Canned Fruit and Vegetable Processing in the US Industry Market Research Report from IBISWorld Has Been Updated

Share Article

The canned fruit and vegetable processing industry has been suffering in the five years to 2014; going forward, the industry will continue to decline as consumers seek fresh alternatives. For these reasons, industry research firm IBISWorld has updated a report on the canned fruit and vegetable processing industry in its growing industry report collection.

News Image
Operators have introduced healthier and organic products to fight competition.

The Canned Fruit and Vegetable Processing industry suffered from declines in demand for canned fruit and vegetable products during the five years to 2014. According to IBISWorld Industry Analyst David Yang, “Repressed discretionary income in the years following the recession and higher product prices, driven by inflationary input costs, caused demand for industry goods to significantly decline in 2010.” Furthermore, growing health concerns have caused consumers to grow wary of consuming processed fruits and vegetables, further curbing the demand for industry goods. Additionally, improvements in transportation and storage technologies have made fresh produce more readily available, which increased competition from fresh fruit and vegetable producers. Overall, revenue is estimated to decrease at an average annual rate of 1.7% to $38.5 billion during the five years to 2014, including a decline of 1.7% in 2014.

Despite overall lower demand for industry goods, product innovations, including the introduction of a greater variety of organic canned food products, have helped decelerate the industry's decline. Producers also reformulated many products by reducing fat, sugar and sodium content to appeal to a growing number of health-conscious Americans. While the promotion of healthy canned food has benefited the industry, the growing popularity of imported canned food and sauces has placed downward pressure on industry revenue growth. At the same time, exports have risen partially due to the growing popularity of American food abroad. Similarly, the rising costs of fresh fruits and vegetables in countries such as Japan has made US processed food more affordable than domestically produced goods in certain markets.

During the five years to 2019, higher per capita disposable income and health concerns will push consumers to purchase more fresh produce rather than processed alternatives, contributing to the industry's decline. “Competition from imports is forecast to intensify as Americans increasingly seek ethnic food products and as the dollar appreciates, making foreign goods more affordable in the domestic market,” says Yang. Also, as profit margins remain low due to rising input costs, particularly among smaller companies, the number of enterprises is anticipated to fall over the five years to 2019. Overall, revenue is forecast to decline during the next five years.

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 includes a variety of product segments. Furthermore, a majority of enterprises in this industry are small- to medium-sized companies that employ less than 100 people. Industry concentration has slightly increased in the five years to 2014 as larger companies found it beneficial to diversify their product portfolios through acquisitions. IBISWorld expects concentration to increase over the next five years as larger companies capitalize on expanding logistics and distribution technologies to boost efficiency.

For more information, visit IBISWorld’s Canned Fruit and Vegetable Processing in the US industry report page.

Follow IBISWorld on Twitter:!/IBISWorld
Friend IBISWorld on Facebook:

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 juices, 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.

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 every US 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 or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
+1 (310) 866-5042
Email >
Visit website