Processed Fruits and Vegetables Market Size

Processed Fruits and Vegetables Market Size

Processed Fruits and Vegetables Market size valued at USD 352.6 billion in 2023 and is projected to witness a 6.7% CAGR from 2024 to 2032. The increasing consumer demand for convenient, nutritious, and long-lasting food products is a key driver of this market expansion. Processed fruits and vegetables, including frozen, canned, and dried varieties, offer extended shelf life and ease of use, catering to the fast-paced lifestyles of modern consumers. According to the Food and Agriculture Organization (FAO), the global production of processed fruits and vegetables has increased by 3% annually over the past decade.

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Additionally, advancements in food processing technologies and packaging innovations enhance product quality and sustainability, further boosting market growth. The rising focus on health and wellness, in line with the growing popularity of plant-based diets, further contributes to the surging demand for processed fruits and vegetables globally. A report by the Plant-Based Foods Association (PBFA) noted a 27% increase in plant-based food sales in 2023, underscoring this trend.
 

The processed fruits and vegetables market will grow substantially, driven by the increasing consumer preference for ready-to-eat and easy-to-prepare food products. Busy lifestyles and the growing working population fuel the demand for convenient meal options, propelling the market for processed fruits and vegetables.  
 

Against this backdrop, in February 2022, the Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI) was established under the "AatmaNirbhar Bharat Abhiyaan" to boost India's manufacturing capabilities and increase exports, with a budget allocation of Rs 10,900 crore, as informed to the Parliament on Friday. The scheme is structured into three main components, with the first focusing on providing incentives for the production of key food segments, namely ready-to-cook/ready-to-eat (RTC/RTE) products, millet-based foods, processed fruits and vegetables, marine products, and mozzarella cheese.
 

However, challenges such as the high cost of processing and packaging technologies and concerns about losing nutritional value during processing may hinder market growth. Additionally, stringent regulations regarding food safety and quality standards can challenge market players, potentially slowing down product innovation and market expansion.