Fruit & Vegetable Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,551 fruit and vegetable manufacturers in the US produce frozen foods and juices; canned fruits, vegetables, and specialty foods; and dried and dehydrated foods and mixes. Canned foods account for about 46% of industry revenue, while frozen foods are 45%. The fruit and vegetable manufacturing industry is concentrated – the top 50 companies account for about 64% of industry revenue.
Variable Fruit And Vegetable Supply
The supply of fruit and vegetables available for processors varies by season and year to year due to changes in growing conditions and the number of acres harvested by growers.
Stricter Food Labeling Requirements
Fruit and vegetable manufacturers must comply with a variety of food labeling regulations.
Industry size & Structure
The average fruit and vegetable manufacturer operates a single location, employs 109 workers and generates about $50.1 million in annual revenue.
- The US fruit and vegetable manufacturing industry comprises about 1,550 companies that employ 169,000 workers and generate $77.7 billion in annual revenue.
- About 555 companies produce frozen foods, 725 produce canned products, and 185 produce dried and dehydrated products.
- Adults in the US consume about 1 cup of fruit and 1.4 cups of vegetables daily. Annual per capita consumption is about 130 pounds for frozen, canned, or dried fruits and 206 pounds for frozen, canned, or dried vegetables.
- The fruit and vegetable manufacturing industry is concentrated - the top 50 companies account for about 64% of industry revenue.
- Large US companies include Dole Food Company, Del Monte Corporation, The Schwan Food Company, Campbell Soup Company, JR Simplot, and Kraft Heinz Company.
Industry Forecast
Fruit & Vegetable Manufacturers Industry Growth
Recent Developments
Sep 23, 2024 - Prices and Costs Are Rising
- The producer price index for fruit and vegetable manufacturers, which measures prices before reaching consumers, reached a new high in July, according to the latest US Bureau of Labor Statistics data. Industry producer prices rose 2.9% in July compared to a year ago after climbing 9.3% in the previous July-versus-July annual comparison, BLS data show. While inflation is slowing, food prices remain higher than last year. Employment by fruit and vegetable manufacturers grew 3.4% year over year in July, while average industry wages rose 5.2% over the same period to $22.62 per hour. Food production costs continue to rise and are estimated to increase by 3.8% this year, which is slower than in 2023, according to the USDA.
- A new study has found widespread human exposure to thousands of chemicals used in food packaging, Food Manufacturing reported in September. The study, published in the Journal of Exposure Science and Environmental Epidemiology, identified over 3,600 chemicals used in food packaging and other food contact chemicals (FCCs) that have been found in human urine, blood, and breast milk and reveals significant gaps in biomonitoring and toxicity data. “Our research establishes a link between food contact chemicals, exposure, and human health,” said Dr. Birgit Geueke, adding, “It also highlights those chemicals that have been overlooked in biomonitoring studies so far.” The researchers were surprised by the high number of FCCs, for which some evidence of human exposure exists, and said their study shows there needs to be more research about the toxicity of and exposure to many chemicals and regulations around their use in food packaging.
- Unit sales of frozen fruit rose 8.8% in the first half of the year compared to the same period in 2023, the American Frozen Food Institute (AFFI) reports, citing data from Circana. During the first half of 2024, overall frozen food dollar sales ticked up 0.4% to $84.4 billion due to strengthening consumer demand and moderating inflation, while unit sales dipped 0.8% over the same period, Circana data show. Home freezer sales, which soared during the pandemic as consumers stocked up on frozen foods, continue to exceed pre-pandemic levels, with about 2.3 million freezer shipments in 2023 versus 1.5 million in 2019, per AFFI. The added storage capability creates growth opportunities for the frozen food category. The price, ease of preparation, and “having a quick total meal solution on hand” are the top reasons consumers say they buy frozen food, according to AFFI.
- Fewer farmers are farming fewer acres but producing more each year, according to the USDA’s 2022 Census of Agriculture (CoA), released in February. Between 2017 and 2022, the number of farms in the US declined by 141,733 or 7%, while the number of acres operated by farm operations declined by 20.1 million (2.2%) over the same period, a loss equivalent to an area about the size of Maine. While the number of farm operations and acres operated fell, the value of agricultural production rose from $389 billion in 2017 to $533 billion in 2022 (40% nominally and 17% adjusted for inflation), per the CoA. In 2022, 11,828 farms harvested nearly 1.7 million acres of vegetables for processing, while 74,438 farms produced fruits (noncitrus) on some 2.14 million acres.
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