Root cause: Increased competition among retailers has put pressure on prices and profit

The Fruit and Vegetable Processing industry has a wide range of products, from minimally processed produce such as freshly washed and cut or peeled packs of fruit and vegetables to more heavily processed products like jams, peanut butter and pickles. Tinned fruit and vegetables are also included in the industry. Revenue is expected to increase at a compound annual rate of 1.9% over the five years through 2019-20, including a 11.2% rise in the current year, to reach £5 billion. Strong demand on the back of rising health consciousness, increasing household disposable income and strong demand from abroad due to a weak pound has supported industry revenue more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Intense competition between downstream retailers has put pressure on profit margins
  • Time-poor consumers are willing to pay extra for more convenient products
  • Increased import costs are likely to weigh on profit margins in the next period
  • Industry Report - Starting a New Business Chapter

    The Fruit and Vegetable Processing industry is characterised by relatively low barriers to entry and a fragmented market. The biggest barrier for a potential new entrant is the relatively high initial capital investment needed for buying and equipping a production facility. Although this involves significant outlay, the machinery required to operate in most segments of the industry is not particularly complicated, meaning it is cheaper than the equivalent in many other food manufacturing industries. These facilities must comply with UK and EU food-safety legislation and any goods sold in packaging would need to bear the appropriate labelling.To a lesser extent, establishing the presence of a brand can act as a barrier to entry. New...purchase to read more.

    Additional Insights for the Fruit & Vegetable Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fruit & Vegetable Processing Industry are

  • Marketing of differentiated products
  • Economies of scale
  • Development of new products
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and Fruit and vegetable prices in the Fruit & Vegetable Processing industry impact industry performance..

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    What's in this report

    What is the Fruit & Vegetable Processing Industry?

    Fruit and vegetable processors slice, roast, bottle, can, preserve, freeze and quick-dry fruit and vegetables. The industry’s products include jams, roasted nuts, pastes and other fruit and vegetable products. The industry also produces perishable prepared foods, including packaged salads, peeled or cut vegetables and tofu. Ready meals, crisps and chips are not covered by the industry (see IBISWorld reports C10.850 and C10.310).

    Industry Products
  • Jams, jellies and marmalades
  • Frozen vegetables
  • Pickled fruit and vegetables
  • Prepared and packaged fruit
  • Nut butters
  • Prepared and packaged vegetables and mixtures
  • Dried fruit and vegetables
  • Industry Activities
  • Preserving fruit, nuts or vegetables
  • Manufacturing fruit or vegetable food products
  • Manufacturing jams, marmalades and jellies
  • Manufacturing nut foods and pastes
  • Mixing and packaging salads
  • Peeling or cutting vegetables
  • Manufacturing tofu
  • Roasting nuts
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets
  • Fruit and vegetable prices
  • Health consciousness
  • Real household disposable income
  • Urban population

  • Current Performance
  • Fruitful trade
  • Competitive pressures
  • Consumer habits
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry Outlook continued
  • Reducing wastage
  • Table: Fruit & Vegetable Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fruit & Vegetable Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grocery Wholesaling
  • Supermarkets
  • Petrol Stations
  • Takeaway & Fast-Food Restaurants

  • Key Selling Industries
  • Fruit Growing
  • Hollow Glass Manufacturing
  • Light Metal Packaging Manufacturing
  • Plastic Packing Goods Manufacturing
  • Sugar Production
  • Vegetable Growing

  • Products & Services
  • Prepared and packaged vegetables and mixtures
  • Prepared and packaged fruit
  • Nut butters
  • Frozen vegetables
  • Jams, jellies and marmalades
  • Pickled fruit and vegetables
  • Dried fruit and vegetables
  • Other
  • Chart: Fruit & Vegetable Processing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets
  • Grocery wholesalers
  • Food-service industries
  • Exports
  • Other manufacturers
  • Chart: Major Market Segmentation for the Fruit & Vegetable Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Fruit & Vegetable Processing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fruit & Vegetable Processing Industry

  • Industry Globalization
    Bakkavor Group plc, Wm Morrison Produce Ltd,
  • Table: Bakkavor Group plc - financial performance
  • Table: Wm Morrison Produce Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fruit & Vegetable Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Fruit & Vegetable Processing Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A type of bacteria that can cause food poisoning.
  • Modified Atmosphere Packaging
  • The practice of modifying the internal atmosphere of a package in order to improve its shelf life.
  • Own-Label
  • A product manufactured on behalf of a supermarket and sold under that supermarket's brand.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fruit & Vegetable Processing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
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    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Fruit & Vegetable Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Fruit & Vegetable Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Fruit & Vegetable Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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