Global Market Forecast
The fruit and vegetable market was estimated to be valued at USD 265.6 billion in 2017 and expected to reach USD 373.5 billion by 2022, at a CAGR of 7.1% during 2017-2022.
The market is segmented into the following product types: fresh, dried, frozen, and processed. The processed segment accounts for an average of 35% of total revenue and it is expected to witness the fastest growth during 2018-2023, at a CAGR of 8.3%. 65% of the processed segment was reported to be fruits. The growth of the market will be driven due to its rich source of vitamins and minerals.
Global Growth Opportunity Analysis
Europe shares the largest market of fruit and vegetable due to its high consumption. It is witnessing the growing popularity in the frozen segment, especially in frozen berries and kale, which are widely used as ingredients for smoothies, chips, and salads. Europe is also witnessing the increasing demand for exotic fruit and vegetable, such as avocados and mangoes. The import of mango puree from the European Union is highly concentrated, and the United Kingdom is one of the top three importers, accounting for almost 80% of the total EU import.
The Asia-Pacific region was expected to witness the fastest growth in the fruit and vegetable market during 2020-2025, at a CAGR of 4.98%. Mordor Intelligence reports the growing production in China, Japan, and India is driving the growth of the market. China is reported to produce more than half of vegetable and 30% of fruit consumed around the world. There is an increasing demand for innovative and convenient fruit and vegetable powders and pieces. Busy urban lifestyle in the Asian-Pacific region causes consumers to deter from cooking and shifts consumer preferences to quick-and-easy meals.
Export/ Import Analysis
World’s Richest Countries reports the global market generated a total value of USD 72.8 billion in 2017. China was reported to be the world’s largest fruit and vegetable exporter with 15.3% of the global exports, followed by the Netherlands with 10.4% and Spain with 9.3%. China is the major supplier for its neighboring countries, such as Vietnam, Thailand, Indonesia, Philippines, and Hong Kong and known for an exporter of garlic, apples, grapes, citrus, and onions.
The United States was reported to be the world’s largest fruit and vegetable importer with 13.7% of the global imports, followed by Germany with 9.2% and the United Kingdom with 4.2%. Bananas account for 17% of the U.S. total imports, followed by Avocado accounting for 16.1% and grapes accounting or 11.5%. The United States has increased its dependence on external fruit and vegetable in the last decade, especially of avocados, asparagus, and pumpkins. Mexico is the largest supplier for the United States, followed by Chile, Guatemala, and Canada.
Fruit and vegetable demand is increasing on a worldwide scale. One of the factors is the increasing health/ medical benefit awareness of meat consumption. It contains a variety of nutrients, including potassium, dietary fiber, folate, vitamin A, and vitamin C, which help lower the risk of diabetes, cardiovascular diseases, and cancer. The fruit is also used as an alternative natural sweetener to sugar in order to meet the growing demand for sugar-free food and beverage.
Other factors include the growing disposable incomes and changing lifestyles and consumer preferences for diet. The increasing popularity of veganism is also another factor. Vegans and vegetarians already eat a large number of fruits and vegetable, but flexitarians who can be persuaded to eat more vegetarian meals or less meat overall will likely increase consumption of fruits and vegetable to get the nutrients that would be present in a serving of meat.
The fruit and vegetable market is currently experiencing higher prices due to the high demand for low supply. As China struggles with the coronavirus, supply chains have been interrupted and distributors are looking to diversify their networks. With a diversified portfolio, a firm can protect themselves from the risk imposed on them by factors such as the coronavirus.
United States Market Analysis
The U.S. fruit and vegetable market was estimated to be valued at USD 104.7 billion in 2016 and its demand is expected to witness significant growth during 2017-2025, at a CAGR of 13.7%. Increasing health/ medical benefit awareness of meat consumption and changing consumer preferences for diet will keep fueling the demand for fruit and vegetable in the United States, especially in the snacks segment. The U.S. huge investment in technology helped keep fruit and vegetable fresh for longer duration along with up to date processing technology inputs that can be used in the end-use industry.
The United States is the world’s largest importer of fruit and vegetable, with an import surplus of more than USD 11 billion in 2017. Due to an unsuitable climate for fruit and vegetable agriculture, more than 30% of fruit and 55% of vegetable consumed in the United States relies on imports from Mexico, Chile, Guatemala, and Canada. The cheaper price of fruit and vegetable is another reason for the growing imports. While the fruit and vegetable trade deficit are significantly growing in the United States, the wide gap between imports and exports makes it difficult to meet the increasing demand.