Fruit and Vegetable Ingredients Market - Forecasts from 2021 to 2026

The fruit and vegetable ingredients market is projected to grow at a CAGR of 7.31% to reach US$240.489 billion by 2026, from US$146.762 billion in 2019. Food and Vegetable ingredients refer to the products or ingredients used in vegetables and fruits to enhance their taste and are extracted from a wide range of vegetables and fruits. Its availability in juice, powder, and paste form is used in a wide variety of foods and beverages including bakery products, soup, sauces, snack food, beverages, and others. These fruit and vegetable ingredients are most beneficial when consumed in pure form but find a major application in the form of concentrates, purees powders, and single-strength juices when the pure form is not preferred. The improvement of the nutritional value of foods and beverages with the addition of fruit and vegetable ingredients by fortifying them is a major reason for the use of these ingredients during the forecast period. The fruit and vegetable ingredients market is highly driven by the growing urbanization, environmental concerns, the ever-growing population, and the rising disposable income.



The growing application of fruit and vegetable ingredients in the food and beverage industry has further boosted the market growth of these ingredients in the global market. Also, the rapid expansion of packaged and processed food industry is fueling the market of natural food additives further driving the growth of the food and vegetable ingredients market in the forecast period. The inclusion of natural concentrates in baby products has further surged the demand for food and vegetable ingredients in the global market. The varying food preference among adults for low-sugar, low-fat, and naturally sourced natural additives in food and beverage will boost the market demand for these ingredients. Furthermore, the rising health consciousness coupled with the rising awareness among consumers regarding ingredients in food products will drive the market growth for the food and vegetable ingredients market.

The addition of prune powders to foods and beverages incorporates a tangy taste but also improves the fiber content of foods owing to which the addition of these ingredients to food and beverages increases the overall nutritional value of the food which in turn boosts the market growth for fruit and vegetable ingredients market during the forecast period. The increasing concern over the quality of food consumers and food and beverage companies have been migrating from fresh fruits and vegetables to fruit and vegetable ingredients. The growing processed food and beverage industry and the growing interest in natural ingredients and healthier option is driving the growth of the fruit and vegetable ingredients market during the forecast period. The use of fruit and vegetable ingredients as flavor enhancers and the rising spending power is further augmenting demand for fruit and vegetable ingredients during recent years.

Growth Factors

Increasing demand for natural ingredients in the food and beverage industry

One of the major reasons for the growth of the fruit and vegetable ingredients market is the increasing demand for processed food around the globe owing to the growing economies. The increasing population and the rise in disposable income have led to the adoption of processed food. The hectic lifestyle has also contributed to the adoption of processed food which in turn led to the growing demand for food and vegetable ingredients in the global market. The surging extraction of bioactive compounds from vegetables and fruits for utilization as natural additives in the food and beverage industry has been a major trend in recent years. The application and utilization of these natural additives and concentrate in baby food as food safety is one of the primary concerns in the sector. The changing food preferences in adults for low-fact, naturally sourced, low sugar will further fuel the growth of on fruit and vegetable ingredients market during the forecast period.

Impact of COVID-19 on the Fruit And Vegetable Ingredients Market

The COVID-19 pandemic has had a great impact on the world as a whole and has led to economic breakdown and loss of life. The manufacturing sector has been interrupted because of lockdown and restrictive measures introduced in numerous nations. Additionally, disruptions in the supply chain management and the retardation of companies' businesses due to the pandemic have led to the loss of employment. Trade barriers have restrained the stock. The COVID-19 impact on the fruit and vegetable ingredients market has been substantial owing to the production halt by industries and the shortage of raw materials. The upsurge in the demand for processed food to take into consideration the changing preference and tastes has posed a serious challenge to food ingredient companies. However, in the post COVID scenario, the fruit and vegetable ingredients market is expected to bloom with the surging demand in the food and beverage industries in the forecast period.

Competitive Insights

The market leaders in the fruit and vegetable ingredients market are AGRANA Beteiligungs-AG, Archer Daniels Midland Company, Olam International Limited, Sensient Technologies Corporation, SunOpta Inc., Diana Group, Döhler GmbH, GÖKNUR GIDA, Kerry Inc and Hans Zipperle S.p.A.

Segmentation:

The fruit and vegetable ingredients market has been analyzed through the following segments:

By Fruit & Vegetable Ingredients

• NFC Juices
• Purees and puree concentrate
• Juice concentrates
• Pastes
• Others

By Application

• Still drinks
• Dairy products
• Smoothies
• Confectionary
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• Indonesia
• Taiwan
• Thailand
• Others