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Good value for money more important than low price – and organic is back

The complexity of world affairs has not lessened since March 2023. World crises have not gone away, rather the opposite. One positive development is that the inflation rate dropped in Europe1. This change is also reflected in the survey by Südzucker regarding consumers’ price sensitivity. If the price sensitivity is decreasing, other aspects of purchase criteria must gain importance in comparison. But what are the growing interests of consumers when buying food & beverages?

Main purchase criteria – naturlness, organic and regionality gain focus

The top three drivers for purchasing food & beverages did not change: taste, health and price. But while taste and price dropped significantly, health remained stable. Aspects like naturalness, organic and regionality, however, are continuing to grow in importance.

Taste as the number one purchase decision remained on a high level and far above from the second important driver – health. The drop may indicate that taste is more and more of a given for the consumer and a must-have. The fact that a good taste and sensory profile is a matter of course is also evident when it comes to sugar-reduced products.

Taste as the number one purchase decision remained on a high level and far above from the second important driver – health. The drop may indicate that taste is more and more of a given for the consumer and a must-have. The fact that a good taste and sensory profile is a matter of course is also evident when it comes to sugar-reduced products. 60 % (incl. Italy) are concerned about how sugar reduction in food/drinks is achieved. In comparison to price, taste went down in Belgium and the UK, while price fell significantly in all countries. One potential reason for consumers‘ decreasing price sensitivity could be explained by the decreasing inflation rate in Europe1; consumers no longer look for the cheapest product, but for the product with the best value for money that also fulfils other consumer needs. It must be clear to consumers what they are getting for their money

Please download the full Südzucker Consumer Study 2024 for free under www.suedzucker.com.

1Source: Eurostat – Annual inflation down to 2.45 in the euro area (europa.eu)

As per the report by Global Market Insights, Inc. “Worldwide Processed Fruits & Vegetables market was valued USD 320 billion in 2022 and will surpass a revenue collection of USD 585 billion by 2032 with an annual growth rate of 5.5 % over 2023 to 2032.”

In addition, the accelerating consumer inclination towards a healthy lifestyle and the subsequent rise in the popularity of veganism globally are likely to propel market growth over the forecast period.

The COVID-19 pandemic impacted the industry quite negatively due to stringent lockdowns and supply chain disruptions. However, the potential side effects of SARS-COV-2 on the human immune system encouraged many people to increase their fruit and vegetable intake, which, in addition to the flourishing retail sector, is helping the industry’s revival.

Moreover, the major players in the industry have been focusing on diversifying their product ranges by strategically associating themselves with leading food manufacturers to meet consumer expectations and strengthen their business standing in the market, thus creating a positive growth outlook for the processed fruits and vegetables industry.

For instance, in February 2022, Sysco Corporation, a premier food distribution & marketing firm, completed the acquisition of The Coastal Companies, a leading distributor and processor of fresh produce to extend the company’s customer reach while bolstering its ready-to-eat capabilities.

The processed fruits & vegetables market has been bifurcated in terms of type, product, processing equipment, and region.

Based on type, the industry has been bifurcated into fruits and vegetables. The vegetables segment is estimated to amass substantial gains by 2032 on account of the increased cognisance of the benefits of consuming nutrient-rich healthy food on human health and well-being. Also, significant demand for organic vegetables among the vegan population is fueling segment growth.

With respect to the product, in 2022, the frozen fruits & vegetables segment garnered about USD 14 billion in revenues. The segment growth can be attributed to the convenience, freshness, sensory quality, nutrient retention, and extended shelf-life associated with frozen fruits and vegetables. Besides, the expanding cold storage infrastructure due to the increasing rollouts of food security initiatives is set to boost frozen fruits & vegetables demand.

Under processing equipment, the processing equipment segment was valued at USD 99 billion in 2022 and is foreseen to depict remarkable growth through 2032. Processing equipment helps maintain the flavour, colour, texture, and nutrition while increasing the shelf-life of perishable fruits and vegetables. The surging availability of fully automatic and semi-automatic equipment used in the fruit and vegetables processing industry is also driving the segment growth.

In the regional context, in 2022, the processed fruits & vegetables market in Europe clocked more than USD 95 billion. The imports of processed fruit and vegetable are anticipated to grow substantially in the European region. Also, the positive outlook of the retail sector in the UK has resulted in an increased demand for packaged and ready-to-eat food, thus, fostering the regional market growth.

Meanwhile, the processed fruits & vegetables industry in Latin America exceeded USD 30 billion in revenue in 2022 as a result of rising urbanization and snowballing organised markets in the rural sector of developing economies of the LATAM region.

The Processed Fruits & Vegetables market consists of U.S. Foods, Sysco Corporation, Total Produce, Dole Foods, Bonduelle, and Agrana

Source: https://www.gminsights.com/industry-analysis/processed-fruits-and-vegetables-market