Tomato Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 207.17 Billion |
| Market Size (2029) | USD 261.41 Billion |
| CAGR (2024 - 2029) | 4.76 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Tomato Market Analysis
The Tomato Market size is estimated at USD 207.17 billion in 2024, and is expected to reach USD 261.41 billion by 2029, growing at a CAGR of 4.76% during the forecast period (2024-2029).
The repeated imposition of lockdown across the world hampered the prices of tomatoes. The closed markets have resulted in a price crash in a few markets, while in others, there was an increase in prices. However, the interest in wellness and immunity has spiked as a result of the COVID-19 pandemic, leading to a higher demand for fruits and vegetables, including tomatoes.
Tomatoes in industries, such as home, food processing, and snack foods, are driving the tomato market. They're also popular in the foodservice industry and used in hotels, restaurants, and fast-food outlets. The fast-food business is growing across the world, propelling the market forward. The expanding organized retail sector is also contributing to market expansion.
Further, government initiatives with extensive financial and political support for enhanced agricultural production in the countries through technological innovation are anticipated to raise the production level of tomatoes during the forecast period. In 2021, the Government of Ghana commissioned the Weddi Africa Tomato Processing Factory in the town of Domfete under the 1-District-1-Factory initiative. The government facilitated a loan of USD 16 million to support the establishment and operations of the factory. As Domfete is a major center for the cultivation of fresh tomatoes, the factory is anticipated to process 40,000 metric tons of fresh tomatoes annually.
Major exporting countries for tomatoes are Mexico, the Netherlands, and Spain, followed by Morocco and Canada. The United States is the leading importer of tomatoes from Mexico. According to a United States Department of Agriculture report, tomato production in Mexico is highly concentrated, with six states producing 53% of the total production in 2020. Sinaloa is the largest tomato-producing state in Mexico.
Tomato Market Trends
This section covers the major market trends shaping the Tomato Market according to our research experts:
Growing Tomato Cultivation and Acreage
The increasing awareness regarding the high nutritional value of vegetables increased the consumption of vegetables, including tomatoes, in order to meet diverse dietary and nutritional needs. These factors have resulted in increased demand for tomatoes. Thus, alongside the growing demand and attractive price, production and acreage have also been growing to satiate the demand.
The production of tomatoes globally increased from177.3 million metric ton in 2016 to 186.8 million metric ton in 2020. Moreover, there is a significant increase in the area of tomato cultivation across the globe. For instance, the global area under tomato cultivation has increased from 4,854.4 thousand hectares to 5,051.9 thousand hectares between 2016 and 2020.
The consumers' preference for fresh tomatoes along with the latest technology, such as indoor farming, has boosted the domestic production of tomatoes. The climate changes, resistance developed by pests, poor infrastructure, and post-harvest loss led to the need for developing the new high-yielding and hybrid seeds to help the farmers increase the yield. The increased yield will help in meeting the increasing demand for tomatoes.
The emergence of greenhouse tomato production is boosting the US fresh-market tomato industry. Greenhouse tomato production allows producers to grow fresh tomatoes in structures, sometimes using methods of climate control and alternative soil. It has helped in achieving increased yields per acre and enhanced grower capability to sustain year-round production.
Asia-Pacific is the Fastest Growing Market
Asia-Pacific is one of the fastest-growing regions in the market. Increasing the high-intensity cultivation of tomatoes is the major factor driving market growth in the region. Tomato is one of the third most important crops under the Indian government's top priority list of horticultural crops after potatoes and onions. These three staple crops are found across the country with the government of India's initiative called 'Operation Greens' to improve the living condition of farmers.
China is witnessing continuous growth of the tomato acreage owing to increased farmers' interest in planting as the tomato market price has risen, and high yield promoted the expansion of planting area. According to the Ministry of Commerce, in 2021, retail sales of consumer goods, including fruits and vegetables, have hit USD 6.8 trillion, which is an increase of about 12.5% from 2020 and 8% from 2019. In the fresh produce segment, tomatoes are one of the major vegetables that contributed to the higher sales.
Furthermore, the use of artificial intelligence (AI) technology in tomato cultivation is one of the important emerging trends in the region, especially in Japan. Recently, in June 2021, NEC Corp. and Kagome Co. announced that the companies have jointly developed an AI-equipped agricultural support system for tomato farmers in the country. According to the company, the newly developed AI technology has resulted in reduced fertilizer use by 20% from the average while increasing tomato crop yield by 30% in the trial run at farms. Therefore, the use of modern technologies such as AI technology is anticipated to drive the tomato market, which is anticipated to grow during the forecast period.
Tomato Market News
The tomato market is anticipated to continue to expand alongside population and economic growth, particularly in emerging countries. There has been an expansion into the organic food industry to cater to the increasing demand. For instance, in 2021, Arizona-based Wholesum, a Fair Trade certified grower of fresh organic produce, opened its new organic tomato greenhouses in Sonora, Mexico.
Companies operating across the value chain have been investing in the production of value-added products to cater to the growing demand. For instance, Tomato Jos, a Nigeria-based agro-processing company focused on the local production of high-quality tomato paste, in its Series A funding round, raised an investment of USD 4.4 million in 2020. Goodwell Investments, via its Nigeria-based partner Alitheia Capital, led the round with additional investment from US investors Acumen Capital Partners and Vested World. Tomato Jos invested hat for processing equipment and breaking ground on a factory.
Furthermore, in 2020, NEC Corporation entered a strategic partnership agreement with Kagome Co., Ltd to launch agricultural management support services utilizing artificial intelligence (AI) for leading tomato processing companies. The partnership capitalizes on NEC's AI-enabled agricultural ICT platform, CropScope, to predict tomato growth and soil conditions to provide farming management recommendations based on sensor data and satellite images.
Tomato Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain Analysis
5. MARKET SEGMENTATION
5.1 Geography (Production Analysis (Volume), Consumption Analysis (Value and Volume), Import Analysis (Value and Volume), Export Analysis (Value and Volume), and Price Trend Analysis)
5.1.1 North America
5.1.1.1 United States
5.1.1.2 Canada
5.1.1.3 Mexico
5.1.2 Europe
5.1.2.1 Spain
5.1.2.2 Germany
5.1.2.3 Italy
5.1.2.4 France
5.1.2.5 Turkey
5.1.2.6 Netherlands
5.1.2.7 United Kingdom
5.1.2.8 Poland
5.1.2.9 Ukraine
5.1.3 Asia-Pacific
5.1.3.1 China
5.1.3.2 India
5.1.3.3 Japan
5.1.4 South America
5.1.4.1 Brazil
5.1.4.2 Argentina
5.1.4.3 Chile
5.1.5 Middle-East and Africa
5.1.5.1 South Africa
5.1.5.2 Egypt
6. MARKET OPPORTUNITIES AND FUTURE TRENDS
7. AN ASSESSMENT OF THE COVID-19 IMPACT ON THE MARKET
Tomato Industry Segmentation
Tomato is a rounded, edible pulpy berry that belongs to the genus Solanum. Tomato is one of the most important vegetable crops grown extensively in tropical and sub-tropical climates. Tomato is a major vegetable consumed globally, second only to potatoes.
The tomato market is segmented by geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report includes production analysis (volume), consumption analysis (value and volume), export analysis (value and volume), import analysis (value and volume), and price trend analysis. The report offers market estimation and forecast in value (USD thousand) and volume(metric ton).
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Tomato Market Research FAQs
How big is the Tomato Market?
The Tomato Market size is expected to reach USD 207.17 billion in 2024 and grow at a CAGR of 4.76% to reach USD 261.41 billion by 2029.
What is the current Tomato Market size?
In 2024, the Tomato Market size is expected to reach USD 207.17 billion.
Which is the fastest growing region in Tomato Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Tomato Market?
In 2024, the Asia-Pacific accounts for the largest market share in Tomato Market.
What years does this Tomato Market cover, and what was the market size in 2023?
In 2023, the Tomato Market size was estimated at USD 197.76 billion. The report covers the Tomato Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Tomato Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key factors affecting tomato prices for producers?
The key factors affecting tomato prices for producers are a) Weather conditions b) Transportation costs c) Competition from imported tomatoes
Tomato Industry Report
The global tomato market is on an upward trajectory, fueled by a surge in demand across fresh, frozen, and dried segments. This market, detailed in the tomato market report by Mordor Intelligence™, is diversified into conventional and organic types, meeting a variety of consumer needs and health trends. With significant contributions from both the food service industry and household/retail sectors, tomatoes play a crucial role in global cuisines and food processing. The market spans North America, Europe, Asia-Pacific, South America, and the Middle East and Africa, with Asia-Pacific leading in revenue, due to robust market players and high demand. Key growth drivers include government initiatives for tomato production, the crop's booming role in food processing, and the advent of technologies like AI in agriculture. However, challenges like strict trade regulations and post-harvest losses pose hurdles. Trends towards fresh consumption and the nutritional benefits of tomatoes are propelling the market forward. For comprehensive insights, the tomato market report offers a forecast, historical overview, and a free report PDF download from Mordor Intelligence™ Industry Reports.
