Produce is one of the main food categories. That’s why it’s not surprising that the global produce market is among the biggest markets in the economy. Furthermore, thanks to innovations and trends such as online grocery shopping, superfoods, and popular diets, the produce market often grows at a higher pace compared to the overall economy. In this post, we’ll share more about the size of the global produce market and what’s included in it. Below you can also see some of the fresh produce trends as well as the current state of the produce niche market. If you’re interested in sales of fruits and vegetables, consider also reading our guides on wholesale produce and how to sell produce wholesale.
Key takeaway: The global produce market is among the biggest sectors in the economy. It accounts for a major proportion of the food industry. Sales of fruits and vegetables are expected to grow by 5% annually until the end of the decade.
What Is the Global Produce Market
The primary components in this sector are fresh fruits and vegetables. They make up the majority of its size. Dried and frozen fruits and vegetables are often included as subcategories of the global produce market. Let’s examine the main parts of the global produce supply chain.
- Farmers and growers. Farms and greenhouses grow fresh produce. Different regions and soil types are suitable for different types of fruits and vegetables.
- Processors. Once fruits and vegetables are gathered, they need to be processed. In some cases, that includes washing, cutting, and freezing them. In other, they are simply inspected and sorted.
- Distributors and retailers. Logistics plays an important role in the global produce market. Thanks to temperature-controlled supply chains, both fresh and frozen produce can be delivered to stores and other businesses with minimal waste.
- Buyers. Both individuals and businesses in the restaurant industry purchase various types of produce. As expected, it’s primarily used in cooking or food preservation, such as canning.
Product Categories in the Global Produce Market
There are various ways to divide the global produce market into different categories. Here are the main product categories in the sector.
- Fresh vegetables and fruits;
- Organic produce;
- Dried and freeze-dried fruits and vegetables;
- Exotic, imported, and tropical produce;
- Spices and herbs;
- Frozen or pre-cut produce (check out our post on frozen fruit vs fresh fruit);
- Nuts and seeds;
- Specialty products like edible flowers and microgreens;
- Seasonal produce;
- Locally-grown vegetables and fruits;
Current State and Characteristics of the Produce Market
According to market researchers, the current size of the global produce market is valued at roughly 733 billion USD. The growth until the end of the decade is expected to be around 5% annually. The fruits and vegetables sector is among the biggest food subsectors of every country’s economy. Domestic consumption is the main driver of countries’ produce markets. However, some regions of the world are known for their fertile soil and large agricultural output. Exports of produce make up a large percentage of these nation’s GDP.
Online Shopping
A growing number of consumers in developed countries have switched to online shopping for fresh fruits, vegetables, and other groceries. In fact, online sales of these products are growing rapidly in developing countries as well. The pandemic has been a major catalyst for online shopping. That’s when a lot of customers discovered they could also purchase groceries online.
Vegetarianism
A growing number of consumers switch to vegetarian or vegan ways of eating. This has led to more demand for fruits, vegetables, and grains. Furthermore, the growing number of health-conscious consumers has helped the growth of superfoods such as kale, avocados, and berry fruits.
Innovative Products
Sellers of fruits and vegetables look for new products that can be marketed to their customers. That’s why various products like smoothies and fruit snacks have become popular in recent years.
Organic and Sustainable Produce
Sustainability has become a major factor for both customers and businesses when purchasing wholesale produce. That’s why companies might choose to partner with sustainable suppliers if their products are grown in an eco-friendly manner. Bio fruits and vegetables are also growing in popularity, despite their typically higher retail and wholesale prices.
Trends in the Global Produce Market
As one of the biggest sectors of the economy, there are multiple trends in the global produce market. Both business owners and growers should adapt to the shifting consumer demand in order to keep or increase their market share. Here are some of the most popular fruit and vegetable trends.
- Sustainability is a major trend in fruits, vegetables, nuts, seeds, and other subcategories of the global produce market;
- Thanks to technological innovations, growers, broadline distributors, and retailers can limit food waste and increase their farming output;
- Shifting customer preferences is another trend in the global produce market. A growing number of people search for exotic produce or goods that were far less popular just a decade ago. Examples include avocado, dragon fruit, and kale;
- Online shopping will continue to be a major trend in the sector. Both individuals and businesses search for eCommerce solutions where they can easily buy fresh produce or find suppliers for their company.
Frequently Asked Questions about the Global Produce Market
If you’re curious about wholesale organic produce or wish to read more about produce food safety, BlueCart’s website is the right place for you. We share insights on various topics and business sectors. Below are the answers to a few of the common questions regarding the global produce market.
What Is the Largest Produce Market in the World?
Central de Abasto, the main wholesale market of Mexico City is considered to be the biggest produce market in the world. With its 328 hectares of property space and over 2,000 vendors, the market handles more than 30,000 tons of merchandise every day. Other big fruit and vegetable markets include the Rungis International Market in Paris and the New Covent Garden Market in London. Although the main product categories sold at these markets are fruits and vegetables, there are also vendors selling fish, meat, grains, and various other food products.
Where Do People Buy Produce?
Supermarkets hold the biggest market share when it comes to fruit and vegetable sales. Grocery stores and other retailers also play an important role in the supply chain. Online sales have increased considerably in recent years and have become one of the important trends in the global produce market. Businesses usually send orders to their produce distributors. Alternatively, some companies use platforms like BlueCart where they can buy produce wholesale and compare prices between different suppliers or search for new vendors to partner with. Farmers’ markets are also trendy among health-conscious consumers.
Can You Sell Produce Online?
Yes. Both fruits and vegetables can be sold online. The majority of B2B sales in the sector are done online or through ordering software solutions. Innovative business models have also become popular. For example, some growers offer produce subscription boxes. Dried or freeze-dried fruits can also be sold online. In fact, they are less prone to transportation damage or spoilage.
There are local and nationwide platforms that connect farms with retail and business customers. These platforms help buyers compare between different growers and find the right products for them.
BlueCart: Connecting Growers and Restaurant Businesses
If you’re a supplier of fresh fruits and vegetables and wish to increase your wholesale sales to food service businesses, BlueCart is the right answer. Our wholesale ordering software will not only help your distribution business streamline certain processes but can also bring new customers. Schedule a free demo today and find out how BlueCart helps wholesalers and their customers.