Canned Produce
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Approximate Net Recovery on Cost
Canned Produce: 70%-85%
Key Statistics
- Industry Revenues: $64 billion
- Major Product Categories: Tomatoes, potatoes, oranges, corn, beans, apples, soup
- Significant Companies: Del Monte, Heinz, JR Simplot
- Market Concentration: The 50 largest companies generate approximately 70% of industry revenue.
- Market Expansion/Contraction Issues: Demand for food and other commodity items remains fairly stable as it represents a necessary commodity. Food consumption increases alongside population growth, which accounts for an approximate 1% annual increase.
- Recent Sales Trends: The consumer price index for food, an indicator of fruit and vegetable product values, rose 1.6% in January 2013 compared to the same month in 2012.
Private Label on the Rise: Private-label foods currently make up nearly 22% of packaged-food sales in the U.S., which is up from 18.4% in 2007 according to Nielsen data. While private-label foods picked up market share significantly at the beginning of the economic downturn in 2008, national brands have started to make up ground.
Health Benefits of Cherries: Food processors are increasingly incorporating cherries in juices as more is discovered about the fruit’s health benefits, which include high levels of antioxidants and melatonin. Cherries have been shown to improve workout performance and post-workout muscle recovery, reduce inflammation, and help regulate sleep, according to several medical studies.
Contract Commitments: Because fruit trees may not produce for several years, growers often require long term commitments. Tomatoes in particular are highly perishable, and nearly all are grown under contract for this reason.
Rise in Eco-Packaging: With the rise of consumer environmental consciousness, more fruit and vegetable companies have started using eco-friendly packaging to appeal to these customers and strengthen the position of their respective brands as environmentally conscious.