Fruit & Vegetable Processing Industry Overview

Excerpt from Fruit & Vegetable Processing Report

Companies in this industry use freezing, canning, dehydrating, and pickling processes to preserve fruits and vegetables. Major companies include US-based Del Monte, Heinz, and JR Simplot; McCain Foods (headquartered in Canada); Bonduelle (France); AGRANA (Austria); Pinguin (Belgium); La Doria (Italy); and divisions of large food companies such as ConAgra and General Mills (US).

Competitive Landscape

Demand is driven by food consumption, which depends on population growth. The profitability of individual companies depends on efficient operations, because products are commodities subject to intense price competition. Companies compete largely based on cost and their ability to distribute the finished product. Large companies have advantages in purchasing and distribution. Small companies can compete effectively in local or regional markets. The industry is concentrated: the 50 largest companies generate about 70 percent of revenue.

Products, Operations & Technology

The major processed crops in the US are tomatoes (solid tomato and tomato paste products); potatoes (French fries, potato chips); and oranges (orange juice). Other important processed products include corn; cucumbers (pickles); beans; grapefruit; apples (apple juice, applesauce); grapes (raisins); pineapples; peaches; jams and jellies; baby food; and soup. The two major types of operations are canning and freezing. Canned goods account for about 60 percent of industry revenue; frozen goods, 40 percent.