Processed Vegetable Market Size 2024-2028

The processed vegetable market size is forecast to increase by USD 89.9 billion, at a CAGR of 11.04% between 2023 and 2028. Market growth hinges on rising demand for processed vegetables driven by evolving consumer preferences and lifestyles. The key drivers include the demand for organic food and beverage and natural options, reflected in the popularity of natural fresh products and frozen or canned vegetables.This demand growth is supported by the convenience and versatility that processed edibles such as vegetable seeds offer, making them adaptable for various culinary uses. Furthermore, a strong distribution network linking processed vegetable manufacturers and retailers is crucial. A well-organized distribution system ensures timely delivery of processed edibles to consumers in optimal condition, meeting market demands and enhancing customer satisfaction. Additionally, the growing awareness of the health benefits associated with consuming minimally processed edibles significantly contributes to market expansion.

What will be the Size of the Processed Vegetable Market During the Forecast Period?

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Processed Vegetable Market Segmentation

The processed vegetable market growth insights analysis 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

• Product Outlook 
  • Canned vegetables
  • Frozen vegetables
  • Fresh-cut vegetables
• Distribution Channel Outlook 
  • Hypermarkets and supermarkets
  • Independent retailers and convenience store
  • Speciality food stores
  • Online retailers
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

The market is driven by diverse nutrients such as minerals, proteins, fibers, and vitamins, meeting the evolving needs of consumers amidst modernization and urbanization trends. This market caters to various preferences, offering a wide range of vegetables processed through methods like heat treatment and incorporating additives for enhanced flavor and preservation. Consumers today are inclined towards organic and natural options, including frozen and canned vegetables, providing convenience without compromising on nutritional value. The processed vegetable market expansion is further fueled by the rise of e-commerce and online retailing, making these products accessible to a broader audience. Despite challenges posed by seasonal and field conditions, the demand for convenience foods remains high, driven by busy lifestyles and disposable incomes. Additionally, imports play a significant role in augmenting product diversity and meeting consumer preferences for natural ingredients in processed vegetables.

By Product

The 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 39.90 billion in 2018. 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. Therefore, the segment is expected to be driven by the increasing demand for canned vegetables from the EU.

Regional Analysis 

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APAC is estimated to contribute 36% to the growth of the global market research and growth during the forecast period. Technavio's analysts have provided an extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Moreover, China, Japan, and Australia are among the major markets for processed vegetables in APAC. Del Monte and Mitsubishi Corp. (Mitsubishi) are the major companies operating in the regional 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. 

Processed Vegetable Market Dynamics

The Market is driven by a growing awareness of nutrients like minerals, proteins, fibers, and vitamins among consumers, catalyzed by modernization and urbanization trends. Trends lean towards online retailing and e-commerce, enhancing product diversity and accessibility. Challenges such as seasonal and field conditions impact supply, yet the market adapts with convenience foods, including foods made using vegetable oil, tailored for busy lifestyles and rising disposable incomes. Imports also contribute to addressing the demand for diverse natural ingredients. Our processed vegetable market growth analysis report analyzed the market growth and forecasting data with 2023 as the base year, along with the key trends, and challenges. A holistic market growth and trends analysis, including drivers and challenges, will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.

Key Processed Vegetable Market Driver

The increasing demand for processed vegetables is notably driving the market. Moreover, the global market share is growing due to rising demand for convenient and nutrient-rich options like fresh-cut, canned, and frozen vegetables and vegetable concentrates. Processing edibles soon after harvest helps retain their nutrients, making them an appealing choice.

Moreover, canned edibles, 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 edibles is driven by convenience, health benefits, and product variety.

Significant Processed Vegetable Market Trends

The processed vegetable manufacturers and distributors venturing into the private-label marketplace is a major trend influencing 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. companies 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 edibles through its private-label brand FreshPoint in North America. Similarly, Whole Foods offers a range of private-label processed edibles 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 processed vegetable market growth during the forecast period.

Major Processed Vegetable Market Challenge

The threat from unorganized players and intense competition among companies is a major hindrance to global processed vegetable market growth. companies in the global market are facing a huge threat from unorganized players. China and India are two major producers and exporters of processed edibles 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 market in India. Moreover, the global market is highly competitive due to the presence of several market players, such as global and regional companies, as well as distributors.

Moreover, the high purchase volume of processed edibles is encouraging players to enter the market, which intensifies the competition. The other drawback of the fragmented structure of the global market is that it presents a barrier to technologies that require standardization and integration. Distributors and private-label companies 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 companies in the market might hinder processed vegetable market growth during the forecast period.

Key Companies & Market Insights

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

• Key Offering - Archer Daniels Midland Co. offers processed vegetables under the brand, NutriStem.

• Key Offering - Ardo Coordination Center NV offers processed vegetables such as Chunky sauteed carrots and Rhubarb.

• Key Offering - B and G Foods Inc. offers processed vegetables under the brand, Green Giant.

The processed vegetable market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Amazon.com 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.
• The Fresh Gourmet Co.

The market analysis and report of 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.

Customer Landscape 

The processed vegetable market research 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 processed vegetable market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.

 Customer Landscape

Market Analyst Overview

The processed vegetable market is fueled by the modern consumer's emphasis on health, seeking minerals, proteins, and fibers in their diet. Urbanization has increased demand for convenience factors in food, driving innovations in flavoring, drying, and juice preparation. Consumers prefer value-added products with natural taste and reduced natural properties. The market thrives in cold markets with advanced heat treatment techniques and minimal additives. Supermarkets, hypermarkets, and online retailing platforms play pivotal roles in distributing natural fresh products. Challenges include seasonal and field conditions, especially for perishable products, and competition from convenience foods. With rising disposable incomes and the popularity of ready-to-eat formats on e-commerce platforms, the market shows substantial growth potential. However, fruit and vegetable processing equipment costs and the presence of unorganized players pose challenges in the competitive landscape. Analyzing import-export trends helps identify key revenue pockets and opportunities for market expansion.

Furthermore, the Market has witnessed significant growth due to factors like modernization and urbanization, leading to changes in daily diets and preferences for value-added products rich in minerals, proteins, fibers, and vitamins. Flavouring techniques enhance appeal, especially in cold markets, catering to busy lifestyles and the demand for portable options available in supermarkets/hypermarkets and on e-commerce platforms. The Indian Agricultural Exports Authority plays a crucial role in regulating import-export activities, ensuring a steady supply of conventional vegetables, organic, and natural fresh products. The market landscape depends on cost reduction, imports, ready-to-eat format, e-commerce platform, equipment cost, unorganised players and import export analysis. However, challenges such as equipment costs and the presence of unorganized players impact product distribution and market competition. Import-export analysis helps identify trends and opportunities for growth, driving innovation and diversification in product offerings and flavours, meeting the evolving needs of consumers in the global groceries segment.

Furthermore, the market is evolving rapidly due to various factors such as modernization and urbanization, which have reshaped daily diets. Consumers now seek value-added products that are rich in minerals, proteins, fibers, and vitamins, emphasizing health benefits. The market depends on modernisation and urbanisation. The market caters to diverse preferences, offering natural ingredients and reduced processing, ensuring nutritional integrity and product diversity. With a rise in imported goods and a shift towards ready-to-eat formats, e-commerce platforms play a crucial role in product accessibility. However, challenges like equipment costs and the presence of unorganized players affect market competitiveness. Import-export analysis aids in understanding market dynamics and optimizing supply chains. As consumers prioritize portability and convenience, the market continues to innovate with new cold market offerings, meeting the demands of busy lifestyles while maintaining nutritional value and taste.

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

• CAGR of the market report during the forecast period
• Detailed information market analysis and report on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market share and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market trends and analysis of changes in consumer behavior
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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