Vegetable Market Analysis
A vegetable refers to a plant or any specific part of a plant such as leaves and roots, that are consumed as food. Popular vegetables include tomato, bean, beet, potato, onion, spinach, cucumber, cauliflower, and eggplant. The global vegetable market has been categorized as part of the global agricultural products market. The global agricultural products market includes producers of agricultural products. The market also includes crop growers, owners of plantations and companies that produce and process foods but do not package and market them.
The global vegetable market is expected to reach USD 1,436.70 billion by 2024, growing at a CAGR of 2.35%. Based on product type, the fresh vegetable segment dominates the global vegetable market. However, factors such as the rising demand for convenience foods, and improvements in logistics and storage infrastructure will aid the growth of the frozen and individually quick frozen (IQF) vegetable segment during the forecast period. APAC is expected to dominate the global vegetable market by region during the forecast period, owing to factors such as the high popularity of veganism and rising demand for processed vegetables in the region.
Growing prominence of vegan foods
There has been a growing consumer shift toward vegan diets over the last few years. Vegan foods are primarily comprised of plant-based products, and exclude animal-based products such as dairy, meat, and eggs. Factors such as safety concerns related to animal-based food products, and growing awareness about the health benefits of plant-based diets have aided the popularity of vegan foods. Growing encouragement by government agencies in several countries to adopt plant-based diets are expected to further popularize vegan diets worldwide in the coming years. For instance, the US Dietary Guidelines Advisory Committee emphasizes the consumption of organic, plant-based diets to minimize carbon footprint and promote environmental sustainability. The increase in demand for plant-based food products may encourage more consumers to adopt veganism in the coming years, thereby aiding the growth of the global vegetable market during the forecast period.
Rising awareness about the health benefits of minimally processed vegetables
Vegetables are rich sources of nutrients such as potassium, dietary fiber, folate, vitamin A, and vitamin C. Regular consumption of minimally processed vegetables is highly recommended owing to its multiple health benefits. For instance, romaine lettuce contains nutrients such as calcium, phosphorus, magnesium, potassium, and essential vitamins, and are beneficial for reproductive health and eye health. The rising awareness about the health benefits of minimally processed vegetables will aid the growth of the global vegetable market during the forecast period.
Increasing demand for processed vegetables
Vegetable processing involves the conversion of raw food ingredients into marketable food products, that can be easily prepared and used by consumers. Processed vegetables can be classified as fresh cut, canned, and frozen vegetables. Processing vegetables within a few hours of harvest helps to lock their nutrients for a longer period. Factors such as improved market access for vendors and consumers, advances in logistics and food processing technology, and rising consumer preference for convenient, ready-to-eat food will continue to aid the demand for processed vegetables during the forecast period.
Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:
High dependence on weather conditions
Bad weather conditions hamper the production of vegetables. Fluctuations in weather conditions negatively impact the production as different vegetables require specific climatic conditions for optimum yield. In addition, natural calamities such as heavy rains, floods, tropical storms, and droughts can significantly affect vegetable cultivation. Natural calamities lead to the destruction of irrigation systems and loss of harvest. Unfavorable weather and natural calamities lead to the shortage of vegetable production and subsequent increase in vegetable prices.
Increase in damage from pests and diseases
The occurrence of pest attacks on crops is increasing in the agricultural industry, which is causing a threat to food security. For instance, leafy vegetables such as cabbage and lettuce are highly susceptible to attack from pests such as leaf miners, aphids, earworms, cutworms, beetles, and hornworms. Vegetables are also highly susceptible to diseases such as anthracnose, club root, downy mildew, late blight, mosaic virus, rusts, and wilt. The affinity of vegetables to pest attacks and diseases compel farmers to use chemical pesticides to improve crop resistance, which has a negative impact on the health of humans.
Impact of stringent regulations and product recalls
The global vegetable market is subjected to stringent food safety regulations. For instance, the sale of processed vegetables is monitored by government aided committees such as the Codex Committee on Processed Fruits and Vegetables (CCPFV) in the US. The vendors operating in different countries must adhere to different regulations and this can prove to be a challenge to the vendors. General Food Law Regulations in European Union (EU) member countries, and the Food Safety Law (FSA) in China are some of the regulations that comprise general principles and requirements related to the production, procurement, marketing, sales, and distribution of vegetables. The varying regulations in different countries can increase the compliance costs for vendors and negatively influence the growth of global vegetable market during the forecast period.
Some of the trends that are expected to influence the market during the forecast period are listed below:
Rise of digital agricultural economy
Digitization in the agricultural sector has transformed the supply chain, crop management cycle, and storage and market access. This trend has attracted many Agri-innovation start-ups that aim to modernize agriculture with precision agriculture, traceability, climate-smart agriculture, creation of digital platforms, and natural resource management. Multiple governments and private agencies across the world are supporting these start-ups in their endeavors. In 2018, funding worth USUSD 17 billion was provided to agricultural technology start-ups globally, and most of these investments were from the US. Additionally, innovations in robotics and farm machinery, such as the Digital Farm Initiative by the BioSense Institute in Serbia will boost productivity in vegetable cultivation during the forecast period.
Increasing online presence of vegetable vendors
The rise in penetration of smartphones and internet infrastructure is promoting the sale of raw and processed vegetables online. The acquisition of Whole Foods Market Inc. by Amazon Inc. in 2017 has disrupted the service delivery innovation in the global vegetable market. Several vendors such as Dole Food Company Inc. and Del Monte Fresh Produce Co. offer processed vegetable products through e-commerce platforms. Factors such as reduced overhead costs for vendors due to minimal need for retail premises and labor, and expanded outreach will aid the growth of the online presence of vendors in the global vegetable market during the forecast period.
Rising popularity of urban farming
The growing popularity of urban farming in countries such as the US, UK, and South Korea is expected to boost the global production of vegetables during the forecast period. According to the United Nations (UN), around 15% of the world’s food was grown in urban areas as of 2017. Owing to growing scarcity of field spaces for crop cultivation, urban agriculture focuses on using community spaces, such as school farms, car parks, and office roofs for cultivation. Urban farming projects such as The Randall’s Island Park Alliance’s Urban Farm in the US is expected to encourage consumer participation in vegetable cultivation and aid the growth of the global vegetable market during the forecast period.
The global vegetable market can be segmented into the following:
By product type
- Fresh vegetables
- Dried vegetables
- Frozen and IQF vegetables
By cultivation method
- Conventional vegetables
- Organic vegetables
By geography
- APAC
- North America
- Europe
- South America
- MEA
The global vegetable market is fragmented with the presence of several international and regional players. We provide a detailed analysis of around 25 vendors operating in the global vegetable market, including some of the prominent vendors such as Dole Food Company Inc., Del Monte Fresh Produce Co., Grimmway Enterprises Inc., Taylor Fresh Foods, Inc., and Tanimura & Antle Fresh Foods, Inc. Mergers and acquisitions, partnerships, and new product launches are among the strategies adopted by manufacturers in the global vegetable market.
- Dutch marketing cooperatives Coöperatieve Telersvereniging Best of Four U.A. and Van Nature B.V. announced their merger to form the largest marketing association for glasshouse vegetables in The Netherlands.
- Church Brother Farms, a US-based producer of fresh vegetables announced its acquisition of the commodity vegetable business of Growers Express LLC.
- Del Monte Fresh Produce Co. launched The Better Break convenience line of lunch and snack solutions. Better Break products are based on fresh vegetables and feature wholesome vegetables such as cauliflower, broccoli, sweet potato, kale, and corn.
- Dole Food Company Inc. announced the partnership of its Fresh Vegetables division with Safeway Fresh Foods, a US-based provider of fresh fruits and vegetables. Through the partnership, Dole Food Company Inc. plans to expand its product portfolio to include ready-to-eat salads, snacks, fresh-cut platters, and value-added vegetables among others.
Backed with competitive intelligence and benchmarking, our global vegetable market research report is designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.
