Global Fruit & Vegetables Processing Industry Market Research Report Now Available from IBISWorld

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IBISWorld Market Research

Processed fruit and vegetable consumption is affected by health and social trends as well as development factors

Los Angeles, CA (PRWEB) June 24, 2012

Factors including increased demand for convenient prepared meals, growing health and nutrition awareness, increased significance of branding and greater competition from private labels have largely influenced the Global Fruit & Vegetables Processing industry over the past five years. These factors have had varying effects on industry revenue, which is expected to grow at an annualized 0.4% over the five years through 2012, according to IBISWorld industry analyst Suzannah Rowley. Revenue is forecast to grow by 2.4% in 2012, to reach $164.3 billion. The availability of inputs like fresh fruit and vegetables and packaging materials, and the extent of the manufacturing sector's development determine the geographic spread of the industry. The value of production in different countries also depends on the price level and costs of inputs in that particular country. Health and social trends and development factors affect processed fruit and vegetable consumption. For example, frozen vegetable consumption is likely to be low in countries where refrigeration is limited and cold supply chains are not widely available. Furthermore, in countries where subsistence agriculture is widespread, a smaller proportion of the population will consume processed foods.

The Global Fruit & Vegetables Processing industry is highly globalized but is relatively low in concentration, with international trade accounting for a growing share of industry revenue. The low value-to-weight ratio of the industry's products restricts international trade to some extent. Nonetheless, discrepancies in costs of production do create some incentives to import and export these goods.

The industry is expected to expand over the next five years, with major growth coming from China and India but marginal growth from the United States. Demand for product segments will vary around the world, but changing consumer diets and rising incomes (especially in developing countries) will result in strong overall growth. Industry revenue is forecast to increase. A significant number of producers exist within their respective domestic markets and participate in the global market through international trade. Although entry into any particular geographic market may be difficult due to capital requirements, the multitude of markets within the global industry means that market entry is relatively easy, leading to a low level of market concentration. The four largest companies in the industry, Heinz, Campbell Soup Company, Kraft Foods and Nestle, account for about a fifth of global revenue. These companies each account for a significant proportion of their respective domestic markets, and in some cases account for a significant proportion of market share in foreign markets, Rowley says. For example, Kraft enjoys significant market share through its subsidiaries in Australia. However, on a global basis its market share is relatively small. For more information, visit IBISWorld’s Global Fruit & Vegetables Processing industry report page.

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IBISWorld industry Report Key Topics

The Global Fruit & Vegetables Processing industry processes fresh fruit and vegetables into food products that are packaged in jars and cans, bottled, preserved, quick-frozen or dried (except sun-dried). It also acquires other ingredients like seasoning, salt, sugar, preservatives and colorings that are blended with the fresh fruit and vegetables to make a final consumer food product. The industry sells its products to grocery wholesalers, retailers and export markets.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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