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 1,560 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 103 workers and generates about $50 million in annual revenue.

    • The US fruit and vegetable manufacturing industry consists of about 1,560 companies that employ 178,900 workers and generate $77.7 billion in annual revenue.
    • About 535 companies produce frozen foods, 725 produce canned products, and 215 produce dried and dehydrated products.
    • Adults in the US consume about 1 cup of fruit and 1.4 cups of vegetables per day. 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
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Jan 23, 2024 - Fruit and Vegetable Prices Climb
                                  • The producer price index (PPI) for fruit and vegetable manufacturers, which measures prices before reaching consumers, rose 6.8% in December compared to a year ago, according to the US Bureau of Labor Statistics. December's rise in the PPI extended a steep climb that began in 2022 when inflation was running hot. However, the rise in producer prices was less steep in the fourth quarter of 2023 as inflation began to moderate. Overall employment by fruit and vegetable manufacturers fell in November compared to a year ago while wages were flat year over year, BLS data show.
                                  • The latest estimates from the US Department of Agriculture forecast a better citrus crop this season (2023-2024) than last. That’s welcome news for an industry that has struggled with Citrus Greening disease and natural disasters (hurricanes and freezes) that have crippled citrus crops in recent years. January estimates show the citrus industry on pace to fill 20.5 million 90-pound boxes of oranges, up from 15.8 million boxes during the 2022-2023 season, but down sharply from 41.2 million boxes during the 2021-2022 season. Another 2.4 million boxes are expected to be filled with grapefruit, and 550,000 boxes with specialty fruits. Growers filled 1.81 million boxes of grapefruit during the 2022-2023 season and 3.33 million boxes during the 2021-2022 season. Before the arrival of citrus greening, the industry had reached more than 200 million boxes a season of oranges and 50 million boxes of grapefruit.
                                  • The US Food and Drug Administration in November expanded its recall of children’s fruit pouches over concerns of possible lead contamination, The Wall Street Journal reports. In late October, WanaBana USA voluntarily recalled WanaBana Apple Cinnamon Fruit Purée pouches. In early November, the agency expanded the recall to include two additional brands made by the company. Grocery chains Weis Markets and Schnuck sold the products under their brand. The FDA reported seven cases of children with elevated levels of lead in their blood associated with the applesauce pouch recall, in North Carolina, Arkansas, Louisiana, Maryland, and Missouri. The company said its investigation pointed to cinnamon as a potential source of the recall. While lead is toxic to humans and can affect people of any age or health status, young children are thought to be especially vulnerable. Pouched foods marketed for very young children have gained popularity in recent years.
                                  • Kroger plans to expand the availability of vertically farmed produce, according to the company. The grocery giant is partnering with 80 Acres Farms, a leading global vertical farming company, to bring fresh produce to about 1,000 Kroger stores across the Midwest and Southeast. 80 Acres Farms grows pesticide-free produce – including salad blends, herbs, and tomatoes – entirely indoors using fewer natural resources. The company operates production farms in Ohio and Kentucky. Its newest farm in Florence, Kentucky, began operations in December 2022 and will supply approximately 40 million servings of produce annually, according to Kroger. Grocery retailers like Kroger are drawn to indoor farming for its potential to supply fresh, healthy produce in a more environmentally sustainable and resilient manner. Advocates say growing indoors uses less water and land and allows food to be grown closer to consumers, saving on transport.
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