Fruit and Vegetable Processing Market Growth Opportunities, Drivers, Trends, Analysis, and Forecast to 2027

MarketsandMarkets
The fruit and vegetable processing market is estimated to account for nearly USD 8.7 billion in 2022 and is projected to reach a value of nearly USD 11.8 billion by 2027, growing at a CAGR of 6.4% from 2022.

The growth in demand in emerging markets is attributed to increasing urbanization, increasing middle-class population, and high per capita consumer income. Increasing consumer income has led to an increase in consumer spending on processed food products. Economic development in emerging countries has also attracted key food & beverage manufacturers, which has further widened the scope for the food processing industry in these markets. The global Fruit and Vegetable Processing Market is estimated to be valued at USD 8.7 billion in 2022. It is projected to reach USD 11.8 billion by 2027, recording a CAGR of 6.4% during the forecast period.

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The demand for healthy convenience foods has grown in recent years. The market for fresh-cut or minimally processed fruits and vegetables is expanding rapidly worldwide. Fresh-cut products, on the other hand, are more susceptible to contamination and degradation due to the use of various preparation steps such as washing, peeling, cutting, and slicing. Furthermore, some processing methods designed to avoid contamination and extend the shelf-life of such products may sometimes have unintended consequences, posing a risk to human health. This is the biggest challenge faced by Fresh Cut Fruit and Vegetable industry. For example, the use of chlorine as a disinfectant is not considered safe. Furthermore, because fresh fruits and vegetables are perishable and more susceptible to contamination, they can promote the growth of pathogenic and spoilage microorganisms. Many players present in the market offer products to the foodservice industry, which includes restaurants and cafes. Key retailers are also involved in offering private labeled fresh-cut produce and unbranded produce. This has increased its production volume. However, many manufacturers in this segment are from the unorganized sector, and only a few of the key manufacturers use automated equipment for processing.

Berries are being included in a variety of convenience foods and beverages to increase their nutritional component, which is boosting industry growth. Berries, because of their flavor and ease of consumption, are also excellent snacking options. They are gaining popularity as a healthy snacking trend. According to ITC Trade Map, North America is the largest importer of berries. The trade value stands at USD 22,016.575 million. The growth of the berry markets is being aided by rising consumer awareness about its nutrient value. The rising popularity of superfoods is also promoting market growth, owing to the hectic lifestyles of the working population. Major North American fresh berry producers have pledged to use 100% recyclable packaging by 2025, taking another step to lessen the fruit industry’s environmental effect. The California Strawberry Commission, the North American Blueberry Council (NABC), the Association National de Exportadores de Berries (Aneberries, Mexico), members of the National Berry Crops Initiative, and South American exporters have banded together to keep the industry’s lead in sustainable packaging. With a move toward sustainable packaging and an increase in demand for berries, there must be a need for more innovations to cope with shelf life along with environmental packaging to serve fresher and additive-free berries to customers worldwide. Ultimately demand for berry processing equipment may increase in forecast years.

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The semi-automatic equipment process includes both machine and manual operations. Semi-automatic equipment, as opposed to fully automatic equipment, allows small and medium-sized manufacturers to support high yield with consistent quality without sacrificing production efficiency. It offers a cost-effective solution to manufacturers with limited capital capacity: Semi-automated machinery is typically used in conjunction with automated machines. Developed countries, on the other hand, prefer fully automated machines to avoid the use of costly labor. The vast majority of food producers in developing countries such as India, Vietnam, Indonesia, and China use semi-automatic equipment. Furthermore, the process uses less energy than fully automated equipment, and labor is available at lower costs than in developed countries. However, with advancements in technologies and ease of operation provided by fully automatic systems, the market size for semi-automatic systems is lower than that of automatic equipment.

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