The processed fruits and vegetables market is expected to grow significantly by 2027 owing to increasing consumer demand for organic fruits and vegetables across the globe.
In view of the ongoing COVID-19 outbreak, processed fruit and vegetable products are witnessing greater demand as people have become more hygiene conscious. Moreover, the shift in consumer preference towards a healthy and nutritious diet has bolstered market adoption during the pandemic.
Notably, key industry players are implementing lucrative strategies to gain a competitive edge in the market, which has been favorable for the global business landscape. For instance, in March 2021, Dole Food Company, a major producer and marketer of fresh fruit and vegetables, inked a partnership agreement with Beanstalk, a prominent brand extension licensing company. The partnership was intended to help Dole expand its product offerings by extending its brand into complementary food categories.
The processed fruits and vegetables market has been segmented on the basis of product, type, processing equipment, and region. Based on product, the market has further been bifurcated into canned, frozen, fresh, fresh-cut, and drying & dehydration.
The fresh-cut segment has been divided into fresh-cut fruits [apples, mango, fruit mix, pineapple, trays, melons, banana, and others (berries, lychee and passion fruit)] and fresh-cut vegetables. The fresh-cut fruit mix segment is slated to grow at a CAGR of over 6.9% through the forecast period. The fresh-cut mango segment is projected to expand at about 7.7% CAGR over the assessment timeframe.
The fresh-cut pineapple segment is anticipated to exceed a valuation of USD 1.8 billion by 2027. Meanwhile, the others fresh-cut fruit segment, which includes berries, lychee, and passion fruit, is estimated to expand at a CAGR of approximately 6.0% over the review period.
The canned product segment is calculated to reach a valuation of about USD 22 billion by 2027. Increased shelf life of canned food, coupled with busy lifestyles of consumers around the world, is set to drive segmental expansion in the forthcoming years.
The processed fruits and vegetables market from the frozen product segment is estimated to progress at around 5.5% CAGR through the study timeframe owing to significant developments in freezing technologies and enhancements in cold storage facilities in emerging nations like Brazil, India, China, and Argentina.
With respect to processing equipment, the market has been categorized into washing, filling, processing, pre-processing, seasoning, and packaging. The pre-processing equipment segment is likely to attain approximately 20% market share by 2027 since these types of equipment enable faster cooling of fresh fruits and vegetables after the harvesting stage, thereby decelerating deterioration and preserving the products.
The washing processing equipment segment is expected to surpass a valuation of USD 70 billion by 2027. Stringent food safety regulations in developed nations, such as the U.S., Germany, France, and the UK, are foreseen to drive segmental growth through the forthcoming years.
The seasoning processing segment is expected to attain a valuation of about USD 18 billion by 2027. These types of processing equipment are designed to optimize the quality and efficiency of finished fruit and vegetable products, which is set to fuel segmental demand over the coming years.
From the regional perspective, the Latin America processed fruits and vegetables market is speculated to reach a valuation of more than USD 40 billion by 2027 owing to surging consumer focus on adopting a healthy lifestyle and food habits.
Meanwhile, Middle East & Africa is anticipated to gain a major share in the processed fruits and vegetables market revenue by 2027, expanding at approximately 6.5% CAGR over the forecast timeline. High penetration of the systematized retail sector and online shopping platforms in MEA is slated to foster regional market development in the coming years.