Vegetable Puree Market Size, Share & COVID-19 Impact Analysis, By Type (Carrot, Spinach, Tomato, Pumpkin, and Others), By Application (Ready-to-eat/Cook Products, Infant Nutrition, Beverages, and Others), By Nature (Organic and Conventional), and Regional Forecast, 2021-2028

The global vegetable puree market size was USD 9.59 billion in 2020 and is anticipated to grow from USD 9.97 billion in 2021 to USD 14.40 billion in 2028 at a CAGR of 5.40% in the 2021-2028 period. The global market showed lower growth of 1.15% in 2020 compared to the average year-on-year growth during 2017-2019. The COVID-19 outbreak has negatively impacted the vegetable puree supply chain due to factors such as the imposition of lockdown, restricted public mobility, and workforce shortage. This will have an impact on market performance and the import of raw materials such as fresh vegetables due to transportation delays. 

The growing trend towards healthy eating has developed several opportunities for marketers, selling and manufacturing vegetable mash. Nowadays, consumers have started to view it as an ingredient that saves cooking time as well as suffices the nutritional intake. Moreover, organic and clean-label assurance products have become a part of the healthy eating trend, which has nudged the manufacturers to use organic vegetables for manufacturing vegetable mash. These aforementioned factors are anticipated to drive the global vegetable puree industry in the forthcoming years.

Disturbances in Supply Chain Management during COVID-19 Pandemic to Slow Down Growth

The COVID-19 pandemic outbreak has resulted in a global standstill in various sectors such as food and beverage, machinery, and medication industries, along with impacting the economy negatively due to the closure of various manufacturing facilities, shortage of workforce, and supply volatility of raw materials. The virus outbreak has widely affected consumer purchasing behavior. The consumers in the initial stages of the outbreak, due to lockdown imposition, stockpiled shelf-stable food products such as vegetable mash and other processed products leading to an increase in its sales. However, on the supply side, manufacturing companies are facing difficulties in meeting the demands owing to factors such as labor shortages, firm closure of manufacturing facilities, and disruptions in raw material procurements.

The pandemic situation is normalizing, and industries are returning to their normal functioning.  The sales of vegetable mash and other plant-based foods were not affected much as the online delivery services remained functional. According to the Institute of Food Technologists report, 2020, online grocery sales in the U.S. is likely to represent anywhere from 4.8% to 9.1% of the total grocery sales by the end of 2021. This grew by 3.1% compared to 2019. Consumers are looking for better-for-you products that are minimally processed, which can support their overall health in such a stressful time. Thus, contributing toward boosting processed vegetable and fruit sales.

LATEST TRENDS

Digitalizing the Supply and Value Chain is a Prominent Trend

The traditional supply chain model consists of a system that primarily relies on human interaction and interventions with less use of digitalized platforms. Digitalization is getting increased importance in the sourcing of processed vegetables. Several outlines require performing a hassle-free operation from the procurement of raw materials to reduce waste and losses. The manufacturers are intensively focusing on implementing digital control, design, synchronization, and others to monitor the flow of the process. A lot of data is collected on the sector association levels to establish quality parameters and market data. This data helps in improving transparency and better control of the supply chain. Digitalizing these data will help in getting easier access, better analysis, and product innovation.

DRIVING FACTORS

Rising Popularity of Plant-based Products and Veganism to Favor the Market Growth

In the past few years, consumer awareness regarding the health attributes of natural, plant-based products has significantly increased. The rapidly surging trend of veganism has spread across the globe. Besides, lower consumption of vegetables and fruits is associated with an increased risk of several chronic diseases. Therefore, vegetable mash serves as a convenient way of incorporating the nutritional benefits of vegetables into the daily diet. Consumers are widely replacing meat with plant-based products for their protein intake, which is also a factor favoring the vegetable puree market growth.

Growing Interest of Consumers towards Convenience Foods to Drive Growth

A rising number of customers around the world are seeking easy and healthier lifestyles amid their busy working schedules and routines. However, several factors are influencing their food choices, including affordability, availability, convenience, lifestyles, and cultural preferences that have promoted the popularity of vegetable mash among them.

Consumers, especially the millennials who may lack skill, equipment, or time for cooking, create growth opportunities for more premium convenience and ready-to-go foods. At present, the demand for vegetable puree containing baby foods is high among the population as various rural children populations suffer from malnutrition – the domestic key players of the region are focusing on introducing new products by partnering with relevant stakeholders to advance their R&D initiatives, provide toddlers and children with nutritionally rich food, and strengthen their distribution network. Furthermore, the increased capitalization on technological advancements and research & development centers have led to deliver healthy yet palatable vegetable mash without compromising its nutrient content that includes condiments and several beverages in the market.

RESTRAINING FACTORS

Fluctuating Vegetable Prices to Hamper Market Growth

Vegetables have great economic value for the agribusiness sector, but as the demand and supply are inelastic, a slight change in the supply can cause a significant change in their price, which ultimately impacts the overall end-product price. The unstable and volatile market has several widespread implications on the vegetable mash manufacturers in the global marketplace. The unforeseen fluctuations in the price of raw materials, rising energy and natural resources costs, and other obstacles are destabilizing the supply chain in the market.

SEGMENTATION

By Type Analysis

Tomato to Hold Major Share Backed by Increasing Demand from Processed Food Industry

On the basis of type, the market is classified into carrot, spinach, tomato, pumpkin, and others. The tomato segment held a dominant share of the market in 2020. Tomatoes are easily available in the market at any given time, which has increased the demand for tomatoes and use in various other food products. Henceforth, customers have become habitual to tomato taste and flavor, and hence, other tomato products have also gained popularity in recent years.

Apart from processed food manufacturers, many fast-food restaurant owners are also infusing tomato puree into their recipes, such as beverages and salad, with other traditional vegetable ingredients. The fondness for tomatoes has triggered the use of tomato puree in many different products.

Furthermore, the increasing demand for carrot and spinach soup and juice and the rising use of these purees in infant food preparation is likely to increase carrot and spinach puree sale.

By Application Analysis

Ready-to-Eat/Cook Products Segment to Account for the Highest Market Share

Based on the application, the market is categorized in ready-to-eat/cook products, infant nutrition, beverages, and others. Consumers nowadays are demanding products that are more nutritious, customizable, natural, and most importantly, such products must help them maintain pace amidst their busy lifestyles. This factor primarily fuels vegetable mash in various convenience foods such as ready-to-eat/cook products. Moreover, consumers are very conscious about their infant food choices and always inclined towards nutritious and healthy food, which is encouraging infant food manufacturers to include vegetable mash in the product preparation.

By Nature Analysis

The Demand for Organic Vegetable Puree to Grow at the Fastest Pace in Near Future

Based on nature, the global market has been categorized into organic and conventional. Consumers these days are seeking products that can help them in living a more sustainable and responsible lifestyle. Henceforth, the popularity of organic food is increasing tremendously. For instance, according to a survey conducted by Forbes magazine in 2020, nearly 65% of consumers look for socially and environmentally friendly products. The rising demand for organic vegetable puree-containing products, especially infant nutrition products, is expected to positively leverage the market growth.

REGIONAL INSIGHTS

The vegetable mash market across Europe is primarily driven by the rising consumer inclination towards health-promoting and ready-to-cook products. According to the Ministry of Foreign Affairs report, Europe 2020, the changing consumer's eating habits and their gradual shift from traditional breakfast are choosing new options such as smoothies and soups have prompted the demand for vegetable puree. The increase in consumption of ready-to-eat/cook products that offer high nutritional value and the incorporation of exotic vegetable mash in several food products helps in driving the market in the region. Furthermore, the increasing demand for natural and healthy foods across the region substantially contributes to the growth of this market.

North America is likely to hold the largest share in the market and the market valued at USD 3.53 billion in 2020. The significant growth of the vegetable mash market in North America can be attributed to increasing awareness among customers regarding their health and wellness. Along with this, they are seeking cleaner products that are minimally processed and retains all their nutritional properties. This has led to increasing demand for fortified food products., Additionally, the ongoing technological advancements in the processed food and beverages industry across the globe have supported the market growth.

The U.S., the world’s largest vegetable puree market, accounts for more than 30% of consumption. Over the past few years, U.S. consumer's food preferences have evolved and gradually inclined towards health-improving foods to manage lifestyle-related health conditions. For instance, in February 2021, the National Center for Health Statistics of the Centers for Disease Control and Prevention, U.S., published a research paper regarding fruits and vegetable consumption among adults in the U.S. The survey concluded that 95.1% of the adults in the U.S. consumed any vegetables on any given day, with 79.2% of the adults consuming red and orange vegetables more. The increasing demand for vegetable and vegetable-containing products is anticipated to support the steady growth of the country’s market over the forecast period.

Asia Pacific is predicted to exhibit significant growth opportunities for the market on account of the rising disposable income and improving the standard of living in the region. The expansion of the food and beverage industry due to the rising population, along with their growing inclination towards premium-sized processed foods, is also expected to act as a major driving factor for the market growth. Presently, the Asia Pacific market for vegetable puree holds a considerable share and is anticipated to grow at a CAGR of 5.70% during the forthcoming years.

South America, and the Middle East, and Africa’s markets currently account for a small fraction of the global turnover in the industry, but vegetable puree is anticipated to evolve further as a vital ingredient in the food processing sector over the coming years.

KEY INDUSTRY PLAYERS

Ingredion Incorporated and Dohler Group to Acquire Leading Position in the Global Market

In terms of the competitive landscape, Ingredion Incorporate held a leading owing to its huge cliental base, strong geographical presence, strong brand loyalty, and diversified product portfolio. The consolidation in the vegetable mash market has started to intensify in recent years due to the increased popularity of plant-based food products and its growing incorporation in various ready-to-eat/cook foods and functional beverages as a beneficial and health-promoting ingredient. The prominent players embarking on joint ventures with related stakeholders and new product development to effectively penetrate more in the potential global marketplace and diversify their product portfolio.

Henceforth, in July 2020, Ingredion Inc. launched three new organic native starches. It included Purity Bio 201 organic native corn starch, Purity Bio 301 organic native tapioca starch, and Purity Bio 805 organic native waxy rice starch for Canada and the United States. These new ingredients can be used in the preparation of organic vegetable mash to maintain its thickness and consistency.  Similarly, in January 2021, Baby Gourmet Foods Inc. announced the expansion of its organic baby and toddler food manufacturing capacity in the U.S., which includes baby snacks, meals, cereals, and purees.

LIST OF KEY COMPANIES PROFILED:

• Nikken Foods Co. Ltd. (Tokyo, Japan)


• Sun Impex (Dubai, UAE)


• Conrox Agro and Food Pvt. (Maharashtra, India)


• Dohler GmbH (Darmstadt, Germany)


• Del Monte Foods Inc. (California, United States)


• Ingredion Incorporated (Illinois, United States)


• SVZ Industrial Fruit and Vegetable Ingredients (Netherlands)


• Baby Gourmet Foods Inc. (Calgary, Alberta)


• Encore Fruit Marketing Inc. (San Dimas, California)


• Kagome Co. Ltd. (Tokyo, Japan)

KEY INDUSTRY DEVELOPMENTS:

• February 2020: Kagome Foods India Pvt Ltd. announced the launch of its exclusive tomato-based product range in India. The new product profile comprises crushed tomatoes, tomato puree, tomato concentrate, and several others.


• November 2019: The Italian cooperative company founded by the Consortium Almaverde Bio announced the launch of organic tomato puree and pulp. The company launched this product based on the new research regarding the consumers growing preferences towards organic food products.


• February 2019: SVZ Industrial Fruit and Vegetable Ingredients announced that the company had increased its production capacity in Othello (WA) by adding an aseptic puree processing and packaging line to meet the growing demand for high-quality fruit and vegetable ingredients.

REPORT COVERAGE

The market research report includes qualitative and quantitative insights into the industry. It also offers a detailed industry analysis along with the market size and growth rate for all possible segments. Various key insights presented in the report are an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, SWOT analysis, the regulatory scenario in critical countries, and key vegetable puree market trends.

Report Scope & Segmentation