, packaging & handling, and others.
The packaging & handling segment is expected to expand at a significant growth rate during the projection period with increasing development of various fruits and vegetables processed products. With a growing demand for read-to-cook and ready to eat food products, the adoption of speedy and efficient packaging and handling solutions is increasing from manufacturers. This growth is further supported by increasing innovations in technology and machines used for packaging. Various smart solutions are emerging in the market including robots, gadgets, and software to bring quality and speed to fruit and vegetable processing, thereby, supporting the growth of the segment.
Regional Outlook
In terms of region, the global fruit and vegetable processing market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the forecast period, owing to rising support from governments in various countries for producing and selling fruits and vegetables. The increasing import and export activity of processed consumables is further supporting the market in this region.
Emerging economies such as India, China, and Japan are major growth centers of the market, due to the rising consumer demand with increasing per capita income and rapidly evolving lifestyle. The production of processed food items in this region is significantly growing, due to the increasing number of local manufacturers and rising cultivation of various fruits and vegetables.
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According to information published by the India Brand Equity Foundation (IBEF) in October 2022, India ranks second in terms of fresh vegetable production in the world, ranking next to China. The country accounts for nearly 15% of the worldwide production of vegetables.
The market in North America is projected to expand at a rapid growth rate during the assessment period, owing to the rising demand for convenience food in this region. The market is greatly supported by the presence of several fruit and vegetable processing machinery manufacturers in the US and Canada. The rising availability of various processed products in supermarkets and online stores in this region further supports the growth of the market. Growing trade activities of processed products from countries in this region with the rising globalization of businesses are expected to further fuel the market.
Segments
The global fruit and vegetable processing market has been segmented on the basis of
Type
Product Type
- Fresh
- Dried & Dehydrated
- Freshly-cut
- Canned
- Convenience
- Frozen
System
- Small Scale
- Intermediate Scale
- Large Scale
Mode of Operation
Equipment
- Pre-processing
- Washing
- Filling
- Processing
- Seasoning
- Peeling
- Packaging & Handling
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Nestlé
- GEA Group Aktiengesellschaft
- Bühler
- JBT
- Dole plc
- Marel
- ALFA LAVAL
- Krones AG
- Sysco Corporation
- Bigtem Makine A.S.
- B&G Foods, Inc.
- The Kraft Heinz Company
- Syntegon Technology GmbH
- FENCO Food Machinery S.R. L.
- Conagra Brands, Inc.
- ANKO FOOD MACHINE CO.LTD
- Heat and Control, Inc.
- Greencore Group
- FINIS, INC.
Competitive Landscape
Key players competing in the fruit and vegetable processing market are Nestlé; GEA Group Aktiengesellschaft; Bühler; JBT; Dole plc; Marel; ALFA LAVA; Krones AG; Sysco Corporation; Bigtem Makine A.S.; B&G Foods, Inc.; The Kraft Heinz Company; Syntegon Technology GmbH; FENCO Food Machinery S.R. L.; Conagra Brands, Inc.; ANKO FOOD MACHINE CO.LTD; Heat and Control, Inc.; Greencore Group; and FINIS, INC.
These major companies in the market have adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to enhance their consumer base worldwide. The competitive landscape covers key insights into growth strategies adopted by major market players.
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In August 2023, Nestlé, a Swiss multinational food and drink processing corporation, announced the expansion of its plant-based products portfolio to provide consumers with increased options for nutritious, tasty meat alternatives. The company, through its brand Maggi Veg, launched a range of shelf-stable plant-based cooking solutions in Chile. These offerings include Nestlé's first shelf-stable plant-based minced meat, which comes in recipe format combined with seasoning.
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