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 the 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 the 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.
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 that 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 at an 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, online grocery shopping has been introduced which is, providing a suitable way to obtain fruits and vegetables 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.
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 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.
Companies in the North America region are witnessing an 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 as 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 the 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.
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 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 supply chain to wash and re-pack products in whole into the retail market.
Major market players will focus on, business re-organization, mergers & acquisitions, 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.
Attributes |
Details |
Base year for estimation |
2016 |
Actual estimates/Historical data |
2014 - 2015 |
Forecast period |
2017 - 2025 |
Market representation |
Volume in Million Tons, revenue in USD Billion and CAGR from 2017 to 2025 |
Country scope |
The U.S. |
Report coverage |
Volume forecast, capacity forecast, revenue forecast, company share, competitive landscape, growth factors and trends |
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts revenue growth at a global, regional & country level, and provides an analysis of 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
The U.S.
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Amidst the global pandemic crisis and the indefinite lockdown across nations, the consumer food & beverage industry first witnessed high demand for household staples, healthy food items, and consumables with longer shelf lives. The demand for frozen food products, fruits & vegetables, eggs, flour, and whole grains, among others, witnessed a considerable increase during the early stages of the crisis. Presently, most companies in the industry are faced with low consumption of their products and supply chain challenges. The companies are focusing more on altering their supply chains in order to reinforce their online presence and delivery measures, in an attempt to adapt to the present business environment. The changes in consumer buying behavior and the dynamic shifts towards online and D2C distribution channels may have serious implications on the near future growth of the industry. Our team is diligently working towards accounting these factors in our report with the aim of providing you with the up-to-date, actionable market information and projections.