| Study Period | 2019 - 2032 |
| Market Size in 2024 | USD 6.8 billion |
| Market Size in 2025 | USD 7.1 billion |
| Market Size by 2032 | USD 10.8 billion |
| Projected CAGR | 6.1% |
| Largest Region | Asia-Pacific |
| Fastest Growing Region | Asia-Pacific |
| Market Structure | Fragmented |
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The fruit and vegetable processing equipment market stands at USD 6.8 billion in 2024, and it will grow at a CAGR of 6.1% during the forecast period (2025–2032), to reach USD 10.8 billion in 2032. The sector is growing with the increasing world population, and changing dietary habits due to the surging spending power of people toward higher-value items. As a result, the demand for food processing, storage, packaging, and preparation equipment has increased.
The food consumption behavior of consumers has shifted dramatically especially after COVID-19, with preponderant accentuation on safety and quality. Manufacturers have been compelled to analyze the safety standards of consumable goods to maintain their products’ values in the market.
Over the years, most industries have been moving toward automation. Similarly, fruit and vegetable processing companies are incorporating automatic equipment in their processing plants, as it helps in improving productivity and operational efficiency. Nevertheless, fully automated processing equipment contributes to effective processing, fast and non-dependable production processes, efficient time management, lowering labor costs, and well-controlled operations in fruit and vegetable processing equipment. Thus, most equipment manufacturers have begun providing fully automated solutions that can pre-process, process, and package food items.
At the Farm to Fork summit, held in May 2024, the U.K. government announced its aim to augment the production of food and vegetables and accelerate growth in the fresh produce sector, meanwhile diminishing the dependence on imports. Under this initiative, GBP 50 million has been allocated for the integration of the harvesting machinery and packhouses with advanced technology.
Digital twins are transforming the food processing industry with better transparency in the production process, improvement in efficiency, and optimization of resource use through computer vision. For example, Unilever uses eight digital twins built with the Azure IoT technology, which assist in optimizing the quality and batch duration and augmenting the production potential of the plant. Digital twins also enable the identification of potential quality problems, recipe adjustments, and inventory optimizations.
According to the data released by the World Bank, 56% of the world’s population, i.e. 4.4 billion people, lives in urban areas. It is estimated that by 2050, the urban population will more than double, and two-thirds of the population will live in cities. People continue to move to cities for better employment and education opportunities, which is accelerating urbanization.
With the increasingly hectic lifestyles, the young generation and working professionals are prioritizing ready-to-eat products and frozen foods, as they take less time and effort to prepare. This trend will continue pushing the sales of convenience food products as young people opt for easy meal solutions without wanting to compromise on taste and nourishment.
The surging disposable income in urban areas is propelling the preference for quality and faster meals from food service outlets and restaurants, for it is convenient and time-saving potential. Therefore, the rising demand for convenient and ready-to-eat food presents a growth opportunity for the food service sector, particularly in emerging markets. This would drive innovation in flexible packaging products with a focus on creating sustainable and efficient packaging solutions.
The rising popularity of vegan food has had a positive effect on the plant-based food industry. According to the World Population Review, the percentage of vegans is highest in India, constituting 9% of the total population in 2024. Additionally, reports state that there has been a spike of 1.1 million in the vegan population in the U.K. from 2023 to 2024. This increasing demand for plant-based food options and the ballooning trend of veganism lead food processing companies to increase their production capacity. Thus, they are looking to expand their facilities, which necessitates more equipment to process fruits and vegetables.
Moreover, manufacturers of plant-based meals are focusing on fruits and vegetables, legumes, pulses, and fruits due to their high nutritional content, which can improve the texture and flavor of meals.
The demand for pre-processing equipment held the largest market share of around 35%, in 2024. This is because after being collected from farms, fruits, and vegetables are prone to contain dirt, soil, bacteria, and foreign materials, rendering them unsafe for direct consumption. To make them consumable, pre-processing intervention is required to maintain hygiene.
Pre-processing equipment does the entire process of cleaning in very little time without hindering the hygiene and quality of the products. Also, it cleans off pesticides and other crop protection substances effectively, which are used by farmers. Moreover, new equipment is being introduced in the market with more automation, which reduces the output cost and time.
The packaging and handling equipment category is projected to witness the fastest growth during the forecast period in the fruit and vegetable processing equipment market. This is ascribed to the surging demand for packaging and handling equipment to increase the shelf life of products. Moreover, most of the industry players focus on good packaging, which helps in boosting the sales of their products. Also, packaging prevents the products from getting contaminated, and it becomes easy to identify a product of a specific brand.
The automatic mode of operation is the larger category in the market. It is also the faster-growing category, rising at a CAGR of 6.6% during the forecast period. Owing to the surging population worldwide, there is an increasing demand for the scalability of processing equipment, to ensure food security. As per the World Bank, the population will reach 10 billion by 2050, which will require an increase of 60% in food production amidst the climate crisis. Automatic equipment reduces human intervention, decreases wastage and the risk of contamination. and boosts productivity, making it preferable for smooth large-scale operations. Significantly, integration with IoT has made automatic systems more efficient. This development will help food processors meet the ever-surging need for faster production cycles and better-quality products.
The small-scale processing system is the largest category in the market. This category dominates the market owing to the widespread requirement for fruit and vegetables, along with the affordability of these systems. Small-scale processing is particularly viable for regional businesses, small food processors, niche companies, organic produce, and artisanal food products. The growth of small-scale processing also reflects the increasing demand from consumers for fresh, locally processed fruits and vegetables, as well as for healthier and more-convenient food options.
Immediate-scale processing systems are the fastest-growing category in the market. Medium-sized food processing companies invest in these systems to meet the fluctuating demands without the burden of incurring high costs in large-scale operations. This is beneficial for businesses looking to extend their processing potentials, majorly in developing countries, where the need for locally processed fruits and vegetables is on the rise.
The frozen food category dominates the market, accounting for market share of around 40% in 2024. This is because frozen fruits and vegetables have a longer shell life and retain their nutritional qualities. These are reliable and highly preferable for customers who purchase in bulk because of the paucity of time and store food in the refrigerator. These products also are less impacted by seasonal variations. The ongoing technological innovations, such as blast freezing and individually quick-frozen technology (IQF), are enhancing the quality of frozen fruit and vegetable items.
Fresh-cut is the fastest-growing category in the market. The busy lifestyles and emerging health consciousness are driving the demand for fresh-cut food. These products require minimal preparation and retain their natural flavor and nutritional values. Moreover, an increasing number of people are substituting at least one full meal with fruits and vegetable to check their weight and enhance immunological health. Therefore, they are becoming increasingly popular among retailers, consumers, and the foodservice sectors.
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APAC holds the largest share and it will also witness the highest CAGR owing to the burgeoning population, increasing foreign direct investment, surging disposable income, and changing food preferences. Also, the increasing consumption of ready-to-eat food is attracting new venture capitalists to invest in the food equipment business.
Asia-Pacific is home to 4.3 billion people, i.e. 60%, of total world’s total population, the surging population is concurrently increasing the demand for advanced fruit and vegetable processing equipment which can augment its production and quantity. For instance, it is expected that by 2035, the demand for processed food will increase by 60% in APAC. To fulfill the surging demand, key players in the region are expanding exponentially, which is boosting the demand for new equipment.
The U.S. is a larger market for the equipment in North America, as it holds the third position in the world in eating ready-to-eat and packaged food. Also, the safety measures adopted by agencies like the Food and Drugs Association helped the country to offer more trust to the people.
The geographical breakdown of the market is as follows:
The fruits and vegetables processing equipment market are fragmented in nature. There are a variety of processing needs, including freshly cut, canned, frozen, and dried & dehydrated, each of which requires special machinery, which leads to the presence of several players. Additionally, various kinds of companies, including large multinational corporations, small and medium-sized enterprises, niche players, and regional ones, fragment the market.
The strong focus on automation, energy efficiency, food security, and quality also spurs innovation and invites new entrants into the market. The emergence of healthier, more-convenient food choices is prompting consumers to seek improved, high-quality alternatives. All these factors further lead to fragmentation and competition in the market.
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