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 1,600 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.

Stricter Food Labeling Requirements

Fruit and vegetable manufacturers must comply with a variety of food labeling regulations.

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.

Industry size & Structure

The average fruit and vegetable manufacturer operates a single location, employs 106 workers and generates $45-46 million in annual revenue.

    • The US fruit and vegetable manufacturing industry consists of about 1,600 companies that employ 168,800 workers and generate $72.5 billion in annual revenue.
    • About 550 companies produce frozen foods, 837 produce canned products, and 204 produce dried and dehydrated products.
    • Adults in the US consume about 1-2 cups of fruits and about 1-2 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

                                  Nov 21, 2022 - FDA Finalizes New Traceability Rule
                                  • Manufacturers of fresh-cut fruits and vegetables and ready-to-eat deli salads are among food producers impacted by a new Food and Drug Administration (FDA) rule designed to more effectively trace contaminated food through the food supply, whether sourced domestically or abroad. The new rule – finalized in November – requires additional record-keeping steps to by those that manufacture, process, pack or hold certain foods, including fresh leafy greens, nut butters, fresh-cut fruits and vegetables, and ready-to-eat deli salads to improve traceability. Foods subject to the final rule requirements appear on the Food Traceability List (FTL) and include fresh leafy greens, melons, peppers, sprouts, herbs, tomatoes, cucumbers, and tropical tree fruits, as well as shell eggs, nut butters, fresh-cut fruits and vegetables, ready-to-eat deli salads, some cheeses, and finfish and crustaceans.
                                  • Small farmers are being priced out of the market for farmland as competition from investors and real estate developers drives up prices across the country, The New York Times reported in November 2022. In South Dakota, farmland values surged by 18.7% from 2021 to 2022, one of the largest increases in the country, according to the most recent figures from the US Agriculture Department cited by NYTs. Nationwide, values increased by 12.4% to $3,800 an acre, the highest price on record since 1970, with cropland at $5,050 an acre and pastureland at $1,650 an acre, according to the USDA. In a recent survey conducted by the National Young Farmers Coalition, young farmers said finding affordable land for purchase was the top challenge this year. Much like first-time buyers being shut out of the housing market, some experts warn of far-reaching consequences for the farming sector.
                                  • California strawberry production is expected to hit its second highest season on record, extending the peak season well into fall, Food Manufacturing (FM) reported in October 2022. California farmers grow about 90% of all strawberries produced in the US. This year’s bumper crop should ensure an ample supply of strawberries for consumers and manufacturers of frozen, canned, and dried berries, and jams. Children and adults report strawberries as their favorite fruit with US household penetration increasing to nearly 71%, according to FM. Strawberry popularity is driving more than 1.2 billion supermarket pound sales annually – more than all other berries combined.
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