Fruits and Vegetables Market Size, To Witness Promising Growth Rate 9.3% by 2033

Tajammul Pangarkar
Tajammul Pangarkar

Updated · Jul 2, 2024

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Introduction

The global fruits and vegetables market is poised for substantial growth, projected to expand from USD 56.1 billion in 2023 to USD 136.5 billion by 2033, with a compound annual growth rate (CAGR) of 9.3%. This sector’s expansion is fueled by a heightened consumer emphasis on health and the nutritional benefits of fresh produce, accelerated by a rising global trend towards vegetarian and plant-based diets.

Key growth drivers include technological advancements in agriculture, which enhance production efficiency and product shelf life, and the significant shift towards organic produce, favored for its perceived health and environmental benefits. The market is also benefiting from the expansion of online retail platforms, which have become crucial during the COVID-19 pandemic for maintaining supply chains and access to fresh produce​​​​​​​​​.

However, the market faces challenges such as the impact of climate change on crop yields and the stringent regulatory environments across different regions, which affect international trade and market dynamics. Furthermore, logistical issues like the perishability of products and high storage and transportation costs continue to pose constraints.

Recent developments indicate a surge in innovative product offerings, such as frozen and conveniently packaged fruits and vegetables Market, which cater to the growing consumer demand for quality and convenience. Strategic collaborations and technological integrations, such as blockchain for traceability and cold chain advancements, are set to enhance market growth and operational efficiencies further.

Abbey View Produce is known for its innovation in cultivating and distributing fresh produce. While specific recent activities were not highlighted, companies in this sector commonly engage in enhancing supply chain efficiencies and expanding distribution networks to maintain competitiveness. Agrial sur les réseaux sociaux has been expanding its outreach and engagement through social media platforms to strengthen its brand presence and consumer interactions. This approach is part of a broader industry trend where digital and social media strategies are increasingly adopted to capture a younger, more digitally savvy consumer base.

Alexia Foods, recognized for its range of frozen organic vegetables and seasoned fries, focuses on product innovation and catering to the rising demand for healthy, convenient food options. The trend in the industry suggests a significant push towards offering products that support a healthy lifestyle with added convenience.

Fruits & Vegetables Market

Key Takeaways

  • Market Growth: Expected worth USD 136.5 billion by 2033, from USD 56.1 billion in 2023, with a CAGR of 9.3%.
  • Market Segmentation: Vegetable Type segment dominates with 62.3% share in 2024, driven by health awareness.
  • Product Dominance: Fresh products lead with a 48.9% market share in 2024, reflecting consumer preference for nutrition.
  • Source Preference: Organic produce will hold a 67.4% market share in 2024, driven by health and sustainability concerns.
  • End User Demand: The household segment captures 54.3% share in 2024, highlighting the importance of daily cooking.
  • Distribution Channel: Convenience Stores lead with a 45.4% share in 2024, offering accessible fresh produce options.
  • Asia Pacific region is set to dominate the global market for fruits and vegetables, capturing a substantial share of 46.2%.

Fruits and Vegetables Statistics

  • fruit and vegetable prices increased by 17%
  • grocery food prices increased by 5.4%
  • restaurant meals and ready-to-eat food prices increased by 5.2%
  • meat, poultry, and fish prices increased by 7.1%
  • non-alcoholic beverage prices increased by 2.3%.
  • After removing regular seasonal impacts, food prices rose 0.4% in February 2022.
  • Adults meeting fruit or vegetable recommendations ranged from 6% in West Virginia to 16% in Washington DC.
  • Only 9% of adults ate the recommended amount of vegetables and 12% of adults ate the recommended amount of fruit
  • ⅓ of all food produced is lost or wasted – that’s around 1.3 billion tonnes of food – costing the global economy close to $940 billion each year.
  • Food waste is responsible for up to 11.8% of all global greenhouse gas emissions.
  • Total food waste at retail and consumer levels results in 173 billion cubic metres of water used to grow lost or wasted food. This represents 24% of all water used for agriculture.
  • Around 45% of the world’s fruit and vegetables go to waste each year.
  • Food waste costs the average household around $2,500 each year.
  • Globally, there are about 1 billion tons a year of avoidable food wastage from production-to-consumption stages – this means 30-40% or more edible foods end up in landfills instead of on plates around the world!
  • If everyone ate just one less serving a day—a banana here, half an avocado there—we could save 10 million metric tons annually!
  • Eliminating global food waste would save 4.4 million tonnes of C02 a year, the equivalent of taking one in four cars off the road.
  • Around 70% of all global food waste is made up of uneaten food that is perfectly edible.
  • 1.4 billion hectares of land is being used to grow global food products that will never be eaten, each year.

Emerging Trends

  • Increased Demand for Organic Produce: There’s a significant shift towards organic fruits and vegetables, spurred by growing consumer interest in health, sustainability, and food safety. Organic produce, known for being grown without synthetic pesticides or genetically modified organisms, continues to gain market share due to its perceived health benefits and superior taste​​.
  • Technological Integration in Agriculture: The adoption of advanced technologies such as AI-powered irrigation, vertical farming, and blockchain for traceability is transforming production and supply chain efficiencies. These innovations help in reducing waste, ensuring product freshness, and enhancing sustainable practices​​​​.
  • Plant-Based Diet Preferences: The rising popularity of vegetarian, vegan, and flexitarian diets is driving demand for fruits and vegetables Market. This shift is influencing product offerings, with manufacturers increasingly focusing on plant-based and fruit-based snacks and other innovative food products​​.
  • Growth in Organic Farming Areas: With an increase in food safety concerns and the desire for sustainable farming, there’s a notable expansion in the area under organic cultivation. This growth is supported by various government incentives and a rising global demand for organic products​​.
  • Focus on Health and Wellness: Post-pandemic, there’s a heightened consumer focus on health and wellness, which has significantly driven the consumption of fresh and nutritious produce. The market sees a continuous demand for products that support a healthy lifestyle, including fresh, dried, and especially organic fruits and vegetables​​.
  • Expansion of E-commerce: Online sales channels for fruits and vegetables are expanding rapidly. The convenience of online shopping, combined with the ability to reach a broader market, is propelling the growth of digital platforms in the fruits and vegetables market sector​​.

Use Cases

  • Food Packaging: Fruit and vegetable by-products, such as peels and pomace, are increasingly utilized in food packaging. These by-products are rich in bioactive compounds like polyphenols, which can enhance the physical, mechanical, antioxidant, and antimicrobial properties of packaging materials. This not only helps in reducing waste but also in improving the sustainability of packaging solutions​​.
  • Cosmetic Industry: Extracts from fruits and vegetables are used in the cosmetic industry due to their high antioxidant and vitamin content. These natural extracts are incorporated into skincare products to provide benefits such as anti-aging, moisturizing, and skin-rejuvenating properties​​.
  • Environmental Applications: Fruit and vegetable wastes are also being explored for environmental applications, such as water purification and as biosorbents to remove contaminants like dyes from water. Apple peels, for example, have been studied for their efficiency in removing methylene blue from water, showcasing their potential in environmental cleanup efforts​​.
  • Nutraceuticals and Pharmaceuticals: The bioactive compounds found in fruits and vegetables, including fibers, polyphenols, and vitamins, are extracted for use in nutraceuticals and pharmaceuticals. These compounds are sought after for their health benefits, such as reducing inflammation, enhancing heart health, and supporting digestive health​​.
  • Food Industry Additives: In the food industry, fruit and vegetable by-products are utilized to enhance the fiber content of foods, act as fat replacers, or as natural additives to improve the nutritional profile of food products. For instance, dietary fibers from orange by-products have been used as potential fat replacers in food products​​.

Key Players Analysis

Abbey View Produce, originally an offshoot of a historic company in the Covent Garden Market, has significantly evolved in the fruits and vegetables sector. Established as a separate entity in 1985, they began with tomato cultivation at Abbey View Nursery and have since expanded their operations. Today, they operate a state-of-the-art packhouse, initially built to meet the packing needs of major retailers and expanded in 2013 to support business growth. Abbey View was also the pioneer in forming a Producer Organisation in the Lea Valley, enhancing collaboration among local growers and ensuring produce of the highest quality under stringent environmental and quality standards​​​​.

Agrial actively utilizes its presence on social media platforms to enhance its visibility and engagement within the fruits and vegetables sector. They leverage platforms like LinkedIn for professional networking and TikTok to share insights about their daily operations, crop harvests, and product showcases in stores. This strategy helps Agrial connect with potential customers and maintain loyalty by highlighting the nutritional value and benefits of their produce, thus fostering a closer connection between the cooperative and its consumers​​​​.

Alexia Foods is renowned for its gourmet frozen food products, particularly its innovative vegetable sides and premium sweet potato offerings. Known for using non-GMO ingredients without artificial preservatives, Alexia provides a range of creatively crafted, easy-to-prepare options like sweet potato fries and mashed cauliflower. These products cater to health-conscious consumers looking for convenience without compromising on taste. Alexia’s commitment to quality and flavor enhancement has made it a favorite in the frozen food segment of the fruits and vegetables sector​​​​​​.

Barfoots is a prominent name in sustainable agriculture, specializing in the cultivation and supply of a diverse range of fresh produce, including sweetcorn, butternut squash, and avocados. The company is recognized for its innovative farming techniques and commitment to sustainability, utilizing eco-friendly practices such as biodegradable mulching and renewable energy sources. Barfoots operates globally, delivering high-quality, sustainably farmed produce to consumers while actively engaging in environmental conservation and community support initiatives.

Fesa UK Ltd is a key player in the UK’s fresh produce market, specializing in the import and distribution of fruits and vegetables Market. The company focuses on providing high-quality produce sourced from trusted global partners, ensuring a reliable supply chain and stringent quality control to meet consumer and market demands efficiently.

Fresh Del Monte Produce Inc. is a globally recognized leader in the production, distribution, and marketing of fresh and fresh-cut fruits and vegetables. With a diverse product range that includes everything from whole fruits and vegetables to prepared food items and beverages, Fresh Del Monte serves over 90 countries. The company is committed to sustainability and responsible farming practices, aiming to offer nutritious products while minimizing environmental impact​​​​.

Global Green Company is a prominent player in the processed fruits and vegetables sector, serving an international market that includes over 50 countries. Known for its dedication to quality and safety, the company manages extensive operations across multiple continents, ensuring adherence to the highest standards in food safety and regulatory compliance. Global Green Company is particularly recognized for its efforts in sustainable practices and innovations in the food processing industry, making it a key supplier to some of the world’s most respected food brands​​​​.

Kettle Produce Ltd, based in the UK, is a leading provider of fresh vegetables and salads. The company is renowned for its commitment to sustainability and innovation within the agricultural sector. Kettle Produce operates extensive farming and production facilities, where it employs advanced agricultural practices to ensure the supply of high-quality produce year-round. Their operations are characterized by a strong focus on environmental stewardship and community engagement, positioning them as a key player in the UK’s agribusiness sector

Kiril Mischeff stands out as a key supplier in Europe, primarily serving the food and beverage manufacturing industry, as well as the food service and retail sectors. With over 80 years of experience, the company has established a robust network of first-class growers and producers across the globe, allowing them to offer a wide range of products. These products include fruit and vegetable juices, purees, frozen foods, and specialty ingredients like bakery and canned items, all adhering to high-quality standards and sustainable practices​​​​​​.

Kühne + Heitz is renowned for its role in the international trade of frozen and chilled food products, including fruits and vegetables. The company prides itself on its extensive product range and ability to cater to a diverse client base across the global market. They emphasize flexibility and customer-oriented service, positioning themselves as a reliable partner for businesses looking to navigate the complexities of food supply and distribution. Their operations underscore a commitment to quality and efficiency, ensuring they meet the specific needs of retailers, wholesalers, and food service providers worldwide.

MyFresh is a significant player in the UK fruits and vegetables sector, focusing on producing high-quality, ready-to-eat salads. Leveraging advanced agricultural practices and modern packaging technologies, MyFresh ensures freshness and extends the shelf life of its products, catering to both retail and food service markets.

Nationwide Produce Plc, established in 1975, has grown into one of the largest and most diverse fresh produce companies in the UK. It operates across various sectors including retail, food service, and wholesale. Nationwide Produce is known for its extensive network of farms and partnerships, ensuring a steady supply of quality produce.

The Natural Vegetable Company is a pioneer in India, focusing on providing ready-to-cook traditional vegetables. Launched in 2019, their goal is to make traditional Indian vegetables both exciting and easy to prepare, emphasizing quality, naturalness, and hygiene. Their innovative approach targets making traditional cooking more accessible and enjoyable, striving to become India’s largest and most beloved brand in the ready-to-cook vegetable sector.

S&A Group Holdings Limited is known for its robust operations in the fruits and vegetables sector, specializing in strawberries and other berry fruits. They are committed to sustainable farming practices, enhancing biodiversity, and reducing environmental impact. Their expertise in horticulture is combined with innovative technologies to produce high-quality produce that is both nutritious and sustainably grown.

STIRFRESH is actively engaged in the Scottish fruits and vegetables sector, specializing in the cultivation and supply of a wide array of fresh produce. The company focuses on farm-to-table freshness and supports local sourcing, enhancing sustainability and community involvement. STIRFRESH has a strong commitment to health and nutrition, catering to both local markets and broader regional demands with its quality produce.

Total Produce is a leading international distributor and supplier of fresh fruits and vegetables. Established as a global entity, the company leverages an extensive network that spans across Europe, North America, and more, ensuring a diverse and reliable supply chain. Total Produce is noted for its robust operations that include sourcing, transporting, and delivering a wide variety of fresh and high-quality produce, meeting the needs of retail, wholesale, and food service industries on a large scale. This company plays a crucial role in the global fresh produce market by consistently adapting to consumer trends and advancing in supply chain efficiencies.

Vinyard Fruit & Vegetable Co., based in Oklahoma, has built a strong reputation since 1969 for delivering high-quality, fresh produce. They specialize in fresh-cut fruits and vegetables, offering custom solutions tailored to customer needs. With a strong focus on quality and food safety, Vinyard operates from a centralized location which enhances their distribution capabilities, ensuring that they meet the fresh and quality needs of their diverse clientele efficiently.

Burgess Farms, with a history dating back to 1898, has grown from a small fruit and vegetable shop to a major supplier of fresh vegetables in the UK. Still family-owned, they are known for their expertise in growing and packing a variety of root vegetables like potatoes, carrots, and onions. Burgess Farms is committed to high-quality and ethical farming practices, emphasizing sustainable growth and active family involvement in daily operations.

Wealmoor Ltd is a key player in the UK’s fruits and vegetables sector, known for its dedication to sustainability and ethical practices. Specializing in exotic and specialty produce, Wealmoor operates with a strong focus on social responsibility and environmental stewardship. Their operations span from farming to packaging, ensuring control over the quality and traceability of their produce, which includes herbs, avocados, and berries sourced both locally and globally.

Watts Farms Fresh Produce Holdings Ltd, another major entity in the sector, operates over 600 hectares across Kent and Essex, growing a diverse range of crops including vegetables, fruits, salads, and herbs. This family-run business caters to a broad clientele that includes major supermarkets, high-end restaurants, and direct consumer sales through their online platform. They are notable for their extensive variety and commitment to quality, meeting the needs of both wholesale and retail markets with fresh, locally-grown produce.

Conclusion

The global fruits and vegetables market is witnessing substantial growth, driven by increasing consumer awareness of health benefits and technological advancements in agriculture and distribution. This growth is supported by the rising popularity of organic products and a shift towards plant-based diets, which are becoming more mainstream as consumers increasingly opt for healthier lifestyle choices​​.

Technological innovations such as blockchain for traceability and advanced logistics are streamlining supply chains, making it easier to maintain the freshness and quality of produce from farm to table. Meanwhile, the market faces challenges like climatic variability and stringent regulatory standards that could impact production and distribution​​.

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Tajammul Pangarkar

Tajammul Pangarkar

Tajammul Pangarkar is a tech blogger that frequently contributes to numerous industry-specific magazines and forums. Tajammul longstanding experience in the fields of mobile technology and industry research is often reflected in his insightful body of work. His interest lies in understanding tech trends, dissecting mobile applications, and in raising a general awareness of technical know-how. When he’s not ruminating about various happenings in the tech world, he can be usually found indulging in his next favorite interest - table tennis.

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