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Global vegetables processing market: $211 billion industry forecast by 2018
Global Fruit & Vegetables Processing - a new market research report on 2014-04-17 09:49:02
Over the past five years, the Global Fruit and Vegetables Processing industry experienced slight revenue growth thanks to increased demand for convenient prepared meals, growing health and nutrition awareness, increased significance of branding and greater competition from private labels. Health, social trends and development factors affect processed fruit and vegetable consumption. For example, frozen vegetable consumption is lower in countries where refrigeration is limited and cold supply chains are not widely available.

Furthermore, in countries where subsistence agriculture is widespread, a smaller proportion of the population will consume processed foods. Overall, in the five years to 2013, revenue increase at annualized rate of 0.6% to total $179.1 billion. Revenue is expected to increase 1.0% throughout 2013.

Rising commodity costs have increased purchasing costs for industry operators over the past five years. The result has been that manufacturing industry products became more costly for operators and they had to pass off the rising costs to consumers in the form of higher product prices. While the larger players were able to succeed in protecting profit margins, several small to medium sized companies struggled. However, demand for processed fruit and vegetables has increased throughout emerging countries and as a result, profit margins experienced slight growth. In 2013, profit margins are expected to average 6.5%, up from 6.2% in 2008.

The Global Fruit and Vegetables Processing industry is expected to grow at a much faster rate in the next five years compared to the previous five. Major growth is anticipated to occur in China and India whereas marginal declines are expected to occur in the United States due to shifting preferences towards fresh fruits and vegetables. Demand for product segments will vary around the world, but changing consumer diets and rising incomes (especially in developing countries) will result in strong overall growth. Companies that can capitalize on the lack of vegetable consumption across the United States and Europe will reinforce this. Industry revenue is forecast to increase at an annualized rate of 3.3% in the five years to 2018 to reach $211.1 billion.

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