Asia and Pacific: Processed Vegetables Market and the Impact of COVID-19 on It in the Medium Term

Asia and Pacific: Processed Vegetables Market and the Impact of COVID-19 on It in the Medium Term

The processed vegetables market in Asia and Pacific was equal to 35.94 billion USD (calculated in retail prices) in 2015. Until 2025, the processed vegetables market in Asia and Pacific is forecast to reach 105.55 billion USD (in retail prices), thus increasing at a CAGR of 7.87% per annum for the period 2020-2024. This is a decrease, compared to the growth of about 15.59% per year, registered in 2015-2019.

The average consumption per capita in value terms reached 13.45 USD per capita (in retail prices) in 2015. In the next five years, it grew at a CAGR of 7.31% per annum. In the medium term (by 2025), the indicator is forecast to slow down its growth and increase at a CAGR of 5.58% per annum.

The processed fruits and vegetables industry is going through a period of major shifts in consumer preferences. In fact, consumers’ evolving choice has influenced processed fruits and vegetables production and consumption at all stages of the value chain. Now, people are increasingly health-conscious and trying to provide the body with the necessary vitamins, antioxidants, dietary fiber and phenolic compounds. As a main source of such nutrients, processed fruits and vegetables make a valuable contribution to a healthy diet. In addition, people are also interested in lower sugar/salt foods and fermented foods with additional health benefits. So, demand for healthy and “clean label” products is increasingly growing and is one of the leading trends in the global industry. Aspects such as price and taste are no longer the main drivers of choice for consumers. Instead, consumers’ behavior has been significantly influenced by the growing importance of health and wellness, sustainability and social responsibility, as well as by the desire for new experiences. Although the global economy is expanding and consumer confidence is strong, selective spending remains. People are more price sensitive and less brand-loyal. At the same time, they are looking for unified experience and more customized product offerings. Therefore, aspects such as store merchandising and the offered discounts are increasingly important.

One of the factors, driving the stable consumption of processed fruit and vegetable products in the last few years has been their availability regardless of season or geography. For this reason, consumption of processed vegetables can be viewed complementary to the consumption of fresh products, which also supports the fulfillment of nutritional needs of the global population. According to industry experts, initial micronutrient levels in fruits and vegetables harvested for processing are high, as the crops are usually harvested at a more mature stage. Furthermore, the processes of canning and freezing shortly after harvest ensure that fruits and vegetables preserve quite effectively their best nutritional value.