An Overview of the North American Dehydrated Fruit Industry

Summary:

• The global dehydrated fruits and edible nuts industry will have a market value of USD241 billion by 2024.
• The global dehydrated fruits and edible nuts industry is expected to grow at a compound annual growth rate (CAGR) of 5.3 percent from 2019 to 2024. 
• Valued at USD14.2 billion in 2018, the fastest growing country in North America’s dehydrated product industry is Mexico.
• Shifting consumer focus to healthy snacking alternatives has driven recent growth in the dehydrated fruit industry.   
• Almost 4 million tons of dehydrated fruit was consumed up to the end of 2020. 

The dehydrated fruit industry consists of dried fruits that can be consumed as snacks or used as an ingredient in the production of other foods. Much like other snacking industries, a shifting consumer focus to healthy snacking alternatives has driven recent growth in the dehydrated fruit industry. And with the world consuming almost 4 million tons of dehydrated fruit up to the end of 2020, this industry isn’t showing any signs of slowing down.

As the region with the largest dehydrated fruit industry market share in the world, the North American dehydrated fruit industry represents a significant opportunity for businesses looking to produce healthy dehydrated fruit-based snacks. This article details how the North American dehydrated fruit industry has grown in recent years, industry growth drivers, analysis of the North American dehydrated fruit industry, and opportunities and threats that companies need to consider.

The North American Dehydrated Fruit Industry

To get an understanding of how the dehydrated fruit industry has grown, it’s important to understand how the wider dehydrated product industry has evolved and grown throughout North America in recent years. Valued at USD14.2 billion in 2018, the fastest growing country in North America’s dehydrated product industry is Mexico. The growing middle class in Mexico and consumer demand for convenience has driven a large portion of this growth. Outside Mexico, the growth drivers are similar. Consumers lead busy lifestyles, driving the need for food products that have a long shelf life, provide health benefits, and convenience in purchasing and consuming.

The global dehydrated fruits and edible nuts industry is expected to grow at a compound annual growth rate (CAGR) of 5.3 percent from 2019 to 2024. This equates to a total market value of USD241 billion by 2024. The most popular dehydrated fruits that North American consumers purchase include pineapple, mango, peach, aguaymanto and berries. 

In Canada’s canned fruit and vegetable industry, which includes dehydrated fruit, the CAGR is consistent with the global CAGR in the dehydrated fruits and edible nuts industry. At a rate of 5.3 percent, the industry is growing consistently in Canada albeit not as quickly as other snacking segments such as meat snacks and other high-protein alternatives. For dehydrated fruit producers looking to enter the market or grow their market share in Canada, a focus on marketing the health benefits of the product will be critical in gaining traction.

The global fruit snacks market was worth USD4.6 billion in 2018, and it’s expected to grow at a CAGR of 8.4 percent from 2019 to 2025. By 2023, the North American dehydrated fruits and vegetable market is expected to be worth USD12.32 billion. As a relatively fragmented market, with this CAGR, there are significant opportunities for dehydrated fruit producers to capitalize on shifting snacking and food purchasing habits amongst consumers. Further, North America held 25 percent of the market share in the dehydrated fruit and vegetable market in 2018.

The key growth drivers in the North American dehydrated fruit industry are increased demand for dried fruit and the growing prevalence of small packaged foods as part of a consumer’s regular diet. In North America, dehydrated fruit is used in packaged foods such as soups, juices, confectionery, baked goods, and dehydrated fruit snacks. With the wide range of uses available for dehydrated fruits, entrepreneurial dehydrated fruit producers have a range of niches they can choose, based on the size of their business and target market. Like other packaged snack markets, focusing on consumer demand for healthy snacks with natural ingredients is where significant opportunity exists for small businesses producing dehydrated fruit.

How the North American Dehydrated Fruit Industry has Evolved

The North American dehydrated fruit industry has shifted as consumer demand for healthy snacks with all-natural ingredients has grown. This demand has been driven by growing income and wealth, the need for convenient foods and increasing health awareness amongst consumers. Technology has also played a large role in progressing the industry.

Improved dehydration technologies have given companies the ability to decrease the volume and weight of their products without compromising a product’s nutritional benefits. This can help companies realize cost savings in logistics and freight while marketing healthy, high-quality products to consumers.

Compared to other processed and packaged foods, dehydrated fruit, and other dehydrated foods, maintain their nutrient content. As consumers lead busier lifestyles but still want healthy, high-quality foods, factors such as the nutrient content and convenience of buying, storing and consuming dehydrated fruit makes this market a strong opportunity for entrepreneurial dehydrated fruit producers. Some of the most popular dehydrated fruits consumed amongst health-conscious North Americans include blueberries, cranberries, strawberries, and apple.

In Canada, fresh fruit is the most popular snacking option selected by consumers in the morning and evening, and the most common attribute sought after in a snack is no added sugar. And with just 37 percent of consumers in Canada saying they prefer a salty snack and a further 22 percent indicating they would choose a chocolate bar, there’s a preference for sweet snacks in this market. Further, dehydrated fruit producers who add chocolate products or coatings to their goods may be able to capitalise on appealing to more Canadian consumers.

What do Consumers Like and Dislike about Dehydrated Fruit

The key factors, excluding taste and texture, that consumers like about dehydrated fruit are the convenience of storage and consumption and the nutrient-dense nature of fruit. The key nutrients in fruit that consumers need include vitamins, potassium, magnesium and fiber. These vitamins and nutrients reduce the risk of heart disease, high blood pressure, and obesity — all major health issues in North America. In order to fully realize the health benefits of eating dehydrated fruit, however, consumers need to be aware of the ingredients in their snacks.

There is a general misconception amongst consumers about the sugar content in dehydrated fruit. Many consumers believe that all dehydrated fruit contains added sugar and juices, but that’s not the case. To resolve this confusion, companies need to ensure they are clear with their customers about the ingredients in their snacks. If your dehydrated fruit products don’t contain added sugar, this is a feature that should be highlighted on all product packaging and in marketing campaigns. Further, communicating with consumers about how your products can be consumed as a snack or added to other meals or recipes will demonstrate the versatility of your products as part of a healthy diet and lifestyle.