Global Fruits and Vegetables Ingredients Market By Type (Concentrates, NFC Juices, Pastes And Purees, Pieces and Powders), By Category (Fruits, Vegetables), By Nature ( Organic, Conventional), By Application (Beverages, Bakery Products, Confectionery Products, Dairy Products, RTE Products, Soups and Sauces, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Fruits and Vegetables Ingredients Market Market size is expected to be worth around USD 327.2 Billion by 2034, from USD 202.8 Billion in 2024, growing at a CAGR of 4.9% during the forecast period from 2025 to 2034.

The fruits and vegetables ingredients industry plays a vital role in the global food system, catering to the growing demand for natural, nutritious, and clean-label food products. Ingredients derived from fruits and vegetables, such as concentrates, purees, powders, and pastes, are widely used across beverages, bakery, confectionery, dairy, snacks, and ready-to-eat meals.

As consumers increasingly shift toward healthier diets, the importance of minimally processed and functional ingredients is surging. According to the Food and Agriculture Organization (FAO) of the United Nations, global fruit production reached 887 million tonnes and vegetable production stood at 1.1 billion tonnes in 2022, reflecting the enormous raw material base fueling ingredient manufacturing.

One of the key driving factors behind the growth of this sector is the increasing global awareness of health and wellness. The World Health Organization (WHO) recommends a minimum daily intake of 400 grams of fruits and vegetables per person to prevent chronic diseases such as heart disease, cancer, and diabetes. Consequently, food manufacturers are reformulating products to incorporate higher fruit and vegetable content, boosting ingredient demand. Additionally, clean-label trends are encouraging the use of natural fruit and vegetable derivatives as colorants, flavors, and sweeteners, replacing synthetic additives.

Future growth opportunities appear strong, supported by governmental initiatives promoting sustainable agriculture and food fortification. For instance, the European Union’s “Farm to Fork” Strategy under the European Green Deal aims to reduce the use of chemical pesticides by 50% by 2030, thereby encouraging organic fruit and vegetable farming. This transition is expected to enhance the supply of organic ingredients, opening new premium markets. Furthermore, in India, the government has launched the “Operation Greens” scheme, allocating INR 500 crore (approximately $60 million) to promote value addition in fruits and vegetables.

Key Takeaways

• The fruits and vegetables ingredients market is projected to reach USD 327.2 billion by 2034, up from USD 202.8 billion in 2024, growing at a CAGR of 4.9% over the forecast period.
• Concentrates captured a dominant 37.5% share of the total fruits and vegetables ingredients market.
• Fruits dominated the ingredient type, holding more than 72.1% share of the fruits and vegetables ingredients market.
• Conventional production methods held a strong 83.4% market share, highlighting the ongoing preference for traditional farming and processing techniques.
• Beverages remained the leading application sector, accounting for over 31.2% share of the total market.
• The Asia-Pacific region emerged as the largest market, capturing more than 51.1% of the global market share, valued at approximately USD 103.6 billion.

By Type

Concentrates lead Fruits and Vegetables Ingredients Market with 37.5% share in 2024.

In 2024, Concentrates held a dominant market position, capturing more than a 37.5% share of the fruits and vegetables ingredients market. Concentrates are highly favored by food and beverage manufacturers because they offer strong flavors, easy storage, and longer shelf life. Their use is widespread in juices, bakery products, confectioneries, and dairy applications, helping brands meet the growing consumer demand for natural and health-oriented food options. With food industries worldwide shifting towards clean-label and minimally processed ingredients, concentrates continue to be a preferred choice for maintaining taste and nutritional value while enhancing product shelf stability.

By Category

Fruits dominate Fruits and Vegetables Ingredients Market with 72.1% share in 2024.

In 2024, Fruits held a dominant market position, capturing more than a 72.1% share of the fruits and vegetables ingredients market. Fruits remain highly popular due to their natural sweetness, vibrant colors, and nutritional richness, which make them ideal for a variety of food and beverage products. They are widely used in smoothies, yogurts, bakery items, baby food, and health drinks, responding to the growing demand for wholesome and clean-label products. Consumers’ preference for antioxidant-rich, vitamin-packed foods has kept fruits at the forefront of ingredient sourcing.

By Nature

Conventional dominates Fruits and Vegetables Ingredients Market with 83.4% share in 2024.

In 2024, Conventional held a dominant market position, capturing more than a 83.4% share of the fruits and vegetables ingredients market. Conventional fruits and vegetables are widely preferred because they are more affordable, easily available, and supported by well-established supply chains. Their consistent quality and lower production costs make them the top choice for large-scale food manufacturers across beverages, bakery, dairy, and packaged food sectors. Despite the rising interest in organic products, conventional sourcing remains crucial for meeting the volume demands of global food production.

By Application

Beverages lead Fruits and Vegetables Ingredients Market with 31.2% share in 2024.

In 2024, Beverages held a dominant market position, capturing more than a 31.2% share of the fruits and vegetables ingredients market. Beverages are a major application for fruit and vegetable ingredients, driven by the increasing consumer preference for healthy and refreshing drink options. The rising demand for natural fruit juices, smoothies, and functional beverages has contributed significantly to this dominance. With consumers becoming more health-conscious, the need for drinks that offer nutritional benefits such as vitamins, antioxidants, and hydration is pushing the growth of fruit and vegetable-based beverages.

Key Market Segments

By Type

• Concentrates
• NFC Juices
• Pastes & Purees
• Pieces & Powders

By Category

• Fruits
  • Apple
  • Orange
  • Pineapple
  • Mango
  • Banana
  • Kiwi
  • Berries
  • Others
• Vegetables
  • Carrots
  • Beetroots
  • Peas
  • Zucchinis
  • Butternuts
  • Pumpkins
  • Others

By Nature

• Organic
• Conventional

By Application

• Beverages
• Bakery Products
• Confectionery Products
• Dairy Products
• RTE Products
• Soups & Sauces
• Others

Drivers

Increasing Consumer Demand for Health-Conscious Food Options

One of the key driving factors for the Fruits and Vegetables Ingredients Market is the rising consumer demand for health-conscious food options. As consumers become more aware of the importance of nutrition in daily diets, the shift toward healthier eating habits is increasingly influencing the food industry. According to the World Health Organization (WHO), nearly 3.9 million deaths annually are attributed to diets low in fruits and vegetables. This has led to a surge in demand for food products enriched with natural fruits and vegetables, as consumers look for ways to improve their health and wellness.

This trend is driving the popularity of natural fruit and vegetable ingredients across various food and beverage applications, including juices, smoothies, snacks, and ready-to-eat meals. In response, the global market for fruits and vegetables ingredients continues to grow, with manufacturers investing in more clean-label products that are free from artificial additives. Furthermore, public health initiatives in several countries are encouraging the consumption of fruits and vegetables. For example, in the United States, the USDA’s MyPlate initiative promotes the consumption of fruits and vegetables to combat rising health issues like obesity and cardiovascular disease.

As more consumers adopt plant-based diets and choose foods with functional benefits, fruits and vegetables ingredients are expected to remain in high demand. In 2024, the market share of fruit-based ingredients is projected to exceed 72% globally. This shift toward health-conscious eating habits is likely to drive continuous growth in the sector over the coming years, with increasing support from government health policies that emphasize better nutrition.

Restraints

High Cost of Processing and Storage

A significant restraining factor for the Fruits and Vegetables Ingredients Market is the high cost of processing and storage. While the demand for natural and nutritious ingredients is growing, the cost of processing fruits and vegetables into value-added products such as concentrates, purees, and powders can be quite high. This is primarily due to the need for advanced technologies like freeze-drying, vacuum concentration, and aseptic processing, which are energy-intensive and require significant capital investment. According to the Food and Agriculture Organization (FAO), nearly 30% of the world’s food production is wasted, with fruits and vegetables being particularly prone to spoilage during processing and storage.

In addition to the processing costs, the lack of proper storage facilities adds another layer of financial strain. Many fruits and vegetables are perishable, which requires cold storage and careful handling to prevent loss of nutritional value and flavor. This not only increases operational costs but also limits the availability of fresh products, particularly in regions where infrastructure for food preservation is lacking. The U.S. Department of Agriculture (USDA) reports that fruits and vegetables account for over 20% of total food waste in the country, mostly due to spoilage before they can be processed into value-added products.

The cost of high-quality raw materials, combined with the expenses of processing and distribution, ultimately raises the price of fruits and vegetables ingredients for manufacturers and consumers alike. As a result, these high costs pose a barrier to market expansion, particularly in price-sensitive markets or regions with limited infrastructure for efficient food processing and storage.

Opportunity

Government Support through Operation Greens Scheme

A significant growth opportunity for the Fruits and Vegetables Ingredients Market lies in the government’s Operation Greens Scheme, which aims to enhance the value realization of farmers and minimize post-harvest losses. Under this initiative, the Ministry of Food Processing Industries (MoFPI) has approved 53 projects across India, with grants totaling ₹634.59 crore out of a total project cost of ₹2,457.49 crore. ​

The Operation Greens Scheme provides a 50% subsidy for transportation of eligible crops from surplus production clusters to consumption centers and for hiring appropriate storage facilities, including cold storage, for a maximum period of three months. ​

This government support is expected to bolster the infrastructure for processing and storage of fruits and vegetables, thereby reducing post-harvest losses and stabilizing prices. By linking farmers directly with markets and enhancing value chains, the scheme aims to improve the profitability of farmers and ensure the availability of quality ingredients for the food processing industry.​

As the scheme continues to expand and more projects are implemented, it is anticipated that the fruits and vegetables ingredients market will experience significant growth, driven by improved supply chain efficiencies, reduced wastage, and increased demand for processed fruit and vegetable products.

Trends

Government Support through Operation Greens Scheme

A significant growth opportunity for the Fruits and Vegetables Ingredients Market lies in the government’s Operation Greens Scheme, which aims to enhance the value realization of farmers and minimize post-harvest losses. Under this initiative, the Ministry of Food Processing Industries (MoFPI) has approved 53 projects across India, with grants totaling ₹634.59 crore out of a total project cost of ₹2,457.49 crore. These projects focus on developing infrastructure for processing, storage, and transportation of fruits and vegetables, thereby reducing wastage and improving supply chain efficiency. ​

The Operation Greens Scheme provides a 50% subsidy for transportation of eligible crops from surplus production clusters to consumption centers and for hiring appropriate storage facilities, including cold storage, for a maximum period of three months. ​

This government support is expected to bolster the infrastructure for processing and storage of fruits and vegetables, thereby reducing post-harvest losses and stabilizing prices. By linking farmers directly with markets and enhancing value chains, the scheme aims to improve the profitability of farmers and ensure the availability of quality ingredients for the food processing industry.

As the scheme continues to expand and more projects are implemented, it is anticipated that the fruits and vegetables ingredients market will experience significant growth, driven by improved supply chain efficiencies, reduced wastage, and increased demand for processed fruit and vegetable products.​

Regional Analysis

Asia-Pacific (APAC) Region Dominates the Fruits and Vegetables Ingredients Market with 51.1% Share, Valued at USD 103.6 Billion in 2024

In 2024, the Asia-Pacific (APAC) region emerged as the leading market for fruit and vegetable ingredients, capturing over 51.1% of the global market share, valued at approximately USD 103.6 billion. This dominance is attributed to several key factors, including a large and diverse consumer base, rapid urbanization, and increasing health consciousness among consumers.​

China stands out as a major contributor to this market, benefiting from advanced food processing technologies and a robust supply chain infrastructure. The country’s focus on food safety and quality assurance has bolstered its position as a leading supplier of fruit and vegetable ingredients. In India, the growing middle-class population and rising disposable incomes have spurred demand for processed food products, further driving the market’s expansion.​

The APAC region’s market growth is also supported by government initiatives aimed at enhancing agricultural productivity and reducing post-harvest losses. For instance, China’s emphasis on modernizing its agricultural sector and India’s efforts to promote food processing industries have created a conducive environment for market growth.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Archer Daniels Midland (ADM) is a global leader in food ingredients, providing a wide range of fruits and vegetables ingredients such as purees, concentrates, and powders. ADM focuses on delivering sustainable, high-quality solutions to meet the increasing demand for natural, healthy ingredients. With a robust global presence, ADM uses innovative technologies to ensure high standards in its offerings and partners with food manufacturers to drive market expansion.

AGRANA Beteiligungs-AG, based in Austria, is a key player in the fruits and vegetables ingredients market, offering products like fruit purees, concentrates, and dried fruits. AGRANA focuses on providing high-quality, natural ingredients for the food and beverage industry. The company emphasizes sustainability and innovation, constantly expanding its product offerings to align with consumer preferences for healthier, clean-label products. AGRANA’s global network ensures a steady supply chain for its diverse range of fruit and vegetable ingredients.

American Key Food Products Inc. specializes in providing fruit and vegetable-based ingredients such as powders, purees, and concentrates. The company focuses on offering high-quality, cost-effective solutions for the food and beverage industry. American Key Food Products serves various sectors, including nutraceuticals, beverages, and processed foods, by delivering natural, nutritious ingredients that align with the growing demand for clean-label and functional products. Its commitment to product innovation drives its market growth.

Top Key Players in the Market

• ADM
• AGRANA Beteiligungs-AG
• American Key Food Products Inc
• Balchem ingredient solutions
• Cargill, Incorporated
• Diana Group S.A.S.
• Döhler
• Ingredion
• Kerry Group PLC
• Olam International Ltd.
• Sensient Technologies Corporation
• SunOpta Inc.

Recent Developments

In the fiscal year 2023/24, AGRANA generated approximately €3.8 billion in revenue, with the Fruit segment contributing significantly to this total. The company operates over 50 production sites worldwide, employing around 8,900 full-time equivalents (FTEs).

In 2024, Archer Daniels Midland Company (ADM) continued to solidify its position as a leading supplier in the global fruits and vegetables ingredients market. The company reported a total revenue of $85.53 billion, a decrease from the previous year’s $93.94 billion, primarily due to lower profits in its agricultural services and oilseeds segment .

Report Scope