New York, NY (PRWEB) January 30, 2014
The Canned Fruit and Vegetable Processing industry has stagnated in recent years due to mounting health concerns among consumers. The growing incidence of health complications such as diabetes have caused consumers to shun processed foods in favor of fresh produce and prepared meals. Furthermore, concerns regarding the BPA content of canned food have also placed downward pressure on the demand for industry goods. Despite manufacturers' efforts to introduce healthier brand extensions and safer packaging like as BPA-free cans, the demand for industry products has waned, lowering industry revenue. Overall, IBISWorld expects Canned Fruit and Vegetable Processing industry revenue to decline at an average annual rate of 3.6% to $3.7 billion in the five years to 2014, including a decline of 0.9% in 2014.
“The leading producers of canned food have faced growing competition from generic brands such as Loblaw's President's Choice brand,” says IBISWorld Industry Analyst Hester Jeon. Value-added generic products, including organic varieties, have become more popular as they provide cost savings and convenience. Consequently, the leading industry operators lowered their product prices to compete with private-label products, further diminishing industry performance. Additionally, domestic producers faced intensifying competition from imports due to the growing immigrant population and heightened interest in ethnic cuisine. As such, greater demand for canned fruit and vegetables from Brazil and China helped boost imports over the past five years.
“Health consciousness is anticipated to drive the decline of this industry in the five years to 2019,” says Jeon. Consumers will opt for fresh produce and ingredients rather than canned food products at grocery stores. The introduction of new, healthier products that offer safer packaging are anticipated to marginally buffer the declining demand for industry goods. Additionally, higher per capita disposable income levels will allow consumers to dine out at restaurants more often and trade up to premium products, such as organic produce and frozen meals, further hampering the industry's performance. Greater demand for organic food products is anticipated to drive the growth of industry imports to the detriment of domestic producers.
The Canned Fruit and Vegetable Processing industry exhibits a low level of market share concentration. It is difficult for a single company to control a large share of the overall market because this industry manufactures a variety of products. Industry concentration has marginally increased in the five years to 2014 as the leading canned fruit and vegetable processors have achieved incremental growth by introducing new products and brand extensions. IBISWorld expects concentration to increase over the next five years as larger companies find it beneficial to acquire smaller, specialty producers.
For more information, visit IBISWorld’s Canned Fruit and Vegetable Processing in Canada industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Operators in the Canned Fruit and Vegetable Processing industry purchase fruits and vegetables and process them with other ingredients to create a variety of food products including canned fruit and vegetables, juices and drinks (except frozen), canned soups (except seafood), jams, baby food, sauces and dehydrated fruits and vegetables. The final products are then packaged and sold to consumers at various retail channels.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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 every US and Canadian 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.