US Fruit and Vegetable Market by Distribution Channel and Product - Forecast and Analysis 2023-2027

US Fruit and Vegetable Market Forecast 2023-2027

The fruit and vegetable market in the US is estimated to grow by USD 25.39 billion at a CAGR of 6.62% between 2022 and 2027. The growth of the market depends on several factors, including government initiatives to increase agriculture production, a rise in veganism, and increasing consumption of processed fruit and vegetable products

It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Fruit And Vegetable Market In US During the Forecast Period?

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Market Dynamics

The rise in veganism is notably driving market growth, although factors such as increased chances of food contamination may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Market Driver

The rise in veganism is notably driving market growth. People are going vegan for a variety of reasons, including increased prosperity, detoxification, compassion for all living things, and the health advantages of eating fruits and vegetables. The vegan population has increased exponentially, with three-fold growth in terms of sales of fruits and vegetables in the most recent decade. Consumers are gradually focusing on incorporating a healthy diet into their daily life, owing to an increase in hectic lifestyles. 

More and more people in the US are willing to reduce their consumption of animal-derived food products. Rising vegan culture is a growing trend worldwide. Moreover, numerous e-commerce stores offer vegan products to customers online. Growing vegan culture is expected to fuel the growth of the US fruit and vegetables market during the forecast period.

Market Trend 

Rising demand for smart agricultural practices is an emerging trend in the market. There has been a high demand for smart agriculture practices such as precision farming which are anticipated to provide a high return on agricultural products. With precision agriculture technology, agribusiness may be more profitable than ever as it provides the required amount of irrigation water, liquid fertilizer, nutrients, herbicides, and pesticides to reduce the waste of resources. The use of modern technologies in agricultural products can help improve land fertility and profitability, promote sustainable agriculture, maximize productivity, and reduce agricultural costs.  

Improving business efficiency through process automation and increasing output through reduced agricultural costs are two crucial factors that promote the deployment of smart agricultural tools. Therefore, business-oriented agronomists have begun to adopt various precision agriculture/smart agriculture tools to increase crop yields and profit margins.

Market Challenge 

Increased chances of food contamination is the major challenge impeding market growth. Food poisoning or foodborne illness happens when the food gets contaminated by bacteria, viruses, parasites, toxins, or other substances. The likelihood of getting severe illness by consuming contaminated food varies from person to person. These contaminations have several ways to enter the supply chain and make food products unfit for consumption. For instance, staple foods such as corn or grains may contain high levels of naturally occurring mycotoxins, such as aflatoxins and ochratoxins, produced by molds on grains. Long-term exposure can affect the immune system and normal development or cause cancer.

Additionally, sudden climate change is also predicted to contaminate food. Because of extremely hot and cold climates, fruits and vegetables get spoiled as they are fresh longest when stored at a cool temperature. This factor is, in turn, expected to hamper the market growth.

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

 Customer Landscape

Who are the Major Fruit and Vegetable Market in US Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the US fruit and vegetables market.

Feeser - The company offers broccoli, celery, sweet red onion, lettuce, cauliflower, and iceberg lettuce as its key offerings. The company also offers bakery, bases or broths, beverages, candies, cereals, Chinese food, chicken or duck, cheese, dairy or coffee equipment, and cookies.

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Fresh Del Monte Produce Inc
• Fresh Fruits Co.
• General Mills Inc.
• Gotham Greens Holdings LLC
• Hunts Point Produce Market
• J. Safra Sarasin Group
• KisanServ
• Lakeside Foods Inc.
• Pacific Rim Produce
• Plenty Unlimited Inc.
• REKKI LTD.
• Salix Fruits
• Sunkist Growers Inc.
• Tanimura and Antle Fresh Foods Inc.
• Sysco Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the Market?

The market share growth of the offline segment will be significant during the forecast period. The offline segment includes supermarkets, hypermarkets, convenience stores, discount stores, and cash and carries stores. Consumers prefer supermarkets and hypermarkets due to the availability of products of all categories under a single roof, which is not possible in small shops. Hypermarkets and supermarkets offer discounts and give away free products when consumers purchase products worth a certain amount, which increases sales through these channels.

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The offline segment was valued at USD 42.59 billion in 2017 and continued to grow until 2021. Consumers prefer going to supermarkets and hypermarkets rather than buying from neighborhood convenience stores. Large shelf spaces and storage areas in these stores accommodate a wide variety of fruits and vegetables from different companies. The increasing penetration of supermarkets and hypermarkets in the US is driving the growth of the market.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Distribution Channel Outlook (USD Billion, 2017 - 2027)
  • Offline
  • Online

• Product Outlook (USD Billion, 2017 - 2027)
  • Non-organic fruits and vegetables
  • Organic fruits and vegetables

Market Analyst Overview

The Market faces numerous challenges and trends, including Changes in Consumer Preferences and Demographics, Competition from Imported produce, and growing consumer and regulatory concerns. Factors like the availability of specific produce varieties and Customer Preferences and Trends influence the market. Technological Developments in Agriculture, such as AI-powered irrigation systems and Robotics, aim to enhance Supply Chain Efficiency and address High Labour Costs and Labour Shortages. However, logistical problems and transportation challenges persist, impacting global supply chains and Supply Chain Disruptions.

Environmental and climatic factors pose risks to Natural disasters and Extreme weather, affecting availability and quality. On the consumer side, Health and Wellness trends drive demand for Organic farming and Plant-based diets, influencing Food safety and Pesticide use concerns. Economic Conditions and Disposable income levels influence purchasing behavior, impacting sales in Supermarkets/hypermarkets, Specialty Stores, and Farmers’ Markets. Online Retailers and Direct-to-consumer business models are gaining traction, affecting traditional retail formats. Regulatory and Policy Difficulties, including Regulatory and Policy Difficulties and International trade policies, add complexity. Sustainable farming practices and Urban Agriculture are gaining prominence, addressing limitations on land and water resources and fostering local production.

Fruit And Vegetable Market Scope In US
Report Coverage	Details
Page number	121
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 6.62%
Market growth 2023-2027	USD 25.39 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	6.5
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	1000 Stone Farm , AeroFarms LLC, Cox Enterprises Inc., Dole plc, Fresh Del Monte Produce Inc, Fresh Fruits Co., General Mills Inc., Gotham Greens Holdings LLC, Hunts Point Produce Market, J. Safra Sarasin Group, KisanServ, Lakeside Foods Inc., Pacific Rim Produce, Plenty Unlimited Inc., REKKI LTD., Salix Fruits, Sunkist Growers Inc., Tanimura and Antle Fresh Foods Inc., Sysco Corp., and Feeser
Market dynamics	Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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