The global processed vegetable market is set to expand by USD 89.9 billion from 2024 to 2028, driven by rising urbanisation and consumer preference for convenience.
Global Processed Vegetable Market Poised for Significant Growth
New York, 16 July 2024 — The global processed vegetable market is set to expand considerably over the next four years, according to a recent report from Technavio. The market is projected to increase by USD 89.9 billion from 2024 to 2028, reflecting a compound annual growth rate (CAGR) of over 11.04%.
This projected growth is being driven largely by increasing demand for processed vegetables, spurred on by urbanisation and consumer preference for convenience. Companies involved in the sector are increasingly investing in private-label brands, which offer competitive pricing and good accessibility. Major players, including Amazon.com Inc., Archer Daniels Midland Co., Ardo Coordination Center NV, B and G Foods Inc., Charoen Pokphand Foods PCL, Conagra Brands Inc., Cooperatie Koninklijke Cosun UA, Dole plc, Farmers Market Foods Inc., J.D. Irving Ltd., Libbys Brand Holding, Mitsubishi Corp., Ninos Fresh Cut Fruit and Veg LLC, NutriAsia Inc., Del Monte Pacific Ltd., Seneca Foods Corp., Smith Frozen Foods Inc., Sprouts Farmers Market Inc., Sysco Corp., and The Fresh Gourmet Co., are all expected to benefit from the expanding market.
Key Market Drivers
The rise of private-label brands has been notable within the global retail market. Companies like Whole Foods Market Inc. and Sysco are notable for their expansion into this area. For instance, Sysco offers a variety of processed vegetables under its FreshPoint brand, while Whole Foods offers products under its 365 Everyday Value brand. These products, which include Organic Cut Green Beans and Sliced Beets, are perceived to be of high quality and come at lower prices, thereby driving sales.
Demand for processed vegetables is also increasing due to their convenience and long shelf life. Methods such as canning, drying, and juice preparation help preserve the natural properties and nutritional content of vegetables, making them appealing to health-conscious consumers.
Challenges Ahead
Despite the optimistic growth forecasts, the market faces several obstacles. The presence of unorganised players in the market, especially in countries like China and India, poses a considerable challenge for established brands. These cottage-scale industries make it difficult for organised vendors to compete effectively.
The fragmented nature of the market also poses challenges in terms of standardising and integrating technologies. Moreover, rising competition from both global and regional players, as well as new entrants encouraged by the high demand, adds to the competitive pressure.
Market Dynamics
Asia-Pacific (APAC) is expected to make the largest contribution to market growth, accounting for 36% of the global market share. Key markets within this region, as well as in North America, Europe, South America, and the Middle East and Africa, are expected to facilitate significant contributions to overall growth.
Consumer Preferences and Distribution
The preference for convenience foods among busy modern consumers has led to a rise in demand for processed vegetables available in various formats, including frozen, canned, and fresh-cut. Supermarkets and hypermarkets remain the primary distribution channels, although online retailing and e-commerce platforms are gaining traction.
Future Outlook
The processed vegetable market is expected to continue growing, partially fuelled by increasing consumer awareness of the health benefits associated with these products, which include essential minerals, proteins, fibre, and vitamins. However, maintaining the natural properties of vegetables during processing, as well as addressing sustainability concerns, will be crucial for continued consumer acceptance.
In conclusion, while the processed vegetable market is poised for substantial growth, navigating the challenges posed by unorganised players and maintaining competitive pricing will be essential for key players looking to capitalise on this expansion.