IQF Vegetable Market : Pin-Point Analysis For Changing Competitive Dynamics

Technology

The inherent advantage of the IQF process makes it ideal for preserving vegetables and fruits

The Individual Quick Freezing (IQF) technology involves vegetables being frozen as individual pieces, which is unlike other freezing processes. Due to this, increased convenience is offered to consumers and thus value of the product gets enhanced. The IQF process of freezing vegetables is far superior to the conventional process. The USP of this technique is that small ice crystals form within the product that help maintain the fresh quality of the product even after the shelf life of the same is extended.

Most foods can be preserved for a longer period of time if they employ the IQF process and are kept at a low temperature till they are used. In the conventional way of slow, natural freezing, the food gets destroyed due to the low temperature drawing all the water from the small cells of the food, adversely affecting its colour and flavour.

In terms of value, the global IQF vegetable market was valued at nearly US$ 1,300 Mn in 2016, and is expected to reach more than US$ 2,000 Mn by the end of the forecast period in 2026. In terms of value, the market is expected to register a CAGR of 4.5% during the forecast period. In terms of volume, the global IQF vegetable market is projected to register a CAGR of 4.2% during the forecast period.

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Increasing cases of bacteria in IQF vegetables is restraining the growth of the market

Bacterial contamination in frozen fruits and vegetables is the main issue that is being faced by Japan and North American countries. Listeria monocytogenes bacteria has generated a lot of adverse publicity for frozen foods and IQF vegetables have been recalled from the market for the same reason. Due to the high pollution levels in countries such as U.S. and China, that are two of the three major producers of IQF vegetables, manufacturers are facing the problem of bacterial contamination of IQF frozen foods.

Production of IQF vegetables in developing countries is expected to decrease their cost

IQF vegetables are produced predominantly in developed countries. However, even though the production volume of IQF vegetables is high in developed countries, the price of IQF vegetables remains high there due to the processing cost. This happens due to the high labour cost in the developed world, coupled with high raw vegetable prices and high cost of electricity. But, with the start of the production of IQF vegetables in developing countries – which in turn are major producers of vegetables – costs can be reduced as the labour cost in developing countries is comparatively low and electricity is cheap as well.

IQF Peas segment is expected to register the highest CAGR in terms of both value and volume over the forecast period

IQF peas segment is anticipated to register the highest CAGR during the forecast period. Increasing demand for convenience food coupled with an increasing vegan population is set to boost the demand for IQF peas in the North America and Western Europe regions. The IQF Potato segment accounted for a value share of more than 20% in the year 2016.

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Key findings in the report currently indicate Western Europe as the largest market for IQF vegetable in the world. However, the region will witness a marginal decline in its market share towards the end of 2026. North America’s IQF vegetable market is also expected to show a sluggish revenue growth at 2.2% CAGR.

Latin America and the Asia-Pacific excluding Japan (APEJ) region, on the other hand, are projected to remain fast-growing IQF vegetable markets, depicting an impressive value CAGR of over 7%. The most lucrative region for growth of IQF vegetable will be Middle East & Africa (MEA), revenues from which are slated to soar at 8.7% CAGR.

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