Fruit & Vegetable Processing Industry Profile

The US fruit and vegetable processing industry includes about 1,300 companies with combined annual revenue of about $64 billion. Major companies include Del Monte, Heinz, JR Simplot, and Ocean Spray; and divisions of large food companies such as ConAgra and General Mills. The industry is concentrated: the 50 largest companies generate about 70 percent of revenue.

Global export revenue of processed fruits and vegetables totals about $45 billion, according to the Food and Agriculture Organization of the United Nations (FAO). Major exporters and importers of processed fruits and vegetables are China, the EU, and the US. Major companies headquartered outside the US include McCain Foods (Canada); Bonduelle (France); AGRANA (Austria); Pinguin (Belgium); and La Doria (Italy).

COMPETITIVE LANDSCAPE

Demand is driven by food consumption, which depends on population growth. The profitability of individual companies depends on efficient operations, because products are commodities subject to intense price competition. Companies compete largely based on cost and their ability to distribute the finished product. Large companies have advantages in purchasing and distribution. Small companies can compete effectively in local or regional markets. The industry is capital-intensive: average annual revenue per employee is about $375,000.

Imports of fruit and vegetable preserves and specialty foods account for about 10 percent of the market. Major sources of imports include Canada, China, Mexico, Thailand, and Brazil. Exports, mainly to Canada, Japan, and Mexico, account for less than 10 percent of US ...