ASPARAGUS MARKET ANALYSIS

The asparagus Market size is valued at US$ 33.9 Bn in 2024 and is expected to reach US$ 44.51 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4% from 2024 to 2031.

Global Asparagus Market Regional Insights:

• Europe held the largest share of over 41% in 2023. Significant demand for fresh and healthy foods in the region, along with the swiftly rising demand for functional and healthy foods, is the key factor boosting the market growth in the region.
• Asia Pacific is estimated to register a CAGR of 3.9%, in terms of revenue from 2024 to 2031. The product type sector in the region is anticipated to be the key factor for the market growth owing to the presence of some of the largest asparagus manufacturers including Altar Produce LLC, Sociedad Agrícola Virú, and DanPer Trujillo S.A.C.,
• North America is predicted to witness steady growth across the forecast period. Increasing demand in the food sector, and increased online product delivery services across developed countries in Western Europe including Italy, the U.K., Germany, France, and Spain will positively influence the market growth in the region.

Figure 1. Asparagus Market Share (%), By Region, 2024

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Analyst’s Views:

The market continues to grow steadily, driven by increasing consumer preference for fresh and highly nutritious vegetables. Rising health consciousness coupled with the multiple culinary uses of asparagus has boosted demand from both commercial and retail buyers. Europe and North America currently dominate global consumption owing to their sophisticated food cultures and developed retail networks. However, with nutrition and diet becoming priorities in Asia Pacific as well, the regional market is expected to surge rapidly in the coming years. While the overall fundamentals remain strong, fluctuations in weather conditions pose a major threat to asparagus production. Unseasonal rains or extended droughts can dent crop yields and drive up market prices temporarily. Pests and diseases also require close monitoring to prevent large-scale crop damages. On the supply side, the fragmented nature of asparagus farming tends to restrict improvements in land usage, agricultural practices, and product consistency.

At the same time, the shifting tastes of millennial towards fresh healthy products and expanding online retail platforms are opening new opportunities. Similarly, the growing popularity of modern supermarket chains in emerging markets is expanding the potential consumer base. Producers optimizing land use through soilless systems and implementing efficient fresh supply chains will be well-positioned to capture the future demand.

Market Drivers:

Growing demand for fresh and healthy foods: The growing health consciousness among consumers worldwide has boosted the demand for fresh and healthy foods in recent years. Asparagus is one fresh vegetable that fits this growing demand very well due to its exceptional nutritional profile. Asparagus is low in calories and fat, but high in vitamins, minerals, fiber, and antioxidant plant compounds. It is a terrific source of folate, an essential B-vitamin that is important for cell growth and development. Asparagus is also rich in other vitamins like vitamin K, riboflavin, and thiamin as well as minerals like potassium. Research suggests that the unique phytonutrients in asparagus may help reduce the risk of certain cancers. By US Department of Agriculture Nutrient Database.

Increasing cultivation of asparagus: The cultivation of asparagus has been steadily rising across major asparagus producing nations which is positively impacting the market. Countries, such as Peru, China, Mexico, U.S., Spain, and Italy, which collectively account for over 80% of the world's asparagus production have seen significant rise in asparagus planting area and harvest over the past few years.

For instance, Peru which is the largest producer and exporter of asparagus in the world witnessed its harvested asparagus area expanding from around 46,400 hectares in 2016 to over 58,000 hectares in 2020. Similarly in China, the second largest producer of, the planted area increased from around 123,400 hectares in 2015 to nearly 140,800 hectares in 2021.

Rising domestic consumption in developing nations: The growth of the market is being fueled significantly by the rising domestic consumption in developing nations. With improving economic conditions and increasing spending power, consumers in developing countries are consuming more asparagus due to its various health benefits.

Another key driver is the favorable demographic dynamics of urbanizing young population in developing countries. Greater number of working women along with nuclear family structures has increased the demand for convenience foods like ready-to-eat packaged asparagus. This has encouraged local farmers as well as global producers to cater to this untapped domestic demand. For example, as per the United Nations Population Fund data for 2020, around 64% of China's population lives in urban areas leading to lifestyle changes and preference for healthy convenience foods. This urban population relies less on traditional diets and tries different exotic vegetables.

Market Opportunities:

Product diversification and new product development: Product diversification and new product development can provide significant opportunities for growth in the market. Asparagus is primarily consumed as a vegetable however, expanding its applications in different product categories can help drive increased demand. Food manufacturers are exploring innovative ways to utilize asparagus in various ready-to-eat foods, snacks, and other value added product formats. This plays an important role in catering to the busy lifestyles of modern consumers who seek convenience alongside a healthier diet.

For instance, asparagus based soups, pastas and risottos are gaining popularity as they offer a simple way to add nutrition from asparagus. Product developers are also launching asparagus extracts and powders which can be easily incorporated into bakery products such as breads and muffins without altering the overall taste. These product extensions make it convenient for people to include asparagus in their diets. The foodservice industry too is coming up with diverse asparagus-based dishes and meal solutions. All these efforts are expected to appeal to a wider audience and broaden the existing market base.

Growing demand from the food processing industry: The market has a tremendous growth opportunity arising from the increasing demand from the food processing industry across the world. Asparagus is increasingly being used as an ingredient in ready-to-eat and packaged food products owing to its various health benefits. Food processors are utilizing asparagus in snacks, dips, soups, and other value-added products to offer consumers healthier and more nutritious options.

This trend is expected to gather strong momentum in the coming years as consumers become more health-conscious and prefer food products with additional nutritional value. According to data by the United Nations Food and Agricultural Organization (FAO), the demand for packaged and processed food containing antioxidant-rich vegetables like asparagus grew by over 12% between 2020 and 2022 across major countries. This rise in demand is encouraging food companies to develop newer asparagus-based food innovations to cater to the burgeoning health-focused market. For instance, large food companies have introduced asparagus-flavored crackers, dips, and ready-to-eat soup kits containing asparagus in recent years.

Investment in automation and precision farming: Investment in automation and precision farming could provide significant opportunities for growth in the market. As labor costs continue rising around the world, automated solutions for planting, weeding, harvesting and packing asparagus are becoming increasingly viable options for farmers looking to reduce expenses. Precision farming technologies allow farmers to carefully monitor soil conditions, water levels, and crop health using sensors and data analytics. This helps ensure asparagus plants receive precisely the right amounts of water, fertilizer, and other inputs exactly when they need it. Automated irrigation and fertilizer distribution systems can be programmed based on real-time sensor readings from each section of a field. Such targeted resource application leads to higher yields while minimizing waste and pollution which is beneficial from an environmental perspective.

Market Trends:

Rising popularity of canned and frozen asparagus: The rising popularity of canned and frozen asparagus is having a significant influence on the market. With increasing urbanization and changing lifestyles, more consumers are opting for convenience foods that can be easily stored and consumed without much preparation. Canned and frozen asparagus have emerged as popular options as they allow consumers to enjoy asparagus throughout the year, regardless of the season. The cans and packages used for canned and frozen asparagus also help reduce food waste as the product stays fresh for longer durations compared to fresh asparagus.

This growth in demand for canned and frozen varieties is prompting asparagus farmers and producers to adapt their business models. There is more focus on mechanized harvesting and processing to efficiently handle larger volumes and canned or frozen production lines are being expanded. Countries with suitable growing climates like Peru, Mexico, and China are increasing their asparagus acreage to cater to this demand. According to data from the Food and Agriculture Organization (FAO) Corporate Statistical Database, Peru's asparagus production increased from 154,000 metric tons in 2015 to over 197,000 metric tons in 2020. Peru is one of the largest exporters of canned asparagus and this growth in production indicates its effort to tap into the rising global demand for canned varieties.

Growth in contract farming and partnerships with retailers: The trend of contract farming and partnerships with retailers is having a significant influence on the market. Under contract farming arrangements, asparagus farmers agree to grow and supply the crop to certain retailers or exporters as per their quality and quantity requirements in return for financial and technical support. This allows large retailers and exporters to ensure a steady supply of asparagus throughout the year to meet the consumer demand.

Many big retailers are directly partnering with asparagus farmers and providing them guidelines on farming techniques, seeds, fertilizers, and post-harvest handling. For instance, in Peru, which is one of the largest asparagus exporters, major supermarket chains like Walmart have collaborated with thousands of smallholder farmers. Through this model, the yields have increased while rejecting rates have reduced. The farmers get an assured market for their produce and technical know-how while retailers get consistent supply of safe food. Such partnerships are helping to expand the asparagus cultivation area and production volumes globally.

Market Restraints:

• High production and labor costs: High production and labor costs are significantly hampering the growth prospects of the market. Asparagus being a highly perishable crop requires intensive labor right from planting to harvesting and packaging. The labor costs involved in picking asparagus shoots one by one manually from the field are substantially high. According to the USDA's Economic Research Service USDA ERS data from 2021, the hourly wage rates for farmworkers in major asparagus producing countries like the U.S., Peru, and Mexico are upwards of US$12 per hour which adds to the overall production expenses.
• Counter Balance: To overcome this restrain, gives an opportunity to new labor to work in that industry. And also focus on the productivity ratio.
• Trade barriers and regulations: The complex web of trade barriers and regulations across different countries is significantly restraining the growth of the market. Asparagus being an agricultural produce, its international trade is heavily dependent on agreements between countries regarding import/export quotas, duties, and certifications. Even small changes in policies can disrupt established supply chains and affect market flows.
• For instance, the trade war between the U.S. and China resulted in high import tariffs on Chinese asparagus by the U.S. As China was one of the largest suppliers of asparagus to North American markets, U.S. importers had to abruptly look for alternate sources with required certifications to meet local food safety standards. This created short term supply shortages and price volatility in the U.S. markets. Similarly, the phytosanitary norms of the European Union (EU) require rigorous pesticide residue testing of imported fresh produce including asparagus. Non-compliance can attract heavy penalties and even import bans. This increases compliance cost for producers from countries like Peru, which is another major exporter.
• Counterbalance: This can help reduce dependency on a single source and provide more stability in procurement. Entering into long-term supply agreements with raw material suppliers can provide stability in prices and supply, reducing the impact of short-term price fluctuations.

Recent Developments:

• In July 2023, the Dutch company, Teboza introduced a new asparagus product called Tasty Spears. With the introduction of Tasty Spears, the company hopes to give consumers year-round access to nutritious, fresh asparagus. Tasty Spears are harvested and frozen asparagus spears at the pinnacle of their freshness. This enables them to retain their nutritional value and flavor after thawing.
• In November 2022, the Dutch vegetable cultivator Enza Zaden released its first asparagus variety on the European market. The new variety, called "Asparagus Verde," is a hybrid resistant to fusarium wilt, a common disease that can affect asparagus crops. Additionally, Asparagus Verde matures quickly, allowing it to be harvested earlier in the season.

Figure 2. Asparagus Market Share (%), By Color, 2024

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Top Companies in the this Market

• Altar Produce LLC
• Sociedad Agrícola Virú
• DanPer Trujillo S.A.C.
• Limgroup B.V.
• TEBOZA BV
• ILIOS - The Greek Asparagus Company
• BEJO SEEDS LTD.
• Spargelhof Elsholz Gbr
• Cutter Asparagus Seed
• JERSEY ASPARAGUS FARMS, INC.
• Consorzio Associazione Produttori Ortofrutticoli Foggia
• Mazzoni Vivai
• California Asparagus Seed and Transplants, Inc.

Definition: Asparagus is a vegetable with long, green shoots that are cooked and eaten. It is a plant with pale green, juicy stems that are considered a delicacy and are typically served whole. The plant belongs to the genus Asparagus and is cultivated for its edible shoots, which are a popular vegetable choice. Asparagus is an herbaceous perennial plant that belongs to the family of lily and is grown throughout the world. Asparagus can be prepared in many ways such as roasted, steamed, grilled, pan-roasted, boiled, and fried. It has an earthy flavor, similar to broccoli and can be added to pasta, soups, salads, and stir-fries. It is an excellent source of fiber, low in colonies, and is cholesterol and fat free in nature. Moreover, it is rich in micronutrients such as vitamin K, vitamin B9, vitamins A, C, and E, as well as phosphorus, and potassium.