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The global dehydrated vegetables market size was valued at USD 5.32 billion in 2021. The market is projected to grow from USD 5.70 billion in 2022 to USD 9.19 billion by 2029, exhibiting a CAGR of 7.07% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with dehydrated vegetables experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited below average growth of 5.34% in 2020 as compared to 2019.
The global market is experiencing strong growth primarily due to the surging demand for products with higher shelf life. Dried veggies are ready-to-eat foods with a longer shelf life. Dehydrating veggies enable them to stay preserved and safe for a longer time. Furthermore, dehydration reduces the weight and space required to store and transport products. Dried veggies are a convenient option in today's lifestyle, where most families have both parents working and do not find time to shop, clean, sort, and cut veggies. Manufacturers are focusing on introducing products to cater to consumer demand. For instance, in December 2020, Anuha Food Products (AFPPL), a food processing startup based in Hyderabad, launched a range of ready-to-cook (RTC) products under its dehydrated gluten-free F&B brand Zilli. The product range includes dry onion flakes and garlic cloves with no preservatives.
Hindrance in Supply Chain amidst the Pandemic Affected the Market Growth
The dried vegetables market experienced a slight negative impact during the COVID-19 pandemic. Limits on the movement of people, travel bans, and lockdowns contributed to labor shortages in the agricultural sectors in many countries, predominantly during the demand for seasonal products. For instance, during the pandemic, travel bans within the European Union and the closure of the Schengen area have substantially reduced the workforce in the fruit and vegetable sector in several European countries. Moreover, labor shortages also lead to production losses and shortages of products in the market.
The rising consumer awareness regarding the nutritional content of fresh veggies has compelled traditional and small farmers to meet up with the requirements of good seeds, efficient practices, and the ability to provide safe and high-quality vegetables. For instance, as per the National Horticulture Database published by the National Horticulture Board, for 2020-21, India cultivated 200.45 million metric tons of vegetables. The area under agricultural vegetables stood at 10.86 million hectares.
However, due to the COVID-19 pandemic outbreak, there has been an upsurge in demand for products with higher shelf life. The snack food businesses benefited from COVID-19. Due to the increased relevance of preventative healthcare among consumers, they are becoming more sensitive about enhancing immunity. As a result, the demand for healthy, clean-labeled dehydrated products is projected to see unprecedented demand. According to the Food and Drug Administration (FDA), vegetable produce processors minimize microbial food safety hazards associated with fresh-cut produce.
Moreover, the Good Manufacturing Practices (GMP) has established standards for food safety practices applicable to manufacturers who manufacture, process, pack, or hold processed food. Therefore, recent trends have been observed in consumer consumption patterns. As consumers seek healthy and convenient food, this factor significantly aids in boosting the demand for clean labeled dehydrated vegetable products.
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Increasing Demand for On-the-go Snacking Products to Augment Market Growth
Consumer demand for convenience has escalated dramatically in recent years owing to their rapidly changing purchase behavior for various food and beverage products. Many consumers demand nutritious, cost-effective on-the-go snacks that satisfy their taste buds while meeting their nutritional needs. Moreover, consumers are shifting from carbonated to non-carbonated drinks owing to various healthier alternatives. Hence, multiple companies are coming up with ready-to-drink, natural, fresh, convenient, and budget-friendly beverages to satisfy consumers' needs and demands.
For instance, in December 2022, Just Pure Foods introduced a snack made with tomatoes. Rather than baking or frying, the product is prepared by drying tomatoes at low temperatures. Moreover, the product is gluten-free, nut-free, vegan, keto-friendly, and non-GMO.
Surge in Use of Dehydrated Vegetables Due to the Growing Demand for Packaged Food Products
The growing demand for processed food products is stimulating producers of food items toward the preparation of new food items, which are anticipated to provide nutritious and ready-to-eat food products having sufficient health benefits. In addition, these veggies are rapidly evolving as preferred snack items amongst consumers who generally go for ready-to-eat veggies in dehydrated form. At the same time, these veggies have the potential to retain their nutritional value also. Also, the growing need for dried vegetables is rising, owing to the frantic lifestyle of working-class people in tier 1 cities. The challenging and demanding working environment in cities results in extended working hours, which makes it more difficult for consumers to spend time cooking at home, and thus, this hectic lifestyle forces customers to opt for ready-to-eat meals.
Additionally, consumers are looking for simple, delicious, and low-cost food products that could benefit their fast-paced lifestyle, providing more variety and increasing the number of choices for their consumers. Besides this, the demand for packaged food and beverages has made companies invest more in market research and the development of dehydrated vegetable processes. To improve product quality and increase efficiency, various companies focus on implementing innovative technologies to enhance product performance and meet consumer demands. Thus, this is likely to drive the development of the dried vegetables market in the near future.
Increasing Adoption of Dried Vegetables in Fast Food Chains Boosts the Consumption of Dehydrated Vegetables
The ideal method for preserving seasonal fruits and veggies that is widely accepted is food dehydration. These dried veggies are easy to store, cost-effective, and nutritious. The soaring adoption of fast food chains in the food sector propels market growth. Besides this, various brands are constantly trying to broaden their product portfolio of nutrient-dense dried products in on-the-go offerings, ready-to-cook offerings, meals, and snacks. Furthermore, the rising demand to preserve food products for a longer period to use them as raw ingredients in the end products generates demand in the dried vegetables market. Thus, rising awareness among consumers concerned with extending the shelf life of dried veggies has unwrapped new growth areas for this market. In addition, the burgeoning year-long demand for products consisting of seasonal ingredients is strengthening the dehydrated vegetables market growth.
Fluctuations in Raw Material Prices are Hindering the Supply and Demand for Dehydrated Vegetable Products
During the past few years, high food prices, rising unemployment, and the rapidly rising world population have caused concern over food security. However, other factors such as storage, workforce, and transportation have increased final product costs. Regarding specific vegetables requiring specific temperatures, humidity, light, climate change, and pest attacks have threatened the livelihood of millions of vegetable producers in the past few years. But, the return on investment in agriculture products is also decreasing, making it difficult for small producers with less than two hectares of land. Thus, this is causing hindrances in the supply and demand for veggies required for producing dried veggies. Besides this, consumers' shift toward a healthy lifestyle motivates people to adopt healthy eating habits and avoid consuming processed food, negatively affecting the market. The pandemic has made people opt for healthy eating habits by increasing health consciousness among consumers.
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Tomato to Hold the Largest Share Owing to its Dynamic Usage in Various Food Industries
The market is segmented into potato, tomato, onion, and others based on type. The tomato segment witnessed a strong sales performance over other vegetable sources. The pandemic's indiscriminate character has impacted people's health and quality of life, which led to an upsurge in demand for fruits and veggies, including tomatoes. However, using tomatoes in various dishes by various food service industries, hotels, and restaurants is driving the tomato segmental growth in this industry. Moreover, the growing fast-food sector is further contributing to the market expansion.
The onion segment is projected to exhibit substantial growth during the forecast period. Onions are a staple vegetable and are primarily used to prepare various meals. However, peeling and chopping onions could be tiresome for consumers leading a fast-paced lifestyle who have less time to prepare their meals. Therefore, consumers are switching to convenient alternatives, such as dehydrated onions that are easy to store, have a longer shelf life, and add to the convenience of cooking, thus escalating the demand for onions among consumers.
Cuts & Flakes to Exhibit a Significant Proportion of Global Market Due to Consumers' Rising Demand for Convenience Products
Based on form, the market is segmented into powder & granules, cuts & flakes, and whole. The cuts & flakes segment is projected to hold a substantial share of the market. Cuts & flakes form of vegetables eliminates pre-cooking hassles, which include sorting and chopping. Cuts & flakes form only require soaking the veggies before cooking and then directly adding them to the dishes, which further saves time.
Powder & granules segment is anticipated to expand dynamically at a significant growth rate. Powder & granules form of veggies contains low moisture and can be stored for longer days, reducing transportation, preservation, and packaging cost. Moreover, for infants and older people who have difficulty chewing veggies, powder form of vegetable is a good source of nutrients for them.
Increasing Demand for Dehydrated Vegetables from Snack Food Manufacturers Boosts Market Growth
By end-user, the market is bifurcated into commercial and household. The commercial segment is anticipated to hold a considerable dehydrated vegetables market share. The escalating demand for processed and ready-to-eat products among consumers, especially in developed economies, such as the U.S., Canada, Germany, and others, surges the demand for dried veggies. Moreover, the market's growth is likely to be fueled by the rising penetration of fast food chains and rising convenience such as ease of purchasing and consumption among consumers in the food sector.
Household segment is the fastest-growing segment; owing to the hectic work schedules of consumers with little time to prepare food. People are continually looking for products with a longer shelf life. Rising consumer awareness regarding extending the shelf life of dried veggies has opened up new growth areas for businesses.
Asia Pacific Dehydrated Vegetables Market Size, 2021 (USD Billion)
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In terms of geography, the market is categorized into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Asia Pacific is the leading region contributing to the global market's highest revenue share, which stood at USD 2.10 billion in 2021. The increasing prevalence of premium food products is expected to propel the Asia Pacific market growth. The changing food habits due to increasing urbanization, and therefore the desire for new tastes, especially in populous countries, such as China and India, also are fueling the market growth. Ready-to-eat products help save time amidst the consumers' busy schedules, and is a major factor that boosts the segmental growth. The rising popularity of the product in various Asia Pacific countries, especially in India and China, has driven regional sales. Furthermore, the growing popularity of organic dehydrated products among consumers worldwide is anticipated to drive the market.
The Middle East & Africa is likely to emerge as one of the fastest growing regions. Rising demand for non-seasonal products drives the market growth in the region. The demand for ready-to-eat food due to changing lifestyles among consumers further boosted the market growth. The growing retail landscape and rising product innovation in terms of packaging have significantly contributed to the market growth.
The North America market is driven by the growing popularity of small packaged foods as a part of consumers' regular diets. Dried veggies are used in various food applications such as soups, baked goods, salads, sauces, and others. The North America dried vegetables market is growing owing to rising consumer demand for healthy products. This demand has been driven by rising income and wealth and the need for convenient foods.
A significant opportunity in this industry is the rise in demand from developing countries in South America. Brazil and Argentina are the prominent markets in the region. Emerging economies in South America are contributing to the growth of the dried vegetables market and providing opportunities for this market. Many food manufacturers and outlets have expanded their presence in the region. Developing Quick Service Restaurants (QSRs) and food service outlets in the region has been a significant opportunity for the growth of the Latin American dried vegetables market.
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Countries in Europe are witnessing an upsurge in the usage of dehydrated products, which is likely to contribute to the overall regional performance. Food manufacturers are shifting from synthetic products to natural alternatives as regional customers want more natural ingredients. As a result, local firms have focused on creating unique, natural, and organic dehydrated vegetable products in recent years to attract a larger market.
Van Drunen Farms is Focused on Partnerships to Strengthen its Presence in the Global Market
Van Drunen Farms is currently focusing on partnerships to support business growth in the global market. For instance, in February 2020, Van Drunen Family of Companies and Folium Biosciences announced a new strategic collaboration wherein sister companies Van Drunen Farms and FutureCeuticals will be the distributor in the food, beverage, and supplements category for Folium products around the world. This partnership enables the company to expand its global footprint and focus on innovation and product development. Overall, the market exhibits a highly fragmented and competitive landscape as manufacturers compete against each other to grow their market share. A few prominent players in the industry hold a considerable share of the entire market owing to their strong brand loyalty & distribution network.
Other key players include ITC Limited, BCFoods, Inc., Sensient Technologies Corporation, European Freeze Dry Ltd, and Mercer Foods LLC. These companies focus on joint ventures, new product launches, certification and acquisition, and new product development to strengthen their market presence.
An Infographic Representation of Dehydrated Vegetable Market
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The research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product sources, and end-use applications of dehydrated vegetables. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.
Value (USD billion)
By Type, Form, End-user, and Geography
Fortune Business Insights says that the value of the market was USD 5.32 billion in 2021 and is projected to reach USD 9.19 billion by 2029.
In 2021, the Asia Pacific market value stood at USD 2.10 billion.
Growing at a CAGR of 7.07%, the market will exhibit steady growth in the forecast period (2022-2029).
The tomato segment is expected to be the leading market segment based on type during the forecast period.
Long shelf life and increasing adoption in fast food chains boost the consumption of these type of vegetables.
Van Drunen Farms, BC Foods, and Mercer Foods LLC are the top players in the market.
Rising demand for ready-to-eat products is expected to majorly drive the product adoption.
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