Australia Fruit and Vegetable Ingredient Market Report and Forecast 2024-2032

Australia Fruit and Vegetable Ingredient Market Outlook

The Australia fruit and vegetable ingredient market size was valued at USD 3.85 billion in 2023. The market is further projected to grow at a CAGR of 4.4% between 2024 and 2032, reaching a value of USD 5.71 billion by 2032.

Key Takeaways

• Between 2017-2021, there was an estimated 6% growth in consumption of specialty fruit and vegetable ingredients, amounting to USD 41 billion.

• As per industry reports, exports of Australian processed fruit and vegetables account for approximately 49% of revenue for local processors and 27% of the total volume produced.

• In terms of imports, Australia's market for food processing ingredients sources a significant portion from New Zealand, with 16% market share.

• The industry comprises over 16,000 enterprises and employs more than 272,000 people.

The Australia fruit and vegetable ingredient market growth is influenced by the increasing consumer demand for clean-label and healthy food products, driving the preference for ingredients derived from fruits and vegetables. Moreover, the country's food, beverage, and grocery sectors, which account for one-third of all manufacturing activity, generated a turnover of AUD 116 billion in 2021-2022, leading to a higher demand for fruit and vegetables ingredients.

Another significant market trend is the expansion of functional and nutraceutical ingredients derived from fruits and vegetables. Functional ingredients with health benefits, such as antioxidants, vitamins, and fibre, are gaining popularity among health-conscious consumers. This trend influences product innovation, leading to the development of fortified food and beverage products that offer added nutritional value.

The market is witnessing innovation in processing technologies for fruit and vegetable ingredients, aimed at enhancing product quality, flavour retention, and shelf stability. Advanced processing techniques, such as cold pressing, freeze-drying, and high-pressure processing, are being adopted to preserve the natural characteristics of fruits and vegetables, resulting in high-quality ingredients with extended shelf life.

Concentrates are a significant segment in the Australia fruit and vegetable ingredient market, as it offers concentrated forms of fruit and vegetable juices that are used in various food and beverage applications, providing natural sweetness, colon, and aroma. The demand for concentrates is driven by their convenience, longer shelf life, and suitability for product formulations in the beverage, bakery, and confectionery industries.

Not-From-Concentrate (NFC) juices, on the other hand, retain the original taste, aroma, and nutritional content of the fresh produce, appealing to consumers seeking high-quality and authentic juice products. This segment caters to the demand for pure and minimally processed ingredients in the beverage and culinary sectors.

Market Segmentation  

Australia Fruit and Vegetable Ingredient Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Form

• Concentrates 

• NFC Juices

• Pastes and Purees

• Pieces and Powders

• Others

Market Breakup by Nature

• Conventional  

• Organic

Market Breakup by Category

• Vegetables  

• Fruits

Market Breakup by Application

• Confectionery Products 

• Bakery Products

• RTE Products

• Beverages 

• Dairy Products

• Soups and Sauces

• Others

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Australian Capital Territory

• Western Australia

• Others

Competitive Landscape

Market players are concentrating on different types of fruit and vegetable ingredients to cater to diverse applications, with an additional focus on expanding market footprint through strategic partnerships.

• HQ2 Food & Beverage Solutions Pty Ltd. 

• Frutex Australia Pty Ltd.  

• KAGOME Australia Pty Ltd.  

• Australian Pure Fruits   

• AustChilli Pty Ltd.  

• Others

Key Highlights of the Report