GlOBAL – The current rise in population growth along with the subsequent spike in food demand result in a growing demand for fresh fruits and vegetables, new report highlights.
According to a recently published report by Verified Market Research, the market size of the fresh fruits and vegetables industry, which was valued at USD 143,904.80 million in 2020, is projected to reach USD 211,073.81 million by 2028, growing at a compound annual growth rate (CAGR) of 5.14% from 2021 to 2028.
The value of a well-balanced and nutritious diet is measured by the amount of fresh produce and vegetables it contains.
These high value dietary components are rich in vitamins and minerals and are available in two forms: raw and processed, making fruits and vegetables the most utilized cuisine in the world, both domestically and commercially.
The Verified Market Research reports that the global fresh produce and market outlook is majorly linked to the basal dynamics of the market ecosystem controlled by both intrinsic factors like drivers and restraint, and extrinsic factors like opportunities and challenges.
The demand for fresh fruits and vegetables is rapidly increasing due to the current global population growth.
According to UN statistics, the world population has quadrupled over the last century, increasing from 1.8 billion in 1915 to 8.1 billion in 2023.
Consistent with the report, is that the current surge in the demand for fruits and vegetables can also be attributed to the rise in consumer health wellness awareness, particularly amongst the younger generation, and the rise in obesity and other lifestyle diseases cases.
Another ripple effect influenced by the increasing demand for fresh fruits and vegetables is the shift in the distribution method of these products from conventional stores to online retailing.
“The development of retail channels and chains, such as supermarkets, hypermarkets, and convenience shops, is a key factor driving the expansion of the fresh fruits and vegetables industry,” illustrates the report.
Among the most thriving distributors listed in the report are Walmart, Tesco, Spar, and 7-Eleven are growing their stores in established nations like the United Kingdom, Germany, and the United States, as well as emerging markets like China, Brazil, and Argentina.
A segmentation analysis based on product type and end-users further demystified the global market share of fresh fruits and vegetables.
More precisely, the market, through product type classification, is bifurcated into Vegetables and Fruits with vegetables accounting for the largest market share in 2020 and is projected to grow at a CAGR of 5.85% over the forecast period.
The report’s end-user segmentation is classified into inorganic and organic.
According to the report, the inorganic segment accounted for the largest market share in 2020, while the organic segment is projected to grow at a CAGR of 6.38% during the forecast period.
Further contributing to this conversation is a comprehensive report by Technavio where the apple market is reportedly expected to rise by USD 10.2 billion from 2021 to 2026 with the growth momentum of the market progressing a CAGR of 2.38% during the anticipated period.
Technavio provides an exhaustive report on the projection of the Kiwi fruit market, indicating that the market for fresh fruit is expected to grow by USD 2.74 billion from 2021 to 2026, with a decelerating momentum of a 4.3% CAGR during the forecast period.
A recent publication by the FAO classifies fresh fruits and vegetables as representing only around 7-8% of total global production, yet they still rank among the most valuable commodities.
The report by FAO further states that exports play a fundamental role in driving the growth of the fruits and vegetables sector as they influence production and market domestically.
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