Fruits And Vegetables Processing Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

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^{[1]USDA, https://www.nal.usda.gov/research-tools/food-safety-research-projects/high-pressure-processing-hpp-equipment-large-beverage}. 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^{[2]"China's Agricultural Products Origin Cold Chain Logistics Development Report (2024) is officially released", https://www.moa.gov.cn/xw/zwdt/202411/t20241129_6467246.htm}. 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.

Growing Adoption of High-Pressure Processing (HPP) for Clean-Label Foods

HPP eliminates pathogens at ambient temperatures, preserving heat-sensitive nutrients. EFSA’s green light in 2024 accelerated European rollouts, while the FDA’s existing 21 CFR 113/114 provisions give U.S. operators clarity. Equipment suppliers are now shipping 600-liter chambers that run continuous beverage lines. Processors embracing HPP report stronger retail partnerships because products fit into premium, minimally processed assortments. The technology also supports formulation without chemical preservatives, aligning with shopper preferences for short ingredient lists.

Upcycling “Ugly” Produce to Meet Zero-Waste Retail Mandates

Mandates in Maryland and California require large generators to divert organic waste from landfills. European retailers have begun issuing zero-waste sourcing targets. Processors are seizing the opportunity by turning misshapen produce into purées^{[3]"Compostable Materials Handling Operations and Facilities Regulatory Requirements", https://govt.westlaw.com/calregs/Browse/Home/California/CaliforniaCodeofRegulations?guid=I9866B5005B4D11EC976B000D3A7C4BC3&originationContext=documenttoc&transitionType=Default&contextData=(sc.Default)}, freeze-dried snacks, and juices. Lower input costs offset additional sorting expenditures, while sustainability labeling boosts sell-through. Early movers secure supply contracts with supermarket chains that need verified waste-reduction strategies for ESG reporting.

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.

High Capex for Hygienic, Automation-Ready Equipment

Modern lines capable of meeting 21 CFR 117.80 hygiene rules and labor-saving automation carry steep price tags. Global food-processing CAPEX hit USD 21.85 billion in 2023, yet many operators delayed purchases amid economic uncertainty. Integrating vision systems, robotic cutting, and sanitary design increases costs further. Emerging-market processors face higher financing rates, widening the technology gap with multinational competitors.

Segment Analysis

By Type: Fruits Dominate Despite Vegetable Growth Acceleration

Fruits generated 54.84% of the fruit and vegetable processing market revenue in 2024 as decades of established supply chains and consumer familiarity sustained volume. Vegetable lines, however, are slated to outpace at 6.73% CAGR through 2030. 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.

By Product: Frozen Processing Outpaces Traditional Canning

Canned produce retained the largest revenue slice at 31.35% in 2024, backed by its long shelf life and embedded distribution networks. Yet frozen SKUs are forecast to grow at 7.41% CAGR to 2030, reflecting consumer perceptions of superior nutrient retention. Advances in energy-efficient IQF tunnels reduce dehydration loss while preserving texture. Retail freezer-door resets favor resealable pouches that encourage multi-serve consumption and lower waste. Food-service chains adopt frozen diced avocado and mango to counter inconsistent fresh supply, giving processors high-volume outlets for frozen output.

Cans still appeal to price-sensitive shoppers, especially during economic downturns, but processors are reformulating brines to lower sodium and adding easy-open lids to retain relevance. Investment in hybrid retort-pouches suggests some canned lines may transition to flexible formats offering quicker cook times. Nevertheless, frozen innovations such as flash-steam-peeled sweet potatoes and nitrogen-frozen berries will keep the growth pendulum swinging toward freezer aisles.

By End User: Food Service Segment Accelerates Beyond Industrial Processing

Industrial buyers represented 60.38% of fruit and vegetable processing market demand in 2024, relying on bulk purées, concentrates, and diced ingredients for soups, sauces, and bakery fillings. The food service/HoReCa channel, however, is advancing fastest at 7.52% CAGR. Labor shortages compel restaurants and on-site kitchens to swap fresh prep for pre-washed, cut, and portioned produce. Portion-controlled frozen avocado halves, spiralized zucchini, and blended smoothie cubes reduce waste and prep time.

Processors develop packaging that withstands cold-chain fluctuations and facilitates inventory rotation in cramped back-of-house storage. Menu engineering trends toward plant-forward dishes amplify vegetable cube and blend requisitions. Cloud-kitchen operators order diced onions and pepper tri-mixes to maintain 20-minute delivery windows. This structural shift narrows reliance on industrial buyers and exposes processors directly to culinary innovation cycles, opening collaborative product-development opportunities.

Geography Analysis

In 2024, Asia-Pacific accounted for 33.74% 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 8.29% 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.