The global fruit and vegetable ingredients market, valued at USD 218.0 billion in 2022, is on a promising trajectory, projected to reach USD 280.9 billion by 2027. This growth, driven by a compound annual growth rate (CAGR) of 5.2% during the forecast period of 2022-2027, is influenced by several key factors including the rising demand for functional ingredients, advancements in processed food, and the increasing popularity of clean label products.

Get PDF Copy: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=109075059

Key Market Drivers and Opportunities

Demand for Functional Ingredients

The demand for better functional ingredients is a significant driver of the fruit and vegetable ingredients market. As consumers become more health-conscious, there is a growing preference for foods that offer additional health benefits beyond basic nutrition. This trend is propelling the use of fruit and vegetable ingredients across various end-use industries.

Advancements in Processed Food

Developments in the processed food sector have also played a crucial role in the market’s expansion. Over the past two decades, significant changes in food and beverage processing have led to a higher demand for packaged and processed products. This, in turn, has increased the need for high-quality fruit and vegetable ingredients.

Rise of Clean Label Products

Consumers today are increasingly inclined towards clean label products—those with minimal, natural ingredients and no artificial additives. This shift is driving the market for fruit and vegetable ingredients, as these products align perfectly with the clean label trend.

Sustainability and the Eco-Active Consumer

The rising demand for sustainable products is another critical factor contributing to the growth of the fruit and vegetable ingredients market. Sustainability certifications, once the realm of niche markets, have now become mainstream. This has given rise to a new type of consumer: the Eco-Active. These environmentally conscious shoppers are actively seeking to reduce their waste and prefer products with sustainability claims and certifications.

Health-Conscious Consumers and Natural Alternatives

In recent years, there has been a noticeable shift towards healthier diets. This trend has led to increased demand for healthy snacks, particularly those containing fruits and vegetables. As these perishable items are difficult to store for long periods, consumers are turning to products that incorporate natural fruit and vegetable ingredients. This shift towards healthier, more natural options is significantly boosting the market.

Regional Insights: Europe’s Leading Market Share

In 2021, Europe held the largest market share of 36.9% in the global fruit and vegetable ingredients market, largely driven by Germany. The German food and beverage processing industry supports this sector with its large consumer base, high purchasing power, and robust infrastructure. Germany’s competitive location factors and impressive export rates—around 45% of total exports—further stimulate market growth. The market is characterized by a significant presence of small- and medium-sized enterprises, with key industry segments including confectionery, bakery products, and dairy products. The health and wellness trend in Europe also fuels demand for healthy food and beverage products, contributing to market growth.

Speak to Analyst: https://www.marketsandmarkets.com/speaktoanalystNew.asp?id=109075059

Key Players in the Market

The fruit and vegetable ingredients market is populated by several key players, including:

• Cargill Incorporated (US)
• ADM (US)
• Ingredion
• Tate & Lyle (UK)
• Döhler GmbH (Germany)
• Kerry (Ireland)
• Sensient Technologies (US)
• AGRANA Beteiligungs-AG (Austria)
• SunOpta (Canada)

These companies are at the forefront of innovation and development in the market, driving trends and meeting consumer demands for high-quality, sustainable, and health-conscious products.

Conclusion

The fruit and vegetable ingredients market is poised for substantial growth, driven by increasing consumer demand for functional, sustainable, and health-oriented products. With significant contributions from the European market, particularly Germany, and strong participation from leading global companies, the market is set to flourish in the coming years. As consumers continue to prioritize health and sustainability, the market for fruit and vegetable ingredients will undoubtedly thrive.