Fruits and Vegetables Ingredients Market With US Tariff Impact

Overview

New York, NY – May 21, 2025 – The Global Fruits and Vegetables Ingredients Market is growing fast, driven by rising demand for healthy, natural food products. In 2024, the market was valued at USD 202.8 billion, and it is expected to reach USD 327.2 billion by 2034, growing at a CAGR of 4.9% from 2025 to 2034.

Concentrates led the Fruits and Vegetables Ingredients Market in 2024, holding a 37.5% share. Prized for their robust flavors, ease of storage, and extended shelf life, concentrates are a top choice for food and beverage manufacturers. Fruits dominated the Fruits and Vegetables Ingredients Market in 2024 with a 72.1% share. Their natural sweetness, vibrant colors, and nutrient density make fruits a versatile ingredient in smoothies, yogurts, bakery products, baby food, and health drinks.

Conventional Ingredients commanded an 83.4% share of the Fruits and Vegetables Ingredients Market in 2024. Beverages held a leading 31.2% share of the Fruits and Vegetables Ingredients Market in 2024. Driven by consumer demand for healthy and refreshing drinks, fruit and vegetable ingredients are key in natural juices, smoothies, and functional beverages.

US Tariff Impact on Fruits and Vegetables Ingredients Market

On May 18, 2025, President Donald Trump introduced a universal 10% minimum tariff on all U.S. imports, including food and agricultural goods, effective April 5. Additionally, the White House announced retaliatory tariffs targeting over 50 countries, with rates ranging from 10% to 49%.

Leslie G. Sarasin, President and CEO of FMI – The Food Industry Association, expressed concern: Reciprocal tariffs create uncertainty and inflationary pressures, threatening consumers and our food industry members, who operate on tight 1.6% retail and 7.5% food manufacturing net margins.

➤ Get More Detailed Insights about US Tariff Impact @ – https://market.us/report/global-fruits-and-vegetables-ingredients-market/request-sample/

The U.S. relies heavily on imported fresh vegetables, and a 25% tariff could significantly impact retail prices. Vine vegetables might face annual price increases of 5% to 19%, while leafy greens, with stronger domestic production, could see rises of 0% to 7%, depending on seasonal availability. Exporters to the U.S. would likely face reduced prices under these tariffs.

China supplies over 80% of the world’s garlic, dominating American kitchens. It’s also the top producer and exporter of apple juice, accounting for about two-thirds of U.S. consumption. Basic ingredients like spices, shrimp, tea, and fish are set to become pricier. The U.S. imported USD 1.3 billion in fish, USD 850 million in vegetable and animal oils, and another USD 1.3 billion in vegetables, fruits, and nuts from China. With the new tariffs, these imports could become cost-prohibitive for many U.S. distributors.

Key Takeaways

• The Fruits and Vegetables Ingredients Market is projected to reach USD 327.2 billion by 2034, up from USD 202.8 billion in 2024, growing at a CAGR of 4.9% over the forecast period.
• Concentrates captured a dominant 37.5% share of the total fruits and vegetables ingredients market.
• Fruits dominated the ingredient type, holding more than 72.1% share of the fruits and vegetables ingredients market.
• Conventional production methods held a strong 83.4% market share, highlighting the ongoing preference for traditional farming and processing techniques.
• Beverages remained the leading application sector, accounting for over 31.2% share of the total market.
• The Asia-Pacific region emerged as the largest market, capturing more than 51.1% of the global market share, valued at approximately USD 103.6 billion.

Report Scope

➤ Directly purchase a copy of the report – https://market.us/purchase-report/?report_id=147154

Key Market Segments

By Type

• Concentrates led the Fruits and Vegetables Ingredients Market in 2024, holding a 37.5% share. Prized for their robust flavors, ease of storage, and extended shelf life, concentrates are a top choice for food and beverage manufacturers. They are widely used in juices, bakery goods, confectionery, and dairy products, aligning with the growing demand for natural, health-focused, and clean-label ingredients. Concentrates maintain taste and nutritional value while enhancing product stability, making them a preferred option in the industry.

By Category

• Fruits dominated the Fruits and Vegetables Ingredients Market in 2024 with a 72.1% share. Their natural sweetness, vibrant colors, and nutrient density make fruits a versatile ingredient in smoothies, yogurts, bakery products, baby food, and health drinks. The consumer shift toward antioxidant-rich, vitamin-packed, and clean-label products has solidified fruits as the leading choice for ingredient sourcing in the market.

By Nature

• Conventional ingredients commanded an 83.4% share of the Fruits and Vegetables Ingredients Market in 2024. Favored for their affordability, availability, and reliable supply chains, conventional fruits and vegetables are the go-to option for large-scale food manufacturers in beverages, bakery, dairy, and packaged foods. Despite growing interest in organic alternatives, conventional sourcing remains essential for meeting global production demands due to its consistent quality and lower costs.

By Application

• Beverages held a leading 31.2% share of the Fruits and Vegetables Ingredients Market in 2024. Driven by consumer demand for healthy and refreshing drinks, fruit and vegetable ingredients are key in natural juices, smoothies, and functional beverages. The growing focus on health-conscious choices, including vitamin-rich and antioxidant-packed drinks, continues to fuel the prominence of beverages in this market.

Regional Analysis

• The Asia-Pacific (APAC) region led the global fruit and vegetable ingredients market, securing a 51.1% share valued at approximately USD 103.6 billion. This dominance stems from a large, diverse consumer base, rapid urbanization, and growing health awareness among consumers. China plays a pivotal role, leveraging advanced food processing technologies and a strong supply chain to maintain its position as a top supplier.
• The country’s commitment to food safety and quality standards further strengthens its market presence. In India, rising disposable incomes and an expanding middle class have fueled demand for processed foods, boosting market growth. Government initiatives in the APAC region, such as China’s agricultural modernization and India’s support for food processing industries, have enhanced productivity and reduced post-harvest losses, creating a favorable environment for the market’s continued expansion.

Top Use Cases

• Beverages: Fruit and vegetable ingredients, like concentrates and purees, are widely used in juices, smoothies, and functional drinks. They add natural flavors, vibrant colors, and nutrients, meeting consumer demand for healthy, refreshing beverages. In APAC, rising health awareness drives their use of natural and organic drink options.
• Bakery Products: Ingredients like fruit powders and purees enhance flavor and nutrition in cakes, muffins, and breads. They provide natural sweetness and moisture, reducing the need for artificial additives. In APAC, bakeries use these for clean-label products, appealing to health-conscious consumers seeking tasty, nutrient-rich baked goods.
• Confectionery: Fruit pieces and powders are used in candies, chocolates, and gummies to add natural flavors and colors. They align with the clean-label trend, offering healthier alternatives to synthetic ingredients. In APAC, confectionery brands use these to cater to younger consumers seeking indulgent yet natural treats.
• Dairy Products: Fruit purees and concentrates are key in yogurts, ice creams, and milk-based drinks, adding flavor and nutritional value. They support the demand for probiotic and fortified dairy products. In APAC, these ingredients are popular for creating health-focused dairy options, especially in China and India.
• Ready-to-Eat Foods: Vegetable and fruit powders are used in instant meals, soups, and sauces for convenience and nutrition. They offer long shelf life and easy preparation, appealing to busy urban consumers. In APAC, the rise of on-the-go lifestyles boosts their use of quick, healthy meal solutions.

Recent Developments

1. ADM (Archer Daniels Midland)

• ADM has expanded its plant-based ingredients portfolio, focusing on fruit and vegetable extracts for clean-label products. They introduced new vegetable protein concentrates and fruit fiber solutions to meet the rising demand for healthy snacks and beverages. ADM is also investing in sustainable sourcing to enhance supply chain transparency.

2. AGRANA Beteiligungs-AG

• AGRANA has launched innovative fruit preparations for dairy and bakery applications, emphasizing reduced sugar content. They are also expanding production capacity in Europe to meet growing demand for natural fruit ingredients in yogurts and desserts.

3. American Key Food Products Inc

• AKFP has introduced organic vegetable powders and freeze-dried fruit ingredients, targeting the health food and supplement markets. They are focusing on non-GMO and allergen-free solutions to cater to clean-label trends.

4. Balchem Ingredient Solutions

• Balchem has developed encapsulated fruit and vegetable extracts for enhanced shelf-life and nutrient retention. Their new microencapsulation technology improves flavor stability in fortified foods and beverages.

5. Cargill, Incorporated

• Cargill has expanded its fruit and vegetable-based sweeteners, including stevia and citrus fiber blends, to reduce sugar in processed foods. They are also partnering with farmers for the sustainable sourcing of raw materials.

Conclusion

The Fruits and Vegetables Ingredients market in the Asia-Pacific region is booming, fueled by health-focused consumers, urban growth, and demand for natural, clean-label products. Used in beverages, bakery, dairy, and beyond, these ingredients cater to diverse preferences. Backed by advanced processing technologies and government support, the market is set for sustained growth, presenting significant opportunities for innovation and market expansion.

Discuss Your Needs With Our Analyst

Please share your requirements with more details so our analyst can check if they can solve your problem(s)

Request a Sample Download PDF