Fruit & Vegetable Processing Industry Profile

Companies in this industry use freezing, canning, dehydrating, and pickling processes to preserve fruits and vegetables. Major companies include Dole, Kraft Heinz, Seneca Foods, Simplot, and The JM Smucker Co, and divisions of large food companies such as Conagra Brands and General Mills (all based in the US); as well as AGRANA (Austria), Bonduelle (France), Del Monte Pacific (Singapore), Greenyard (Belgium), La Doria (Italy), and McCain Foods (Canada).

The worldwide fruit and vegetable processing market is expected to grow about $294.01 billion by 2027, according to Report Linker. Major exporters include Canada, Japan, and Mexico. China and India are high-growth markets for processed fruit and vegetables due to rising disposable income and large agricultural production.

The US fruit and vegetable processing industry includes about 1,900 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $72 billion.

COMPETITIVE LANDSCAPE

Demand is driven by food consumption, which depends on population growth. The profitability of individual companies depends on efficient operations, because products are commodities subject to intense price competition. Companies compete largely based on cost and their ability to distribute the finished product. Large companies have advantages in purchasing and distribution. Small companies can compete effectively in local or regional markets. The US industry is concentrated: the 50 largest companies generate about 60% of revenue.

Imports of fruit and vegetable preserves and specialty foods account for about 15% of the US ...