AIR DRIED VEGETABLES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Air Dried Vegetables Market Size and Trends

The global air dried vegetables market is estimated to be valued at USD 4.12 Bn in 2024 and is expected to reach USD 7.30 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031.

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Various factors such as growing demand for convenience food owing to changing lifestyle and busy schedules of people, rising health-consciousness among consumers, and increasing preference for naturally preserved food products without preservatives are expected to drive the demand for air dried vegetables. Moreover, air dried vegetables have longer shelf-life as compared to fresh vegetables due to lower moisture content which is increasing their popularity globally. Manufacturers are launching new product varieties with various exotic flavors to cater to dynamic consumer taste and preferences. Several innovative packaging solutions have also been introduced for air dried vegetables ensuring freshness and longer shelf-life while facilitating easy transportation globally.

Market Driver - Increasing health consciousness among consumers

Rising awareness about the various health benefits of consuming foods in their natural and organic form has been driving significant growth in the demand for dried vegetables. People are increasingly recognizing vegetables as a crucial part of a balanced diet that promotes overall health and wellness. Dried vegetables help ensure a regular intake of vegetables, especially for those who find it difficult to consume fresh produce on a daily basis due to lack of time or availability issues. Air dried vegetables retain most of the nutrients found in fresh vegetables and studies show that they also contain concentrated doses of vitamins, minerals, fibers, and antioxidants. The drying process helps lock in many heat-sensitive nutrients and prolongs the shelf life of the vegetables without using preservatives like salt or oil.

Research shows a great number of consumers are actively looking to substitute processed snack and fast foods from their diet with more healthy and nutrient-dense options. This change can largely be attributed to rising healthcare costs in many countries and a better understanding of the role diet plays in the prevention of chronic lifestyle diseases. Many people now understand that small adjustments in daily eating habits can go a long way in reducing the risk of illnesses. Air dried vegetables, with their nutrient-packed nutrition profile, fit perfectly in a healthy diet focused on wellness. Manufacturers are also driving awareness about the food preservation technique of air drying through various marketing campaigns highlighting how it protects nutritional value. The extensive health media coverage related to issues like obesity, diabetes, and cardiovascular diseases have further prompted consumers to adopt more preventive approach through diet.

Market Concentration and Competitive Landscape

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Rising preference for ready-to-eat food items

Over the past decade, there has been a major shift towards convenient, easy to consume packaged food items. This change has been fueled by modern fast-paced lifestyles with less time dedicated to individual meal preparation. Rising number of working professionals and dual income households have created a huge demand for healthy snacking options that can be easily carried and consumed anywhere, anytime. Air dried vegetables perfectly meet this requirement of being shelf-stable and portable. They are ready-to-eat products that save on preparation and cooking time. Their lightweight and compact packaging makes them a popular choice for busy people who want nutritious yet hassle-free food on the go. Many working professionals and students rely on dried vegetables for obtaining vitamins and minerals in between meals when a full meal is not possible.

The trend of nuclear families has also boosted the popularity of ready meals that cater to small households. Air dried vegetables can be effortlessly added to salads, curries, or eaten as a snack directly from the pack. This makes them very convenient for home cooks with limited time to prepare elaborate dishes. Even homemakers appreciate the ability to keep dried vegetables handy in case of unexpected guests or parties. Their long shelf-life eliminates the risk of wastage associated with perishable produce. Consumers are increasingly opting for dried vegetables as part of their pantry staples to enjoy nutrition anywhere without advance planning.

Key Takeaways from Analyst:

Several factors will drive the growth of this market. Rising health consciousness among consumers is a major driver as air dried vegetables retain most of their nutrients. Ease of storage and long shelf life of air dried vegetables make them very appealing for consumers. Additionally, busy lifestyles have increased the demand for convenient snack options and air dried vegetables fit well as an on-the-go snack.

However, high initial costs of equipment required for air drying vegetables can restrain the market growth. Also, intensive labor and power requirements increase overall production costs. Nevertheless, advancements in drying technologies are expected to reduce costs over time.

The North America region dominates the global market currently and growth is expected to continue at a healthy pace. Rapid urbanization, rising incomes, and western influence on diets in developing nations will boost demand. North America is likely to see steady growth due to increased focus on healthy snacks. Meanwhile, manufacturers are eyeing opportunities in developing markets through partnerships with local players and innovations suited to local tastes.

Market Challenge - Volatility in raw material prices

The global air dried vegetables market is facing significant challenges due to the volatility in raw material prices. As air dried vegetables are made from various agricultural produce such as potatoes, carrots, onions, and capsicum, fluctuations in the price of these items impact the overall production cost for manufacturers. Over the past few years, unfavorable weather conditions and lower crop yields in some parts of the world have pushed up agricultural commodity prices globally. Similarly, factors like export restrictions by major producing countries to stabilize domestic prices, higher fertilizer costs, and supply chain disruptions caused by the COVID-19 pandemic have made raw materials highly unpredictable and unstable. This volatility in input costs reduces the margins and profits for air dried vegetable producers. It also discourages long term investments into capacity and product innovation. Maintaining a consistent and competitive price level for end consumers under such market uncertainties is challenging for companies.

Market Opportunity - Product innovation and new product launches

The global air dried vegetables market presents significant opportunities for players who focus on continuous product innovation and new product launches. With rising health consciousness, changing consumer preferences towards more nutrient-dense options offer a great opportunity. Consumers increasingly demand novel product formats, varieties with longer shelf life, gluten-free and organic options. This need for innovative new products provides an ideal opportunity for manufacturers. Those who introduce new product lines with improved taste profiles, packaging styles, and added functional ingredients will be able to capture more market share. Technological advancements are also allowing companies to reduce costs and time taken for new product development. Increased focus on R&D will help diversify existing product portfolios and cater to the evolving needs of target customer segments in both domestic and international markets.

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Insights by product type: Widespread use in cooking recipes

In terms of product type, carrots is expected to contribute 25.0% share of the market in 2024, owing to its widespread use in cooking recipes. Carrots are one of the most widely consumed vegetables across the globe. They are rich in nutrients like vitamin A, potassium, and fiber. Carrots can be easily added to various dishes and recipes to enhance flavor and nutritional value. Some of the key factors contributing to the high share of the carrots segment are:

Carrots have diverse culinary applications and can be incorporated in salads, soups, stews and other main course meals. Their mild flavor and crunchy texture make them a suitable addition to both vegetarian as well as non-vegetarian dishes. This wide scope of use in cooking has made carrots a staple ingredient in many regional cuisines.

Carrots dehydrate well while retaining most of their nutritional value. Air dried carrots are thus a flavorful and healthy snack option. Their crunchy texture and slight sweetness is appreciated by both children as well as health-conscious adults. The on-the-go nature of dried carrots has boosted their popularity as a snack.

Carrots can be easily stored for long periods without refrigeration due to their high sugar content which prevents bacterial growth. This makes air dried carrots very convenient to stock and use throughout the year. The stable shelf-life even without cooling methods has increased carrot's attractiveness as an ingredient.

Insights by application: Widespread commercial use of air-dried vegetables

In terms of application, food industry is expected to contribute 34.6% share of the market in 2024, owing to the widespread commercial use of air-dried vegetables. The food industry is the largest application segment for air dried vegetables owing to the versatile uses of these ingredients by food manufacturers, hotels, restaurants, and caterers.  Air dried vegetables have a long shelf-life and retain texture well, making them suitable for year-round commercial use. This stability eliminates seasonal fluctuations in supply. Their concentrated flavor profiles allow application in small volumes to enhance the taste of various food products. Wide culinary uses exist such as stock cubes, seasoning blends, snacks, pharma foods, etc. Properties like light weight and easy rehydration facilitate long distance transportation and just-in-time inventory management. This streamlines the supply chain for global food brands. Commercial kitchens prefer air dried produce for the standardization of recipes. Consistent quality and taste of dried vegetables ensures predictable menu outcomes. As an ingredient for soups, sauces, etc., air dried vegetables provide nutrition and culinary benefits at competitive prices. This spurs their large-scale adoption across the food service industry.

Regional Insights

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The North America region currently dominates the global air dried vegetables market. The region is expected to hold 40.1% of the market share in 2024. North America is home to some of the largest food processing companies worldwide that produce air dried vegetables on a mass scale. Many well-established brands that offer air dried produce have their headquarters in the U.S. This helps ensure the widespread domestic availability of air dried vegetables in various product categories like fruits, herbs, and spices across all major retail channels.

The large agricultural output and raw material sourcing ability allow North American players to maintain consistent supply and competitive prices. Many domestic farmers have entered contractual agreements with big processors to cultivate specific crops suited for air drying. Most of the popular varieties like tomatoes, onions, peppers, and mushrooms are sourced locally within North America itself. This helps processors minimize import dependence and logistical costs.

The Asia Pacific region has emerged as the fastest growing market for air dried vegetables globally. Countries like India and China have extensive cultivable land and a huge agriculture-dependent population. Rapid urbanization and rising disposable incomes are boosting the demand for convenient packaged snacks and ready-to-eat meals incorporated with value-added ingredients like air dried vegetables. Many international food giants have set up large production facilities in Asia Pacific to cater to the growing in-house consumption. The robust economic growth and developing food processing infrastructure in Asia Pacific is attracting significant foreign direct investments. Local farmers are being trained and equipped to cultivate crops suited for export to international markets in addition to domestic sales. Air drying technology providers have also expanded in the region to work with local companies. Alongside growing popularity among local consumers, Asia Pacific is emerging as a key exporter of air dried products like spices. This is expected to increase the region's global market share going forward.

Market Report Scope

Key Developments

• In January 2024, NRGene Technologies Ltd. proudly announced the launch of Supree (Supree-Zanim), its newly established FoodTech subsidiary. Supree focuses on developing innovative fruit and vegetable varieties that possess the unique ability to naturally self-dry on the vine, preserving their nutritional value and flavor. This groundbreaking advancement in agricultural technology aims to revolutionize the way fruits and vegetables are cultivated and consumed.
• In 2021, Nim's, a well-known brand in the healthy snack industry, expanded its product line by launching an innovative range of air-dried fruits and vegetables. This move was part of a broader trend towards healthier snacking options and aimed to cater to health-conscious consumers looking for nutritious alternatives to traditional snacks.
• In 2021, Olam Food Ingredients, a division of Singapore-based Olam International, announced a significant strategic acquisition of Olde Thompson, a prominent spice manufacturing company based in California, U.S. This acquisition, valued at approximately US$ 950 million, marks a pivotal move for Olam in expanding its footprint in the global spice and seasoning market.
• In 2020, Universal Corporation, a prominent player in the leaf tobacco industry based in Illinois, announced the successful acquisition of Silva International, a well-established fruit and vegetable processing firm located in the U.S. This acquisition, valued at US$ 170 million in an all-cash transaction, marks a significant strategic move for Universal Corporation as it diversifies its business operations.

*Definition: The global air dried vegetables market refers to the business of growing, processing, packaging, and selling air dried vegetables internationally. Air dried vegetables are fresh vegetables that have been slowly dried using air to remove moisture at low temperatures, helping retain most of their nutritional value and flavor. Major air dried vegetables traded globally include potatoes, onions, tomatoes, broccoli, beans, and carrots.

Market Segmentation

• By Product Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Carrots
  • Mushrooms
  • Peas
  • Onions
  • Tomatoes
  • Bell Peppers
  • Others
• By Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Food Industry
  • Snacks
  • Soups and Sauces
  • Others
• By Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Olam International
  • Sunfood Corporation
  • Hain Celestial Group
  • Dole Food Company
  • McCain Foods
  • Kraft Heinz Company
  • General Mills
  • Conagra Brands
  • B&G Foods
  • Pinnacle Foods
  • Tropicana Products
  • Green Giant
  • Del Monte Foods
  • Euro Foods Industries
  • Maxcor Agro And Allieds
  • Caradora Health Solutions
  • Tripti Food Processing and Traders
  • Natural Prime Food & Spices
  • Agarwal Foods
  • Sandha Overseas