Europe Fruit & Vegetable Ingredient Market - Growth, Trends, and Forecasts (2023-2028)

During the time frame of the forecast, the European Fruit and Vegetable Ingredient Market is expected to register a CAGR of 4.46 %.

The market is primarily driven by the growing usage of vegetable ingredients in ready-to-eat food products that include snacks, ready-to-eat meals, and other processed foods, which are often preferred by consumers in the region owing to factors such as ease of preparation and storage. According to the Office for National Statistics (UK), in 2021, the sales of prepared meals and dishes increased to approximately USD 5.07 billion, a rise over USD 4.78 billion in 2020. Fruits and vegetable ingredients of various forms, such as powders and pieces, play a significant role in desserts, beverages, and other applications for their taste, color, nutritional content, and texture, among other characteristics. Additionally, ingredients such as fruit and vegetable powders are often utilized as a seasoning, filling, or topping in various food and beverage recipes. Also, more and more botanical ingredients are being used to make dietary supplements and nutraceuticals because they have a lot of nutrients and are good for your health.

There is an increased consumer preference for fresh produce, like freeze-dried and frozen fruit and vegetable ingredients, with increasing awareness about their higher nutritional value, which is boosting the market in the region. The market is primarily driven by the extensive utilization of fruit and vegetable ingredients in dairy applications across the region. Dairy products such as smoothies, shakes, ice creams, and flavored milk are a few of the commonly observed finished products in which fruit ingredients are used on a large scale. Weight management and general health and well-being are the biggest concerns for European consumers. This is driving the demand for fruit- and vegetable-based powders and pieces that can be easily added to flavored water, juices, and yogurts, which is driving market growth.

Europe Fruit & Vegetable Ingredient Market Trends

Increasing Popularity of Fruit Ingredients in Functional Foods and Beverages

The growth in the consumption of ready-to-eat products with high nutritional value that are consistent in taste, save time, and include exotic fruit and vegetable ingredients is driving the market. A rise in the number of fitness enthusiasts and a growing consumer inclination toward a healthy lifestyle are expected to be the key growth drivers of the functional food and beverage market. People's increased participation in sports on a national and international level is expected to increase the number of athletes, which will accelerate growth throughout the functional beverages market forecast period.Functional beverage processing companies are introducing beverages with low calories and fats and adding fruit and vegetable ingredients and flavor additives to appeal to refined tastes, owing to the growing number of casual users of sports and energy drinks. This factor allows them to spend more on healthy foods, such as superfruits, than on artificial foods with flavors, colors, and preservatives, thereby increasing their expenditure levels. Some of the fruit ingredients, such as Goji berries, are tiny, red fruits packed with antioxidants and powerful medicinal properties. These berries are often sold powdered or dried. In addition, they are added to many supplements and juice blends, which propels the demand for beverages such as juices in the region.

The shift toward healthy eatables, driven by the rising adoption of vegan lifestyles and the growing realization of the crucial role of fruits and vegetables in disease prevention, is also accelerating market growth in the region. The companies are also focusing on launching ingredients that can be used in functional food and beverage products by partnering with key players to gain a competitive advantage and entice customers. For instance, in July 2021, Taiyo GmbH partnered with Asiros to produce high-fiber fruit powders that can be incorporated into functional beverages and foods that are popular among consumers on the market.

United Kingdom Holds the Significant Share in the Region

The market for fruit and vegetable ingredients in the United Kingdom is expected to grow during the forecast period, owing to the increasing use of natural and organic fruit and vegetable pastes and purees in various food processing and beverage industries in the country. Fruit and vegetable powders, purees, and concentrates are used in making confectionery products, snack items, sauces, salad dressings, and dips. Thereby, the growing use of natural fruit and vegetable ingredients in various industrial sectors, such as dairy, bakery, beverages, and dietary supplements, among others, owing to the color, texture, flavor, and functional properties of these ingredients, has helped drive the growth of the market over the review period. The growing use of fruit ingredients in the beverage industry across the country also drives the market. Fruit juices are among the most commonly consumed and preferred by consumers in the market. For instance, the total consumption of fruit juices in the United Kingdom stood at about 956 million liters in 2021, as per the British Soft Drinks Association. Due to the market's demand for fruit juices, manufacturers are focusing on manufacturing their products from organic and non-GMO fruit ingredients.

Europe Fruit & Vegetable Ingredient Market Competitor Analysis

The European fruit and vegetable ingredient market is highly competitive due to the presence of local and international players in the market. The prominent players in the market are Archer Daniels Midland Company, Kerry Group PLC, Olam International Limited, SunOpta, Inc., and Symrise AG, among others, who are adopting strategic approaches such as new product launches, agreements and partnerships, expansions, and acquisitions. For instance, in February 2021, European Freeze Dry Limited launched its latest ingredient, freeze-dried jackfruit, to meet the demand from the growing base of vegan consumers. The company stated that the benefits of freeze-dried jackfruit come from its versatility, its texture, and the opportunities for use in pot meals as a replacement for pulled pork or chicken.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.