Fruit and vegetable ingredients include concentrates, purees, juices, fibers, and other forms derived from various fruits and vegetables. They are used in preparations of variety of food products to enhance nutritional profiles, flavor, texture and color. Main applications include dairy products, beverages, confectionery, RTE foods, bakery products and soups & sauces. The global fruit and vegetable ingredients market is large and growing, as these ingredients provide benefits of fresh produce with advantages of longer shelf-life and convenience in handling for food processing applications. Technological advancements have enabled a variety of fruit and vegetable ingredients with clean flavor profiles.
The global fruit and vegetable ingredients market is estimated to be valued at US$ 224.37 billion in 2023 and is expected to exhibit a CAGR of 22% over the forecast period between 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rising Consumer Preference for Organic and Natural Food Products
Increasing consumer awareness about health benefits of fruits and vegetables coupled with clean label trends is driving demand for organic and natural food products containing fruit and vegetable ingredients. Many consumers are willing to pay premium prices for minimally processed food options containing recognizable fruits and vegetables. This growing demand for authentic and wholesome products is acting as a major driver for fruit and vegetable ingredients market.
Fruit and Vegetable Ingredients Market Set to be Driven by Rising Consumer Preference for Organic and Natural Food Products
Segment Analysis
The fruit and vegetable ingredients market can be segmented into concentrates, pastes & purees, nectars, and others. The concentrates segment is dominating the market and is expected to maintain its dominance during the forecast period. Concentrates require less packaging and storage space as compared to other sub-segments like purees. This makes concentrates cost-effective to transport and store. Thus, concentrates provide greater opportunities for companies to scale up production.
PEST Analysis
Political: The regulations governing use of preservatives, additives, and other chemical ingredients in food and beverages are becoming stricter. This is pushing companies to focus on developing clean label products using natural fruit and vegetable ingredients.
Economic: The rising disposable incomes and growing health consciousness among consumers is driving the demand for natural, minimally processed fruit and vegetable ingredients. The affordable prices of various fruits and vegetables also make them economically viable alternatives to artificial colors, flavors, and preservatives.
Social: With growing awareness about implications of lifestyle diseases, people are shifting towards healthy diets rich in fruits and vegetables. This increasing health consciousness is benefitting the fruit and vegetable ingredients market.
Technological: Advanced processing technologies are helping companies develop innovative fruit and vegetable ingredients like stable purees, highly concentrated nectars and juices, and customized blends. This is expanding theapplications of fruit and vegetable ingredients in varied food products.
Key Takeaways
The Global Fruit And Vegetable Ingredients Market Growth is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis: North America currently dominates the market accounting for over 30% share. The growing trend of food processing and high consumption of packaged foods drives the demand for fruit and vegetable ingredients. The presence of global food giants and continuous launch of novel products fortified with natural fruit and vegetable ingredients further support the market growth.
Key players operating in the fruit and vegetable ingredients market are Avery Dennison, CCL Industries, Constantia Flexibles, Jindal Films Americas LLC, Coveris, EVCO Plastics. These players are focusing on new product launches, expansions, and collaborations to gain a competitive edge in the market. For instance, Avery Dennison offers a wide range of labeling solutions such as prime labels, wraparound labels, and specialty labels for fruit and vegetable ingredients manufacturers and retailers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it