As the world increasingly turns towards health and wellness, the global fruit and vegetable ingredients market is positioned for robust growth. This dynamic market is being propelled by the current trend of healthy snacking and the rising popularity of vegan diets, which has significantly broadened the application of fruit and vegetable extracts in diverse food products like breakfast cereals, snack bars and soups. Numerous regions, including Europe, have seen a surge in demand for food and snack products fortified with fruit ingredients such as avocados, berries and mangoes – key components in both regional cuisines and everyday foods like baked goods.
In addition, the burgeoning awareness around the proven health benefits of fruit and vegetable-derived dietary supplements, particularly those aiming to address cardiovascular conditions, is another potent driver for this market. Recognizing their potential and ever-growing demand, supplement manufacturers are incorporating higher volumes of these ingredients in their offerings. Moreover, the increased demand among consumers for naturally derived food and beverage products — free of additives like artificial flavors, colors, and preservatives — has solidified the standing of fruits and vegetables as indispensable ingredients. Beverages, in particular, have emerged as the market's leading application of fruit and vegetable ingredients, with the growing demand for unique flavors and health-centric choices substantially driving this segment.
The organic trend in the global food industry is quickly gaining pace, stimulating the demand for natural food additives and in turn, boosting sales of fruit and vegetable extracts. Currently, consumers are showing heightened interest in understanding how their foods are made and where the ingredients are sourced from. This transparency has given a formidable impetus to the promotion of clean-label and free-from products. Interestingly, the growth of the global market is further augmented by an increase in clean-label product claims and the rising popularity of natural and organic products across the globe.
- The ongoing trend of healthy snacking, supported by the increasing number of consumers following vegan diets, is the primary factor that has increased the application of fruits and vegetables in different food products, such as breakfast cereals, snack bars, soups, and others. For instance, in Europe, there has been a significant rise in demand for food and snack products made from fruits such as avocados, berries, and mangoes because they are an essential component of regional cuisines and everyday foods like baked goods.
- The dietary supplements of fruit and vegetable ingredients help to treat cardiovascular disease and chronic venous insufficiency. According to the United States Centres for Disease Control and Prevention (CDC) (2022), heart attack is the leading cause of death in the United States. Hence, dietary supplement manufacturers are increasing the fruit and vegetable ingredients to reduce the incidence of cardiac disease in the future.
- Factors including increasing customer demand for food and drink products with natural ingredients that are free of added sugar, artificial flavors, colors, and preservatives, among other substances, are essential drivers of the market for fruits and vegetables as ingredients.
- Fruit ingredients accounted for the major share, followed by vegetable ingredients. Increased demand for fruit juice concentrate in the beverage industry is the primary factor driving the market. Beverages are the leading application of fruits and vegetable ingredients in the market, either in the form of concentrate, powders, or NFC juices, as consumers seek out newer flavors for sensory experiences and rising concerns regarding various health issues, including obesity and nutritional deficiencies. This, in turn, strongly augments the demand for fruit pieces and powders in the beverage segment.
Fruit & Vegetable Ingredients Market Trends
Growing Demand for Organic Ingredients in the Food Industry
- The rapid expansion of the processed and packaged food industry is expected to accelerate the demand for natural food additives, eventually driving the sales of fruit and vegetable extracts. Increasingly people are beginning to view ingredients, processing, and packaging as links in a chain of sustainable nutrition. Customers are interested in knowing how products are made and where the ingredients are from, which aligns with the broader trend of clarity and transparency. Thus, manufacturers in the market are promoting clean-label and free-from products to accommodate consumers.
- For instance, in April 2022, Van DrunenFarms launched a new product called purslane powder in the line of purslane ingredients. The company claimed that this powder could be used in applications such as green drinks, smoothies, superfood blends, and functional foods.
- Natural and organic claim products have witnessed increasing demand across the globe. The global market for fruit and vegetable ingredients is being accelerated by increasing consumer demand for nutrient-dense products and an increase in clean-label product claims.
- Product launches with various label claims, such as “no artificial additive” and“non-GMO, ' have silently benefited customers over the years. Thereby, the increasing 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 have helped drive the growth of the global market during the forecast period.
Europe Held the Largest Market Share
- The growing consumption of ready-to-consume food and beverage products with high nutritional value and which are consistent in taste, save time, and include exotic fruit and vegetable ingredients, is driving the European market. For instance, fruit powders like white grape/raisin powders can be a natural source of sweeteners in many items, such as cakes, candies, etc. In Italy, the fruit and vegetable ingredients market is becoming increasingly popular in processed food categories like bakery and confectionery.
- There are also vegetable sources like sugar beet powder, a common source of sucrose, and pigments like anthocyanins, which can be used as a natural coloring agent and sweetener in bakeries as confectionery products, pastry products, chocolates, and many more.
- Furthermore, food manufacturers use freeze-dried fruit pieces to add flavor, color, and aesthetic appeal to a range of bakery and confectionery products. For example, freeze-dried berries are used in snack products, like chocolate bars, where these fruits impart flavor and color.
- In Spain, fruit ingredients are also extensively preferred by manufacturers in the market because they can add flavor and color to food and beverage products. These ingredients are usually used in applications like ice creams, desserts, and more.
- The growing consumption of these products in the country is projected to impact the market's growth over the coming years positively. For instance, as per the Ministry of Agriculture, Food and Environment, in 2021, consumers in the market consumed about 71 million kg of ice cream in the summer, i.e., from July to September,
Fruit & Vegetable Ingredients Market Competitor AnalysisThe global fruit and vegetable ingredient market is highly competitive, with many local and international players competing for market share. Major players like Hans Zipperle AG, Cargill Incorporated, Archer Daniels Midland Company, Agrana Group, and Olam International hold a significant position in the global fruit and vegetable ingredient market.
Also, most companies are spending on R&D with a plan to provide consumers with innovative and healthy fruit and vegetable ingredients. The effective strategies companies adopt in the global fruit and vegetable ingredient market are new product launches, agreements/partnerships, expansions, and acquisitions.
Globally, the active companies in the market have adopted product innovation as their strategy due to changing consumer preferences. The companies primary goal is to provide products with a wider range of uses, supporting all food and beverage industries and effectively catering to consumer preferences.
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Table of Contents
1.2 Scope of the Study
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
126.96.36.199.4 Other Berries
188.8.131.52 Other Fruits
184.108.40.206 Other Vegetables
5.2.2 Pastes and Purees
5.2.5 NFC Juices
5.3.2 Confectionary Products
5.3.3 Bakery Products
5.3.4 Soups and Sauces
5.3.5 Dairy Products
5.3.6 RTE Products
5.4.1 North America
220.127.116.11 United States
18.104.22.168 Rest of North America
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 Rest of Asia-Pacific
5.4.4 South America
184.108.40.206 Rest of South America
5.4.5 Middle-East and Africa
220.127.116.11 South Africa
18.104.22.168 United Arab Emirates
22.214.171.124 Rest of Middle-East and Africa
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Hans Zipperle AG
6.3.2 Archer Daniels Midland Company
6.3.3 Kerry Group
6.3.4 Sensient Technologies
6.3.5 AGRANA Beteiligungs-AG
6.3.6 Kanegrade Natural Ingredients
6.3.7 Taura Natural Food Ingredients
6.3.8 Olam International Limited
6.3.9 Tate & Lyle PLC
6.3.10 Cargill Incorporated
A selection of companies mentioned in this report includes:
- Hans Zipperle AG
- Archer Daniels Midland Company
- Kerry Group
- Sensient Technologies
- AGRANA Beteiligungs-AG
- Kanegrade Natural Ingredients
- Taura Natural Food Ingredients
- Olam International Limited
- Tate & Lyle PLC
- Cargill Incorporated