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

                                  Mar 23, 2024 - Payroll Costs Eased in 2023
                                  • Employment by fruit and vegetable manufacturers fell by 5.4% in December compared to a year ago after growing 1.7% in the previous annual comparison, according to the US Bureau of Labor Statistics. Employment by the industry is highly seasonal and peaks in August. In 2023, employment in August was 13.2% below that of August 2017. Average wages at fruit and vegetable manufacturers have been trending upward and were $22.65 per hour in December, a relatively flat year-over-year comparison but not far short of their peak in October. Producer prices for fruit and vegetable manufacturers have been rising steeply since the beginning of 2022 helping to offset rising payroll costs.
                                  • Frozen foods generated nearly $77.6 billion in sales in 2023 and volume sales were up 5% compared to 2019, according to Conagra Brands’ Future of Frozen Foods 2024 report. US consumers eat frozen food products an average of four times a week, with frozen vegetables among the top frozen food items Americans have on hand, according to market research firm Circana’s National Eating Trends data. Consumers in rural areas purchase frozen foods more frequently and nearly half of US households own secondary freezers. Prepared foods accounted for the largest percentage of sales (32.7%) by category with frozen vegetables and fruit accounting for 4.6% and 2.4%, respectively, per data collected by NielsenIQ for the 52 weeks ending December 2, 2023.
                                  • 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.
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