Freeze-Dried Fruits & Vegetables Market Size, Share & Industry Analysis, By Type (Freeze-Dried Fruits [Berries, Mango, Apple, Orange, Banana, and Others] and Freeze-Dried Vegetables [Beans, Corn, Peas, Tomatoes, Onion, and Others]), By Form (Whole, Cuts & Flakes, and Powder), By End-use (Household and Commercial), By Distribution Channel (Online and Offline), and Regional Forecast, 2024–2032

The global freeze-dried fruits & vegetables market size was valued at USD 8.21 billion in 2023. The market is projected to grow from USD 8.75 billion in 2024 to USD 14.87 billion by 2032, exhibiting a CAGR of 6.86% during the forecast period. Europe dominated the freeze dried fruits and vegetables market with a market share of 93.4% in 2023.

The processed fruits & vegetables is a substantial and expanding sector within the food and beverage market. The growth of the industry is driven by increasing urbanization, busy and hectic lifestyles, and a rising preference for ready-to-eat and convenient food options. The sector comprises a wide range of products, including frozen, canned, dried, and juiced fruits and vegetables, catering to both the retail and food service sectors.

Consumers are increasingly seeking healthier food alternatives, leading to a surge in the demand for organic and non-GMO processed fruits and vegetables, which supplements the market expansion. There is also a key trend of plant-based diets, boosting the consumption of vegetable-based products. Moreover, the expansion of the middle-class population and rise in disposable income, particularly in emerging economies, significantly contributes to market growth.  

The onset of the COVID-19 pandemic in 2020 led to a disturbance in the production and supply of commodities. The sudden halt posed a stress on the cultivation system and created several hurdles for the growers. As the pandemic disrupted global supply chains and heightened health awareness, several key trends emerged. The pandemic considerably altered consumer buying patterns, with a solid shift being observed toward health-improving products. Consumers prefer plant-based and organically grown products due to healthier and safer properties over their animal-based counterparts.

Taking into consideration the changing consumer behavior and purchasing decisions, in 2020, a country manager for European Freeze Dry cited that the company observed a record-breaking demand for freeze-dried fruit and vegetable ingredients. Moreover, meals with a shelf life of up to 25 years in tins and seven years in pouches and freeze-dried vegetables options serve better needs of consumers in crises such as the pandemic, stated the spokesperson. Additionally, the company witnessed a dramatic rise in demand from private and public sectors and individual consumers who want tasteful food that offers prolonged shelf life, reduces wastage, and is easy to store and transport.

Freeze-Dried Fruits & Vegetables Market Trends

Growing Demand for Natural Flavor Additions to Food Products

Consumers of the current generation have become more conscious of health and concerned about the ingredients in their diet, which is escalating the demand for natural food flavors that substitute artificial flavors and sweeteners. There is a growing preference for authentic flavor experiences and the diverse range of flavors offered by freeze-dried fruits in their various forms, including granulates, slices, chips, and powder, has catered to this requirement. Moreover, artificial flavors, particularly those with artificial colors, may have harmful effects on individuals, affecting memory or causing changes to the neurotransmitters in the brain. Therefore, to avoid such an impact, consumers are opting for natural alternatives to safeguard their health. Additionally, natural flavors obtained from environmentally ethical sources and clean-labels are trending among consumers.  

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Freeze-Dried Fruits & Vegetables Market Growth Factors

Substantial Growth in Plant-based Food Sector and Increasing Vegan Culture to Support Market Expansion  

Globally, the demand for plant-based food has primarily been driven by the increase in health awareness and benefits of plant-based diets coupled with a growing vegetarian, vegan, and flexitarian population. Consumers are increasingly seeking more sustainable and nutritious food options packed with vitamins, minerals, and antioxidants that have longer shelf life, which in turn drives the demand for freeze-dried fruits & vegetables, leading to market expansion. The growing vegan population, particularly in European countries, mainly owing to environmental concerns and health reasons, is likely to augment the market growth since the vegan population seeks products derived from plant origin. According to the U.S. Department of Agriculture, the U.K. witnessed the maximum rate of veganism compared to other European countries, with the population reaching up to 2.5 million individuals in 2023.

Considering the consumer preference trends, sales volume, public and private investments, the plant-based industry has gained interest and acceptance, even among consumers who do not identify as vegan or vegetarians, which is playing vital role in the market growth. For instance, according to the ASSOCHAM report published in February 2023, the global vegan food market is expected to exhibit a compound annual growth rate of 11.32% between 2022 and 2027.

Rising Awareness of Nutritional Benefits and Extended Shelf Life of Freeze-Dried Foods Supports Market Growth

The multifaceted benefits of freeze-drying extend far beyond other food preservation techniques, making it an ideal choice. Freeze drying retains the nutritional integrity of fruits and vegetables better than any traditional drying method as it removes moisture without the use of high temperature while maintaining the vitamins, minerals, and antioxidants found in fresh produce. According to a study published by the National Institute of Health in 2020, freeze drying improves the retention of anthocyanins, phenolics, and antioxidant activity during processing over air drying. In some cases, it even showed an increased concentration of phytochemicals. Since consumers become more health-conscious, the appeal of nutrient-dense freeze-dried food products has increased, driving the freeze-dried fruits & vegetables market growth.

There is a mounting trend toward least processing, no added preservatives, and clean-label products. Freeze-dried fruits & vegetables often meet these criteria, offering natural and healthy alternatives to snacks without added sugars, artificial ingredients, or preservatives. This aligns with the consumer preference for transparency and more nutritious food substitutes, contributing to market growth.  

RESTRAINING FACTORS

High Cost, Lack of Awareness, and Supply Chain Disruptions May Restrain Market Growth

The initial significant capital investments required for freeze-drying machines and related equipment, along with infrastructure investments for grid upgrades and storage facilities, especially for large-scale projects, stand as a significant barrier to market growth. Furthermore, freeze-drying operations involve considerable energy consumption and maintenance costs. The need for highly controlled environments adds to operational expenses. In addition, operating and maintaining freeze-drying units requires highly specialized, skilled, and trained labor. Thus, hiring and retaining such personnel can be costly.

Besides being expensive, the preservation technique involves multiple complex stages, such as freezing the product and then removing the water by sublimation. Consequently, the price of the final product is extravagant. The requirement of advanced technology, equipment, labor expertise, and the time involved to complete the process of freeze drying for every single batch is extensive, which contributes to pushing the price of freeze-dried fruit & vegetable products to the higher end, which also restricts product demand.

Moreover, developing and ensuring the quality of freeze-dried products necessitates substantial amounts of funds for research and development and rigorous quality measures. Besides, adhering to stringent regulatory guidelines and standards in food safety can incur additional costs, particularly in obtaining necessary certifications and meeting international standards, which hampers market growth. Thus, the hefty investment required to set up businesses creates a barrier to entry for new players, especially Small and Medium-Sized Enterprises (SMEs), limiting competition and potentially slowing innovation and market expansion.  

Freeze-Dried Fruits & Vegetables Market Segmentation Analysis

By Type Analysis

Vegetables Segment Dominates Due to Widespread Demand from Commercial Sector

Based on type, the global market is segregated into freeze-dried fruits and freeze-dried vegetables.

The freeze-dried vegetables segment dominated the market owing to the large adoption of freeze-dried vegetables such as beans, corn, peas, tomatoes, and onion, among others, in instant and fast food products. In addition, food service restaurants use freeze-dried vegetables to impart unique flavor and color to the different cuisines. For instance, dried onion is used as a condiment and flavoring agent in the manufacturing of sauces, salad, pickles, chutneys, meat sausages, tomato ketchups, and breakfast foods.

The COVID pandemic has impacted people's health and quality of life, which led to an upsurge in the demand for fruits and veggies, including tomatoes. However, using tomatoes in various dishes by numerous food service industries, hotels, and restaurants is driving the market for tomatoes in the dried vegetables industry. Moreover, the growing fast-food sector is further contributing to the market expansion.

The freeze-dried fruits segment is projected to grow at the highest CAGR over the forecast period due to the high use of dried fruits in breakfast cereal, soups and snacks, ice cream and desserts, bakery, and confectionery products. The trend of on-the-go snacking further supports the rising demand for dried fruits in the global market.  

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By Form Analysis

Cuts & Flakes Segment Leads Due to High Penetration through Distribution Channels

By form, the global market is further segmented into whole, cuts & flakes, and powders.

The cuts & flakes segment holds the largest freeze-dried fruits & vegetables market share globally owing to the higher convenience offered by the products in terms of rehydration and usage across various culinary applications. Furthermore, the cuts & flakes form has higher appeal to both consumers and household and commercial customers who are seeking the ease of handling without compromising on flavor or texture.

The powder segment is expected to show the fastest growth driven by extended shelf life, easy storage, and increasing demand in food processing and food service sectors such as infant food, bakery, and snacks. The global market is further propelled by growing consumer preference for convenience foods, increasing health consciousness, and expanding applications in the food industry. Moreover, the rapidly increasing innovations in packaging technology and rising disposable incomes further contribute toward market growth, especially with the changing consumer landscape in both developed and emerging markets globally. Key players such as Berrifine A/S, Chaucer Foods, Binder International, and Döhler provide the powder form of the freeze-dried fruits & vegetables.

By End-Use Analysis

Commercial Segment Dominates Due to High Demand from Food Service Establishments 

Based on end-use, the market is segmented into commercial and household. The commercial segment does hold a majority share of the global market owing to the higher demand for shelf stable products in restaurants, hotels, and the food service industry and growing demand for freeze-dried fruits and vegetables in the food processing industry with growing consumption of convenience food such as instant noodles, soups, breakfast cereals, and others.

The household segment has experienced higher CAGR over the period owing to the rapid growth in demand for shelf-stable and preserved food products post-pandemic, especially in the European region. In addition, the high convenience offered by freeze-dried products appeal to busy consumers looking for nutritious options and the increasing awareness of health benefits associated with consuming fruits and vegetables is driving household consumption.

By Distribution Channel Analysis

Offline Distribution Channels Segment Leads Owing to the High Penetration of Retail Channels

By distribution channel, the global market is further segmented into offline and online channels.

The offline segment holds the major share of the global market. This higher share of the offline segment is owing to the established networks of wholesalers and higher consumption of these products in the commercial segment. Furthermore, the growing consumption by household consumers has contributed to the increasing sales in supermarkets, specialty stores, and convenience stores, providing widespread accessibility and consumer trust.

The online segment is set to exhibit the highest growth rate due to the convenience of e-commerce platforms, offering a wider product selection, competitive pricing, and doorstep delivery, appealing particularly to busy urban consumers and those seeking niche products. Furthermore, online sales suggest continued growth driven by increasing internet penetration, smartphone usage, and shifting consumer preferences toward convenience and time-saving shopping solutions. However, the offline channels will likely maintain their dominance due to deep-rooted consumer habits and the tactile shopping experience they offer.

REGIONAL INSIGHTS

By region, the market is segregated into Europe, North America, Asia Pacific, South America, and the Middle East & Africa.

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The global production of fruits & vegetables is increasing to meet the growing demand. However, as per the Food and Agriculture Organization (FAO) 2021-2022 estimates, a total of 31.5% of the global fruit & vegetable production was wasted. Thus, the high loss of fruits & vegetables highlights the need to reduce this wastage by adopting different strategies, such as processing fruits & vegetables into value-added products such as canned, chilled, and dried form of products.

North America and Europe are significant regions in the global market. Europe is the largest market in terms of size of the freeze-dried fruits & vegetables market. The region is driven by the changing consumption pattern of European consumers, resulting in the growing inclusion of healthy food and food ingredients in the daily diet. For example, dried fruit can be used as a snack at home or as a cooking ingredient in food service restaurants and food processing facilities.

The demand for freeze-dried fruits & vegetables is rising in Europe owing to the strong demand for products with extended shelf life and increasing use of non-seasonal products. Additionally, the escalating demand for ready-to-eat food due to changing lifestyles among consumers has further boosted the market growth. Besides, Europe records an increasing number of health-conscious consumers who prefer vegan food options and a strong emphasis on sustainable food.

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Asia Pacific’s freeze-dried fruits & vegetables market is set to grow at the highest CAGR owing to the rising consumer inclination toward nutritious food and the increasing focus of food manufacturers on the inclusion of healthy ingredients in their end products. In addition, there is a shift in consumer preference from traditional animal-based food to a plant-based diet, wherein fruits, vegetables, grains, legumes, nuts, and seeds are highly included in the diet. Thus, the revolution of the plant-based industry in the region also supports the growth of the market.

The significance of the North American region can be attributed to the rising consumer demand for healthy and convenient food options. For the market study, the U.S., Canada, and Mexico are considered in the region. The U.S. dominated the North American market in 2023 owing to strong demand for freeze-dried fruits & vegetables in both household and commercial sectors. In the commercial sector, these fruits and vegetables are mostly used in packaged or ready-to-eat products.

The total consumption of fruits & vegetables in North America was 144 million tons in 2019, as per the FAO. The consumption increased in 2021 and was reported to be 148.48 million tons. Therefore, the rising consumption of fruits & vegetables supports the growth of fresh and processed fruits & vegetables.  

In South America, dried fruits are commonly used in desserts and snacks, while dried vegetables are utilized in soups, stews, and other recipes. In Chile and Argentina, dried fruits are often added to the traditional cuisines. In addition, consumers are driving health-consciousness trends, which opens up new business opportunities and spurs innovation and technology. Organic dried vegetables retain nutrients such as amino acids or vitamins and minerals, which are all gaining popularity and driving the demand in the market. The demand for natural, premium, clean-label ingredients has also increased in the region as people become more aware of food safety.

Furthermore, the government of South America's robust rules and regulations regulating the quality of food ingredients assure customers of excellent ingredient quality, which is predicted to positively influence market growth.

The Middle East & African countries are experiencing economic development. The ongoing industrialization and growth of the food processing industries have provided lucrative growth opportunities for the freeze-dried fruits & vegetable suppliers in this region. Dried fruits & vegetables' ease, accessibility, and nutritional profile drive the market and this tendency has supported the continual expansion of various dried fruit & vegetable items due to urbanization, the growth of out-of-home consumption, and the rising desire for fast and nutritious products.

Consumers, especially young women, are becoming gradually aware of healthy lifestyles and the importance of consuming healthy meals. Thus, it further leads to immense growth opportunities for manufacturers of natural vegetable products to source dried fruits and vegetables from local and international suppliers to increase the sales of their products in the region.

KEY INDUSTRY PLAYERS

Key Market Players are Working toward Expanding their Businesses by Launching Convenient Products

Dominating players in the market include Berrifine A/S, Binder International, Chaucer Foods Ltd, and Döhler GmbH, among others. In this modern era, the majority of the population is seeking convenience products that can assist in easy and quick cooking. Thus, owing to the high emphasis on convenience filled products, manufacturers are trying to invest in R&D activities to produce products that can entice the consumer’s attention.

LIST OF TOP FREEZE-DRIED FRUITS & VEGETABLES COMPANIES:

• Berrifine A/S (Denmark)


• Binder International (Germany)


• Chaucer Foods Ltd (U.K.)


• Döhler GmbH (Germany)


• European Freeze Dry (Denmark)


• Swastik Food (India)


• Fujian Lixing Foods Co., Ltd. (China)


• Aum Agri Freeze Foods (India)


• Paradise Fruits (Germany)


• Totally Pure Fruits Pty Ltd (Australia)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: New Zealand-based startup “Ovavo” announced that it has developed and pioneered innovation with the development of freeze-dried avocado powder. The company uses its all-new innovative vacuum technology and sub-zero temperatures to convert dehydrated avocado flesh into a concentrated powder. This process leads to an 18-month shelf-stable format, making it versatile for application in the food, cosmetic, and nutraceutical industries.


• July 2023: Vancouver Freeze Dry Ltd announced the launch of its all-new product in the premium range. The new product is called freeze-dried Strawberries – U.S. Standard. This new freeze-dried strawberry is specially designed for versatile culinary applications such as smoothies and confectionery made with the highest U.S. standards. 


• July 2022: Crispy Green updated the packaging of their product line with more focus on sustainability. The company reduced the usage of overall packaging material and utilized an all new recyclable material for its all new multipack bag.


• January 2022: Private Equity business of Mubadala Capital, an Abu Dhabi-based asset management subsidiary of Mubadala Investment Company, and the Entrepreneurial Equity Partners (“e2p”), a Chicago-based private equity firm focused on the food and consumer packaged goods industries, completed the investment in Thrive Foods and Mercer Foods. With this investment, the combination of two businesses is set to create a North American market giant in freeze-dried products.


• March 2021: “Saraf Foods”, an SME based in India, is known for its specialized air dried, freeze-dried and quick-frozen technology (IQF). The company announced to further develop and launch a new innovative range of Indian fruits in freeze-dried format at the global scale.

REPORT COVERAGE

The global freeze-dried fruits & vegetables market research report includes quantitative and qualitative insights into the market. It also offers a detailed analysis of the market sizing and growth rate for all possible market segments. Various key insights presented in the research report are an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and market trends.

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