Fruit and Vegetable Ingredient - Top Global Industry Trends in 2026

The global fruit and vegetable ingredient market is witnessing a remarkable transformation, driven by the rising demand for natural, functional, and minimally processed food products. Consumers worldwide are increasingly seeking ingredients that enhance nutrition, taste, and convenience in everyday food and beverages.

Estimated at USD 11.9 billion in 2025, the fruit and vegetable ingredient market is projected to reach USD 18.3 billion by 2035, expanding at a steady CAGR of 4.4%. The market is fueled by shifts toward plant-based diets, clean-label foods, and functional beverages, where fruit and vegetable-derived ingredients provide color, flavor, and essential nutrients.

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Market Dynamics Driving Growth

The market growth is largely propelled by:

• Increasing health awareness and demand for nutrient-rich ingredients.
• Rising popularity of plant-based and clean-label products.
• Innovations in concentrates, purees, powders, and extracts for diverse applications.
• Advances in extraction, preservation, and processing technologies that maintain flavor and nutrient integrity.

Regulatory support for natural ingredients, coupled with improved supply chain efficiency, is enabling manufacturers to meet growing demand. Functional foods, fortified beverages, and nutraceutical applications represent significant avenues for expansion.

Segment Insights

By product type, concentrates dominate the market, accounting for 29.3% of revenue in 2025. Their benefits include longer shelf life, potent flavor, consistent quality, and cost-effective storage and transportation. Concentrates are particularly favored in beverages, sauces, and bakery products, where stability and uniformity are critical.

The fruit form segment leads by ingredient type, representing 62.8% of the market revenue in 2025. Fruits are valued for their natural sweetness, vitamins, antioxidants, and sensory appeal, making them indispensable in beverages, dairy, and bakery applications. Consumer preference for minimally processed, plant-based foods further reinforces this segment's growth.

Beverages Lead End-Use Applications

Beverages constitute the largest end-use segment, accounting for 26.2% of the market in 2025. This is driven by demand for juices, smoothies, fortified drinks, and functional beverages. Fruit and vegetable ingredients enhance nutritional content, flavor, and color, while also supporting shelf stability-qualities increasingly valued by health-conscious consumers.

Regional Market Insights

• North America: Rising health trends and convenience-driven lifestyles contribute to consistent growth. The U.S. market alone is projected to grow from USD 4.2 billion in 2025 to USD 6.1 billion by 2035 at a CAGR of 3.7%.
• Asia-Pacific: China and India lead with the highest CAGRs, 5.9% and 5.5% respectively, reflecting rising disposable incomes and increasing consumer awareness of healthy eating.
• Europe: Germany, France, and the UK show steady growth, with Germany registering a CAGR of 5.1%, driven by high demand for natural ingredients.

Market Opportunities and Trends

• Clean Label & Organic Ingredients: There is growing consumer preference for ingredients free from synthetic additives. Organic fruit and vegetable powders, purees, and concentrates are gaining traction across snacks, beverages, and functional foods.
• Convenience & Processing Efficiency: Pre-processed ingredients reduce production time and waste, enhancing cost efficiency while maintaining product quality.
• Innovation in Functional Applications: Beyond taste and color, fruit and vegetable ingredients are increasingly leveraged for nutraceutical and fortified food applications.

Challenges

Seasonality and supply chain sustainability remain key challenges. Ensuring consistent quality year-round requires advanced storage, cold chain logistics, and sustainable sourcing practices. However, continued innovation in processing and storage techniques is mitigating these constraints.

Competitive Landscape

Key players are driving growth through product innovation, strategic partnerships, and acquisitions. Leading companies such as AGRANA Beteiligungs-AG, ADM, Tate & Lyle, Olam International, Ingredion, Döhler, SunOpta Inc., Balchem ingredient solutions, Cargill, Kerry Group, Sensient Technologies Corporation, and Symrise are expanding portfolios with clean-label, functional, and organic ingredients. Partnerships with farmers ensure high-quality raw materials, while R&D investments enhance processing efficiency, flavor retention, and product functionality.

Recent developments include Döhler and DKSH forming a partnership to market fruit fibers, pectins, and powders, and Flavour Specialists launching natural puree flavors for fruit beer and beverage applications, highlighting ongoing innovation and responsiveness to supply chain challenges.

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Outlook

The global fruit and vegetable ingredient market is set for continued growth, driven by health-conscious consumption, convenience, and innovation in functional foods and beverages. With a focus on sustainable practices, clean-label solutions, and diverse applications, the market is poised to deliver significant opportunities for manufacturers, suppliers, and investors.

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This release was published on openPR.