Fruit and Vegetable Ingredients Market by Category (Fruit, Vegetable), Type (Pieces, Powders, Concentrates, Purees, Paste), Nature (Organic, Conventional), and Application (Beverages, Bakery, Dairy, Soups, Sauces, Savory) - Global Forecast to 2030

The Fruit and Vegetable Ingredients Market is slated to register a CAGR of 5.5% from 2024 to 2030 to reach $294.5 billion by 2030. Fruit and vegetable ingredients have gained popularity due to the surging demand for nutrition-packed food products. Fruits and vegetables have several ingredients that enhance the taste, aroma, flavor, product quality, and nutritional quotient when incorporated in different food & beverages. The growth of the fruit and vegetable ingredients market is mainly attributed to the growing demand for natural ingredients, the wide range of benefits of fruits & vegetable ingredients in the food & beverage industry, and the rising demand for RTE & RTD products.

Furthermore, growing demand for functional food products and emerging economies are expected to create market growth opportunities. However, fluctuating raw material prices and problems associated with storage and material handling hinder the growth of this market to some extent.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key strategic developments by leading market participants in the industry. Some of the key players operating in the global fruit and vegetable ingredients market are Archer-Daniels-Midland Company (U.S.), Olam International Limited (Singapore), Cargill Incorporated (U.S.), AGRANA Beteiligungs-AG (Austria), Hans Zipperle AG/S.p.A. (Italy), Döhler GmbH (Germany), Ingredion Incorporated (U.S.), SunOpta (U.S.), SVZ International BV (Netherlands), and KangMed, Inc. (China).

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Rising Demand for Ready-to-eat (RTE) and Ready-to-drink (RTD) Products

Fruit and vegetable ingredients are commonly used in RTE products to add flavor, nutrition, and visual appeal. Examples include salads with mixed greens, fruit cups, or vegetable stir-fry dishes. Fruit and vegetable ingredients can also be incorporated into RTD products to enhance flavor and nutrition. For instance, fruit juices and smoothies are common examples of RTD products that contain fruit ingredients. Convenience foods, which include ready-to-eat (RTE) and ready-to-drink (RTD) products, are food products that need less time and effort for preparation. The demand for convenience foods, including juices and packaged food products, incorporated with vegetables, is increasing rapidly due to socio-economic changes and urbanization. In addition, consumers’ rising buying power, growing awareness regarding healthy foods, and changing food habits and meal patterns drive the demand for RTE and RTD food products. According to Eating Better's Ready Meals Survey, in 2020, 88% of adults in the U.K. consumed ready-to-eat and ready-to-cook foods, and two in five people ate packaged meals weekly.

According to the United Nations World Urbanization Report, the world's urban population has grown rapidly from 439,498,772 in 2015 to 471,031,528 in 2019, which indicates that almost 55% of the world's population lives in urban areas. This proportion is expected to reach 68% by 2050. As a result, urban consumers are gaining exposure to a much wider choice and better food availability than those living in rural areas. This urbanization trend contributes significantly toward improved living standards and rising incomes, which influences the affordability of processed food and convenience foods to a greater extent.

Hectic lifestyles and changing dietary habits of individuals are propelling the demand for ready-to-eat (RTE) and ready-to-cook (RTD) products globally. The increasing number of working women, rising per capita incomes, changing lifestyles, and high growth in the middle-income population drive the demand for ready-to-eat foods. This trend is likely to continue in the coming years, boosting the consumption of ready-to-eat food products and driving the growth of the fruit and vegetable ingredients market. These ingredients offer nutritional value and color, sweetness, flavor, and texture to beverages, frozen novelties, confectionery, savory, dairy, and bakery products, among others.

Fruit and vegetable ingredients in RTE and RTD products can be fresh, frozen, dried, or juices and purees. They add flavor, texture, color, and nutritional value to these products. Additionally, as consumers increasingly prioritize health and wellness, many RTE and RTD products aim to include more natural and wholesome ingredients, including fruits and vegetables, to meet consumer demand for healthier options. Hence, the rising demand for RTE and RTD products drives the growth of the fruit and vegetable ingredients market.

Key Findings in the Fruit and Vegetable Ingredients Market Study:

In 2024, the Fruit Ingredients Segment to Dominate the Fruit and Vegetable Ingredients Market

Based on category, the global fruit and vegetable ingredients market is segmented into fruit and vegetable ingredients. In 2024, the fruit ingredients segment is expected to dominate the global fruit and vegetable ingredients market. The large market share of this segment is attributed to factors such as the ease and widened adoption in various applications, low cost, and easy availability in various forms.

In 2024, the Concentrates Segment is Expected to Account for the Largest Share of the Fruit and Vegetable Ingredients Market

Based on type, the global fruit and vegetable ingredients market is segmented into concentrates, pieces & powders, NFC juices, paste & purees, and other types. In 2024, the concentrates segment is expected to account for the largest share of the global fruit and vegetable ingredients market. The large share of this segment is mainly attributed to factors such as high adaptability in beverages and other applications offering a favorable taste, flavor, improved quality, and convenience. Also, minimized costs and logistical hassles support the growth of this segment.

The Organic Segment is Expected to Register the Highest CAGR During the Forecast Period

Based on nature, the global fruit and vegetable ingredients market is segmented into organic and conventional. The organic segment is slated to register the highest CAGR during the forecast period. The rapid growth of this segment is attributed to factors such as increasing demand for organic food and beverages, the growing trend of sustainable & natural food, and rising awareness about clean-label products. Additionally, organic ingredients are perceived to be safer and healthier as they are free from any chemicals and pesticides, which further supports the growth of this segment.

The Beverages Segment is Expected to Account for the Largest Share of the Fruit and Vegetable Ingredients Market

Based on application, the global fruit and vegetable ingredients market is segmented into beverages, bakery & confectionery products, dairy products, soups & sauces and savory & prepared food products, and other applications. In 2024, the beverages segment is expected to account for the largest share of the global fruit and vegetable ingredients market. The large share of this segment is mainly attributed to the growing awareness of health benefits related to natural flavors in beverages, increasing new product development and launches of beverages, rising demand for organic beverages, and growing popularity of flavored soft drinks. Also, the growing demand for health and sports drinks with enhanced nutritional value is expected to support the growth of this segment.

Europe: The Dominating Regional Market

The fruit and vegetable ingredients market is segmented into five major regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Europe is expected to account for the largest share of the fruit and vegetable ingredients market. The large market share of this region is mainly attributed to factors like rising consumer demand for healthier and natural products, growing consumption of ready-to-eat food and beverage products with high nutritional value, and growing health and wellness concerns. Also, product launches with free-from, organic, and clean-label claims further augment the growth of this region.

However, Asia-Pacific is slated to register the highest CAGR during the forecast period. The growth of this regional market is mainly attributed to factors such as rapid urbanization, growing demand for processed food products, increasing number of supermarkets and hypermarkets, rising awareness about the health benefits of nutritional products, and increasing demand for flavored diet drinks and beverages.

Scope of the Report:

Fruit and Vegetable Ingredients Market Assessment, by Category

• Fruit Ingredients
• Vegetable Ingredients

Fruit and Vegetable Ingredients Market Assessment, by Type

• Concentrates
• Pieces & Powders
• NFC Juices
• Paste & Purees
• Other Types

Fruit and Vegetable Ingredients Market Assessment, by Nature

• Organic
• Conventional

Fruit and Vegetable Ingredients Market Assessment, by Application

• Beverages
• Bakery & Confectionery Products
• Dairy Products
• Soups & Sauces and Savory & Prepared Food Products
• Other Products

Fruit and Vegetable Ingredients Market Assessment, by Geography

• North America
  • U.S
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Russia
  • Netherlands
  • Belgium
  • Austria
  • Poland
  • Rest of Europe (RoE)
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Thailand
  • Vietnam
  • Philippines
  • Rest of Asia-Pacific (RoAPAC)
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America (RoLATAM)
• Middle East & Africa
  • South Africa
  • UAE
  • Saudi Arabia
  • Rest of Middle East & Africa

Key Questions Answered in the Report: