U.S. Fruit & Vegetables Market Size, Share & Trends Analysis Report, By Product Type (Fresh, Dried, and Frozen), and Distribution Channel Type, Competitive Landscape, And Segment Forecasts, 2018 - 2025

Industry Insights

The U.S. fruit and vegetable market was valued at USD 104.7 billion in 2016. Vegetables and fruits are presently reigning as the U.S. top snacking items. Company marketing in the U.S is being done keeping in mind the millennial population, and on the image of natural fresh, and local produce to attract centennials. The industry is further inclined towards advanced technology use to keep the produce fresh for longer duration along with up to date processing technology inputs that can be used in the end use industry. Huge investment in the U.S. is expected in terms of technology and quality of the products and their efficient transport.

Vegetable and fruit producers in the U.S. producers are being benefitted from the steadily growing U.S. population, additional to the fact that fruit & vegetables have high usage rates in all age groups, especially in the Gen X adults due to increasing obesity-related disease outbreaks all across the U.S.

Vegans and vegetarians already eat a large number of fruits and vegetables, but flexitarians who can be persuaded to eat more vegetarian meals or less meat overall will likely increase consumption of fruits and vegetables to get the nutrients that would be present in a serving of meat.

Market development is anticipated to remain robust as the industry trends are largely influenced by health-conscious millennials and generation x. In the coming years, industry growth is likely to be more online than offline such as in supermarkets and hypermarkets and online retail groceries will take up the major market chunk.

The industry is likely to witness strategic joint ventures and new product introduction as a part of the company initiative to keep ahead in the market and strengthen their position in the emerging markets. Both small and large players are expected to benefit in fruits and vegetables growing as well as distribution business in the U.S. markets. The halt in the production of genetically modified vegetables and fruits that were posing health concerns for the consumers have removed the market ambiguity and acted as a driver to the market growth. Customized and innovated fresh fruit preparation and exotic fruit and vegetable availability is further adding to market attractiveness.

Product Type Insights

Fresh fruits and vegetables are increasingly gaining market at a tremendous pace, exceeding in rate from dried and frozen fruits and vegetables due to increasing awareness among consumers in the degradation of nutrients and increased chances of food contamination.

Consumers in the U.S. are showing a growing interest in their health and wellness and are looking into super diets and superfoods in the last six years. Trendy diets which emphasize on the consumption of raw fruits such a paleo diet has been found increasingly appealing to the young consumers. However, most nutrition-conscious healthy eaters are found to be baby boomers mainly due to their increasing health concerns in the older age. Millennials are slowly getting involved in the healthy eating culture are also tending towards vegan food habits rather than strict non-vegetarians.

Consumers in the U.S are getting attracted to exotic flavor profiles and most adventurous of them are the millennials. The major concern remains the busy schedules and time and thinking going into eating habits. Especially common among millennials and small children. Hence, to outwit this obstacle, the online grocery shopping has been introduced which is, providing a suitable way to obtain fruits and vegetables in freshly chopped or processed with no need to browse specialty stores and supermarket shelves. Another phenomenon called the flexitarian movement which is associated with meat-eating consumers who increasingly identifying themselves as fruits & vegetable consumers as well.

Distribution Channel Insights

Online grocery purchasing is growing at the fastest rate both in volume and revenue surpassing the CAGR and popularity of supermarket and specialty stores due time-saving aspect of this distribution channel along with door to door delivery. The product variety and quality are also helping the online grocery segment to grow.

Companies have introduced meal kit delivery for the convenience of consumers. Pre-prepared meal kits are majorly appealing to generation X and millennials, especially in people who are not married. With the added convenience of online purchasing of fruits and vegetables, consumers are expected to purchase more.

Certain Community supported agriculture programs (C.S.A.s) are also growing in popularity with the consumers seeking for healthy eating alternatives that are grown locally and supporting local commerce. C.S.A.s are also helping community members promising their support to local farm producers and small-scale companies by promising to ensure the costs of their farming operations.

Regional Insights

Companies in the North America region are witnessing increment in the number of small and big market players. The companies are taking initiatives to increase their farm produce, application of various technologies to increase their shelf life and decrease spoilage in transport.

Some of the major businesses in the U.S. such Dole foods, Sunkist, and Fresh Del Monte Produce, Inc. have introduced attractive products on their online platforms to generate more revenue and target major chunk of the population.

Factors such as increasing ease of availability, consumer awareness of health, and alarming obesity-related ailments are helping in strengthening the prospects of the market. However, low productivity in the U.S. is posing as a major concern for this market and high import of fruits and vegetables has been carried out by the U.S. from nearby Canada, along with the best produce from Asia-Pacific and Europe, which adds to the cost of these products. Canada is expected to grow the fastest in North America closely followed by the U.S. that will grow at a steady pace throughout the forecast period.

U.S. Fruit & Vegetables Market Share Insights

1. Importers are the key to the American markets
     Importers of the fresh produce supply to large retail firms and the momentum of which shifting to an organizational level. Importers are shaping up an intermediary role for retailers and producers.

2. Supermarkets are increasingly organizing integrated supply
     The importing process boosts safeguards the product quality also the market planning. Bigger wholesalers who are importing are also acting as the service providers to the supermarkets, capitalizing on value added services such as packaging and mixing, ripening.

3. Good logistics is essential in the trade channel
     Logistics and treatment post-harvest are essentially taken into consideration. Packers control at various stages of the of the supply chain to wash and re-pack products in whole into the retail market.

Major market players will focus on, business re-organization, mergers & acquisition, and strategic alliances to increase their production volume in various industries. Companies such as Dole Food Company, Chiquita Brands International, C.H. Robinson Worldwide, Fresh Del Monte Produce, Sunkist Growers are some of the leading players in fruits and vegetable business in the for the past decade.

The expansion of production facilities and quality improvement of the product is a major area of focus for a majority of the market participants. In December 2017, Del Monte Fresh Produce N.A. has announced the opening of its state-of-the-art distribution and processing center in its Houston, Texas. Del Monte Fresh Produce N.A., has announced the opening of its state-of-the-art distribution and processing center in its Houston, Texas.

Report Scope

Segments covered in the report

This report forecasts revenue growth at a global, regional & country level, and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. fruit & vegetables market report on the basis of product and distribution channel:

• Product Outlook (Volume, Million Tons; Revenue, USD Billion; 2014 - 2025)

  • Fresh

  • Dried

  • Frozen

• Distribution Channel Outlook (Volume, Million Tons; Revenue, USD Billion; 2014 - 2025)

  • Supermarkets & Hypermarkets

  • Specialty Stores

  • Online

• Regional Outlook (Volume, Million Tons; Revenue, USD Billion; 2014 - 2025)

  • North America

    • U.S.