Fruit and Vegetable Ingredients - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

Fruit and Vegetable Ingredients - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The fruit and vegetable ingredients market was valued at USD 212.3 billion for the current year and is projected to register a CAGR of 4.95% over the next five years.

Key Highlights

• The ongoing trend of healthy snacking, supported by the increasing number of consumers following vegan diets, is the primary factor that has increased the application of fruits and vegetables in different food products, such as breakfast cereals, snack bars, soups, and others. For instance, in Europe, there has been a significant rise in demand for food and snack products made from fruits such as avocados, berries, and mangoes because they are an essential component of regional cuisines and everyday foods like baked goods. The dietary supplements of fruit and vegetable ingredients help to treat cardiovascular disease and chronic venous insufficiency. According to the United States Centres for Disease Control and Prevention (CDC) (2022), a heart attack is the leading cause of death in the United States. Hence, dietary supplement manufacturers are increasing the fruit and vegetable ingredients to reduce the incidence of cardiac disease in the future.
• Factors including increasing customer demand for food and drink products with natural ingredients that are free of added sugar, artificial flavors, colors, and preservatives, among other substances, are essential drivers of the market for fruits and vegetables as ingredients. Fruit ingredients accounted for the major share, followed by vegetable ingredients. Increased demand for fruit juice concentrate in the beverage industry is the primary factor driving the market. Beverages are the leading application of fruits and vegetable ingredients in the market, either in the form of concentrate, powders, or NFC juices, as consumers seek out newer flavors for sensory experiences and rising concerns regarding various health issues, including obesity and nutritional deficiencies. This, in turn, strongly augments the demand for fruit pieces and powders in the beverage segment. For instance, in August 2021, Paradise Fruits Solutions launched a new range of ready-to-order granulates which are suitable for use in a variety of applications, including chocolate, confectionery, and baking, and are available in sizes ranging from 2 mm-9 mm and in eight different flavors, including Apple, Blueberry, Lemon, Raspberry, Woodberry, and Caramel.

Fruits and Vegetables Ingredients Market Trends

Growing Demand for Organic Ingredients in the Food Industry

• The rapid expansion of the processed and packaged food industry is expected to accelerate the demand for natural food additives, eventually driving the sales of fruit and vegetable extracts. Increasingly people are beginning to view ingredients, processing, and packaging as links in a chain of sustainable nutrition.
• Customers are interested in knowing how products are made and where the ingredients are from, which aligns with the broader trend of clarity and transparency. Thus, manufacturers in the market are promoting clean-label and free-from products to accommodate consumers. For instance, in April 2022, Van DrunenFarms launched a new product called purslane powder in the line of purslane ingredients. The company claimed that this powder could be used in applications such as green drinks, smoothies, superfood blends, and functional foods.
• Additionally, as of 2021, the prevalence of diabetes among consumers is observed to be at 8.6% of the total population in France, as revealed by the International Diabetes Federation. Growing consumer awareness about such factors has encouraged the consumption of naturally flavored and nutrition-filled foods over conventional foods. This factor has, thereby, helped drive the demand for value-adding fruits, vegetables, and botanical ingredients over the recent past. Natural and organic claim products have witnessed increasing demand across the globe. The global market for fruit and vegetable ingredients is being accelerated by increasing consumer demand for nutrient-dense products and an increase in clean-label product claims. Product launches with various label claims, such as no artificial additive and non-GMO, have silently benefited customers over the years. Thereby, the increasing use of natural fruit and vegetable ingredients in various industrial sectors, such as dairy, bakery, beverages, and dietary supplements, among others, owing to the color, texture, flavor, and functional properties of these ingredients have helped drive the growth of the global market during the forecast period.

Europe Held the Largest Market Share

• The growing consumption of ready-to-consume food and beverage products with high nutritional value and which are consistent in taste, save time, and include exotic fruit and vegetable ingredients, is driving the European market. For instance, fruit powders like white grape/raisin powders can be a natural source of sweeteners in many items, such as cakes, candies, etc. In Italy, the fruit and vegetable ingredients market is becoming increasingly popular in processed food categories like bakery and confectionery. There are also vegetable sources like sugar beet powder, a common source of sucrose, and pigments like anthocyanins, which can be used as a natural coloring agent and sweetener in bakeries, confectionery products, pastry products, chocolates, and many more.
• Furthermore, food manufacturers use freeze-dried fruit pieces to add flavor, color, and aesthetic appeal to a range of bakery and confectionery products. For example, freeze-dried berries are used in snack products, like chocolate bars, where these fruits impart flavor and color. For instance, in February 2021, European Freeze Dry Limited launched its latest ingredient, freeze-dried jackfruit, to meet the demand from the growing base of vegan consumers. The company stated that the benefits of freeze-dried jackfruit come with its versatile uses, its texture, and the opportunities for use in pot meals as a replacement for pulled pork or chicken.
• With increasing health consciousness among the consumers in the market, consumers tend to prefer naturally originated protein-rich food over artificially derived ingredients. Vegetable ingredients such as broccoli pieces and carrot powders, among others, are being incorporated into ready-to-eat meals to increase overall nutritional content in consumers. Fruit ingredients are also extensively preferred by manufacturers in the market owing to their capacity to add flavor and color to food and beverage products. These ingredients are usually used in applications like ice creams, desserts, and more. The growing consumption of these products in the country is projected to positively impact the growth of the market over the coming years. For instance, in 2020/21, according to Department for Environment, Food, and Rural Affairs, the average purchase per person per week of ice cream (tub or block) in the United Kingdom was around 115 grams. Thus all the above-mentioned factors drive the fruit and vegetable ingredients market in Europe.

Fruits and Vegetables Ingredients Industry Overview

The global fruit and vegetable ingredient market is highly competitive, with many local and international players competing for market share. Major players like Hans Zipperle AG, Cargill Incorporated, Archer Daniels Midland Company, Agrana Group, Sensient Technologies, and Olam International hold a significant position in the global fruit and vegetable ingredient market. Also, most companies are spending on R&D with a plan to provide consumers with innovative and healthy fruit and vegetable ingredients. The effective strategies companies adopt in the global fruit and vegetable ingredient market are new product launches, agreements/partnerships, expansions, and acquisitions. Globally, the active companies in the market have adopted product innovation as their strategy due to changing consumer preferences. The companies primary goal is to provide products with a wider range of uses, supporting all food and beverage industries and effectively catering to consumer preferences.

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