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The Processed Vegetable Market size is projected to increase by USD 76.55 billion from 2022 to 2027. The market is estimated to grow at a CAGR of 10.39%. In 2017 the market size was valued at USD 94.77 billion.
The global processed vegetable market share is growing due to rising demand for convenient and nutrient-rich options like fresh-cut, canned, and frozen vegetables. Processing vegetables soon after harvest helps retain their nutrients, making them an appealing choice. Canned vegetables, accounting for 40% of the market, are particularly popular in North America and APAC. Del Monte Pacific Ltd. offers innovative canned vegetable products, such as sliced mushrooms, garden peas, beans, artichokes, chickpeas, red kidney beans, and sweet corn, driving consumer interest. Overall, the demand for processed vegetables is driven by convenience, health benefits, and product variety.
This processed vegetable market forecast report extensively covers market segmentation by product (canned vegetables, frozen vegetables, and fresh-cut vegetables), distribution channel (hypermarkets and supermarkets, independent retailers and convenience stores, specialty food stores, and online retailers), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The processed vegetable manufacturers and distributors venturing into the private-label marketplace is notably driving the market growth, although factors such as the threat from unorganized players and intense competition among vendors 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, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
The processed vegetable manufacturers and distributors venturing into the private-label marketplace is a major trend influencing the global processed vegetable market growth. Private-label brands are registering significant growth in the global retail market. Competitive pricing and easy availability of food and beverages are the major factors driving the sale of private-label food and beverage products. Vendors and distributors such as Whole Foods Market Inc. (Whole Foods), a subsidiary of Amazon and Sysco, have also ventured into private-label brands to strengthen their product offerings further globally.
For instance, Sysco sells a range of processed vegetables through its private-label brand FreshPoint in North America. Similarly, Whole Foods offers a range of private-label processed vegetables through its brand 365 Everyday Value. A few of the prominent offerings include Organic Cut Green Beans, Sliced Beets, and Hearts of Palm (Salad Cut). Factors such as perceived high quality and lower prices are expected to drive the sale of private-label processed vegetables in the global market. The significant growth of private-label brands will drive the growth of the market focus during the forecast period.
The threat from unorganized players and intense competition among vendors is a major hindrance to the global processed vegetable market growth. Vendors in the global processed vegetable market are facing a huge threat from unorganized players. China and India are two major producers and exporters of processed vegetables globally. However, the markets in both countries are dominated by unorganized players. The presence of unorganized cottage-scale industries is one of the main factors hindering the growth of the processed vegetable market in India. Moreover, the global processed vegetable market is highly competitive due to the presence of several market players, such as global and regional vendors, as well as distributors.
The high purchase volume of processed vegetables is encouraging players to enter the market, which intensifies the competition. The other drawback of the fragmented structure of the global processed vegetable market is that it presents a barrier to technologies that require standardization and integration. Distributors and private-label vendors mostly outsource their products to third-party food manufacturers, as it is hard to maintain standardized manufacturing technology. Therefore, factors such as the threat from unorganized players and the intense competition between global, regional, and private-label vendors in the market might hinder the growth of the global processed vegetable market during the forecast period.
Customer Landscape
The processed vegetable market 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.
Global Processed Vegetable Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The processed vegetable market segmentation by distribution channel consists of hypermarkets and supermarkets, independent retailers and convenience stores, speciality food stores, and online retailers. It is anticipated that the hypermarket and supermarket distribution channel segment of the global processed vegetable market will experience high growth during the forecast period. The already increasing sales of processed vegetables will be further boosted by the increase in supermarkets and hypermarkets. Due to their reputation for convenience and healthiness, sales of minimally processed vegetables are rapidly rising. Mass merchandisers with omnichannel distribution channels have pushed the supermarket industry toward digitalization. Revolutionary trends in the global market have been sparked by seamless omnichannel strategies. Amazon.com's acquisition of physical businesses to combine e-commerce and physical storefronts has accelerated this trend. One of the main reasons why customers frequent their local supermarkets and hypermarkets is the convenient shopping experience provided by the availability of so many foods and beverage products in one location.
The processed vegetable market segmentation by product consists of canned vegetables, frozen vegetables, and fresh-cut vegetables. The market share growth by the canned vegetables segment will be significant during the forecast period. Vegetables that are processed and canned to increase shelf life are known as canned vegetables. Canned vegetables are classified under the moderately processed vegetable category. These vegetables offer similar health benefits as fresh vegetables.
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The canned vegetables segment was valued at USD 37.51 billion in 2017 and continue to grow by 2021. During the canning process, vegetables do not lose a large amount of nutritional value. Canning stops the decomposition of vegetables until the can is opened again. The number of nutrients lost depends largely on how quickly vegetables are canned after harvesting. The increasing demand for processed vegetables is one of the major reasons driving the growth of the segment. PROFEL, which represents more than 500 companies in 11 European Union companies, claims that PROFEL's companies produce almost 2.1 million tonnes of canned vegetables each year. Therefore, the segment is expected to be driven by the increasing demand for canned vegetables from the EU.
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APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
China, Japan, and Australia are among the major markets for processed vegetables in APAC. Del Monte and Mitsubishi Corp. (Mitsubishi) are the major vendors operating in the regional processed vegetable market. The consumption of canned food is increasing, and China is emerging as one of the largest consumers of processed vegetables worldwide. China is expected to remain one of the top exporters and consumers of frozen vegetables during the forecast period.
The COVID-19 pandemic in 2020 had an adverse impact on several countries in the region. However, in Q4 2020, most vegetable processing businesses resumed their operations along with processing units for vegetables owing to the ramping up of COVID-19 vaccination programs in the region. This was possible owing to the efficient vaccination drives being conducted and the social; distancing norms being followed sincerely. This further led to the containment of the pandemic in the region in 2021. Currently, the majority of the APAC economies, except China, have recovered from the negative impacts of the pandemic and have started to retouch the pre-COVID levels. Thus, the regional process vegetable market is expected to grow during the forecast period.
The 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.
Processed Vegetable Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.39% |
Market growth 2023-2027 |
USD 76.55 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.08 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 36% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
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., RFG Holdings Ltd., Seneca Foods Corp., Smith Frozen Foods Inc., Sprouts Farmers Market Inc., Sysco Corp., and The Fresh Gourmet Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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