Los Angeles, CA (PRWEB) September 03, 2013
Over the past five years, the Global Fruit and Vegetables Processing industry experienced slight revenue growth thanks to increased demand for convenient prepared meals, growing health and nutrition awareness, increased significance of branding and greater competition from private labels. “Personal health, social trends and development factors affect processed fruit and vegetable consumption,” says IBISWorld analyst Jeffrey Cohen. “For example, frozen vegetable consumption is lower 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. Overall, in the five years to 2013, revenue increase at annualized rate of 0.6% to total $179.1 billion, including 1.0% in 2013.
Rising commodity costs have increased purchasing costs for industry operators over the past five years. The result has been more costly input products for operators, which have had to pass off the rising costs to consumers in the form of higher product prices. Says Cohen, “While the larger players were able to succeed in protecting profit margins, several small to medium-size companies struggled.” Industry wide, however, profit margins experienced slight growth as demand for processed fruit and vegetables has increased throughout emerging countries.
The Global Fruit and Vegetables Processing industry has a low level of market share concentration, with HJ Heinz Company currently the largest operator. Because this industry is global and covers a variety of product segments, it is difficult for a single player to control a large piece of the overall market. A significant number of producers exist within their respective domestic markets and take part 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, which leads to a low level of market concentration.
The Global Fruit and Vegetables Processing industry is expected to grow at a much faster rate in the next five years compared to the previous five. Major growth is anticipated to occur in China and India whereas marginal declines are expected to occur in the United States due to shifting preferences towards fresh fruits and vegetables. 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. Companies that can capitalize on the lack of vegetable consumption across the United States and Europe will reinforce this. For more information, visit IBISWorld’s Global Fruit and 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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