PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803407
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803407
The global fruit and vegetable processing equipment market is expected to grow from USD 6.8 billion in 2024 to USD 10.8 billion by 2032, advancing at a CAGR of 6.1% from 2025 to 2032. The market is driven by the increasing global population and changing dietary habits, with higher spending power leading to an increased demand for food processing, storage, packaging, and preparation equipment. Additionally, the shift in consumer behavior following the COVID-19 pandemic, with heightened emphasis on safety and quality, has significantly contributed to the market's growth.
As consumer preferences evolve toward more convenient and ready-to-eat food options, the demand for innovative food processing solutions is rising. The need for high-quality, safe, and efficient food processing equipment is at the forefront, as manufacturers focus on maintaining product integrity and meeting evolving safety standards. Moreover, rising urbanization and the growing middle class, especially in emerging economies, are accelerating the demand for processed food items, further driving the market.
Key Insights
Integration of IoT and Automation: The fruit and vegetable processing industry is increasingly incorporating automation and IoT into its equipment to boost productivity, reduce labor costs, and improve operational efficiency. IoT-based solutions, such as digital twins, are enhancing transparency in production, optimizing resource use, and improving quality control. Automated equipment, including pre-processing, packaging, and handling systems, are essential for meeting the growing demand for efficient food production.
Rising Demand for Convenience Food: With the rise in urban populations and busy lifestyles, there is a significant shift towards convenience food products, such as ready-to-eat and frozen foods. The demand for time-saving meal options is driving innovation in packaging, storage, and processing equipment that maintain the quality and shelf-life of these products. This trend is particularly strong among working professionals and younger generations.
Popularity of Veganism: The increasing popularity of veganism is positively influencing the plant-based food industry, encouraging food processors to expand their production capacity. As more consumers turn to plant-based diets, manufacturers are turning to fruits, vegetables, and legumes for high-quality, nutritious ingredients. This shift is creating new opportunities for fruit and vegetable processing equipment manufacturers to cater to the growing demand for plant-based food products.
Pre-Processing Equipment: Pre-processing equipment is expected to hold the largest market share, as it plays a crucial role in ensuring the safety and hygiene of fruits and vegetables before consumption. These systems help remove dirt, bacteria, pesticides, and foreign materials, ensuring that processed foods meet stringent health and safety standards. The rise in automation is also reducing operational costs, further driving demand for these systems.
Packaging & Handling Equipment: The packaging and handling equipment segment is projected to grow the fastest during the forecast period. This is due to the increasing need to extend the shelf life of products, ensure hygiene, and facilitate easier transportation and storage. Packaging innovations, such as sustainable packaging and high-quality branding, are also spurring market growth, with companies focusing on providing eco-friendly solutions to meet consumer preferences.
Automatic Equipment: Automatic processing systems are anticipated to continue leading the market due to their scalability and efficiency in meeting the rising food production demands. Automation reduces human intervention, decreases the risk of contamination, and improves the consistency of processed food. Additionally, IoT integration makes these systems more efficient and capable of handling large-scale operations.
Small-Scale Processing Systems: Small-scale processing systems dominate the market due to their affordability and suitability for regional food businesses and niche markets, including organic produce and artisanal food products. These systems cater to the increasing demand for fresh, locally processed fruits and vegetables, as well as healthier and more convenient food options.
Frozen Food Processing: The frozen food category holds the largest market share, driven by the longer shelf life and nutritional retention of frozen fruits and vegetables. Technological advancements like individually quick-frozen (IQF) technology are enhancing the quality of frozen foods, making them a popular choice for bulk purchasing and time-saving meal solutions.
Geographical Growth: APAC holds the largest share of the fruit and vegetable processing equipment market and is expected to witness the highest growth due to its burgeoning population, rising disposable incomes, and changing food preferences. The demand for processed food in urban areas, coupled with increasing foreign investments, is driving the expansion of processing equipment manufacturers in the region. China and India are significant contributors to this growth, with a rising focus on modernizing food production technologies.
North America: The U.S. is one of the largest markets for fruit and vegetable processing equipment, supported by the increasing demand for packaged and ready-to-eat foods. The country's emphasis on food safety, quality standards, and technological innovation has contributed to the growth of this market. Safety regulations, such as those enforced by the Food and Drug Administration, have also strengthened consumer confidence in processed food products.
Emerging Market Growth: The Latin American and Middle Eastern markets are growing steadily due to the increasing consumption of processed foods, changing dietary habits, and the need for improved processing equipment in local food industries. As demand for convenience foods increases, these regions are becoming important hubs for fruit and vegetable processing equipment manufacturers.
Competitive Landscape: The market is fragmented, with several key players such as Alfa Laval, Buhler AG, GEA Group, and JBT Corporation, along with smaller, regional companies, competing to provide tailored processing solutions. The emphasis on automation, energy efficiency, and food security is spurring innovation across all market segments.
Recent Developments:
Heat and Control introduced its Cascade Water Recirculation system at PACKEXPO International 2024, aiming to reduce water consumption by 75% during food processing.
Buhler India launched the SmartLine series, including the DirectBake Smart oven and RotaMold Smart rotary molder, designed to meet the needs of biscuit producers.
Alfa Laval unveiled a new Hygienic WideGap heat exchanger that offers 50% energy savings and helps food manufacturers meet sustainability goals while ensuring food safety.