Companies in this industry use freezing, canning, dehydrating, and pickling processes to preserve fruits and vegetables. Major companies include Kraft Heinz, JR Simplot, and Pinnacle Foods (all based in the US); Bonduelle (France); AGRANA (Austria); Del Monte Pacific (Singapore), McCain Foods (Canada); Pinguin (Belgium); La Doria (Italy); and divisions of large food companies such as ConAgra and General Mills (US).
Global export revenue of processed fruits and vegetables totals more than $75 billion, according to the United Nations. Major exporters include China, the US, the Netherlands, Italy, and Belgium. The US is by far the industry’s largest importer. 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 1,700 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $72 billion.
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 65% of revenue.
Imports of fruit and vegetable preserves and specialty foods account for about 12% of the US market. Major sources...