Processed Fruit and Vegetable Market is gaining traction across the globe. It is because of the development of innovative methods of food processing and preservation. However, this segment of the food processing industry is as old as human civilization. Early societies and communities traditionally preserved Vegetables and Fruits, to use them in off-seasons. However, increasing demand for clean-label processed food and packaged food has boosted the demand for such products. In this article, we will analyze the market for processed food and vegetables.
Processed Fruit and Vegetable Market: Current Trends, Market Projections, and Future Prospects
Fruit and vegetable processing aims to increase the shelf life of perishable products by retaining their quality and characteristics. By processing fruits and vegetables, juices, jams, and jellies are manufactured. It also helps to extend their shelf life. The processed fruits and vegetables can be fresh, fresh-cut, canned, frozen, dried, and dehydrated. The word ‘Fresh Fruit and Vegetables’ refers to those products that are minimally processed to increase their functionality without greatly affecting their freshness. Such products are fresh in taste and have no change in appearance. They retain their nutritional value. The fruit and vegetable processing systems are large-scale processing, intermediate-scale processing, and small-scale processing. The magnitude of the demand for processed fruits and vegetables has revolutionized this segment of the food processing industry. Industries such as bakery, confectionery, ready-to-eat meals, canned juices, etc., are using these processed products on a large scale.
Market Trends: 2025
The Business Research Company projected the fruit and vegetable processing market to grow from $238.84 billion in 2024 to $257.26 billion in 2025 at a compound annual growth rate (CAGR) of 7.7%. The agency identified supply chain efficiency, health and wellness trends, consumer demand for diversity, industrialization of agriculture, and retail and distribution trends.
Market Forecast: 2024-2029
According to the Business Research Company, the fruit and vegetable processing market size will see strong growth in the next few years. The market will grow to $357.01 billion in 2029 at a compound annual growth rate (CAGR) of 8.5%. Various factors such as plant-based diet movement, clean label and transparency, customization and personalization, rising urbanization, globalization, and trade expansion are responsible for this growth. Various other drivers of the trend include food safety assurance, transparency and traceability, global flavors and exotic varieties, customization and personalization, and functional and fortified foods.
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India Fruit and Vegetable Processing Market
According to IMARC Group, the Indian fruit & vegetable processing market size reached USD 876.6 Million in 2024. According to the research analysis provided by the agency, the market will reach USD 1,387.5 million by 2033. It will exhibit a growth rate (CAGR) of 4.7% during 2025-2033. The market has been strengthened by the increasing consumer demand for convenience and healthy options, advancements in preservation technologies, and the growing preference for organic and sustainable products. Further, the market is driven by the rise of plant-based diets, eco-friendly practices, and the need for longer shelf life are propelling industry growth.
Major Drivers: Processed Fruit and Vegetable Market
Sustainable and Eco-Friendly Practices
According to the IMARC Group, fruits and vegetables contribute around 22% of food loss and waste along the supply chain (excluding retail). It has driven the manufacturers to focus on waste reduction, energy-efficient manufacturing, and sustainable sourcing. It has led to the use of environmentally friendly packaging, including biodegradable and recyclable packaging, to prevent waste. Apart from it, food processors are converting the process-derived by-products into juices, snacks, or animal feed, minimizing total food wastage. The consumer awareness of environmental issues and regulatory requirements for reduced carbon footprints has driven these practices.
Plant-Based and Organic Products
According to the IMARC Group, a change in consumers’ behavior is observed across the spectrum. Healthier, plant-based foods, organic, non-genetically modified organisms (GMOs), and plant-based fruit and vegetable products have seen a rise in their demand. Further, products for vegan, vegetarian, and health-conscious consumers like organic canned vegetables, plant-based snacks, and smoothies are gaining popularity. Further, consumers are demanding health-focused products and clean-label products.
Rising Demand for Exotic and Superfruit-Based Products
There is an increasing demand for exotic superfoods among consumers. It has led to an increased popularity of acai, goji berries, and dragon fruit. There has been an ever-increasing popularity of superfruit smoothies, nutrient-dense fruit bars, and freeze-dried superfruit snacks. It has resulted in a higher demand for superfruit puree and other exotic fruit puree. Furthermore, the dried fruits are also being served as an ingredient in such products.
India-Fruits-and-Vegetables-Processing-Equipment Market Analysis
Processed Food and Vegetable Market Segment-Wise Analysis
Region-Wise Analysis Of Processed Fruit and Vegetable Market
According to the Mordor Intelligence, Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030). In 2025, North America will account for the largest market share in the Fruits and Vegetables Processing Market.
Conclusion
Amid increasing demand for clean label and plant-based products in the market has led to a positive market forecast for the processed fruit and vegetable market. This trend is also sustainable as it promotes sustainable production and consumption patterns across the globe. Hence, there is a massive opportunity for food processors in countries like India, which is rich in horticulture production.