North America Fruit & Vegetable Ingredients Market- Growth, Trends, and Forecast (2020 - 2025)

The North America Fruit & Vegetable Ingredient Market is expected to register a CAGR of 4.2%, over the forecast period, 2020 to 2025.

• The growth in consumption of ready-to-eat products that are consistent in taste saves time and includes exotic fruits and vegetable ingredients is driving the North American market. The shift toward healthy eatables driven by rising adoption of the vegan lifestyle and the growing realization of the crucial role of fruits & vegetables in disease prevention is also accelerating the market growth.
• There is a strong growth observed in the sales of fruits and vegetable-based snack products especially from working women and gym-goers segment. The perceived health benefits of such products coupled with on-the-go convenience and indulgence are fueling the market growth of fruit and vegetable ingredients in North America.

Key Market Trends

Growing preference for Organic Food across North America

The fruit and vegetable ingredients market in North America is driven by sales growth in organic food products, the surge in the popularity of clean label ingredients, and greater consumer desire for healthy indulgence. The rapid expansion of the processed and packaged food industry is expected to accelerate the demands for natural food additives, eventually driving the sales of fruit and vegetable extracts.

Most of the market growth is driven by the millennial consumer segment, where the notion towards, transparency and integrity in the food supply chain, has led to the popularity of the USDA Organic seal thereby gaining new appeal from consumers. In addition, North America has witnessed an increase in the launch of beverage products infused with plant-based ingredients, the growing popularity of frozen dinners, entrées, pizzas, and breakfast products have also supplemented the growth of fruit and vegetable ingredients market.

Beverages Segment is expected to be the fastest growing, over the forecast period

The refreshment along with nutrition has paved a long way over the past years, which at present has leveraged the ground for vegetable and fruit-based ingredients across beverages. Vegetable ingredients are gaining popularity among consumers who values them as a healthy part of their diet.

Beverage manufacturers are using both fruit and vegetable ingredients that enable them to fit the sugar content in juices, however, there is a rising demand in other segments as well. Among the segment studied, dairy products such as ice cream and yogurt, are using vegetable ingredients and the same can be witnessed across children's snacks and cereals.

Competitive Landscape

Major players operating in the North America Fruit & Vegetable ingredients market are SunOpta, Archer Daniels Midland Company, Frutarom, Sensient Technologies Corporation, Cargill Incorporated, Symrise, among others.

New product development is one of the strategies that companies are looking forward to have a strong hold in the market. Major player such as Archer Daniels Midland Company, in October 2016, has launched a new line of unique fruit and vegetable functional extracts that can deliver concentrated dose of antioxidant compounds beta-carotene and anthocyanin in several food, beverage and supplement applications.

Expansion has always played a major role for players, that enables them to penetrate any domestic market. In October 2016, Cargill Incorporated had started its new innovation center in China to create new food products and flavors for its consumers’ demand in the country.

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