Fruits And Vegetables Processing - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

Fruits And Vegetables Processing Market Analysis

The fruit and vegetable processing market size in 2026 is estimated at USD 347.27 billion, growing from 2025 value of USD 328.48 billion with 2031 projections showing USD 458.62 billion, growing at 5.72% CAGR over 2026-2031. Demand is climbing as dual-income households, urban lifestyles, and cold-chain advances elevate expectations for ready-to-eat produce. Technology investments such as high-pressure processing, individual quick freezing, and automation are helping processors deliver longer shelf life without compromising nutrition. Government funding in Asia-Pacific and North America is accelerating plant upgrades, while zero-waste retail mandates push processors to upcycle imperfect raw materials. Competitive pressures remain moderate because global players are using strategic acquisitions and premium positioning to widen gaps against smaller firms facing volatile raw-material costs and high capital needs.

Global Fruits And Vegetables Processing Market Trends and Insights

Rising Demand for Convenient, Longer-Shelf-Life Produce

Convenience has become the key purchase trigger across income brackets as urban consumers look for healthy, time-saving foods. High-pressure processing enables shelf-stable fruit juices and vegetable purées without heat, allowing brands to satisfy clean-label requirements. Regulatory endorsements from EFSA in 2024 and consistent guidance from the FDA have removed safety concerns, prompting major processors to install commercial-scale HPP units. Early adopters now command premium pricing by offering fresh-like taste combined with a six-month chill-storage life. Brands selling through online grocery platforms gain further leverage because extended freshness reduces waste during last-mile delivery.

Expansion of Cold-Chain Capacity in Emerging Economies

Record government spending in China, India, and Vietnam is transforming post-harvest logistics. China’s cold storage footprint reached 30,742.7 million m³ in 2023, lifting low-temperature treatment for produce to 32.0% in 2024. India’s 399 approved cold-chain projects are unlocking rural supply for processors and cutting post-harvest losses. Canadian and Vietnamese grants show that developed and developing economies alike view modern processing plants as catalysts for rural employment and export growth. As capacity expands, processors move closer to farms, curbing spoilage and capturing higher margins through value-added formats.

Volatile Raw-Material Pricing & Farm-Gate Supply Swings

Weather shocks and geopolitical events cause abrupt spikes in produce costs, squeezing margins. USDA volatility indices for dry beans and peas rose sharply in the 2025 crop-year outlook, signaling difficult hedging conditions. Smaller processors struggle to secure forward contracts and often defer expansion plans. Larger firms use diversified sourcing and commodity-hedging programs, but pass-through pricing is limited in price-sensitive markets, keeping profitability under pressure.

Other drivers and restraints analyzed in the detailed report include:

1. Growing Adoption of High-Pressure Processing (HPP) for Clean-Label Foods
2. Upcycling “Ugly” Produce to Meet Zero-Waste Retail Mandates
3. High Capex for Hygienic, Automation-Ready Equipment

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Fruits generated 54.12% of the fruit and vegetable processing market revenue in 2025 as decades of established supply chains and consumer familiarity sustained volume. Vegetable lines, however, are slated to outpace at 6.39% CAGR through 2031. Processors are reallocating capacity toward vegetables for soups, meal kits, and snack packs, aligning with demand for plant-based protein and low-carb diets. Vietnam’s projected USD 7 billion export haul in 2024 illustrates how improved quality controls open Northeast Asian markets. Equipment suppliers report rising orders for IQF spinach and broccoli modules, indicating processors’ readiness to diversify beyond fruit purees.

Vegetable momentum also stems from quick-service restaurants and on-site canteens that require portion-controlled frozen mixes for consistent plating. Government nutrition campaigns in Asia support higher vegetable intake, boosting contract farming for carrot, pumpkin, and okra varieties suited to steam-blanch and freeze processes. As retailers widen premium frozen aisles, vegetable SKUs are expected to gain shelf facings, narrowing the share gap with fruits by the decade’s end.

The Fruit and Vegetable Processing Market Report is Segmented by Type (Fruits, Vegetables), Product (Fresh, Fresh-Cut, Canned, Frozen, Dried & Dehydrated, Juices & Purees), End User (Food Processing Industry, Food Service/HoReCa, Retail/Household), and Geography (North America, Europe, Asia-Pacific, South America, Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Geography Analysis

In 2025, Asia-Pacific accounted for 33.52% of global revenue, driven by its extensive agricultural resources, a growing middle class, and significant investments in cold storage. China's 30,742.7 million m³ capacity enhanced first-mile quality, supporting urban supermarkets and export markets. Vietnam's exports rose by 24.3% year-on-year in the first seven months of 2024, fueled by shipments of durians, dragon fruits, and bananas to China, South Korea, and Japan. Local initiatives, such as Son La's 52,000-ton annual capacity plan, highlight efforts to develop processing clusters near production zones. Meanwhile, the Middle East and Africa recorded the fastest growth at 7.96% CAGR, with investments in pineapple, mango, and tomato processing facilities near raw material sources. Gulf importers diversified their supply chains by funding hubs in Egypt and Morocco, reducing reliance on long-haul shipments. Rising supermarket penetration and tourism in GCC countries boosted demand for frozen and canned produce, while grant-funded Cambodian facilities underscored Southeast Asian interest in these regions as growth corridors.

North America and Europe remain mature yet profitable markets, shaped by strict safety regulations and high consumer expectations. In the U.S., where ultra-processed foods account for 60% of calorie intake, increasing scrutiny over additives has prompted processors to adopt High Pressure Processing (HPP) and reduce sodium content. The EU's Regulation 2025/40 on recyclability has driven a shift toward mono-material pouches and recycled-PET trays, adding compliance costs. To support modernization, Canada allocated USD 89 million in grants, enabling operators to upgrade to automated, hygienic production lines. While volume growth remains modest, value growth persists as consumers pay premiums for clean-label frozen and chilled products, reflecting evolving preferences in these established markets.

List of Companies Covered in this Report:

1. Kraft Heinz Company
2. Conagra Brands
3. Nestle S.A.
4. Archer Daniels Midland (ADM)
5. Dole plc
6. Del Monte Foods
7. Agrana Beteiligungs-AG
8. B&G Foods
9. Albertsons Companies
10. SVZ International
11. Olam Group
12. JBT Corporation
13. Bohler AG
14. GEA Group AG
15. Tetra Pak
16. Bonduelle Group
17. Seneca Foods
18. SunOpta
19. The J. M. Smucker Company
20. Hain Celestial Group

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support