The growth in demand for canned vegetables is largely determined by a rapidly changing lifestyle, an increase in the number of the working population, and the desire of consumers to save time by buying ready-to-use goods.
Large companies in this market are investing heavily in research and development to expand the range, as well as actively taking initiatives to increase their presence around the world to meet the growing demand from consumers.
Asia
The Asian region is one of the leaders in the production of canned vegetables, primarily due to China, which is one of the world's largest producers and exporters of these products. The main driver of demand for canned vegetables in the region is the long-term culture of consumption of these products in many national cuisines of the region, as well as the growing popularity of fast food and Western-style restaurants. The peculiarity of Asia as the most densely populated region, where the majority of the population lives in urban areas and generates demand for canned products, gives opportunities for further development to manufacturing companies that are steadily expanding their product lines, offering consumers a variety of new packaging formats and flavor combinations. In recent years, the demand for high-quality and nutritious products has been growing among consumers in this region, which also makes it possible for foreign companies to successfully compete with Chinese manufacturers.
Africa
In the countries of the African region, the main drivers of the growth in demand for canned vegetables are the increase in the number of able-bodied population, as well as the seasonality of the availability of vegetables and the possibility of their storage. For example, in less developed African countries, the demand for this category of products is due to an insufficiently developed infrastructure, together with unstable energy supply and a shortage of refrigeration equipment, which forces consumers to make a choice in favor of products with long shelf lives. Traditionally, Africans prefer to buy fresh vegetables at street stalls and open markets, but growing concerns about food safety after COVID-19 and consumers' preference for imported goods in recent years have changed demand in favor of canned vegetables.
As a rule, the peak consumption of canned vegetables in the region is during religious holidays. The main canned vegetables consumed in the region are corn, green beans, peas, carrots, asparagus, vegetable mixes and tomatoes. Most of these products are either imported or manufactured within the region under international brands such as "Heinz", "Goya", "Koo". The main consumers of these products in the region are South Africa, Egypt and Algeria, which is also explained by the active development of the hotel and restaurant sector and the increase in tourist flow.
Middle East
The demand for canned vegetables in this region is formed due to the established culture of their use in various national dishes, the developed hotel and restaurant sector and the growing popularity of Western-style dishes, especially among the young population. Hummus and falafel are popular national dishes in almost all countries of the region, in which the main ingredient is canned chickpeas, various soups and salads are also popular, in which canned legumes are often used. With the growing number of expats and the active development of the restaurant industry in the countries of this region, the number of Western-style catering outlets is increasing, which is an important factor in the demand for canned products, especially in fast food establishments where pickled tomatoes, peppers, asparagus, cucumbers and other canned vegetables are in high demand. Saudi Arabia is the leader in the consumption of canned vegetables among the countries of the Middle East.
Global market
In 2022, the world consumption of canned vegetables amounted to 13.84 million tons by $25.68 billion, which is 2.8% in kind and 4.4% in value more than 2021. For 2017-2022, the world market of canned vegetables in kind grew annually by an average of 0.5%, while the average annual growth rate in value for the same period amounted to 3.3%, which was caused by a sharp increase in prices for canned vegetables in the largest consumer countries as a result of disruption of global supply chains in pandemic 2020.
In the structure of world consumption of canned vegetables, the largest region is North America, which occupies a share of 41.6% of the market. The volume of sales of canned vegetables in this region in 2022 amounted to 5.76 million tons, which is 3.4% more than in 2021. However, the average annual growth rate for 2017-2022 was only 0.5%, which was caused by a significant reduction in sales in 2020 in the United States and Canada.
The European market is the second largest consumer of canned vegetables, which in 2022 amounted to 4.86 million tons (35.1% of the world market). Compared to 2021, the growth was 1.2%. During 2017-2022, the market volume remained approximately at the same level, only slightly decreasing by 0.8% in 2020, but the indicators returned to pre-pandemic values in 2022.
Latin America occupies 9.1% of the world market of canned vegetables. In 2022, consumption amounted to 1.25 million tons, which is 1.4% more than in 2021. The Latin American canned vegetable market is the fastest growing in the world with an average annual growth rate of 2.3%.
Sales of canned vegetables in the Asia-Pacific region account for 7.5% of the global market for this type of product.
In 2022, consumption amounted to 1.04 million tons (+1.3% by 2021). The average annual growth rate for 2017-2020 was 0.4%. The countries of the Middle East and Africa accounted for 6.7% of the world market of canned vegetables. Consumption in 2022 amounted to 0.92 million tons, an increase of 12.5% compared to 2021. On average, consumption during the period under review grew by 1.5% per year.
Due to the sharp rise in prices for canned vegetables, the structure of world consumption in value terms differs from the structure in kind. The largest region in terms of consumption of canned vegetables is Europe, whose share in world consumption in value terms was 43.5%, which is equivalent to 11.18 billion US dollars (+1.4% by 2021). The second largest market for canned vegetables in the world with a share of 29.0% is North America. In 2022, the volume of sales of canned vegetables in this region amounted to $ 7.45 billion, which is 6.7% more than in the previous year. It was North America that became the region in which sales of canned vegetables showed the most rapid growth rates in the pandemic 2020 — by 21.4%. The average annual growth for 2017-2022 was 3.4%.
The volume of sales of canned vegetables in other regions of the world is significantly lower than in Europe and North America, but the average annual growth rates for 2017-2022 also show high indicators. The fastest growing market is the Middle East and Africa with an annual growth rate of 4.4% for 2017-2022. Despite the high growth rates, the region accounted for only 7.7% of sales in value terms. In 2022, the market volume amounted to 1.96 billion US dollars, which is 9.7% more than in 2021.
The growth rates for the period under review in Latin America and the Asia-Pacific region (3.1% and 3.2%, respectively) are comparable to those of the European and North American markets. At the same time, in Latin America, the volume of sales of canned vegetables significantly exceeds the figures in the Asia-Pacific region. In 2022, consumption in the Latin American region is estimated at US$ 3.04 billion (+11.1% by 2021), while in the Asia—Pacific region - US$ 2.05 billion (-0.3%). Thus, the share of Latin America and the Asia-Pacific region was 11.8% and 8.0%, respectively.
The undisputed leader in the consumption of canned vegetables in the world is the USA, which occupies 38.6% of the market in kind and 26.7% in value terms. In 2022, the volume of consumption amounted to 5.3 million tons for 6.9 billion US dollars.
The peculiarities of the development of the American market of the products in question in the last three years are explained by the impact of the COVID-19 pandemic on sales in 2020. Logistical problems, as well as increased production costs, led to a shortage of supply and a significant increase in the cost of canned vegetables in the United States, which became the main factor in restraining consumption. At the same time, a significant part of consumers began to massively buy long-term storage products in order to minimize the number of trips to the store, which subsequently led to the inclusion of canned vegetables in a permanent diet. As a result, by 2022, sales volumes exceeded consumption figures in the pre-pandemic 2019.
The second largest consumer of canned vegetables is Russia, which accounted for 6.9% of the world market. In 2022, consumption in the country amounted to 1.0 million tons for $1.9 billion.
Nevertheless, a significant amount is not traced in statistics due to the high prevalence of home preservation, which is the main constraint on the development of the market.
The third place in the world market of canned vegetables is occupied by the United Kingdom, whose consumption in 2022 amounted to 0.8 million tons per 1.3 billion US dollars. After the growth of market volumes in 2020, the indicators have remained approximately at the same level over the past years. The reason for this is a decrease in demand for canned products in 2021 due to large household stocks accumulated during the pandemic year, as well as a gradual resumption of consumer activity typical for the period up to 2020.
Consumption of canned vegetables in Germany in 2022 amounted to 0.6 million tons, which is 3.0% more than in the previous year. The increase in prices as a result of the pandemic led to an increase in the indicator in 2020 and 2021, but in 2022 consumption decreased and amounted to $ 1.0 billion.
The dynamics of demand for canned vegetables in the Italian market is similar to the situation in Germany. In 2022, consumption amounted to 0.6 million tons worth $1.0 billion.
Due to price differences for canned vegetables in different countries, other countries are in the top 5 in terms of value in the structure of consumption. The United States and Russia retain the first and second places, respectively, and France is in third place, Brazil is in fourth, and the United Kingdom is in fifth.
Sales of canned vegetables in France showed an increase in 2020 due to covid restrictions. The demand for canned vegetables was also supported by the emergence of a new category of consumers who consider these products as an integral part of home cooking, which is facilitated by the year-round availability of canned food. Due to the normalization of consumer activity, sales decreased in 2021, but the set trends, as well as the stabilization of prices, allowed to restore demand in 2022, when the figures amounted to 0.5 million tons or 1.8 billion US dollars.
The main factors in the growth of sales of canned vegetables in Brazil are convenience in preparation and affordability of products. The pandemic has had a serious negative impact on the purchasing power of a significant part of the population, and many Brazilian buyers have become more likely to consume canned corn and peas due to their relatively low cost. The simplicity of cooking dishes using canned vegetables continued to have a positive impact on demand even after the lifting of restrictions on the activities of retail outlets and, accordingly, the normalization of the supply of fresh vegetables. Many consumers prefer preservation for reasons of saving time on cooking. These factors became the main drivers of sales growth of the products in question in 2022: by 2.6% to 0.5 million tons and by 19.9% to 1.4 billion US dollars.
