A new leaf: Healthy eating and increased disposable income will foster industry growth

A push toward healthy eating has increased the market for fresh vegetables, despite slightly weaker per capita consumption, as opposed to processed vegetables. This benefited the industry because fresh vegetables generally sell for more than double the price of processed vegetables and yield higher profit margins for farmers. As a result, over the past five years, industry revenue is expected to grow an annualized 0.4% to $21.4 billion, including a decrease of 1.3% in 2018 alone. Drastic changes are not expected within the industry over the next five years to 2023. Revenue is anticipated to increase at an annualized rate of 1.5% over the five years to 2023, to $23.0 billion, largely driven by an expected 1.8% annualized increase in industry exports...purchase to read more.

Industry Statistics & Market Size
Revenue
$21bn
Annual Growth 13-18
0.4%
Forecast Growth 18-23
Profit
Employment
135,311
Businesses
46,151
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Vegetable consumption will remain near current levels as industry associations promote healthy eating through marketing campaigns
  • Changes in consumer preferences have led supermarkets and other retail outlets to demand fresh produce year-round
  • Increasing imports of fresh produce will slightly constrain demand for industry products
  • Industry Report - Industry Locations Chapter

    Historically, vegetable and melon farms have been established on urban fringes. However, the rising values of metropolitan land and encroachment by housing developers have been a threat to traditional vegetable- and melon-growing areas. Advances in transportation and storage have aided farmers as they have progressively relocated. Today, farms are located some distance from major markets.Most varieties of vegetable and melon can be grown in a wide range of climatic conditions. However, commercial production, especially for the fresh markets, tends to be concentrated in temperate climates that produce the best quality and highest profit margins. As a result, large producers are predominately located in states such as California (58.1%) and Florida (8.8%),...purchase to read more.

    Additional Insights for the Vegetable Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Vegetable Farming Industry are

  • Economies of scale
  • Production of premium produce
  • Ability to alter goods and services produced in favor of market conditions
  • IBISWorld analysts also discuss how external factors such as Price of vegetables and Demand from fruit and vegetable wholesaling in the Vegetable Farming industry impact industry performance..

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    What's in this report

    What is the Vegetable Farming Industry?

    Operators in this industry grow a wide variety of vegetables and melons in open fields and in greenhouses. This report does not include some notable crops such as corn, soybeans or wheat, which are included in other reports.

    Industry Products
  • Peppers
  • Potatoes
  • Lettuce
  • Tomatoes
  • Sweet corn
  • Broccoli
  • Onions
  • All other vegetables
  • Industry Activities
  • Dry pea and bean farming
  • Carrot farming
  • Squash farming
  • Fresh green bean farming
  • Tomato farming
  • Melon farming
  • Mushroom farming
  • Potato farming
  • Greenhouse vegetable production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Price of vegetables
  • Demand from fruit and vegetable wholesaling
  • Per capita fruit and vegetable consumption
  • Trade-weighted index
  • Average annual precipitation

  • Current Performance
  • Crop price volatility
  • Health-conscious consumers drive profit
  • Trade remains stable
  • Industry size and yields
  • Chart: Revenue Growth

  • Industry Outlook
  • International trade
  • Steady weather and health consciousness
  • Farm size
  • Table: Vegetable Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Vegetable Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Canned Fruit & Vegetable Processing
  • Fruit & Vegetable Wholesaling
  • Supermarkets & Grocery Stores
  • Chain Restaurants
  • Single Location Full-Service Restaurants

  • Key Selling Industries
  • Crop Services
  • Farm, Lawn & Garden Equipment Wholesaling
  • Pesticide Manufacturing
  • Tractors & Agricultural Machinery Manufacturing
  • Water Supply & Irrigation Systems

  • Products & Services
  • All other vegetables
  • Potatoes
  • Lettuce
  • Tomatoes
  • Onions
  • Sweet corn
  • Broccoli
  • Peppers
  • Chart: Vegetable Farming Industry Products and Services Segmentation

  • Demand Determinants
  • Dietary trends
  • Price
  • Household incomes
  • Exchange rates
  • Product attributes

  • Major Markets
  • Supermarkets and grocery stores
  • Food service industries
  • Exports
  • Vegetable Wholesalers
  • Vegetable processors
  • Chart: Major Market Segmentation for the Vegetable Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Labor
  • Purchases
  • Rent and utilities
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Vegetable Farming

  • Basis of Competition
  • Production costs and price
  • Quality
  • Variety
  • Branding
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Vegetable Farming Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Vegetable Farming Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Vegetable Farming Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Price of vegetables (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Checkoff
  • An industry-imposed tax on its own products, the proceeds from which are used for research and promotion. Notable examples include milk ("Got Milk?") and pork ("The other white meat").
  • Co-Operative
  • An organization owned and operated for the benefit of those using its services. In agriculture, co-operatives often span several levels of the supply chain.
  • Genetically Modified
  • A plant or animal that has had its genomes modified through genetic engineering techniques involving the transfer of genetic material from one organism to another.
  • What Our Customers Say

    Why buy this report?

    The Vegetable Farming industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Vegetable Farming:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Vegetable Farming market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Vegetable Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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