Fruit & Vegetable Processing Market Size, Share, Trends, Growth 2030

Fruit & Vegetable Processing Industry Prospective:

The global fruit & vegetable processing market size was worth around USD 8.5 Billion in 2022 and is predicted to grow to around USD 14.1 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 6.5% between 2023 and 2030.

The report analyzes the global fruit & vegetable processing market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the fruit & vegetable processing market.      

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Fruit & Vegetable Processing Market: Overview

Fruit and vegetables are both major food products in their own right and key ingredients in many processed foods. There has been growing research on their importance to health and techniques to preserve the nutritional and sensory qualities desired by consumers. Processing (canning, drying, freezing, and preparation of juices, jams, and jellies) increases the shelf life of fruits and vegetables. Processing steps include preparation of the raw material (cleaning, trimming, and peeling followed by cooking, canning, or freezing). Processing fruits and vegetables is intended to do two things: First is to preserve them by slowing down the natural processes of decay caused by micro-organisms, enzymes in the food, or other factors such as heat, moisture, and sunlight.

The second one is to change them into different foods, which are attractive and in demand by consumers. Like chefs and caterers, processors should use their skills to develop attractive recipes and make products that consumers want to eat. By doing this successfully, they can increase sales and earn an income.

Key Insights

• As per the analysis shared by our research analyst, the global fruit & vegetable processing market is estimated to grow annually at a CAGR of around 6.5% over the forecast period (2023-2030).
• In terms of revenue, the global fruit & vegetable processing market size was valued at around USD 8.5 billion in 2022 and is projected to reach USD 14.1 billion, by 2030.
• Rising demand for convenience foods, an expanding food service industry, and an increase in contemporary retail outlets support the expansion of the fruit and vegetable processing industry.
• Based on the type, the vegetable segment held the largest revenue share in 2022.
• Based on the product type, the canned segment is expected to dominate the market throughout the forecast period.
• Based on the technology, the High Pressure Processing (HPP) segment is expected to hold the largest market share during the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

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Fruit & Vegetable Processing Market: Growth Drivers

Growing demand for convenience foods drives the market growth

In terms of customer preferences, ready-to-eat goods have gradually replaced traditionally prepared breakfasts and snacking meals in emerging countries such as China, India, and Brazil during the last two decades. According to a December 2020 "Food Processing" report, sales of pantry products and other home needs soared during COVID-19. Frozen food sales surged by 40% in March, while canned soup sales increased by 200% year on year. Demand for fruit juices and other comfort foods increased dramatically. This has aided the growth of the industry for processed fruits and vegetables.

Fruit & Vegetable Processing Market: Restraints

Food recalls limits the market growth                                                                                          

Recalls of food goods occur when they are contaminated as a result of a supply chain flaw or failure. A food recall is defined by the food standards Australia New Zealand (FSANZ) as an action done to remove unsafe food from sale, distribution, and consumption that may endanger consumers' safety. A notice or complaint regarding the product's quality leads to the start of a food recall. Therefore, it is anticipated that the rising frequency of food recalls would restrain the global fruit & vegetable processing market expansion.

Fruit & Vegetable Processing Market: Opportunities

Greater awareness of health provides a lucrative opportunity

The desire for organic, fresh, and exotic fruits and vegetables is driving the growth of the fruit and vegetable processing industry. Customers want premium goods with unaltered nutritional, mineral, and calcium qualities. The industry for processing fruits and vegetables is being driven by changes in people's eating habits over the past several years and the rising popularity of veganism. Due to their affordability and ease of availability, the presence of retail and e-commerce platforms has further fueled the industry for processed fruits and vegetables.

Fruit & Vegetable Processing Market: Challenges

Physiological deterioration and infections act as a major challenge for the market expansion

Agriculture production is fundamentally reliant on the fresh food value chain. It affects a wide range of additional factors, including farmer profit margins, export conditions, and the consequences on a country's economy. The likelihood of loss can be increased by typical physiological changes brought on by environmental factors that hasten natural degradation, such as high temperatures, low air humidity, and physical damage.

Aberrant physiological deterioration is typically observed when fresh food is subjected to temperature extremes, air changes, or contamination. Due to undesirable odors, inability to ripen, or other changes in the food's biological processes, the product may become unsuitable. Thus, acts as a major challenge for market growth.

Fruit & Vegetable Processing Market: Segmentation

The global fruit & vegetable processing industry is segmented based on type, product type, technology, processing system, equipment type, operation, and region.

Based on the type, the global market is bifurcated into fruit and vegetable. The vegetable segment held the largest revenue share in 2022 and is expected to show its dominance during the forecast period. The growth in the segment is attributable to the growing demand for processed vegetables across the globe particularly frozen vegetables, vegetable sauce, and vegetable juice. On the other hand, the fruits segment is expected to grow at the highest CAGR over the forecast period owing to the increasing demand for jams, fruit jellies, dried fruits, and others.

Based on the product type, the global fruit & vegetable industry is segmented into frozen, canned, dried & dehydrated, and others. The canned segment is expected to dominate the market throughout the forecast period due to rising demand for canned fruits and vegetables in both developed and developing nations, particularly for fresh-cut canned items. Furthermore, rising demand for canned veggies in salt brine, canned goods in vegetable oils, and canned products in tomato concentrated juice are likely to propel the market forward.

Based on the technology, the global fruit & vegetable processing market is divided into High Pressure Processing (HPP), Microwave Processing, and Pulsed Electric Field Processing (PEF). The High Pressure Processing (HPP) segment is expected to hold the largest market share during the forecast period. The growth in this is due to the increased use of HPP technology in the preparation of jams and similar goods to maintain the natural fruit flavor. This method is ideally suited for high-value, higher-priced products that must keep flavor and color. HPP is a vital technique in ensuring food safety because the product is not reopened until it reaches the customer, which is projected to promote sector expansion.

Based on the processing system, the global fruit and vegetable processing industry is segmented into small-scale processing, intermediate-scale processing, and large-scale processing.

Based on the equipment type, the market is bifurcated into pre-processing equipment, peeling/inspection/slicing, washing & dewatering, fillers, seasoning, packaging & handling, and others.

Based on the operation, the global industry is divided into automatic and semi-automatic.

Recent Developments:

• In September 2021, Quintus Technologies announced its re-entry into the high pressure processing (HPP) market for food and beverage applications using cutting-edge new HPP equipment and tailored service solutions.
• In December 2021, Nestle India received clearance under the Government of India's production linked program (PLI) for the food processing industry within the relevant categories, namely processed fruits and vegetables and ready-to-eat/ready-to-cook foods. The proposal for processing fruits and vegetables made by Nestle India Limited was approved under this program.
• In September 2021, the Kraft Heinz Company signed a contract to buy "Hemmer," a Brazilian condiment and sauce manufacturer. The acquisition is intended to increase Brazilian customers' gastronomic alternatives while advancing Kraft Heinz's international taste elevation product platform expansion and its footprint in emerging countries.

Fruit & Vegetable Processing Market Report Scope:

Fruit & Vegetable Processing Market: Regional Analysis

North America is expected to dominate the market during the forecast period

North America is expected to dominate the global fruit & vegetable processing market during the forecast period. The growth in the region is attributable to the rising consumer expenditure on convenience foods, rising knowledge of the health advantages of eating fruits and vegetables, and rising imports of processed fruits and vegetables. For instance, according to the US Department of Agriculture, in the last ten years, U.S. fruit imports increased by $8.9 billion to meet rising demand.

As more Americans choose fresh foods instead of processed ones to eat better, consumers have favored more fresh vegetables. Additionally, expanding imports of fruits like pineapples, mangos, and papaya are the result of increasing ethnic variety and a growing need for more tropical produce. Furthermore, since canned and other processed fruits and vegetables have a relatively longer shelf life than fresh food, customers prefer them. In the United States, Canada, and other nations, various businesses provide equipment for processing fruits and vegetables.

The majority of these manufacturers are small and medium-sized businesses (SMEs), although a lot of big, well-known American brands do business internationally. For instance, Excalibur provides dehydrators to dry fruits, vegetables, and leafy greens for nutritious snacks, as well as various shelf-stable food varieties that are secure to consume at home. Along with the end-user need, factors such as the high cost of labor in the US, low workforce retention rates, and immigration regulations are predicted to hasten the demand for innovation and equipment automation with enhanced functionality.

On the other hand, the Asia Pacific is expected to grow at the highest CAGR over the forecast period. The growth in the region is owing to the expansion of the processed food and beverage sector and the rising demand for fresh produce. Moreover, the increasing production of fruits and vegetables especially in the countries like China and India. All types of fresh fruits and vegetables are widely available because of India's diverse environment. After China, it is the second-largest producer of fruits and vegetables in the world.

India produced 200.45 million metric tonnes of vegetables and 102.48 million metric tonnes of fruits in 2020–21, according to the National Horticulture Database (Second Advance Estimates) issued by the National Horticulture Board. Fruits were grown on an area of 9.6 million hectares, while vegetables were grown on an area of 10.86 million hectares. Additionally, according to FAO (2021), India is the leading producer of ginger and okra among vegetables, and it ranks second in the production of potatoes, onions, cauliflowers, brinjal, cabbages, and other vegetables. Among fruits, the country produces the most bananas (26.45%), mangoes (including mangosteens and guavas) (43.80%), and papayas (39%).

Fruit & Vegetable Processing Market: Competitive Analysis

The global fruit & vegetable processing market is dominated by players like:

• SPX FLOW
• GEA Group Aktiengesellschaft
• Tetra Pak International S.A.
• Krones AG
• ALFA LAVAL
• JBT.
• I.M.A. INDUSTRIA MACCHINE AUTOMATICHE S.P.A
• Feldmeier Equipment Inc.
• Scherjon Dairy Equipment Holland B.V.
• Coperion GmbH
• Van den Heuvel Dairy & Food Equipment B.V.
• GEMAK
• Sealtech Engineers Private Limited
• Inoxpa S.A.
• Stephan Machinery.
• SSP Pvt. Ltd
• Saputo Inc.
• Mahanagar Engineering Pvt. Ltd
• Dairy Tech India.
• ABL TECHNOLOGIES LTD
• Varsha Engineers among others.

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

By Type

• Fruit
• Vegetable

By Product Type

• Frozen
• Canned
• Dried & Dehydrated
• Others

By Technology

• High Pressure Processing (HPP)
• Microwave Processing
• Pulsed Electric Field Processing (PEF)

By Processing System

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

By Equipment Type

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

By Operation

• Automatic
• Semi-Automatic

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa