FRUIT AND VEGETABLE INGREDIENTS MARKET ANALYSIS

The global fruit and vegetable ingredients market size was valued at US$ 214.5 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 4.6% from 2023 to 2030. The global fruit and vegetable ingredients market is growing at a rapid pace owing to a number of factors. The main driver is a shift in consumer purchasing habits towards healthy food products. People are becoming increasingly health conscious and avoiding foods containing artificial ingredients. This is driving the demand for natural ingredients, such as fruit and vegetables. Moreover, increasing urbanization in developing nations, which is leading to an increase in packaged ready-to-eat food and beverage products is further expected to foster market growth.

Global Fruit and Vegetable Ingredients Market: Regional Insights

Based on geography, the global fruit and vegetable ingredients market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Regionally, North America is expected to dominate the global fruit and vegetable market over the forecast period owing to the rising demand for organic food products and growing popularity of clean label ingredients. The US fruit and vegetable ingredients market was valued at US$ 34.06 billion in 2019, and it is expected to reach a value of US$ 41.11 billion by 2025, while registering a CAGR of 3.20% during the forecast period.

Europe is also expected to fastest growth in the global market over the forecast period owing to the presence of competitive food processing units which makes it lucrative market for food ingredients. Moreover, Spain is a prominent cultivator of fruits and vegetables. The Spanish fruit and vegetable ingredients market was valued at US$ 6.44 billion in 2019, and it is expected to reach a value of US$ 8.90 billion by 2025, while registering a CAGR of 5.54% during the forecast period. Furthermore, in UK government is encouraging healthy eating and lifestyle. Hence, there is an opportunity for new vegetables and fruits.

The UK fruit and vegetable ingredients market was valued at US$ 9.27 billion in 2019, and it is expected to reach a value of US$ 11.44 billion by 2025, while registering a CAGR of 3.58% during the forecast period.         

Figure 1, Global Fruit and Vegetable Ingredients Market, By Region, 2023

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Global Fruit and Vegetable Ingredients Market Drivers:

Growing use of natural ingredients to augment market growth

The global fruit and vegetable market is expected to continue growing, despite the recent slowdown. Steady increases in the price of vegetables, one of the industry's top revenue-producing products, will likely bolster market growth. Government and school programs that encourage individuals to eat more fruits and vegetables will also spur demand.

Growing number of health conscious consumers worldwide

The global fruit and vegetable ingredients market is expected to witness substantial growth during the forecast period. This is mainly due to the growing emphasis on healthier lifestyles and taste choices among consumers. Fruits and vegetables are rich in nutrients such as vitamins and minerals. Moreover, they also aid in weight management and improve insulin and glycemic responses. They are also natural sources of dietary fibers which help reduce blood cholesterol and control sugar levels.

Global Fruit and Vegetable Ingredients Market Opportunities:

With increasing incidences of COVID-19 and other chronic diseases, the consumers have become more conscious about their diet and have been looking out for products that offer them health benefits. This has resulted in a considerable shift towards packaged and ready to eat food products which contain various fruits and vegetables. Additionally, rapid urbanization and rising disposable income in the developing regions of the world is propelling the growth of the market. Outbreak of pandemic has created enormous growth opportunities for key players in the market.

Growing farmers market is expected to bring bright market opportunities in the near future. Farmers' markets are an excellent way for producers to connect with consumers directly, allowing them to share their passion for quality produce and explain how they produce it. In addition, farmers' markets can provide an opportunity for small business owners to establish a brand name and increase their sales. In developed countries, there are many farmers' markets that offer a variety of goods, from fresh-pressed apple cider to hand-crafted soaps. Some markets also offer local artisan breads and award-winning cheeses to complement the produce, as well as other grocery products.

Global Fruit and Vegetable Ingredients Market Trends:

Increasing trend of clean label product

A trend toward clean label by manufacturers is driving the use of fruit and vegetable ingredients. This involves moving away from ingredient lists with ten to 15 fruits to two, three or five fruit mixes. For example, Nemi Chia LLC uses a combination of blueberries, peaches or strawberries to top its “authentic natural and healthy” chia seed yogurt blend.

Growing online presence of vendor is a recent trend

Another trend in the global market for fruit and vegetable ingredients is the growing online presence of vendors. The rising penetration of smartphones and internet connectivity is enabling consumers to purchase these products from online platforms. This is a major driving force for the market’s growth.

Global Fruit and Vegetable Ingredients Market Restraints:

Strict food safety regulation to hinder market growth

The global fruit and vegetable ingredients market faces many challenges. The most significant challenge is that of ensuring that the produce is clean, safe and suitable for sale. This is a major challenge because if the produce is not properly cleaned, it could contain microorganisms which may be infectious. To ensure safety of food products regulatory bodies, such as EFSA, FDA, and FSSAI are monitoring food and vegetables ingredients.

Lack of proper marketing strategies to hamper market growth     

There is a lack of suitable marketing channels for the produce. This is a huge challenge because the farmers need to spend time and money to promote their produce to attract potential buyers. In addition to this, there is the risk of losing customers if they are not satisfied with the quality of the product. This is because some of the fruit and vegetable ingredients have been imported from different countries. This leads to the quality control issues as some of the imported fruits and vegetables are not of good quality.            

Figure 2. Global Fruit and Vegetable Ingredients Market, By Ingredient Type, 2023

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Global Fruit and Vegetable Ingredients Market Segmentation:

The global fruit and vegetable ingredients market report is segmented into ingredient type, application, product type, and geography

Based on ingredient type, the market is segmented into Fruits and Vegetables. Out of which, Fruits is expected to dominate the global market over the forecast period and this is attributed to their multi health benefits coupled with the surging demand for healthy juices.

Vegetables segment is also expected to witness significant growth in the near future and this is owing to the growing trend of health and wellness.

Based on application, the market is segmented into Beverages, Confectionary Products, Bakery Products, Soups and Sauces, Dairy Products, and RTE Products. Out of which, Beverages is expected to dominate the global market over the forecast period and this is attributed to the high penetration of these ingredients in a variety of beverages, such as shakes and juices.

Soups and Sauces segment is also expected to witness significant growth in the near future and this is owing to the high demand for healthy food products.

Based on product type, the market is segmented into Concentrates, Pastes and Purees, Pieces and Powders, and NFC Juices. Out of which, Concentrates is expected to dominate the global market over the forecast period and this is attributed to its high consumption in fruit juices and beverages.

Pastes and Purees segment is also expected to witness significant growth in the near future and this is owing to the growing demand for healthy and nutritious food.

Global Fruit and Vegetable Ingredients Market: Key Developments

In July 2018, Sensient Technologies acquired the Vancouver-based   Mazza   Innovation Limited, a global leader in botanical extract technology, in order to evolve its seed to shelf strategy.

Global Fruit and Vegetable Ingredients Market: Key Companies Insights

The global fruit and vegetable ingredients market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global fruit and vegetable ingredients market are Hans Zipperle AG, Archer Daniels Midland Company, Kerry Group, Sensient Technologies, AGRANA Beteiligungs-AG, Kanegrade Natural Ingredients, Taura Natural Food Ingredients, Olam International Limited, Sunopta, Inc., Roquette Freres, Sensoryeffects Ingredient Solutions, Yaax International Ltd, Diana SAS, Svz International BV, DMH Ingredients Inc., Cargill Incorporated, Tate & Lyle PLC, and Dohler Group

*Definition: The fruit and vegetable ingredients consists of all the food ingredients that are used in making various foods and beverages. These include vegetables like potatoes and carrots, fruits like strawberries, bananas and apples, herbs such as rosemary and mint, roots including radishes and turnips, and leaves such as parsley and cilantro.