Fruit And Vegetable Market Analysis US - Size and Forecast 2024-2028

US Fruit and Vegetable Market Size 2024-2028

The US fruit and vegetable market size is estimated to grow by USD 34.1 billion, at a CAGR of 8.1% between 2023 and 2028. The growth of the market is driven by several key factors. Government initiatives aimed at increasing agriculture production play a crucial role in expanding the market and fostering innovations in farming techniques and infrastructure. Additionally, the rising popularity of veganism among consumers is contributing to increased demand for plant-based products, including fruits and vegetables. Moreover, there is a noticeable uptick in the consumption of processed fruit and vegetable products, driven by changing dietary preferences and convenience. These factors collectively underscore a dynamic market environment poised for growth, with opportunities for stakeholders across the agriculture, food processing, and retail sectors to capitalize on evolving consumer trends and governmental support initiatives aimed at enhancing food production and sustainability.

What will be the size of the Market During the Forecast Period?

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Market Dynamics

The market is witnessing significant growth due to the increasing consumer health consciousness. Consumers are increasingly opting for nutrient-rich products, leading to a surge in demand for berries, avocados, mango, pomegranate, papaya, and other fruits and vegetables. These foods are rich in antioxidants, essential vitamins, minerals, and fiber, making them essential components of balanced diets. The agricultural ecosystem is undergoing transformations with the adoption of precision farming and controlled-environment agriculture to ensure the production of high-quality fruits and vegetables. However, concerns over the use of pesticides, chemicals, and additives in conventional farming practices are driving the demand for organic food. International trade plays a crucial role in the fruit and vegetable market, with countries like Mexico, Chile, and Peru being major exporters of fruits like avocado, mango, and berries. Supermarkets, hypermarkets, and specialty stores are the primary distribution channels for these products, with door-to-door delivery services gaining popularity for their convenience. Despite the benefits, challenges remain, including ensuring food safety and sustainability in the face of increasing demand and environmental pressures. The fruit and vegetable market is expected to continue its growth trajectory, driven by consumer demand for healthy and nutritious foods.

Key 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.  

Further, 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.

Major 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.

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 Market 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
• 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 44.10 billion in 2018. 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Distribution Channel Outlook  
  • Offline
  • Online

• Product Outlook
  • Non-organic fruits and vegetables
  • Organic fruits and vegetables

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Market Analyst Overview

 Fruits and vegetables, rich in antioxidants, potassium, vitamins A, and essential minerals, have gained significant importance in today's health-conscious world. Berries, avocado, mango, pomegranate, papaya, sweet potato, and more, are not just delicious but also offer numerous health benefits. Companies are increasingly emphasizing the importance of these foods in combating chronic conditions like type 2 diabetes and high blood pressure. The market for Fruits & vegetables is driven by the growing awareness of healthier lifestyles. Organic food, free from pesticides, chemicals, and additives, is a preferred choice for many consumers. The agricultural ecosystem faces challenges due to weather variability, natural disasters, and climate change. Precision farming and controlled-environment agriculture are emerging solutions to ensure a consistent supply. International trade plays a crucial role in the market.

In addition, supermarkets, hypermarkets, and specialty stores dominate the sales channel. Door-to-door delivery and meal kit services are gaining popularity among millennials. The US market is experiencing dynamic growth driven by various factors. Companies are actively promoting fresh fruits and vegetables, dried, and frozen products through eco sustainable foods initiatives and companies' awareness campaigns.  Supermarkets & Hypermarkets segment cater to diverse consumer preferences, including plant-based diets favored by vegetarians and vegans. Meal kit deliveries appeal to younger demographics and elderly populations alike, including baby boomers. Technological advancements like AI-powered irrigation systems and robotics are transforming farming practices, promoting vertical farming for efficient production. E-commerce portals facilitate convenient access to a wide range of nutritious options, reflecting evolving consumer habits and preferences in the agricultural sector.

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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 2024 and 2028
• 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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