Fruit and Vegetable Processing Market Size, Share, and Industry Analysis By Type (Fruits and Vegetables), By Product Type (Raw Fruits, Fresh Cuts, Canned, Frozen, and Dried & Dehydrated), By (Pre-processing, Washing, Filling, Seasoning, and Packaging), and Regional Forecast till 2032

The global fruit and vegetable processing market is expected to rise strongly due to the rising need for convenient and balanced meals. As many people are living very busy lives in cities, processed foods that preserve their nutrients for a long time are needed more frequently. Products from food industry now follow tighter safety and quality standards due to new HPP and microwave-based processing methods. The market sells many types of foods, including items that are canned, frozen or dried, as customers want. As more people are paying attention to their health and choosing plant-based foods, this industry is expected to experience major growth in the next 10 years.

Fruit and Vegetable Processing Market Driver

Health-Conscious Consumers Drive Innovation in Processed Fruits and Vegetables

Many now associate healthy benefits with eating fruits and vegetables, so demand for products that do not lose nutrients has grown. People favor healthier foods that are also convenient, so processing technologies such as High Pressure Processing (HPP) and powered electric field processing are growing. By doing this, you ensure that your vitamins, minerals and antioxidants stay undamaged for a longer period. Interest in processed fruits and vegetables rose in recent years and in 2023, the country handled nearly 22 million tons, states the U.S. Department of Agriculture. Moreover, with functional foods and fortified drinks becoming more popular, producers work to offer nutritious options that meet what shoppers prefer.

Fruit and Vegetable Processing Market Restraint

Fresh Produce Preference and Supply Chain Challenges Restrain Processed Fruits and Vegetables Market Growth

Despite the benefits of processed fruits and vegetables, many individuals in regions that have plenty of fresh produce keep choosing unprocessed items as they believe they taste and are healthier. Thus such preferences stand in the way of market growth, mainly affecting regions with ready supplies of fresh produce. In addition, as raw materials are perishable, logistics and management of stocks are more difficult for processors. Only about 41% of fresh produce in the U.S. was processed in 2023, according to data from the U.S. Department of Agriculture. Sticking to regulations about safe food and labeling often results in more difficult operations for manufacturers and restricts the ability of affordable brands to expand in some regions.

Fruit and Vegetable Processing Market Opportunity

Plant-Based Trends Open New Frontiers for Processed Fruit and Vegetable Industry

An increase in plant-based diets opens new possibilities for companies in the fruit and vegetable sector. To serve people who care about their health and the environment, manufacturers are creating new product lines like meat alternatives, dairy-free snacks and nutritious concentrates. Different sustainable packaging options, designed to breakdown or be recycled, are gaining interest and meet today’s sustainability standards. The European Union market for organic fruit and vegetable products reached 6.8 million tons in 2023, showing that the segment is ready for expansion, says the European Commission. Thanks to e-commerce platforms, processors are able to boost their reach and help the market expand.

Segmentation

Key Insights

The report covers the following key insights:

• Key Industry Trends
• Growth Drivers and Restraints
• Regional Market Dynamics
• Key Industry Developments

Analysis By Type

By Type, the Fruit and Vegetable Processing Market is divided into Fruits, Vegetables. 

Since there is more demand for things like fruit juices, concentrates and fruit snacks, the category of fruits is set to lead. The growth in the segment is supported by greater attention to health and functional beverages. In addition, the Vegetables segment is on pace to grow regularly due to increased demand for frozen and canned vegetables in meals.

Analysis By Product Type

By Product Type, the Fruit and Vegetable Processing Market is divided into Raw Fruits, Fresh Cuts, Canned, Frozen, Dried & Dehydrated. 

Customers like the frozen segment as it lets them enjoy fresh meals longer and this is a major reason for its growth. Here, the Canned segment stands out the most in regions where it’s difficult to obtain fresh foods. Portable and lasting dried and dehydrated goods are seeing more popularity these days.

Analysis By Equipment

By Equipment, the Fruit and Vegetable Processing Market is divided into Pre-processing, Washing, Filling, Seasoning, Packaging. 

PACK EXPO attendees should focus on the Packaging equipment segment due to ongoing improvements in sustainable and smart packaging. Both Pre-processing and Washing equipment guarantee the hygiene and efficient functioning of production lines.

Regional Analysis

Based on geography, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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Advanced technology and a high demand for easily prepared foods play a major role in making North America the main player in fruit and vegetable processing. In the U.S., there are 1,350 processing plants that produced more than 3 million tons of frozen products last year (U.S. Census Bureau). Due to the retail infrastructure and the strong demand for prepared meals, the market is growing. Approximately 5.2 billion CAD of industry revenue is contributed to Canada each year (Statistics Canada). The use of strict food safety measures and new technologies such as HPP, help Europe lead the world in processed fruit and vegetable products.

The fruit and vegetable processing market in Europe is developed, with strict guidelines and concern for health. There are 250 tomato processing companies in Germany and Italy made 2.4 million tons of tomato paste during the same year. The area values promoting sustainability and maintaining nutrients in processed foods. Consumer demand for organic processed products hit 6.8 million tons in 2023 (according to the European Commission) as more people are choosing healthy options. Improved packaging and supply chains make Europe a leader in canned and frozen products, still placing it as a leading processing center.

In Asia Pacific, the quickest growth comes from changes related to cities, increased incomes and more food processing plants. As of 2023, China has 2,200 processing plants according to the National Bureau of Statistics and India produced 2.5 million liters of juice that year. Western influences on eating habits and the search for convenience are encouraging the market’s development. Although, choosing healthy foods nearby can cause certain difficulties. With 600,000 tons of processed fruit being shipped from Thailand, we can expect great growth in the food industry. Due to the area’s strong base in farming and growing retail industry, it is set to experience great future market growth.

Key Players Covered

The report includes the profiles of the following key players:

• Conagra Brands (U.S.)
• Greencore Group (U.K.)
• Nestle (Switzerland)
• Olam International (Singapore)
• The Kraft Heinz Company (U.S.)
• Pepsico, Inc. (U.S.)
• Agrana Beteiligungs-AG (Austria)
• Bonduelle (France)
• Dole Food (U.S.)
• SVZ International BV (Netherlands)