Fruit & Vegetable Processing Industry Profile

Companies in this industry use freezing, canning, dehydrating, and pickling processes to preserve fruits and vegetables. Major companies include US-based Del Monte, Heinz, and JR Simplot; McCain Foods (headquartered in Canada); Bonduelle (France); AGRANA (Austria); Pinguin (Belgium); La Doria (Italy); and divisions of large food companies such as ConAgra and General Mills (US).

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. China and India are high-growth markets for processed fruit and vegetables due to rising disposable income and large agricultural production.

The US fruit and vegetable processing industry includes about 1,300 companies with combined annual revenue of about $64 billion and is expected to grow at a low rate for the next two years. Key growth drivers include value-added processing, new packaging techniques, and demand for healthy snacks.

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 concentrated: the 50 largest companies generate ...