April 2025
The global fresh produce market size was valued at USD 3,537 billion in 2024 is anticipated to reach USD 5,653 billion by 2034, growing at a CAGR of 4.80% during the forecast period from 2025 to 2034. The market is witnessing substantial expansion because of the growing uptake of healthier eating practices and a surge in demand for online sales of fresh products, such as fruits, vegetables, meat, and poultry.
Fresh produce includes food items that are lightly processed and do not use preservation techniques like freezing, canning, or drying. These foods are generally eaten shortly after they are harvested or produced, preserving most of their natural flavors, nutrients, and texture. The worldwide enhancement of living standards and socioeconomic development has resulted in a significant change in individuals' purchasing behaviors and requirements. The demands for food related to nutrition, safety, and health have also grown.
The rising number of health-aware consumers is propelling the demand for fresh produce as they look for minimally processed, nutrient-dense options. Fresh fruits and vegetables, which have low energy density and are rich in fiber, are essential parts of a nutritious diet and are related to a lower risk of chronic diseases and effective weight control and thus, expanding the market of fresh produce.
Promotion of local food system further drives the market of fresh produce and gaining more interest from the general public. In Canada, the government has recently launched the “Local Food Infrastructure Fund,” a five-year initiative with a budget of CAN$50 million set to conclude in 2024. Its goal is to assist “community-based organizations dedicated to decreasing food insecurity by developing and enhancing their local food systems”. Technological progress in e-commerce and supply chain management likewise promotes market expansion by enhancing distribution efficiency and accessibility.
Digital technologies like the Internet of Things, artificial intelligence, blockchain, and robotics are changing how food is produced, processed, and distributed. These technologies provide numerous advantages, such as enhanced efficiency, better product quality and safety, decreased waste, and ecological sustainability. Digital technologies allow for immediate tracking of essential factors like temperature, pH, and moisture, helping to avert spoilage, minimize food waste, and guarantee that safe, and high-quality food is delivered to consumers which contribute as the major growth opportunity in the fresh produce market.
Sustainability is becoming a more vital aspect of overseeing the supply chain for fresh and perishable foods. It is estimated that 35% of food products are wasted on average throughout the entire supply chain, starting from production to the retail shelf and the consumer's fridge. The speed of product degradation may increase based on the product's condition and surrounding environment, and it can also be significantly influenced by the design and planning of the supply chain, as this impacts how long products remain in each facility and transport vehicle and hamper the fresh produce market growth.
North America dominated the fresh produce market in 2024.
The growth of the market is propelled by an increasing consumer demand for organic and locally sourced foods, bolstered by solid agricultural infrastructure. The availability of the economically developed countries in the region and the awareness regarding health and healthy food consumption accelerate the growth of the fresh produce market.
The United States led the market, as consumers prioritize freshness and nutritional value, creating a vibrant market for farm-to-table choices. Changes in consumer demand, advancements in production and marketing technology, and the consolidation of retail have transformed the conventional market dynamics among producers, wholesalers, and retailers. Shoppers are consuming increased amounts of fresh fruits and vegetables, buying a greater assortment throughout the year, and seeking more convenience, such as pre-packaged salads. Information technology has brought efficiencies across the supply chain, lowering production and marketing expenses.
Asia pacific expects a significant growth in the fresh produce market during the forecast period.
Growth of the market is mainly propelled by its vast agricultural endeavors and significant rural populations involved in farming. The area enjoys a range of climates that are perfect for cultivating various fresh foods, such as fruits, vegetables, and meats. A dense population creates significant local demand. Furthermore, cultural inclinations for fresh foods rather than processed ones increase consumption levels even more. According to Fruit Logistica's 2018 Trends Report over half of the global sales of fresh produce by 2030 will occur primarily in the Asia-Pacific market.
India is the second biggest producer of fruits and vegetables globally, following China. The nation features varied landscapes and climates, guaranteeing the presence of fruits and vegetables throughout the year. In 2023-24, India exported fresh fruits and vegetables worth 1814.58 million USD.
The dairy segment held the dominating the fresh produce market in 2024.
The expanding population and a rising demand for fresh dairy items are key factors driving market growth. Knowledge of the health advantages of dairy, along with its abundant nutritional qualities, continues to draw in consumers worldwide. Organic dairy is projected to expand swiftly, supported by consumer interest in clean-label and high-quality products. Health-aware selections and worries about antibiotic traces in traditional dairy are driving interest in organic alternatives.
The fruits and vegetable segment are seen to grow at a notable rate in the fresh produce market during the predicted timeframe. The growing recognition of the health advantages linked to eating fresh fruits and vegetables is boosting demand, as an increasing number of individuals from different demographics emphasize nutrition and healthier living. Advancements such as vertical farming and hydroponics are enhancing agricultural efficiency and guaranteeing the availability of fresh produce throughout the year, fostering a more sustainable and effective food supply.
The program like the 'Eat Right Fruit and Vegetable Market' spearheaded by FSSAI seeks to enhance the safety and quality of unregulated fruits and vegetables retail markets to match that of regular and structured fruits and vegetables retail shops. The aim is to enhance the current state of fresh fruit and vegetable markets nationwide and ensure safe, hygienic products for consumers.
The supermarkets and hypermarkets segment led the fresh produce market in 2024.
Since supermarkets allocate the most shelf space for fresh fruits and vegetables in comparison to other types of retail outlets, it is believed that buying at a supermarket presents the best chance for acquiring and consuming fresh produce. The broad accessibility of numerous products from various brands and farms offers people several options, driving the growth of the sector. Additionally, shoppers can examine and choose vegetables directly, enabling them to evaluate their quality, ripeness, and freshness. In addition, physical stores can address unique local tastes and preferences by providing region-specific options that might not be accessible through online retailers.
The online segment expecting the significant growth in the fresh produce market during the forecast period. These platforms enable consumers to buy fresh vegetables from home and provide round-the-clock access, removing the necessity to go to physical stores. Furthermore, the increasing accessibility of fresh vegetables, encompassing organic, exotic, and specialty goods, through online retailers will enhance the expansion of segment. The growth of e-commerce has encouraged the conversion of traditional agricultural product brokers and numerous agricultural product producers into local e-commerce operators.
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