Tanzania Fruits and Vegetables Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Tanzania Fruits and Vegetables Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Tanzania fruits and vegetables market is projected to register a CAGR of 6.7% during the forecast period, 2021-2026.

Most horticultural crops in Tanzania are directed toward export. As a result of the COVID-19 pandemic, the demand for these horticultural products has reduced by over 50.0%, which had a ripple effect on supply. According to the Food and Agricultural Organization, horticultural products worth about USD 63.69 million are exported monthly from Tanzania to international markets. The pandemic has affected the export business by more than 80%, costing the country much-needed foreign currency to a tune of about USD 50.95 million per month.

The growing demand for derived products, such as fruit juices and jams, and an increase in consumer awareness of healthier alternatives such as fruits and vegetables are some of the factors driving the market growth. Major fruits and vegetables produced in the country are bananas, mangoes, oranges, pineapples, watermelons, beans, cabbage, tomatoes, onions, and chilies and peppers. The market for bananas has massively developed in the country owing to exports and local demand from consumers.

International buyers are increasingly looking out for Tanzanian grown crops, especially avocados, raspberries, lime, and other high-value vegetables. This offers local farmers and exporters new markets and opportunities.

Key Market TrendsIncrease in Heath Consciousness among Consumers

The growing health consciousness among Tanzanian consumers has resulted in consumers spending more on healthier foods such as fruits and vegetables. Health complications, such as weakening of the immune system and vitamin-C deficiency along with bleeding gums, have encouraged the country's people to include healthier alternatives like fruits and vegetables in their diets. This is reflected in an increase in the production of both fruits and vegetables and increased contribution of vegetables’ per capita energy. The contribution of vegetables to the total per capita dietary energy supply (DES) was the highest in 2016, accounting for 2,128 kcal, and in 2017, it was 2,084 kcal. The decrease of daily per capita dietary energy supply from vegetable products experienced in 2017 resulted from a large failing in DES of starchy roots, pulses, and vegetable oils.

Furthermore, Tanzania had set nutrition targets to tackle malnutrition, undernutrition, overweight or obesity, and micronutrient deficiency, and therefore, it is striving to reduce stunting to 28% by 2021 and 15% by 2025. This is anticipated to give a boost to fruit and vegetable intake among Tanzanians. Also, organically produced crops are gaining traction owing to the rise in consumer concerns over the usage of chemical pesticides or fertilizers. With the increase in the number of consumers switching to healthier alternatives, the demand for fruits and vegetables is projected to grow during the forecast period.

Growing Export Markets

Fruit and vegetable exports from Tanzania have been growing in the past few years, becoming a leading sub-sector that drives the agricultural sector’s growth. The rising awareness targeting the export toward demanding markets helped the farmers increase the quality standards of their vegetables, making them highly profitable.

Producers have formed groups to produce as contract farmers or out-growers to large-scale export firms, for instance, MUVIKHO, an umbrella organization comprising groups of vegetable farmers. It now has 15 groups that service lowland and highland areas around Arusha.

Furthermore, the market is flourishing owing to the increased consumer demand, and organizations are putting efforts to produce new varieties while producers are focusing on sustainable production. MUVIKHO obtained its own independent Global GAP certificate in August 2016, which gave a provision to choose potential buyers that offer the best prices and conditions. In 2016, the prices of peas and French beans paid by export companies went up 20% due to strong competition between the companies to win contracts with MUVIKIHO.

Bananas are the highly traded commodities in the country owing to the trade liberalization policies. This, in turn, may drive the market for bananas, which will generate an overall revenue for the fruits and vegetables market. Bananas are popular primarily due to their non-seasonal nature and play a key role in ensuring food availability all year round. Thus, the demand from export markets for sustainably produced fruits and vegetables is the main factor driving the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.