Industry Insights
The global fruit preparation market was valued at USD 6,670.3 million in 2016 and is expected to grow over the forecast period. The market growth is buoyed by rising demand for convenience foods such as jams, marmalades and purees. Additionally, rising consumer preference for ready to eat foods coupled with changing lifestyle is expected to drive the global fruit preparations market over the forecast period.
Global fruit preparation market revenue, by product, 2014 - 2024 (USD Million)
Continuous product development along with introduction of new flavours in fruit products are expected to increase the demand for fruit preparations over the forecast period. Rising demand for gourmet preparations of fruit jams are gaining popularity in developing nations which is expected to add to the growth of the industry. Additionally, rising number of fruit spread brands in region-specific markets coupled with rising investments by large retailers in storage of perishable food items will also drive growth.
Rising disposable income coupled with changing lifestyle as well as eating habits in developing nations in Asian countries is expected to provide favourable growth opportunity to the vendors in the industry. Shift in consumer preferences from traditional fruits towards pulps and purees as these are ready to eat and have optimum freshness is making these products popular and leading to demand growth over the forecast period.
Segmentation by Product, 2014 - 2024 (USD Million)
• Puree
• Jam
• Marmalade
Puree segment dominated the market with around two-fourth of the revenue share in 2016. The segment is expected to continue to dominate the space over the forecast period as well. Increase in consumption of puree is also due to the growing demand for fruit purees in baby food. Majority of baby foods consist of purees made up of bananas, apples, strawberries, mango, and melons. In addition, puree is used in products such as fruit juices and yogurts to improve the taste and texture of final product, which remains an important application area adding to the demand of purees.
Puree segment was followed by jam segment, where convenience and multi-purpose usage of jams in food preparation continues to add to the prevailing demand growth. Increasing consumer preference towards natural and organic products is providing additional growth venues to the vendors in the industry. The demand for organic and natural versions is expected to strengthen over the forecast period, thereby creating favourable market growth opportunity.
Segmentation by End-use, 2014 - 2024 (USD Million)
• Dairy
• Ice cream
• Bakery
Dairy segment led the various end-use segments in 2016 and is expected to remain the dominant segment over the forecast period as well. The growth in the dairy segment is primarily driven by increasing consumer preference for dairy desserts, yoghurts, and other similar products. Also, rising demand for frozen desserts is expected to add to the prevailing growth over the forecast period. The market also derives a considerable share of demand from juices and beverages, where the rising end-use consumption is adding to the prevailing growth. Product innovation and new launches are expected to provide potential growth venues to the market.
Segmentation by region, 2014 - 2024 (USD Million)
• North America
• U.S.
• Europe
• Germany
• Asia Pacific
• China
• India
• Rest of the World (RoW)
Europe held the majority market share in 2016 and is marked by a higher concentration of fruit preparation production levels. In addition, the region has an effective logistics connectivity ensuring distribution to other regions. However, the increasing inclination of consumers towards fresh fruits is expected to impact the demand over the forecast period in the region. On the other hand, growth aspect in the Asia Pacific region appears promising, where adoption of western food habits and a changing lifestyle is turning favourable to fruit preparations industry. The Asia Pacific regions is expected to showcase the highest growth rate over the forecast period and gaining the focus of vendors such as AGRANA, which has expanded its presence in the region with production facilities in countries such as China and India.
Competitive Landscape
The market for fruit preparations is marked by the presence of multiple companies having presence across various regions. As the western markets are relatively mature, companies are focusing on expanding their presence to new geographies which offer potential growth opportunities. To that end, there has been an increase in focus in growth markets such as China and India in the Asia Pacific region. For instance, in September 2016, AGRANA expanded its operation in India. Some of the prominent players in the industry are AGRANA Beteiligungs-AG, Cargill, Incorporated., Bischofszell Nahrungsmittel AG, Valio Oy, and Adolf Darbo AG.
