June 23, 2024
Fruit And Vegetable Ingredients Market

The Fruit And Vegetable Ingredients Market Driven By Growing Health And Wellness Trends

The global fruit and vegetable ingredients market is a multi-billion-dollar industry offering an extensive array of health-promoting products derived from various fruits and vegetables. Fruit and vegetable ingredients are utilized across diverse product categories like beverages, bakery, confectionery, soups and sauces, dairy, and RTE meals owing to their various functional properties. These ingredients contribute natural flavors, colors, nutritional value, texture and other attributes that are highly valued by health-conscious consumers. The increasing focus on preventive healthcare and availability of scientific research validating the dietary benefits of fruits and vegetables have elevated their consumption globally.

The global fruit and vegetable ingredients market is estimated to be valued at US$ 224.37 billion in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends observed in the fruit and vegetable ingredients market is the rising demand for clean-label and plant-based products. Consumers are increasingly demanding food and beverage items with simple and recognizable ingredient lists, without artificial preservatives, colors, and flavors. As a result, players in the market are focusing on developing innovative fruit and vegetable-based formulations that can help meet this requirement from consumers. For instance, the development of unique fruit and vegetable purees, juices, and concentrates as alternatives to synthetic colors and flavors. Another key trend is the rising popularity of locally sourced and private-label fruit and vegetable ingredients. Private-label brands are intensifying their sourcing of fruits and vegetables from local and regional farmers to support the smallholder farming community and emphasize sustainability attributes.

Porter’s Analysis

Threat of new entrants: Low threat of new entrants as fruit and vegetable ingredients market is consolidated with established global and regional players. Large capital investments and brand loyalty pose barriers.

Bargaining power of buyers: High bargaining power of buyers as fruit and vegetable ingredients are basic commodities with availability of substitutes. Buyers can opt for alternate suppliers in fragmented supply chain.

Bargaining power of suppliers: Low bargaining power of suppliers as fruit and vegetable ingredients are basic commodities and supply is distributed among large number of farmers and suppliers globally. Suppliers have less control over pricing.

Threat of new substitutes: Low threat of substitutes as fruit and vegetable ingredients are basic commodities with limited substitutes available. Innovation leads to product differentiation and brand loyalty.

Competitive rivalry: High competition among existing players to gain market share and expand globally. Focus on new product development, branding and regulations compliance.

Key Takeaways

The Global Fruit And Vegetable Ingredients Market Demand is expected to witness high growth.

Regional analysis: North America holds largest share currently led by US and Canada. Growth prospects are high in Asia Pacific with China, India emerging as high potential markets. Europe is also a significant market whereas RoW regions are expected to provide new opportunities.

Key players: Key players operating in the Fruit and Vegetable Ingredients market are Avery Dennison, CCL Industries, Constantia Flexibles, Jindal Films Americas LLC, Coveris, EVCO Plastics. These players are focusing on new product launches, expansion in emerging markets and collaboration with ingredient suppliers and farmers to strengthen supply chain and market presence.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it