Analysis of the Fruit and Vegetable Extracts Market
This Frost & Sullivan research service titled Analysis of the Fruit and Vegetable Extracts Market provides market quantification, competitive structure, and trends affecting the market. In this research, Frost & Sullivan's expert analysts thoroughly examine the following segments: fruit juices, pulps, purées, and natural color.
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Rapidly Evolving Consumer Preferences in India Encourage Innovation in the Fruit and Vegetable Extracts Market
Spate of Government Initiatives Bolster the Market
The Indian fruit and vegetable extracts market has been picking up steam over the last three to four years due to rapidly evolving product types and consumer preferences. Indians’ increasing desire for health and wellness and their rising awareness about the functionality of food and beverage ingredients have compelled manufacturers to innovate and offer a wider variety of product variants. This higher health consciousness has already caused several beverage manufacturers to switch from aerated beverages to fruit juice-based beverages. “Further, manufacturers are conducting trials to derive fruit pulp, purées, and juices from seasonal fruits and store them for future use,” says the analyst of this research. “They are striving to make seasonal fruit products available throughout the year.” Additionally, the boom in the Indian retail industry has benefitted the Indian food processing industry, which, in turn, has boosted the Indian fruit and vegetable extract market.
Although manufacturers are innovating, the market will not see explosive growth over the next five years, as the lack of variety in products and insufficient infrastructure to minimize agricultural wastage will peg back the market. The limited availability of varieties suitable for processing reduces processing units as well as volumes and hikes processing costs. The existing raw material storage systems are highly inadequate to meet the growth in production of fruit and vegetable extracts. The heavy post-harvest loss of fruit and vegetable produce affects the availability, reliability and price of these products. However, despite the difficulty in procuring raw materials, manufacturers are creating distinct methodologies to keep the supply and prices stable. The current trend of backward integration process will also help mitigate the issues of inconsistent raw material quality and product availability.
The market will get a leg up from favorable trade policies and the government’s focus on the agro-based sectors. The government intends to open 30 mega food parks towards the end of 2012. Fruit and vegetable processing units are completely exempt from taxes, while the fruit and vegetable processing industry will receive top priority for bank lending activities. “The Government plans to generate world-class infrastructure for growth through food parks, integrated cold chain, and modernization in the next five years,” notes the analyst. “Its “Vision 2015” aims to triple the size of the processed food sector, providing additional impetus to this promising market.”
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Fruit juices
- Fruit pulp
- Natural colors
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