Global Fruit and Vegetables Processing Industry Market Research Report from IBISWorld Has Been Updated

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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. These trends are anticipated to continue over the next five years, and for these reasons, industry research firm IBISWorld has updated a report on the Global Fruit and Vegetables Processing industry to its growing report collection.

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

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.

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

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on nearly every US and Global industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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