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According to the report "Fruit & Vegetable Ingredients Market by Category (Fruits and Vegetables), Nature (Organic, Conventional), Type (Concentrates, Pastes & Purees, NFC Juices, and Pieces & Powders), Application and Region - Global Forecast to 2027" published by MarketsandMarkets, the global market is estimated to be valued at USD 207.8 billion in 2021. It is projected to reach USD  280.9 billion by 2027, recording a CAGR of 5.2 per cent during the forecast period.

The rising demand for better functional ingredients, developments in processed food, favourable functionalities of fruit and vegetable ingredients in various end-use industries, and increasing use of clean label products are the major market drivers and opportunities that will influence the global fruit and vegetable ingredients market. Significant changes in the food & beverage processing industry over the last two decades have resulted in the high demand for packaged and processed food and beverage products.

Rising demand for sustainable products is a rapidly growing fruit and vegetable ingredients market

Sustainability certification in the processed fruits and vegetables sector was once used to target niche markets (such as Fairtrade), but now sustainability claims and certification are one of the main trends in the mainstream market. The importance of sustainability created a new type of shopper—eco-actives. They are shoppers who are highly concerned about the environment and are taking action to reduce their waste.

The inclination of consumers towards healthier alternatives is boosting the fruit and vegetable ingredients market

In recent years, consumers have become increasingly conscious of adopting a healthy diet. This has led to a higher demand for healthy snacks and, more specifically, fruits and vegetables, and the need for cleaner, more natural products. As fruits and vegetables are highly perishable, people are switching towards alternatives containing natural fruits & vegetables, which is driving the market for fruit & vegetable ingredients.

Europe accounted for the largest market share of 36.9% in 2021

In 2021, Europe accounted for a market share of 36.9 per cent in the global fruit and vegetable ingredient market. The European fruit and vegetable ingredients market is completely driven by the German market. The German food and beverage processing industry accommodates the fruit and vegetable ingredients sector with a large consumer base with high purchasing power and good infrastructure for further processing. In the German market for fruit and vegetable ingredients, this growth is likely to be catapulted by the country's attractive and competitive location factors, which are underpinned by an above-average export rate of around 45 per cent of the total exports. The market is characterized by its small- and medium-sized enterprise sector. The largest industry segments, by production value, are confectionery, bakery products, and dairy products. Other growth segments are fueled by the health and wellness trend, which has led to increased demand for healthy food and beverage products.

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