Processed Fruit and Vegetables in Israel

PROSPECTS

Stronger preference for fresh vegetables and fruit

As healthy lifestyles become an important aspect in the daily lives of many consumers, food consumption patterns are changing accordingly. This is reflected in consumers' attempts to limit their sugar intake, eat less processed food and refrain from either gluten, lactose or meat, and eliminates from consumers' diets a great variety of foods.

Evolvement of shelf stable vegetables and beans

Shelf stable products are usually perceived as highly processed foods, especially shelf stable vegetables and beans. Their negative image affects demand, leading to stagnant volume growth over the forecast period as a result of the dominant shift towards fresh and frozen vegetables.

Shelf stable tomatoes

Shelf stable tomatoes do not suffer from the same poor image as other shelf stable vegetables, as they are a common ingredient in many recipes and in many local households. Nevertheless, the category experienced greater competition from two alternative categories; fresh tomatoes, as Israelis want to eat more fresh food and to their minimise consumption of processed food.

COMPETITIVE LANDSCAPE

Tnuva Food Industries strengthens leadership

Tnuva Food Industries Ltd, as the leading player in processed fruit and vegetables, benefits from great distribution, logistics capabilities and large marketing budgets. Sunfrost, Tnuva’s leading brand, holds wide shelf space and high recognition.

New entries for frozen fruit add dynamism

More interestingly, Tnuva Food Industries entered frozen fruit in 2017. Along with the private label entries of Shufersal and Rami Levy, the category has received a strong boost.

Frozen processed vegetables and potatoes are expected to see stronger competition

As part of the government's current general policy, which seeks to lower prices in order to reduce the overall cost of living, the Ministry of Economy found that local prices for frozen vegetables and potatoes are much higher than in other countries. In order to strengthen competition in these centralised categories, the Ministry decided to support small and new manufacturers in order to help them gain greater production capabilities.

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