Fruit and vegetable ingredients are widely used in food processing as additives, flavoring agents, and coloring agents. It finds applications in products like bakery, beverages, snacks, and other convenience foods. Fruit and vegetable ingredients help improve nutrition, texture, taste, and shelf-life of processed and packaged foods. Some key fruit and vegetable ingredients include concentrates, purees, juices, dietary fibers, and others. The market is witnessing rising demand for clean label and organic ingredients to cater to health-conscious consumers.
The global fruit and vegetable ingredients market is estimated to be valued at US$ 24 billion in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2023-2033, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Fruit and Vegetable Ingredients Market is Expected to be Flourished by Increasing Demand for Convenience Foods
One of the key drivers for the growth of fruit and vegetable ingredients market is the increasing demand for convenience foods across the world. Changing lifestyle and busy schedule of people have boosted the consumption of ready-to-eat food products. Fruit and vegetable ingredients are extensively used in processing of packaged snacks, beverages, soups and other convenience food items to enhance their nutrition value. Rising health consciousness among consumers have also pushed the demand for healthy convenience options made from natural ingredients. Clean label trend in the food industry further supports the growth of fruit and vegetable ingredients. Greater focus on product innovation and new product launches incorporating organic and natural fruit and vegetable extracts is expected to propel the market during the forecast period.
Segment Analysis
The fruit and vegetable ingredients market is dominated by the fruits sub-segment. Fruits contributed over 50% of total sales in 2020 owing to increasing consumption of fruit-based products. Fruit ingredients find wide application in various food and beverage products like yogurts, juices, snacks etc. Their easy availability and versatile usage promotes their dominance in the market. The vegetable ingredients segment is expected to witness rising demand backed by increasing health awareness and preference for plant-based foods among consumers.
PEST Analysis
Political: The regulations around food safety and labelling are getting stricter globally which impact the supply chain of fruit and vegetable ingredients. Various trade agreements promote cross-border trades of these ingredients.
Economic: Developing economies exhibit higher growth potential due to rising disposable incomes, growing health consciousness and westernization of diets. Fluctuating agricultural commodity prices affect the procurement costs of manufacturers.
Social: Health trends like veganism and organic living drive new product innovation using these ingredients. Clean label and non-GMO claims gain traction. Social media influences food choices of younger consumers.
Technological: Advanced processing techniques help extract ingredients from food waste and by-products. UV sterilization, aseptic filling extend product shelf-life. Traceability systems ensure product quality and sourcing compliance.
Key Takeaways
The global fruit and vegetable ingredients market share is expected to witness high growth over the forecast period.
Regional analysis:
The Asia Pacific currently holds the largest share and is projected to maintain its dominance during the forecast period. Abundant raw material availability due to agricultural strengths of developing nations, robust growth of food processing industry and shift to healthy diets drive regional market. China, India and Southeast Asia showcase high demand potential.
Key players
operating in the fruit and vegetable ingredients market include Archer Daniels Midland Company, Kerry Group, Dohler GmbH, SunOpta, Inc., Symrise AG, Kanegrade Ltd., Sensient Technologies Corporation and others.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it