As per a study by FMI, the global IQF vegetables market is expected to reach a valuation of USD1,560.1m in 2021. It also is forecast to exhibit a CAGR of 4.5% during the forecast period of 2021 to 2031. According to FMI, growth prospects for the market remain positive owing to the improvements in global food supply chain infrastructure. The global IQF vegetables market rose at 2.8% during its historical period of 2016 to 2020. IQF potato products are expected to emerge as top selling product category and account for 20% of the global market in 2021.

Advancement of technology to preserve food has encouraged key players to expand their product portfolio. As demand for convenient food is on the rise, sales prospects for IQF vegetables will improve.

Consumers are increasingly demanding simple, hygienic vegetable products that can aid in reducing conventional hassles of slicing and cleaning fresh vegetables. As increasing number of people are focusing on better food quality, key players in the IQF market have lucrative opportunities to capitalize on.

Demand for IQF vegetables is increasing as consumers are seeking food with superior nutritional value, flavor, and quality. However, the market is expected to face restrains owing to lack of strong distribution network and supply chain.

North America is expected to lead the global IQF vegetables market due to immaculacy of vegetable supply chains in Canada and the U.S. The market in this region is expected to further expand owing to the availability of farm-fresh vegetables across numerous retail outlets in Canada and the U.S.

“Innovations in the freezing technologies such as introduction of IQF freezing and cold store freezing are gaining momentum. This will offer attractive opportunities for key players in the global market to capitalize on. Besides this, availability of advanced technologies also will help them expand their overall product portfolio,” says a FMI analyst.

Key Takeaways

• Demand in food product will increase in the coming years. FMI projects this category to account for a share of 73% in the market by 2031.
• Potato is the most preferred vegetable type and it is expected to hold 23.4% of the market in 2021. The segment is expected to grow at a CAGR of 4.2% through 2031 as is it one of the most staple food across the globe.
• The U.K market is expected to register growth at 2.7% CAGR in terms of value for 2021 to 2031 and contribute over 10% to the Europe vegetable market in 2031.
• Japan is expected to account for 5.5% market share in terms of value in 2021. Presence of some of the leading private labels will continue fuelling demand in the market.
• The France IQF vegetables market is expected to account for 14.8% of the Europe market by 2031. The diverse and sophisticated retail distribution system will continue supporting expansion in France.

Key Drivers

• Decline of traditional family meals and rising prevalence of single-portion products due to active and nuclear family lifestyle are expected to boost demand for IQF vegetables.
• IQF vegetables are rising in popularity, as they are known as convenient and healthy source of processed food. They are widely used in meals and as complimentary food.
• The ability to preserve nutrients, texture, and taste of vegetables for a long period of time is a major factor bolstering adoption of IQF vegetables.

Key Restrains

• Outbreak of COVID-19 in low-and middle-income countries has negatively impacted the sales of IQF vegetables.
• Risk of pathogen such as listeria monocytogenes bacteria is expected to hinder market growth, as buyers are concerned about the infection and potential side effects.