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The global fresh vegetables market size was valued at USD 714.25 billion in 2023. The market is projected to grow from USD 731.18 billion in 2024 to USD 921.09 billion by 2032, exhibiting a CAGR of 2.93% during the forecast period. The key players in the market are employing a multifaceted approach that includes product innovation, sustainability efforts, expansion of distribution networks, e-commerce growth, strategic partnerships, market diversification, and focus on health trends.
Fresh vegetables are highly perishable, necessitating efficient supply chain management to minimize waste and maintain quality. They are recognized for their nutritional value, providing essential vitamins, minerals, and fiber that contribute to overall health. The fresh vegetables market is affected by various factors, such as seasonal availability, consumer preferences, urbanization trends, and economic conditions that influence purchasing behavior of the consumers. The market is a vital component of the global food landscape, driven by consumer demand for healthy eating options and characterized by a diverse array of products and distribution methods.
Government Support and Improving Trade Infrastructure to Fuel Market Growth
The improving trade infrastructure across countries that assists in the efficient export and import of fresh vegetables will support the market growth. For instance, according to the Agricultural & Processed Food Products Export Development Authority (APEDA), an India-based government agency emphasizing trade promotion, India is a significant fresh vegetable exporter,s with major export destinations including Bangladesh, Oman, Qatar, Sri Lanka, Nepal, the UAE, and the U.K. Moreover, in 2023-24, India exported fresh vegetables (excluding onion) worth USD 354.54 million. Governments worldwide also introduce schemes and packages that assist in strengthening the fresh vegetable export business and growing the overall vegetable sector. For instance, the APEDA’s Financial Assistance Scheme (FAS), implemented from 2021-22 till 2025-26, facilitates the export of agricultural products by offering assistance to exporters.
Surging Demand for Healthy & Organic Food to Encourage New Players’ Market Entry
The increasing number of health-conscious individuals across countries will boost the demand for healthy and organic food, including fresh vegetables. Moreover, a healthy diet protects individuals from chronic diseases, such as diabetes, heart problems, and cancer, and provides nutrients essential for growth and strength. As a result, numerous individuals are adopting a plant-based diet that includes fresh vegetables, which helps improve the immune system, reduce inflammation, and maintain a healthy weight.
Fresh vegetables also have strong flavors and are a significant source of minerals, fibers, antioxidants, and vitamins. In addition, they are low in fats and calories, which helps consumers maintain their health. These factors will increase their consumption among individuals, emphasizing a healthy lifestyle and driving the global market growth. Furthermore, several consumers demand organic food, including fresh organic vegetables that are grown using natural fertilizers and have a higher concentration of beneficial nutrients than conventionally grown vegetables. As a result, the number of organic farms that ease the delivery of fresh vegetables is increasing across countries. For instance, according to the National Agricultural Statistics Service, the number of farms involved in organic production, including vegetables, rose to 17,445 (5%) between 2019 and 2021 in the U.S. The certified organic cropland also rose to 3.6 million acres in 2021 across the U.S.
Challenges in Obtaining Organic Certification and Inflation to Hamper Market Growth
Organic farmers' markets across countries face challenges in vegetable production as they are required to obtain certification to be identified as organic growers. The strict certification process is time-consuming and complex as it involves reviewing the entire production, storage, transportation, and processing of the product. In addition, farmers must meet the certification requirements to label and sell their produce as organic. For instance, the USDA National Organic Program certification allows products to be marketed and sold as organic in the U.S. Organic crop producers are required to obtain a certification from a USDA-accredited certification agency to get an organic agriculture label. Moreover, challenging economic conditions that lead to high inflation can significantly hamper the fresh vegetable market growth. For instance, in 2022, the Russia-Ukraine war increased the prices for fertilizers and energy. This factor increased the overall production cost of vegetables and resulted in them becoming expensive. The high product cost declined its consumption and negatively influenced the fresh vegetables market growth.
Reducing Plastic Packaging to Provide Growth Opportunities
In recent years, numerous consumers worldwide have been focusing on reducing their environmental impact. Governments across the world are also taking initiatives to protect the environment by launching guidelines that prevent retailers from using plastic packaging on fresh produce. This factor will increase the product’s adoption, notably among eco-conscious consumers. For instance, in January 2024, the U.K government proposed a prohibition on plastic-packaged fresh vegetables and fruits in stores across the country. The government is considering launching guidelines that mandate retailers to offer loose fresh produce. The strategy will assist the country in reducing plastic packaging waste that is either burnt or dumped in landfills.
Perishability and Supply Chain Management to Pose a Challenge for Market Growth
Fresh vegetables have a short shelf life, often requiring immediate consumption or rapid distribution to prevent spoilage. The handling and storage of fresh vegetables post-harvest are critical. Inadequate storage facilities and improper handling can exacerbate losses, making effective inventory management essential for maintaining quality and minimizing waste. Maintaining quality throughout the supply chain is challenging due to the need for specific temperature controls and humidity levels. Failure to meet these conditions can lead to premature ripening or spoilage, affecting both the aesthetic and nutritional value of the produce.
Increasing Number of Vegans & Vegetarians Paired With Rising Dining Out Trend to Boost Product Demand
In recent years, numerous individuals worldwide have become vegan or vegetarian, which has increased the consumption of fresh vegetables. The growing consumer consciousness regarding the advantages of plant-based diets and health concerns regarding animal proteins have led to individuals becoming vegetarian. In addition, moral values and animal welfare are prominent factors resulting in several individuals opting for a vegan diet.
Furthermore, the rising trend of dining out with friends and family and trying premium restaurants and cafes offering various vegetarian dishes will provide considerable growth opportunities to industry participants in the coming years. These restaurants and cafes emphasize offering innovative vegetarian dishes, including different vegetables with strong flavors. Moreover, these establishments prioritize fresh vegetables that make the dish healthier and improve its quality.
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The COVID-19 pandemic outbreak disrupted economic activities and affected various sectors, such as manufacturing, export, retail, and hospitality, notably in 2020. However, vegetables are an essential food item consumed daily by numerous individuals; thus, their demand remained high across households worldwide during the pandemic as well. In addition, the crisis increased consumer awareness regarding the significance of health and wellness, which further boosted the adoption of highly nutritious fresh vegetables. Moreover, government restrictions across countries were relaxed in 2021, and several food service providers, including restaurants and cafes, resumed their operations, which drove product sales.
Growing Trend Toward Veganism and Healthy Diet to Drive Others Segment Growth
On the basis of type, the market has been divided into onions, potatoes, tomatoes, cucumber, cabbage, eggplant, and others.
The others segment is expected to lead the global fresh vegetables market share during the forecast period. The other fresh vegetable types include carrots, broccoli, mushrooms, corn, garlic, asparagus, and green beans. The growing trend of veganism and healthy diets, coupled with the increasing number of individuals shifting toward vegetarian diets, will boost the demand for carrots, broccoli, mushrooms, and asparagus. The rising usage of these vegetables in side dishes, salads, soups, pasta, and risotto will also propel the segment’s growth. Furthermore, garlic is one of the staple ingredients used in various cuisines worldwide. The increasing usage of garlic as a cooking base and in preparation of seasonings, marinades, salad dressings, pickling, sauces, and condiments will fuel the market growth.
The tomatoes segment is expected to experience significant growth during the forecast period. Tomatoes are also one of the most widely produced and staple vegetables across countries. According to the Food and Agriculture Organization (FAO), an agency of the United Nations, 186 million tons of tomatoes were produced globally in 2022. Moreover, the growing consumption of tomato ketchup worldwide will boost the demand for fresh tomatoes among household and commercial consumers, such as ketchup manufacturers and restaurants. Furthermore, increasing usage of tomatoes in salads, sauces, and soups will fuel the segment’s growth.
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Growing Health Awareness and Rising Product Demand to Expand Household Segment Growth
Based on end use, the market has been segregated into household and commercial.
The household segment is projected to dominate the market during the forecast period. The growing consumption of fresh vegetables owing to the increasing population worldwide will fuel the segment’s growth. According to the U.S. Census Bureau, a government agency, the world population reached 8.01 billion individuals in 2023, with an increase of 75 million compared to the previous year.
Furthermore, the rising health awareness among individuals across countries will boost the product demand.
The commercial segment is likely to grow significantly during the forecast period. The increasing number of restaurants and cafes across countries is expected to boost the demand for fresh vegetables. Moreover, the growing popularity of culinary & gastronomy tourism worldwide owing to the rising number of international travelers seeking unique culinary experiences will fuel the market growth. According to the UN World Tourism Organization (UNWTO), in 2023, the number of international arrivals reached 1.3 billion. Fresh vegetables are one of the key components of meals in hospitals and healthcare facilities, supporting the patient's nutrition and recovery. The increasing number of hospitals and healthcare facilities worldwide will boost the demand for fresh vegetables, offering nutrient-rich diets. In addition, fresh vegetables are usually prescribed to patients with dietary restrictions. Hospitals must meet nutritional standards set by regulatory bodies, requiring the inclusion of fresh vegetables in the patient meals, thus fueling the segment's growth.
Wide Product Availability Along With Convenience and Accessibility to Accelerate Offline Segment Growth
In terms of distribution channel, the market has been classified into online and offline.
The offline segment is anticipated to capture the largest share of the overall market. The offline channels include supermarkets, hypermarkets, grocery stores, specialty stores, and others. The extensive availability of a wide array of products from several brands and farms provides individuals with multiple choices, propelling the segment's growth. Moreover, consumers can inspect and select vegetables in person, allowing them to assess their quality, ripeness, and freshness. Furthermore, offline stores can cater to specific local tastes and preferences by offering region-specific varieties that may not be available in online stores. Several offline retailers are focusing on investments to strengthen their product offerings. For instance, in May 2022, Walmart, a U.S.-based retail company, signed an agreement to invest in Plenty Unlimited Inc., a U.S.-based indoor vertical farming company. According to the company, the commercial agreement will allow it to source Plenty's leafy greens for its California stores from Plenty's Compton farm.
The online segment is predicted to hold a significant market share in the coming years. The online channels include online grocery stores, e-commerce platforms, and others. These channels allow consumers to purchase fresh vegetables from home and offer 24/7 availability, eliminating the need to visit physical stores. In addition, the rising availability of fresh vegetables, including organic, exotic, and specialty produce, across online stores will boost the segment’s growth. Furthermore, the ease of online shopping, coupled with secure payment options and doorstep delivery, will also fuel the segment’s growth.
Various online retailers purchase fresh vegetables directly from farms at lower prices in bulk and provide attractive discounts unlike offline stores. Several major industry participants are introducing technologically advanced features. For instance, in August 2023, Amazon India, an e-commerce company, launched a new shelf monitoring solution for its online grocery store, Amazon Fresh. According to the company, the new solution will help improve the quality of fresh produce and ensure that customers receive fresh & high-quality vegetables.
In 2023, Asia Pacific attained the major share of 63.91% in the global fresh vegetables market. The wide availability of fresh vegetables across Asian countries, coupled with increasing health consciousness among individuals, will propel the market growth. In addition, India and China are top vegetable-producing countries worldwide. According to the Ministry of China, in 2022, the country produced 680 million metric tons of vegetables. Additionally, according to the Government of India, the country produced 204.96 million metric tons of vegetables in the same year.
Governments across countries are launching various programs and subsidies to promote the consumption of vegetables among individuals, thus propelling the region’s growth. The rapidly increasing population in the region will boost the consumption of fresh vegetables among individuals. For instance, India and China are the most populated countries in the world, with China’s population being 1.42 billion and India’s population being 1.41 billion in 2022.
The rising trend of veganism among individuals across the U.S. and Canada will boost the demand for fresh vegetables in the region. The increasing number of vegan consumers and vegetarians is amplifying the usage of fresh vegetables in restaurants & cafes offering vegan and plant-based food. Furthermore, the rising prevalence of obesity, coupled with growing health awareness among individuals, will boost the consumption of fresh vegetables across the region. In addition, restaurants, cafes, hospitals, and schools are increasingly incorporating vegan and plant-based options into their menus, thereby boosting the product demand. The increasing availability of products across the U.S., Canada, and Mexico will drive the region's market growth. Several major retailers are focusing on new offerings due to increasing product demand. For instance, in January 2024, Dollar General, a U.S.-based chain of discount stores, announced that it would be offering fresh produce options across its 5,000 stores in the U.S. The company also announced that it will offer varieties of fruits and vegetables, including tomatoes, onions, apples, potatoes, sweet potatoes, lemons, and, salad mixes.
The rising consumption of vegetables across many countries owing to rising health awareness and growing consciousness of the health benefits of fresh vegetables will fuel the region’s growth. According to Freshfel, a European fresh produce association, the average fruit and vegetable consumption in the EU increased to 36,458 g/day/capita in 2021 - an increase of 2.19% compared to the previous year. The increasing availability of fresh vegetables due to growing production will fuel the region’s growth. For instance, according to Eurostat, a government agency of the European Union (EU), in 2022, the EU produced 59.8 million tons of fresh vegetables. Additionally, the most grown fresh vegetables in 2022 were tomatoes (15.4 million tons), onions (6.2 million tons), and carrots (4.4 million tons).
In South America, the growing population across countries will boost the consumption of fresh vegetables, thus driving the market growth. For instance, according to the Brazilian Institute of Geography and Statistics (IBGE), a government agency, the population of Brazil was 203.1 million in 2022, an increase of 6.5% over the previous population census in 2010. In addition, according to the World Health Organization (WHO), a government agency, the population of Peru increased from 33.7 million in 2021 to 34.04 million in 2022. Governments across Brazil, Argentina, and Peru are introducing various initiatives and programs to promote healthy eating habits, thus boosting the consumption of fresh vegetables in schools across the region. For instance, in April 2023, the Government of Brazil signed an inter-ministerial agreement with various government agencies, including the Ministries of Education (MEC) and Agrarian Development and Family Agriculture (MDA), to strengthen the promotion of adequate and healthy nutrition in schools through its National School Feeding Programme (PNAE).
The increasing population across the Middle East & Africa and Saudi Arabia will propel the region’s growth. The consumption of fresh vegetables across the region is growing significantly owing to rising health consciousness and governments & organizations across countries promoting health benefits regarding the consumption of vegetables. Moreover, the rising availability of fresh vegetables will boost its demand. For instance, in July 2023, Dubai Municipality, a government agency, launched a new 66,000-square-meter fresh fruits and vegetables indoor market, Bloom Market. According to the agency, the new market will provide access to fresh products directly from the source. Furthermore, the increasing production of fresh vegetables across the region will drive the market growth. According to the Arab Organization for Agricultural Development (AOAD), in 2024, the production of fresh vegetables in Qatar increased by 98% in five years.
Key Market Players are Taking-Up Variegated Strategies to Drive the Market Competition
The competitive landscape of the global market offers insights into various competitors. This includes an overview of each company, their financial performance, revenue generation, market potential, investments in research & development, new initiatives, strengths & weaknesses, product & brand portfolios, product launches, mergers & acquisitions, and their applications. The data provided focuses on the companies' engagement within the market.
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Dole Plc, Fresh Del Monte Produce Inc., C.H. Robinson Worldwide, Inc., Keelings, and Binder International GmbH & Co. are some of the major players in the market. The global market is fragmented, with the top 5 players accounting for approximately 43.56% of the market share.
Increasing Brand Investment and Collaboration With Different Stakeholders to Provide Market Opportunity
Investment analysis in the global market reveals significant opportunities driven by various factors, including consumer trends, technological advancements, and regional dynamics. There is a growing demand for organic vegetables as consumers prioritize health and sustainability. Investing in organic farming practices can provide access to premium market segments willing to pay higher prices for certified organic products. Furthermore, investing in advanced agricultural technologies, such as precision farming can improve yield efficiency and reduce resource waste, making operations more sustainable and profitable.
The report analyzes the market in depth and highlights crucial aspects, such as prominent companies, market growth, market segmentation, competitive landscape, product types, distribution channels, and application areas. Besides this, it provides insights into the market trends and highlights significant industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market's growth in recent years.
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ATTRIBUTE | DETAILS |
Study Period | 2019-2032 |
Base Year | 2023 |
Estimated Year | 2024 |
Forecast Period | 2024-2032 |
Historical Period | 2019-2022 |
Growth Rate | CAGR of 2.93% from 2024 to 2032 |
Unit | Value (USD Billion) |
Segmentation | By Type
By End Use
By Distribution Channel
By Region
|
Fortune Business Insights says that the global market size was valued at USD 731.18 billion in 2024 and is anticipated to reach USD 921.09 billion by 2032.
Fortune Business Insights says that the global market value stood at USD 714.25 billion in 2023.
The global market will exhibit a CAGR of 2.93% over the forecast period.
By type, the others segment dominates the market.
Surging demand for healthy and organic food is likely to drive the product demand.
Dole Plc, Fresh Del Monte Produce Inc., C.H. Robinson Worldwide, Inc., Keelings, and Binder International GmbH & Co. are some of the leading players globally.
Asia Pacific dominated the global market in 2023.
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