Fruit & Vegetables: Global Industry Guide: Reference Code: OHEC4852 Publication Date: October 2011

Fruit & vegetables: Global Industry Guide
Reference Code: OHEC4852 Publication Date: October 2011
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ABOUT DATAMONITOR
ABOUT DATAMONITOR
Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the worlds largest 5000 companies.
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EXECUTIVESUMMARY
EXECUTIVE SUMMARY
Market value
The global fruit & vegetables market grew by 4.9% in 2010 to reach a value of $588.2 billion.
Market value forecast

In 2015, the global fruit & vegetables market is forecast to have a value of $736.5 billion, an increase of 25.2% since 2010.
Market volume
The global fruit & vegetables market grew by 1% in 2010 to reach a volume of 658.1 million tonne.
Market volume forecast

In 2015, the global fruit & vegetables market is forecast to have a volume of 690.6 million tonne, an increase of 4.9% since 2010.
Market segmentation I
Vegetables is the largest segment of the global fruit & vegetables market, accounting for 63.8% of the market's total value.
Market segmentation II
Asia-Pacific accounts for 45.1% of the global fruit & vegetables market value.

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TABLE OF CONTENTS
TABLE OF CONTENTS
ABOUT DATAMONITOR 2
EXECUTIVE SUMMARY
INTRODUCTION
25
What is this report about? Who is the target reader? Definitions GLOBAL FRUIT & VEGETABLES
25 25 25 26
Market overview Market value Market volume Market segmentation I Market segmentation II Five forces analysis Market forecasts FRUIT & VEGETABLES IN ASIA-PACIFIC
26 27 28 29 30 31 37 39
Market overview Market value Market volume Market segmentation I Market segmentation II Five forces analysis
39 40 41 42 43 44

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TABLE OF CONTENTS
Market forecasts FRUIT & VEGETABLES IN EUROPE
50 52
Market overview Market value Market volume Market segmentation I Market segmentation II Five forces analysis Market forecasts FRUIT & VEGETABLES IN FRANCE
52 53 54 55 56 57 63 65
Market overview Market value Market volume Market segmentation I Market segmentation II Five forces analysis Market forecasts Macroeconomic indicators FRUIT & VEGETABLES IN GERMANY
65 66 67 68 69 70 76 78 80
Market overview Market value Market volume Market segmentation I
80 81 82 83

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TABLE OF CONTENTS
Market segmentation II Five forces analysis Market forecasts Macroeconomic indicators FRUIT & VEGETABLES IN ITALY
84 85 91 93 95
Market overview Market value Market volume Market segmentation I Market segmentation II Five forces analysis Market forecasts Macroeconomic indicators FRUIT & VEGETABLES IN JAPAN
95 96 97 98 99 100 106 108 110
Market overview Market value Market volume Market segmentation I Market segmentation II Five forces analysis Market forecasts Macroeconomic indicators FRUIT & VEGETABLES IN BELGIUM
110 111 112 113 114 115 121 123 125

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TABLE OF CONTENTS
Market overview Market value Market volume Market segmentation I Market segmentation II Five forces analysis Market forecasts Macroeconomic indicators FRUIT & VEGETABLES IN CANADA
125 126 127 128 129 130 136 138 140
Market overview Market value Market volume Market segmentation I Market segmentation II Five forces analysis Market forecasts Macroeconomic indicators FRUIT & VEGETABLES IN CHINA
140 141 142 143 144 145 151 153 155
Market overview Market value Market volume Market segmentation I Market segmentation II
155 156 157 158 159

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TABLE OF CONTENTS
Five forces analysis Market forecasts Macroeconomic indicators FRUIT & VEGETABLES IN THE NETHERLANDS
160 166 168 170
Market overview Market value Market volume Market segmentation I Market segmentation II Five forces analysis Market forecasts Macroeconomic indicators FRUIT & VEGETABLES IN SPAIN
170 171 172 173 174 175 181 183 185
Market overview Market value Market volume Market segmentation I Market segmentation II Five forces analysis Market forecasts Macroeconomic indicators FRUIT & VEGETABLES IN THE UNITED KINGDOM
185 186 187 188 189 190 196 198 200
Market overview
200

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TABLE OF CONTENTS
Market value Market volume Market segmentation I Market segmentation II Five forces analysis Market forecasts Macroeconomic indicators FRUIT & VEGETABLES IN THE UNITED STATES
201 202 203 204 205 211 213 215
Market overview Market value Market volume Market segmentation I Market segmentation II Five forces analysis Market forecasts Macroeconomic indicators COMPANY PROFILES
215 216 217 218 219 220 226 228 230
Carrefour S.A. Safeway Inc The Kroger Co. Wal-Mart Stores, Inc. APPENDIX
230 234 238 242 247
Data Research Methodology
247

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LIST OF TABLES
LIST OF TABLES
Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 15: Table 16: Table 17: Table 18: Table 19: Table 20: Table 21: Table 22: Table 23: Global fruit & vegetables market value: $ billion, 200610 Global fruit & vegetables market volume: million tonne, 200610 Global fruit & vegetables Market segmentation I:% share, by value, 2010 Global fruit & vegetables Market segmentation II: % share, by value, 2010 Global fruit & vegetables market value forecast: $ billion, 201015 Global fruit & vegetables market volume forecast: million tonne, 201015 Asia-Pacific fruit & vegetables market value: $ billion, 200610 AsiaPacific fruit & vegetables market volume: million tonne, 200610 Asia-Pacific fruit & vegetables Market segmentation I:% share, by value, 2010 Asia-Pacific fruit & vegetables Market segmentation II: % share, by value, 2010 Asia-Pacific fruit & vegetables market value forecast: $ billion, 201015 AsiaPacific fruit & vegetables market volume forecast: million tonne, 201015 Europe fruit & vegetables market value: $ billion, 200610 Europe fruit & vegetables market volume: million tonne, 200610 Europe fruit & vegetables Market segmentation I:% share, by value, 2010 Europe fruit & vegetables Market segmentation II: % share, by value, 2010 Europe fruit & vegetables market value forecast: $ billion, 201015 Europe fruit & vegetables market volume forecast: million tonne, 201015 France fruit & vegetables market value: $ billion, 200610 France fruit & vegetables market volume: million tonne, 200610 France fruit & vegetables Market segmentation I:% share, by value, 2010 France fruit & vegetables Market segmentation II: % share, by value, 2010 France fruit & vegetables market value forecast: $ billion, 201015 27 28 29 30 37 38 40 41 42 43 50 51 53 54 55 56 63 64 66 67 68 69 76 OHEC4852
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LIST OF TABLES
Table 24: Table 25: Table 26: Table 27: Table 28: Table 29: Table 30: Table 31: Table 32: Table 33: Table 34: Table 35: Table 36: Table 37: Table 38: Table 39: Table 40: Table 41: Table 42: Table 43: Table 44: Table 45: Table 46: Table 47:
France fruit & vegetables market volume forecast: million tonne, 201015 France size of population (million), 200610 France gdp (constant 2000 prices, $ billion), 200610 France gdp (current prices, $ billion), 200610 France inflation, 200610 France consumer price index (absolute), 200610 France exchange rate, 200610 Germany fruit & vegetables market value: $ billion, 200610 Germany fruit & vegetables market volume: million tonne, 200610 Germany fruit & vegetables Market segmentation I:% share, by value, 2010 Germany fruit & vegetables Market segmentation II: % share, by value, 2010 Germany fruit & vegetables market value forecast: $ billion, 201015 Germany fruit & vegetables market volume forecast: million tonne, 201015 Germany size of population (million), 200610 Germany gdp (constant 2000 prices, $ billion), 200610 Germany gdp (current prices, $ billion), 200610 Germany inflation, 200610 Germany consumer price index (absolute), 200610 Germany exchange rate, 200610 Italy fruit & vegetables market value: $ million, 200610 Italy fruit & vegetables market volume: million tonne, 200610 Italy fruit & vegetables Market segmentation I:% share, by value, 2010 Italy fruit & vegetables Market segmentation II: % share, by value, 2010 Italy fruit & vegetables market value forecast: $ million, 201015
77 78 78 78 79 79 79 81 82 83 84 91 92 93 93 93 94 94 94 96 97 98 99 106

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LIST OF TABLES
Italy fruit & vegetables market volume forecast: million tonne, 201015 Italy size of population (million), 200610 Italy gdp (constant 2000 prices, $ billion), 200610 Italy gdp (current prices, $ billion), 200610 Italy inflation, 200610 Italy consumer price index (absolute), 200610 Italy exchange rate, 200610 Japan fruit & vegetables market value: $ billion, 200610 Japan fruit & vegetables market volume: million tonne, 200610 Japan fruit & vegetables Market segmentation I:% share, by value, 2010 Japan fruit & vegetables Market segmentation II: % share, by value, 2010 Japan fruit & vegetables market value forecast: $ billion, 201015 Japan fruit & vegetables market volume forecast: million tonne, 201015 Japan size of population (million), 200610 Japan gdp (constant 2000 prices, $ billion), 200610 Japan gdp (current prices, $ billion), 200610 Japan inflation, 200610 Japan consumer price index (absolute), 200610 Japan exchange rate, 200610 Belgium fruit & vegetables market value: $ million, 200610 Belgium fruit & vegetables market volume: million tonne, 200610 Belgium fruit & vegetables Market segmentation I:% share, by value, 2010 Belgium fruit & vegetables Market segmentation II: % share, by value, 2010 Belgium fruit & vegetables market value forecast: $ million, 201015
107 108 108 108 109 109 109 111 112 113 114 121 122 123 123 123 124 124 124 126 127 128 129 136

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LIST OF TABLES
Belgium fruit & vegetables market volume forecast: million tonne, 201015 Belgium size of population (million), 200610 Belgium gdp (constant 2000 prices, $ billion), 200610 Belgium gdp (current prices, $ billion), 200610 Belgium inflation, 200610 Belgium consumer price index (absolute), 200610 Belgium exchange rate, 200610 Canada fruit & vegetables market value: $ million, 200610 Canada fruit & vegetables market volume: million tonne, 200610 Canada fruit & vegetables Market segmentation I:% share, by value, 2010 Canada fruit & vegetables Market segmentation II: % share, by value, 2010 Canada fruit & vegetables market value forecast: $ million, 201015 Canada fruit & vegetables market volume forecast: million tonne, 201015 Canada size of population (million), 200610 Canada gdp (constant 2000 prices, $ billion), 200610 Canada gdp (current prices, $ billion), 200610 Canada inflation, 200610 Canada consumer price index (absolute), 200610 Canada exchange rate, 200610 China fruit & vegetables market value: $ billion, 200610 China fruit & vegetables market volume: million tonne, 200610 China fruit & vegetables Market segmentation I:% share, by value, 2010 China fruit & vegetables Market segmentation II: % share, by value, 2010 China fruit & vegetables market value forecast: $ billion, 201015
137 138 138 138 139 139 139 141 142 143 144 151 152 153 153 153 154 154 154 156 157 158 159 166

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LIST OF TABLES
China fruit & vegetables market volume forecast: million tonne, 201015 China size of population (million), 200610 China gdp (constant 2000 prices, $ billion), 200610 China gdp (current prices, $ billion), 200610 China inflation, 200610 China consumer price index (absolute), 200610 China exchange rate, 200610 Netherlands fruit & vegetables market value: $ million, 200610 Netherlands fruit & vegetables market volume: million tonne, 200610 Netherlands fruit & vegetables Market segmentation I:% share, by value, 2010 Netherlands fruit & vegetables Market segmentation II: % share, by value, 2010 Netherlands fruit & vegetables market value forecast: $ million, 201015 Netherlands fruit & vegetables market volume forecast: million tonne, 201015 Netherlands size of population (million), 200610 Netherlands gdp (constant 2000 prices, $ billion), 200610 Netherlands gdp (current prices, $ billion), 200610 Netherlands inflation, 200610 Netherlands consumer price index (absolute), 200610 Netherlands exchange rate, 200610 Spain fruit & vegetables market value: $ million, 200610 Spain fruit & vegetables market volume: million tonne, 200610 Spain fruit & vegetables Market segmentation I:% share, by value, 2010 Spain fruit & vegetables Market segmentation II: % share, by value, 2010 Spain fruit & vegetables market value forecast: $ million, 201015
167 168 168 168 169 169 169 171 172 173 174 181 182 183 183 183 184 184 184 186 187 188 189 196

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LIST OF TABLES
Spain fruit & vegetables market volume forecast: million tonne, 201015 Spain size of population (million), 200610 Spain gdp (constant 2000 prices, $ billion), 200610 Spain gdp (current prices, $ billion), 200610 Spain inflation, 200610 Spain consumer price index (absolute), 200610 Spain exchange rate, 200610 United Kingdom fruit & vegetables market value: $ billion, 200610 United Kingdom fruit & vegetables market volume: million tonne, 200610 United Kingdom fruit & vegetables Market segmentation I:% share, by value, 2010 United Kingdom fruit & vegetables Market segmentation II: % share, by value, 2010 United Kingdom fruit & vegetables market value forecast: $ billion, 201015 United Kingdom fruit & vegetables market volume forecast: million tonne, 201015 United Kingdom size of population (million), 200610 United Kingdom gdp (constant 2000 prices, $ billion), 200610 United Kingdom gdp (current prices, $ billion), 200610 United Kingdom inflation, 200610 United Kingdom consumer price index (absolute), 200610 United Kingdom exchange rate, 200610 United States fruit & vegetables market value: $ billion, 200610 United States fruit & vegetables market volume: million tonne, 200610 United States fruit & vegetables Market segmentation I:% share, by value, 2010 United States fruit & vegetables Market segmentation II: % share, by value, 2010 United States fruit & vegetables market value forecast: $ billion, 201015
197 198 198 198 199 199 199 201 202 203 204 211 212 213 213 213 214 214 214 216 217 218 219 226

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LIST OF TABLES
Table 144: Table 145: Table 146: Table 147: Table 148: Table 149: Table 150: Table 151: Table 152: Table 153: Table 154: Table 155: Table 156: Table 157: Table 158: Table 159: Table 160: Table 161: Table 162: Table 163:
United States fruit & vegetables market volume forecast: million tonne, 201015 United States size of population (million), 200610 United States gdp (constant 2000 prices, $ billion), 200610 United States gdp (current prices, $ billion), 200610 United States inflation, 200610 United States consumer price index (absolute), 200610 United States exchange rate, 200610 Carrefour S.A.: key facts Carrefour S.A.: key financials ($) Carrefour S.A.: key financials () Carrefour S.A.: key financial ratios Safeway Inc: key facts Safeway Inc: key financials ($) Safeway Inc: key financial ratios The Kroger Co.: key facts The Kroger Co.: key financials ($) The Kroger Co.: key financial ratios Wal-Mart Stores, Inc.: key facts Wal-Mart Stores, Inc.: key financials ($) Wal-Mart Stores, Inc.: key financial ratios
227 228 228 228 229 229 229 230 232 232 232 234 235 236 238 240 240 242 244 244

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LIST OF FIGURES
LIST OF FIGURES
Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Global fruit & vegetables market value: $ billion, 200610 Global fruit & vegetables market volume: million tonne, 200610 Global fruit & vegetables Market segmentation I:% share, by value, 2010 Global fruit & vegetables Market segmentation II: % share, by value, 2010 Forces driving competition in the global fruit & vegetables market, 2010 Drivers of buyer power in the global fruit & vegetables market, 2010 Drivers of supplier power in the global fruit & vegetables market, 2010 Factors influencing the likelihood of new entrants in the global fruit & vegetables market, 2010 Factors influencing the threat of substitutes in the global fruit & vegetables market, 2010 Drivers of degree of rivalry in the global fruit & vegetables market, 2010 Global fruit & vegetables market value forecast: $ billion, 201015 Global fruit & vegetables market volume forecast: million tonne, 201015 Asia-Pacific fruit & vegetables market value: $ billion, 200610 AsiaPacific fruit & vegetables market volume: million tonne, 200610 Asia-Pacific fruit & vegetables Market segmentation I:% share, by value, 2010 Asia-Pacific fruit & vegetables Market segmentation II: % share, by value, 2010 Forces driving competition in the fruit & vegetables market in Asia-Pacific, 2010 Drivers of buyer power in the fruit & vegetables market in Asia-Pacific, 2010 Drivers of supplier power in the fruit & vegetables market in Asia-Pacific, 2010 Factors influencing the likelihood of new entrants in the fruit & vegetables market in Asia-Pacific, 2010 Factors influencing the threat of substitutes in the fruit & vegetables market in AsiaPacific, 2010 27 28 29 30 31 32 33
34 35 36 37 38 40 41 42 43 44 45 46
Figure 9: Figure 10: Figure 11: Figure 12: Figure 13: Figure 14: Figure 15: Figure 16: Figure 17: Figure 18: Figure 19: Figure 20:
47
Figure 21:
48

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LIST OF FIGURES
Figure 22: Figure 23: Figure 24: Figure 25: Figure 26: Figure 27: Figure 28: Figure 29: Figure 30: Figure 31: Figure 32:
Drivers of degree of rivalry in the fruit & vegetables market in Asia-Pacific, 2010 Asia-Pacific fruit & vegetables market value forecast: $ billion, 201015 AsiaPacific fruit & vegetables market volume forecast: million tonne, 201015 Europe fruit & vegetables market value: $ billion, 200610 Europe fruit & vegetables market volume: million tonne, 200610 Europe fruit & vegetables Market segmentation I:% share, by value, 2010 Europe fruit & vegetables Market segmentation II: % share, by value, 2010 Forces driving competition in the fruit & vegetables market in Europe, 2010 Drivers of buyer power in the fruit & vegetables market in Europe, 2010 Drivers of supplier power in the fruit & vegetables market in Europe, 2010 Factors influencing the likelihood of new entrants in the fruit & vegetables market in Europe, 2010 Factors influencing the threat of substitutes in the fruit & vegetables market in Europe, 2010 Drivers of degree of rivalry in the fruit & vegetables market in Europe, 2010 Europe fruit & vegetables market value forecast: $ billion, 201015 Europe fruit & vegetables market volume forecast: million tonne, 201015 France fruit & vegetables market value: $ billion, 200610 France fruit & vegetables market volume: million tonne, 200610 France fruit & vegetables Market segmentation I:% share, by value, 2010 France fruit & vegetables Market segmentation II: % share, by value, 2010 Forces driving competition in the fruit & vegetables market in France, 2010 Drivers of buyer power in the fruit & vegetables market in France, 2010 Drivers of supplier power in the fruit & vegetables market in France, 2010
49 50 51 53 54 55 56 57 58 59
60
Figure 33:
61 62 63 64 66 67 68 69 70 71 72
Figure 34: Figure 35: Figure 36: Figure 37: Figure 38: Figure 39: Figure 40: Figure 41: Figure 42: Figure 43:

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LIST OF FIGURES
Figure 44:
Factors influencing the likelihood of new entrants in the fruit & vegetables market in France, 2010 73
Figure 45:
Factors influencing the threat of substitutes in the fruit & vegetables market in France, 2010 Drivers of degree of rivalry in the fruit & vegetables market in France, 2010 France fruit & vegetables market value forecast: $ billion, 201015 France fruit & vegetables market volume forecast: million tonne, 201015 Germany fruit & vegetables market value: $ billion, 200610 Germany fruit & vegetables market volume: million tonne, 200610 Germany fruit & vegetables Market segmentation I:% share, by value, 2010 Germany fruit & vegetables Market segmentation II: % share, by value, 2010 Forces driving competition in the fruit & vegetables market in Germany, 2010 Drivers of buyer power in the fruit & vegetables market in Germany, 2010 Drivers of supplier power in the fruit & vegetables market in Germany, 2010 Factors influencing the likelihood of new entrants in the fruit & vegetables market in Germany, 2010
74 75 76 77 81 82 83 84 85 86 87
88
Figure 57:
Factors influencing the threat of substitutes in the fruit & vegetables market in Germany, 2010 Drivers of degree of rivalry in the fruit & vegetables market in Germany, 2010 Germany fruit & vegetables market value forecast: $ billion, 201015 Germany fruit & vegetables market volume forecast: million tonne, 201015 Italy fruit & vegetables market value: $ million, 200610 Italy fruit & vegetables market volume: million tonne, 200610 Italy fruit & vegetables Market segmentation I:% share, by value, 2010 Italy fruit & vegetables Market segmentation II: % share, by value, 2010 Forces driving competition in the fruit & vegetables market in Italy, 2010
89 90 91 92 96 97 98 99 100
Figure 58: Figure 59: Figure 60: Figure 61: Figure 62: Figure 63: Figure 64: Figure 65:

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LIST OF FIGURES
Figure 66: Figure 67: Figure 68:
Drivers of buyer power in the fruit & vegetables market in Italy, 2010 Drivers of supplier power in the fruit & vegetables market in Italy, 2010 Factors influencing the likelihood of new entrants in the fruit & vegetables market in Italy, 2010 Factors influencing the threat of substitutes in the fruit & vegetables market in Italy, 2010
101 102
103
Figure 69:
104 105 106 107 111 112 113 114 115 116 117
Drivers of degree of rivalry in the fruit & vegetables market in Italy, 2010 Italy fruit & vegetables market value forecast: $ million, 201015 Italy fruit & vegetables market volume forecast: million tonne, 201015 Japan fruit & vegetables market value: $ billion, 200610 Japan fruit & vegetables market volume: million tonne, 200610 Japan fruit & vegetables Market segmentation I:% share, by value, 2010 Japan fruit & vegetables Market segmentation II: % share, by value, 2010 Forces driving competition in the fruit & vegetables market in Japan, 2010 Drivers of buyer power in the fruit & vegetables market in Japan, 2010 Drivers of supplier power in the fruit & vegetables market in Japan, 2010 Factors influencing the likelihood of new entrants in the fruit & vegetables market in Japan, 2010 Factors influencing the threat of substitutes in the fruit & vegetables market in Japan, 2010
118
Figure 81:
119 120 121 122 126 127 128 OHEC4852

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Figure 82: Figure 83: Figure 84: Figure 85: Figure 86: Figure 87:
Drivers of degree of rivalry in the fruit & vegetables market in Japan, 2010 Japan fruit & vegetables market value forecast: $ billion, 201015 Japan fruit & vegetables market volume forecast: million tonne, 201015 Belgium fruit & vegetables market value: $ million, 200610 Belgium fruit & vegetables market volume: million tonne, 200610 Belgium fruit & vegetables Market segmentation I:% share, by value, 2010

LIST OF FIGURES
Figure 88: Figure 89: Figure 90: Figure 91: Figure 92:
Belgium fruit & vegetables Market segmentation II: % share, by value, 2010 Forces driving competition in the fruit & vegetables market in Belgium, 2010 Drivers of buyer power in the fruit & vegetables market in Belgium, 2010 Drivers of supplier power in the fruit & vegetables market in Belgium, 2010 Factors influencing the likelihood of new entrants in the fruit & vegetables market in Belgium, 2010 Factors influencing the threat of substitutes in the fruit & vegetables market in Belgium, 2010 Drivers of degree of rivalry in the fruit & vegetables market in Belgium, 2010 Belgium fruit & vegetables market value forecast: $ million, 201015 Belgium fruit & vegetables market volume forecast: million tonne, 201015 Canada fruit & vegetables market value: $ million, 200610 Canada fruit & vegetables market volume: million tonne, 200610 Canada fruit & vegetables Market segmentation I:% share, by value, 2010 Canada fruit & vegetables Market segmentation II: % share, by value, 2010 Forces driving competition in the fruit & vegetables market in Canada, 2010 Drivers of buyer power in the fruit & vegetables market in Canada, 2010 Drivers of supplier power in the fruit & vegetables market in Canada, 2010 Factors influencing the likelihood of new entrants in the fruit & vegetables market in Canada, 2010 Factors influencing the threat of substitutes in the fruit & vegetables market in Canada, 2010 Drivers of degree of rivalry in the fruit & vegetables market in Canada, 2010 Canada fruit & vegetables market value forecast: $ million, 201015 Canada fruit & vegetables market volume forecast: million tonne, 201015 China fruit & vegetables market value: $ billion, 200610
129 130 131 132
133
Figure 93:
134 135 136 137 141 142 143 144 145 146 147
148
Figure 105:
149 150 151 152 156
Figure 106: Figure 107: Figure 108: Figure 109:

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LIST OF FIGURES
Figure 110: Figure 111: Figure 112: Figure 113: Figure 114: Figure 115: Figure 116:
China fruit & vegetables market volume: million tonne, 200610 China fruit & vegetables Market segmentation I:% share, by value, 2010 China fruit & vegetables Market segmentation II: % share, by value, 2010 Forces driving competition in the fruit & vegetables market in China, 2010 Drivers of buyer power in the fruit & vegetables market in China, 2010 Drivers of supplier power in the fruit & vegetables market in China, 2010 Factors influencing the likelihood of new entrants in the fruit & vegetables market in China, 2010
157 158 159 160 161 162
163
Figure 117:
Factors influencing the threat of substitutes in the fruit & vegetables market in China, 2010 Drivers of degree of rivalry in the fruit & vegetables market in China, 2010 China fruit & vegetables market value forecast: $ billion, 201015 China fruit & vegetables market volume forecast: million tonne, 201015 Netherlands fruit & vegetables market value: $ million, 200610 Netherlands fruit & vegetables market volume: million tonne, 200610 Netherlands fruit & vegetables Market segmentation I:% share, by value, 2010 Netherlands fruit & vegetables Market segmentation II: % share, by value, 2010 Forces driving competition in the fruit & vegetables market in the Netherlands, 2010 Drivers of buyer power in the fruit & vegetables market in the Netherlands, 2010 Drivers of supplier power in the fruit & vegetables market in the Netherlands, 2010 Factors influencing the likelihood of new entrants in the fruit & vegetables market in the Netherlands, 2010
164 165 166 167 171 172 173 174 175 176 177
178
Figure 129:
Factors influencing the threat of substitutes in the fruit & vegetables market in the Netherlands, 2010 Drivers of degree of rivalry in the fruit & vegetables market in the Netherlands, 2010 Netherlands fruit & vegetables market value forecast: $ million, 201015
179 180 181
Figure 130: Figure 131:

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LIST OF FIGURES
Figure 132: Figure 133: Figure 134: Figure 135: Figure 136: Figure 137: Figure 138: Figure 139: Figure 140:
Netherlands fruit & vegetables market volume forecast: million tonne, 201015 Spain fruit & vegetables market value: $ million, 200610 Spain fruit & vegetables market volume: million tonne, 200610 Spain fruit & vegetables Market segmentation I:% share, by value, 2010 Spain fruit & vegetables Market segmentation II: % share, by value, 2010 Forces driving competition in the fruit & vegetables market in Spain, 2010 Drivers of buyer power in the fruit & vegetables market in Spain, 2010 Drivers of supplier power in the fruit & vegetables market in Spain, 2010 Factors influencing the likelihood of new entrants in the fruit & vegetables market in Spain, 2010 Factors influencing the threat of substitutes in the fruit & vegetables market in Spain, 2010
182 186 187 188 189 190 191 192
193
Figure 141:
194 195 196 197 201 202 203 204 205 206 207
Drivers of degree of rivalry in the fruit & vegetables market in Spain, 2010 Spain fruit & vegetables market value forecast: $ million, 201015 Spain fruit & vegetables market volume forecast: million tonne, 201015 United Kingdom fruit & vegetables market value: $ billion, 200610 United Kingdom fruit & vegetables market volume: million tonne, 200610 United Kingdom fruit & vegetables Market segmentation I:% share, by value, 2010 United Kingdom fruit & vegetables Market segmentation II: % share, by value, 2010 Forces driving competition in the fruit & vegetables market in the United Kingdom, 2010 Drivers of buyer power in the fruit & vegetables market in the United Kingdom, 2010 Drivers of supplier power in the fruit & vegetables market in the United Kingdom, 2010 Factors influencing the likelihood of new entrants in the fruit & vegetables market in the United Kingdom, 2010 Factors influencing the threat of substitutes in the fruit & vegetables market in the United Kingdom, 2010
208
Figure 153:
209 OHEC4852
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LIST OF FIGURES
Drivers of degree of rivalry in the fruit & vegetables market in the United Kingdom, 2010 United Kingdom fruit & vegetables market value forecast: $ billion, 201015 United Kingdom fruit & vegetables market volume forecast: million tonne, 201015 United States fruit & vegetables market value: $ billion, 200610 United States fruit & vegetables market volume: million tonne, 200610 United States fruit & vegetables Market segmentation I:% share, by value, 2010 United States fruit & vegetables Market segmentation II: % share, by value, 2010 Forces driving competition in the fruit & vegetables market in the United States, 2010 Drivers of buyer power in the fruit & vegetables market in the United States, 2010 Drivers of supplier power in the fruit & vegetables market in the United States, 2010 Factors influencing the likelihood of new entrants in the fruit & vegetables market in the United States, 2010 Factors influencing the threat of substitutes in the fruit & vegetables market in the United States, 2010 Drivers of degree of rivalry in the fruit & vegetables market in the United States, 2010 United States fruit & vegetables market value forecast: $ billion, 201015 United States fruit & vegetables market volume forecast: million tonne, 201015 Carrefour S.A.: revenues & profitability Carrefour S.A.: assets & liabilities Safeway Inc: revenues & profitability Safeway Inc: assets & liabilities The Kroger Co.: revenues & profitability The Kroger Co.: assets & liabilities Wal-Mart Stores, Inc.: revenues & profitability Wal-Mart Stores, Inc.: assets & liabilities
210 211 212 216 217 218 219 220 221 222
223
Figure 165:
224 225 226 227 233 233 236 237 241 241 245 246

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INTRODUCTION
INTRODUCTION
This report contains easily comparable data on market value, volume and market segmentation. It examines future problems, innovations and potential growth areas within the market.
What is this report about?

This report is a part of Datamonitors Global Industry Guide series, which includes comprehensive category data and analysis across all major industry sectors. These incisive reports include key data points, charts and expert analysis on a global, regional and country basis.
Who is the target reader?

This report should be read by competitive analysts, distribution managers, marketing managers, strategic planners and senior executives.
Definitions
The fruit and vegetable market is taken to be the sale to consumers of fresh fruit and fresh vegetables, including potatoes. Processed and preserved fruit and vegetables, including juices, frozen and canned products, are excluded. Volumes are calculated from per capita availability and mid-year populations, where 'availability' denotes the quantities sold (or otherwise available) to consumers without regard to whether the produce is physically consumed or not. Any currency conversions included in this report have been calculated using constant 2010 annual average exchange rates.

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GLOBAL FRUIT & VEGETABLES

Market overview
Research highlights
The global fruit & vegetables market had total revenues of $588.2 billion in 2010, representing a compound annual growth rate (CAGR) of 5.2% for the period spanning 2006-2010. Market consumption volumes increased with a CAGR of 0.9% between 2006 and 2010, to reach a total of 658.1 million tons in 2010. The performance of the market is forecast to decelerate, with an anticipated CAGR of 4.6% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $736.5 billion by the end of 2015.
Market analysis
The global fruit & vegetables market value is expected to experience decelerated growth during the 20102015 period, with volumes sold expected to experience stagnant growth during the same period. The global fruit & vegetables market had total revenues of $588.2 billion in 2010, representing a compound annual growth rate (CAGR) of 5.2% for the period spanning 2006-2010. In comparison, the European and Asia-Pacific markets grew with CAGRs of 3.4% and 6.3% respectively, over the same period, to reach respective values of $152.3 billion and $265.2 billion in 2010. Market consumption volumes increased with a CAGR of 0.9% between 2006 and 2010, to reach a total of 658.1 million tons in 2010. The market's volume is expected to rise to 690.6 million tons by the end of 2015, representing a CAGR of 1% for the 2010-2015 period. The vegetables segment was the market's most lucrative in 2010, with total revenues of $375.1 billion, equivalent to 63.8% of the market's overall value. The fruit segment contributed revenues of $213.1 billion in 2010, equating to 36.2% of the market's aggregate value. The performance of the market is forecast to decelerate, with an anticipated CAGR of 4.6% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $736.5 billion by the end of 2015. Comparatively, the European and Asia-Pacific markets will grow with CAGRs of 5.2% and 5.9% respectively, over the same period, to reach respective values of $196.5 billion and $353.9 billion in 2015.

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Market value
The global fruit & vegetables market grew by 4.9% in 2010 to reach a value of $588.2 billion. The compound annual growth rate of the market in the period 200610 was 5.2%. Table 1: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Global fruit & vegetables market value: $ billion, 200610 $ billion 479.5 505.9 540.4 560.8 588.2 billion 361.1 381.0 407.0 422.4 443.0 % Growth 5.5% 6.8% 3.8% 4.9% 5.2% DATAMONITOR
Figure 1:
Global fruit & vegetables market value: $ billion, 200610
Source: Datamonitor
DATAMONITOR

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Market volume
The global fruit & vegetables market grew by 1% in 2010 to reach a volume of 658.1 million tonne. The compound annual growth rate of the market in the period 200610 was 0.9%. Table 2: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Global fruit & vegetables market volume: million tonne, 200610 million tonne 636.2 640.5 645.8 651.6 658.1 % Growth 0.7% 0.8% 0.9% 1.0% 0.9% DATAMONITOR
Figure 2:
Global fruit & vegetables market volume: million tonne, 200610
Source: Datamonitor
DATAMONITOR

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Vegetables is the largest segment of the global fruit & vegetables market, accounting for 63.8% of the market's total value. The fruit segment accounts for the remaining 36.2% of the market. Table 3: Category Vegetables Fruit Total Source: Datamonitor Global fruit & vegetables Market segmentation I:% share, by value, 2010 % Share 63.8% 36.2% 100% DATAMONITOR
Figure 3:
Global fruit & vegetables Market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Asia-Pacific accounts for 45.1% of the global fruit & vegetables market value. Europe accounts for a further 25.9% of the global market. Table 4: Category Asia-Pacific Europe Americas Middle East & Africa Total Source: Datamonitor Global fruit & vegetables Market segmentation II: % share, by value, 2010 % Share 45.1% 25.9% 24.8% 4.2% 100% DATAMONITOR
Figure 4:
Global fruit & vegetables Market segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Five forces analysis

The fruit & vegetables market will be analyzed taking retailers of fruit & vegetables as players. The key buyers will be taken as end-consumers, and fruit & vegetable producers/ farmers as the key suppliers.
Summary
Figure 5: Forces driving competition in the global fruit & vegetables market, 2010
Source: Datamonitor
DATAMONITOR
The fruit and vegetables market is highly concentrated with large supermarket chains using their bargaining power and brand strength to dominate. The global fruit and vegetables market is dominated by large supermarkets, such as Wal-Mart, Tesco and Carrefour. Buyers power is considered to be weak due to the products indispensable nature, and as suppliers are typically quite small and supply only a small number of products, they are vulnerable to players sourcing alternatives, coming from competing suppliers. Capital requirements for entry to food retail markets are generally not very high and government regulations are relatively light in most countries, which tends to encourage new companies entering the market; however, the presence of large supermarket chains, which exercise great bargaining power, acts as a significant barrier to entry.

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Buyer power
Figure 6: Drivers of buyer power in the global fruit & vegetables market, 2010
Source: Datamonitor
DATAMONITOR
Leading supermarkets, such as Wal-Mart, Tesco and Carrefour, dominate the fruit and vegetable market in many countries. Given that fruit and vegetables are largely commodity items, there is little to differentiate between retailers and therefore many factors affecting buyer power, within the fruit and vegetable market, are interdependent with those of supermarket retail collectively, especially the brand loyalty enjoyed by leading supermarkets and their ability to offer low prices. Fruit and vegetables provide key nutrients that are vital to buyers, such as vitamins and minerals and therefore buyer power is reduced. Overall buyer power within the fruit and vegetable market is weak.

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Supplier power
Figure 7: Drivers of supplier power in the global fruit & vegetables market, 2010
Source: Datamonitor
DATAMONITOR
A large number of independent farmers constitute the main supply channel for the fruit and vegetable market. In dominating the fruit and vegetable market, large supermarket chains wield their large purchasing power to negotiate low prices and extended terms of credit through bulk purchasing. Contractual arrangements between suppliers and the large supermarkets typically favor the interests of the latter, especially where a small supplier is heavily dependent on one large supermarket chain for revenues. The resultant low switching costs, combined with a relatively low level of product differentiation, detract considerably from supplier power. Overall, the global fruit and vegetables market displays weak supplier power.

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New entrants
Figure 8: Factors influencing the likelihood of new entrants in the global fruit & vegetables market, 2010
Source: Datamonitor
DATAMONITOR
Entering the retail market is possible without extensive capital outlay, i.e. finding a niche market or offering organic products, may form a successful strategy. However, with the dominance of leading supermarkets, newcomers must be prepared as such companies usually enjoy strong brand recognition and benefit from scale economies. The latter allows them to compete more intensely on price, something which appeals to consumers. Consumers within this market incur negligible costs on switching from incumbent retailers to newcomers and the product on offer is hard to differentiate, which attracts new players. The threat of new entrants into the fruit and vegetables market is deemed to be moderate.

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Substitutes
Figure 9: Factors influencing the threat of substitutes in the global fruit & vegetables market, 2010
Source: Datamonitor
DATAMONITOR
Due to the essential dietary role of fruit and vegetables, the threat of substitutes is extremely limited. One possible substitute is constituted by supplement pills, i.e. vitamin tablets, but these are often less cost effective than fruit and vegetables and do not provide all of the nutritious values contained in cultivated foodstuffs. Another form of substitution may exist in form of consumers growing their own fruit and vegetable as opposed to purchasing these from retail outlets. However, this requires some level of agricultural knowledge and involves additional costs in the form of fertilizers, seeds, cost of land, alternative cost of time, etc. The threat of substitutes is weak.

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Rivalry
Figure 10: Drivers of degree of rivalry in the global fruit & vegetables market, 2010
Source: Datamonitor
DATAMONITOR
In many developed economies, a small number of players, typically leading supermarkets, dominate concentrated food retail markets. In other countries, concentration is lower, but the number of players is correspondingly larger boosting the competition somewhat. Switching costs for consumers are negligible, and there is little opportunity for retailers to differentiate their offering strongly. Fruit and vegetables are perishable, thus it is important for retailers to be able to sell their entire inventory to avoid losses due to waste. This effectively means that storage costs are inherently high for this market. The degree of rivalry is weakened by the healthy rate of market growth. Rivalry within the fruit and vegetable market is strong, reflecting the high level of competition between the large supermarkets who are its leading constituents.

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Market forecasts
In 2015, the global fruit & vegetables market is forecast to have a value of $736.5 billion, an increase of 25.2% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 4.6%. Table 5: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Global fruit & vegetables market value forecast: $ billion, 201015 $ billion 588.2 615.3 642.5 672.1 703.8 736.5 billion 443.0 463.4 483.9 506.1 530.0 554.6 % Growth 4.9% 4.6% 4.4% 4.6% 4.7% 4.6% 4.6% DATAMONITOR
Figure 11: Global fruit & vegetables market value forecast: $ billion, 201015
Source: Datamonitor
DATAMONITOR

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In 2015, the global fruit & vegetables market is forecast to have a volume of 690.6 million tonne, an increase of 4.9% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 1%. Table 6: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Global fruit & vegetables market volume forecast: million tonne, 201015 million tonne 658.1 664.2 670.7 677.2 683.8 690.6 % Growth 1.0% 0.9% 1.0% 1.0% 1.0% 1.0% 1.0% DATAMONITOR
Figure 12: Global fruit & vegetables market volume forecast: million tonne, 201015
Source: Datamonitor
DATAMONITOR

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FRUIT & VEGETABLES IN ASIA-PACIFIC

Market overview
Research highlights
The Asia-Pacific fruit & vegetables market had total revenues of $265.2 billion in 2010, representing a compound annual growth rate (CAGR) of 6.3% for the period spanning 2006-2010. Market consumption volumes increased with a CAGR of 1% between 2006 and 2010, to reach a total of 423.8 million tons in 2010. The performance of the market is forecast to decelerate, with an anticipated CAGR of 5.9% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $353.9 billion by the end of 2015.
Market analysis
The Asia-Pacific fruit & vegetables market experienced moderate growth in 2010, after experiencing strong growth during 2009. The market is expected to continue growing at a moderate rate towards the end of 2015. The volume of fruit and vegetables sold has experienced stagnant growth since 2006 and is expected to continue experiencing slow growth towards 2015. The Asia-Pacific fruit & vegetables market had total revenues of $265.2 billion in 2010, representing a compound annual growth rate (CAGR) of 6.3% for the period spanning 2006-2010. In comparison, the Chinese and South Korean markets grew with CAGRs of 7.9% and 5.7% respectively, over the same period, to reach respective values of $153.9 billion and $7.5 billion in 2010. Market consumption volumes increased with a CAGR of 1% between 2006 and 2010, to reach a total of 423.8 million tons in 2010. The market's volume is expected to rise to 448.1 million tons by the end of 2015, representing a CAGR of 1.1% for the 2010-2015 period. The vegetables segment was the market's most lucrative in 2010, with total revenues of $180.1 billion, equivalent to 67.9% of the market's overall value. The fruit segment contributed revenues of $85.1 billion in 2010, equating to 32.1% of the market's aggregate value. The performance of the market is forecast to decelerate, with an anticipated CAGR of 5.9% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $353.9 billion by the end of 2015. Comparatively, the Chinese and South Korean markets will grow with CAGRs of 6% and 5.9% respectively, over the same period, to reach respective values of $206 billion and $10 billion in 2015.

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Market value
The Asia-Pacific fruit & vegetables market grew by 3.2% in 2010 to reach a value of $265.2 billion. The compound annual growth rate of the market in the period 200610 was 6.3%. Table 7: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Asia-Pacific fruit & vegetables market value: $ billion, 200610 $ billion 207.5 218.3 233.8 256.9 265.2 billion 156.2 164.4 176.1 193.5 199.7 % Growth 5.2% 7.1% 9.9% 3.2% 6.3% DATAMONITOR
Figure 13: Asia-Pacific fruit & vegetables market value: $ billion, 200610
Source: Datamonitor
DATAMONITOR

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Market volume
The Asia-Pacific fruit & vegetables market grew by 1.2% in 2010 to reach a volume of 423.8 million tonne. The compound annual growth rate of the market in the period 200610 was 1%. Table 8: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor AsiaPacific fruit & vegetables market volume: million tonne, 200610 million tonne 407.7 410.4 415.9 419.0 423.8 % Growth 0.7% 1.3% 0.7% 1.2% 1.0% DATAMONITOR
Figure 14: AsiaPacific fruit & vegetables market volume: million tonne, 200610
Source: Datamonitor
DATAMONITOR

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Vegetables is the largest segment of the fruit & vegetables market in Asia-Pacific, accounting for 67.9% of the market's total value. The fruit segment accounts for the remaining 32.1% of the market. Table 9: Category Vegetables Fruit Total Source: Datamonitor Asia-Pacific fruit & vegetables Market segmentation I:% share, by value, 2010 % Share 67.9% 32.1% 100% DATAMONITOR
Figure 15: Asia-Pacific fruit & vegetables Market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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China accounts for 58% of the Asia-Pacific fruit & vegetables market value. Japan accounts for a further 15.9% of the Asia-Pacific market. Table 10: Category China Japan India South Korea Rest of Asia-Pacific Total Source: Datamonitor Asia-Pacific fruit & vegetables Market segmentation II: % share, by value, 2010 % Share 58.0% 15.9% 10.6% 2.8% 12.7% 100% DATAMONITOR
Figure 16: Asia-Pacific fruit & vegetables Market segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Summary
Figure 17: Forces driving competition in the fruit & vegetables market in Asia-Pacific, 2010
Source: Datamonitor
DATAMONITOR
The fruit and vegetables market is concentrated, with large supermarket chains using their bargaining power and brand strength to establish their domination. The Asia-Pacific fruit and vegetables market is dominated by large supermarkets, such as AEON CO. Ltd, Daiei Inc. and Carrefour. Buyers power is considered to be weak due to the products indispensable nature, and as suppliers are typically quite small and supply only a small number of products, they are vulnerable to players sourcing alternatives, coming from competing suppliers. Capital requirements for entry to food retail markets are generally not very high and government regulations are relatively light in most countries, which tends to encourage new companies entering the market; however, the presence of large supermarket chains, which exercise great bargaining power, acts as a significant barrier to entry.

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Buyer power
Figure 18: Drivers of buyer power in the fruit & vegetables market in Asia-Pacific, 2010
Source: Datamonitor
DATAMONITOR
Leading supermarkets, including AEON Co. Ltd, Daiei Inc. and Carrefour, dominate the fruit and vegetable market in many countries. Given that fruit and vegetables are largely commodity items, there is little to differentiate between retailers and therefore many factors affecting buyer power, within the fruit and vegetable market, are interdependent with those of supermarket retail collectively, especially the brand loyalty enjoyed by leading supermarkets and their ability to offer low prices. Fruit and vegetables provide key nutrients that are vital to buyers, such as vitamins and minerals and therefore buyer power is reduced. Overall buyer power within the fruit and vegetable market is weak.

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Supplier power
Figure 19: Drivers of supplier power in the fruit & vegetables market in Asia-Pacific, 2010
Source: Datamonitor
DATAMONITOR
A large number of independent farmers constitute the main supply channel for the fruit and vegetable market. In dominating the fruit and vegetable market, large supermarket chains wield their large purchasing power to negotiate low prices and extended terms of credit through bulk purchasing. Contractual arrangements between suppliers and the large supermarkets typically favor the interests of the latter, especially where a small supplier is heavily dependent on one large supermarket chain for revenues. The resultant low switching costs, combined with a relatively low level of product differentiation, detract considerably from supplier power. Overall, the Asia-Pacific fruit and vegetables market displays weak supplier power.

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New entrants
Figure 20: Factors influencing the likelihood of new entrants in the fruit & vegetables market in Asia-Pacific, 2010
Source: Datamonitor
DATAMONITOR
Entering the retail market is possible without extensive capital outlay, i.e. finding a niche market or offering organic products, may form a successful strategy. However, with the dominance of leading supermarkets, newcomers must be prepared such companies usually enjoy strong brand recognition and benefit from scale economies. The latter allows them to compete more intensely on price, something which appeals to consumers. Consumers within this market incur negligible costs on switching from incumbent retailers to newcomers and the product on offer is hard to differentiate, which attracts new players. The Asia-Pacific market is forecasted to experience relatively strong growth during the 20102015 period, fueled by developing nations such as China and India, which acts as an incentive for potential newcomers. The threat of new entrants into the fruit and vegetables market is deemed to be strong.

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Substitutes
Figure 21: Factors influencing the threat of substitutes in the fruit & vegetables market in AsiaPacific, 2010
Source: Datamonitor
DATAMONITOR

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Rivalry
Figure 22: Drivers of degree of rivalry in the fruit & vegetables market in Asia-Pacific, 2010
Source: Datamonitor
DATAMONITOR
In many economies in the Asia-Pacific, a small number of players, typically leading supermarkets, dominate concentrated food retail markets. I In other countries, concentration is lower, but the number of players is correspondingly larger boosting the competition somewhat. Switching costs for consumers are negligible, and there is little opportunity for retailers to differentiate their offering. Fruit and vegetables are perishable, thus it is important for retailers to be able to sell their entire inventory to avoid losses due to waste. This effectively means that storage costs are inherently high for this market. Rivalry within the fruit and vegetable market is strong, reflecting the high level of competition between the large supermarkets who are its leading constituents.

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Market forecasts
In 2015, the Asia-Pacific fruit & vegetables market is forecast to have a value of $353.9 billion, an increase of 33.4% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 5.9%. Table 11: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Asia-Pacific fruit & vegetables market value forecast: $ billion, 201015 $ billion 265.2 281.7 298.0 315.7 334.7 353.9 billion 199.7 212.1 224.4 237.7 252.0 266.5 % Growth 3.2% 6.2% 5.8% 5.9% 6.0% 5.8% 5.9% DATAMONITOR
Figure 23: Asia-Pacific fruit & vegetables market value forecast: $ billion, 201015
Source: Datamonitor
DATAMONITOR

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In 2015, the Asia-Pacific fruit & vegetables market is forecast to have a volume of 448.1 million tonne, an increase of 5.7% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 1.1%. Table 12: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor AsiaPacific fruit & vegetables market volume forecast: million tonne, 201015 million tonne 423.8 428.5 433.3 438.2 443.1 448.1 % Growth 1.2% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% DATAMONITOR
Figure 24: AsiaPacific fruit & vegetables market volume forecast: million tonne, 201015
Source: Datamonitor
DATAMONITOR

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FRUIT & VEGETABLES IN EUROPE

Market overview
Research highlights
The European fruit & vegetables market had total revenues of $152.3 billion in 2010, representing a compound annual growth rate (CAGR) of 3.4% for the period spanning 2006-2010. Market consumption volumes increased with a CAGR of 0.3% between 2006 and 2010, to reach a total of 92.9 million tons in 2010. The performance of the market is forecast to accelerate, with an anticipated CAGR of 5.2% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $196.5 billion by the end of 2015.
Market analysis
The European fruit & vegetables market experienced moderate growth in 2010 after suffering a decline during 2009. The market is expected to continue growing at a steady rate towards the end of the forecast period. The volume of fruit and vegetables sold grew slightly during 2010 and is expected to continue growing at a marginal rate towards 2015. The European fruit & vegetables market had total revenues of $152.3 billion in 2010, representing a compound annual growth rate (CAGR) of 3.4% for the period spanning 2006-2010. In comparison, the German market declined with a compound annual rate of change (CARC) of -5.9%, and the UK market increased with a CAGR of 2.9%, over the same period, to reach respective values of $16.3 billion and $17 billion in 2010. Market consumption volumes increased with a CAGR of 0.3% between 2006 and 2010, to reach a total of 92.9 million tons in 2010. The market's volume is expected to rise to 94.2 million tons by the end of 2015, representing a CAGR of 0.3% for the 2010-2015 period. The vegetables segment was the market's most lucrative in 2010, with total revenues of $87.4 billion, equivalent to 57.4% of the market's overall value. The fruit segment contributed revenues of $64.9 billion in 2010, equating to 42.6% of the market's aggregate value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 5.2% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $196.5 billion by the end of 2015. Comparatively, the German and UK markets will grow with CAGRs of 2.3% and 3.8% respectively, over the same period, to reach respective values of $18.3 billion and $20.5 billion in 2015.

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Market value
The European fruit & vegetables market grew by 5% in 2010 to reach a value of $152.3 billion. The compound annual growth rate of the market in the period 200610 was 3.4%. Table 13: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Europe fruit & vegetables market value: $ billion, 200610 $ billion 133.0 142.9 150.3 145.1 152.3 billion 100.2 107.6 113.2 109.2 114.7 % Growth 7.4% 5.2% (3.5%) 5.0% 3.4% DATAMONITOR
Figure 25: Europe fruit & vegetables market value: $ billion, 200610
Source: Datamonitor
DATAMONITOR

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Market volume
The European fruit & vegetables market grew by 0.2% in 2010 to reach a volume of 92.9 million tonne. The compound annual growth rate of the market in the period 200610 was 0.3%. Table 14: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Europe fruit & vegetables market volume: million tonne, 200610 million tonne 91.6 92.7 92.2 92.7 92.9 % Growth 1.2% (0.5%) 0.5% 0.2% 0.3% DATAMONITOR
Figure 26: Europe fruit & vegetables market volume: million tonne, 200610
Source: Datamonitor
DATAMONITOR

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Vegetables is the largest segment of the fruit & vegetables market in Europe, accounting for 57.4% of the market's total value. The fruit segment accounts for the remaining 42.6% of the market. Table 15: Category Vegetables Fruit Total Source: Datamonitor Europe fruit & vegetables Market segmentation I:% share, by value, 2010 % Share 57.4% 42.6% 100% DATAMONITOR
Figure 27: Europe fruit & vegetables Market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Spain accounts for 15% of the European fruit & vegetables market value. Italy accounts for a further 11.7% of the European market. Table 16: Category Spain Italy United Kingdom Germany France Rest of Europe Total Source: Datamonitor Europe fruit & vegetables Market segmentation II: % share, by value, 2010 % Share 15.0% 11.7% 11.2% 10.7% 10.0% 41.5% 100% DATAMONITOR
Figure 28: Europe fruit & vegetables Market segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Summary
Figure 29: Forces driving competition in the fruit & vegetables market in Europe, 2010
Source: Datamonitor
DATAMONITOR
The fruit and vegetables market is concentrated, with large supermarket chains using their bargaining power and brand strength to establish their domination. The European fruit and vegetables market is dominated by large supermarkets, such as Asda/Wal-Mart, Tesco and Carrefour. Buyers power is considered to be weak due to the products indispensable nature, and as suppliers are typically quite small and supply only a small number of products, they are vulnerable to players sourcing alternatives, coming from competing suppliers. Capital requirements for entry to food retail markets are generally not very high, and even with government regulations being stricter than in other regions, there is a risk of new companies entering the market; this is however eased by the presence of large supermarket chains, which exercise great bargaining power, constituting entry barriers.

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Buyer power
Figure 30: Drivers of buyer power in the fruit & vegetables market in Europe, 2010
Source: Datamonitor
DATAMONITOR
Leading supermarkets, including Wal-Mart, Tesco and Carrefour, dominate the fruit and vegetable market in many countries. Given that fruit and vegetables are largely commodity items, there is little to differentiate between retailers and therefore many factors affecting buyer power, within the fruit and vegetable market, are interdependent with those of supermarket retail collectively, especially the brand loyalty enjoyed by leading supermarkets and their ability to offer low prices. Fruit and vegetables provide key nutrients that are vital to buyers, such as vitamins and minerals and therefore buyer power is reduced. Overall buyer power within the fruit and vegetable market is weak.

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Supplier power
Figure 31: Drivers of supplier power in the fruit & vegetables market in Europe, 2010
Source: Datamonitor
DATAMONITOR
A large number of independent farmers constitute the main supply channel for the fruit and vegetable market. In dominating the fruit and vegetable market, large supermarket chains wield their large purchasing power to negotiate low prices and extended terms of credit through bulk purchasing. Contractual arrangements between suppliers and the large supermarkets typically favor the interests of the latter, especially where a small supplier is heavily dependent on one large supermarket chain for revenues. EU countries are subject to stringent quality laws, which can impact upon profitability. For example, EU directive 2257/94 states that class one bananas must be free of abnormal curvature and at least 14cm long. Some directives have recently been discarded, such as one which stated that carrots less than 1.9 cm in diameter at the thick end may not be sold as class one unless marketed as a baby variety, so regulation has eased somewhat. However, many others (such as 2257/94) still exist and make it essential for farmers to get their crop compliant or risk throwing away produce. Low switching costs, combined with a relatively low level of product differentiation, detract considerably from supplier power. Overall, the European fruit and vegetables market displays weak supplier power.

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New entrants
Figure 32: Factors influencing the likelihood of new entrants in the fruit & vegetables market in Europe, 2010
Source: Datamonitor
DATAMONITOR
Entering the retail market is possible without extensive capital outlay, i.e. finding a niche market or offering organic products, may form a successful strategy. However, with the dominance of leading supermarkets, newcomers must be prepared such companies usually enjoy strong brand recognition and benefit from scale economies. The latter allows them to compete more intensely on price, something which appeals to consumers. Consumers within this market incur negligible costs on switching from incumbent retailers to newcomers and the product on offer is hard to differentiate, which attracts new players. The threat of new entrants into the fruit and vegetables market is deemed to be moderate.

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Substitutes
Figure 33: Factors influencing the threat of substitutes in the fruit & vegetables market in Europe, 2010
Source: Datamonitor
DATAMONITOR

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Rivalry
Figure 34: Drivers of degree of rivalry in the fruit & vegetables market in Europe, 2010
Source: Datamonitor
DATAMONITOR
In many developed economies, a small number of players, typically leading supermarkets, dominate concentrated food retail markets. In other countries, concentration is lower, but the number of players is correspondingly larger boosting the competition somewhat. Switching costs for consumers are negligible, and there is little opportunity for retailers to differentiate their offering. Fruit and vegetables are perishable, thus it is important for retailers to be able to sell their entire inventory to avoid losses due to waste. This effectively means that storage costs are inherently high for this market. Rivalry within the fruit and vegetable market is strong, reflecting the high level of competition between the large supermarkets who are its leading constituents.

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Market forecasts
In 2015, the European fruit & vegetables market is forecast to have a value of $196.5 billion, an increase of 29% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 5.2%. Table 17: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Europe fruit & vegetables market value forecast: $ billion, 201015 $ billion 152.3 161.4 169.8 178.6 187.6 196.5 billion 114.7 121.5 127.9 134.5 141.3 148.0 % Growth 5.0% 5.9% 5.2% 5.2% 5.1% 4.7% 5.2% DATAMONITOR
Figure 35: Europe fruit & vegetables market value forecast: $ billion, 201015
Source: Datamonitor
DATAMONITOR

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In 2015, the European fruit & vegetables market is forecast to have a volume of 94.2 million tonne, an increase of 1.4% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 0.3%. Table 18: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Europe fruit & vegetables market volume forecast: million tonne, 201015 million tonne 92.9 93.1 93.3 93.7 93.9 94.2 % Growth 0.2% 0.2% 0.2% 0.3% 0.3% 0.3% 0.3% DATAMONITOR
Figure 36: Europe fruit & vegetables market volume forecast: million tonne, 201015
Source: Datamonitor
DATAMONITOR

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FRUIT & VEGETABLES IN FRANCE

Market overview
Research highlights
The French fruit & vegetables market had total revenues of $15.2 billion in 2010, representing a compound annual growth rate (CAGR) of 3% for the period spanning 2006-2010. Market consumption volumes increased with a CAGR of 0.9% between 2006 and 2010, to reach a total of 6.2 million tons in 2010. The performance of the market is forecast to accelerate, with an anticipated CAGR of 3.2% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $17.7 billion by the end of 2015.
Market analysis
The French fruit & vegetables market had moderate growth in 2010 after suffering a decline during 2009. The market is expected to continue growing towards the end of the forecast period. The volume of fruit and vegetables sold suffered a decline in 2010; however volumes are forecast to experience moderate growth during 2010-2015. The French fruit & vegetables market had total revenues of $15.2 billion in 2010, representing a compound annual growth rate (CAGR) of 3% for the period spanning 2006-2010. In comparison, the German market declined with a compound annual rate of change (CARC) of -5.9%, and the UK market increased with a CAGR of 2.9%, over the same period, to reach respective values of $16.3 billion and $17 billion in 2010. Market consumption volumes increased with a CAGR of 0.9% between 2006 and 2010, to reach a total of 6.2 million tons in 2010. The market's volume is expected to rise to 6.9 million tons by the end of 2015, representing a CAGR of 2.2% for the 2010-2015 period. The vegetables segment was the market's most lucrative in 2010, with total revenues of $9.1 billion, equivalent to 60.1% of the market's overall value. The fruit segment contributed revenues of $6.1 billion in 2010, equating to 39.9% of the market's aggregate value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 3.2% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $17.7 billion by the end of 2015. Comparatively, the German and UK markets will grow with CAGRs of 2.3% and 3.8% respectively, over the same period, to reach respective values of $18.3 billion and $20.5 billion in 2015.

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Market value
The French fruit & vegetables market grew by 3.8% in 2010 to reach a value of $15.2 billion. The compound annual growth rate of the market in the period 200610 was 3%. Table 19: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor France fruit & vegetables market value: $ billion, 200610 $ billion 13.5 15.1 15.3 14.6 15.2 billion 10.2 11.4 11.6 11.0 11.4 % Growth 12.0% 1.8% (4.9%) 3.8% 3.0% DATAMONITOR
Figure 37: France fruit & vegetables market value: $ billion, 200610
Source: Datamonitor
DATAMONITOR

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Market volume
The French fruit & vegetables market shrank by 5.8% in 2010 to reach a volume of 6.2 million tonne. The compound annual growth rate of the market in the period 200610 was 0.9%. Table 20: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor France fruit & vegetables market volume: million tonne, 200610 million tonne 6.0 6.5 6.5 6.6 6.2 % Growth 9.3% 0.1% 0.4% (5.8%) 0.9% DATAMONITOR
Figure 38: France fruit & vegetables market volume: million tonne, 200610
Source: Datamonitor
DATAMONITOR

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Vegetables is the largest segment of the fruit & vegetables market in France, accounting for 60.1% of the market's total value. The fruit segment accounts for the remaining 39.9% of the market. Table 21: Category Vegetables Fruit Total Source: Datamonitor France fruit & vegetables Market segmentation I:% share, by value, 2010 % Share 60.1% 39.9% 100% DATAMONITOR
Figure 39: France fruit & vegetables Market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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France accounts for 10% of the European fruit & vegetables market value. Spain accounts for a further 15% of the European market. Table 22: Category Spain Italy United Kingdom Germany France Rest of Europe Total Source: Datamonitor France fruit & vegetables Market segmentation II: % share, by value, 2010 % Share 15.0% 11.7% 11.2% 10.7% 10.0% 41.5% 100% DATAMONITOR
Figure 40: France fruit & vegetables Market segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Summary
Figure 41: Forces driving competition in the fruit & vegetables market in France, 2010
Source: Datamonitor
DATAMONITOR
The fruit and vegetables market is concentrated, with large supermarket chains using their bargaining power and brand strength to establish their domination. The French fruit and vegetables market is dominated by large supermarkets, such as E. Leclerc, Auchan and Carrefour. Buyers power is considered to be weak due to the products indispensable nature, and as suppliers are typically quite small and supply only a small number of products, they are vulnerable to players sourcing alternatives, coming from competing suppliers. Capital requirements for entry to food retail markets are generally not very high, and even with government regulations being stricter than in other regions, there is a risk of new companies entering the market; this is however eased by the presence of large supermarket chains, which exercise great bargaining power, constituting entry barriers.

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Buyer power
Figure 42: Drivers of buyer power in the fruit & vegetables market in France, 2010
Source: Datamonitor
DATAMONITOR
Leading supermarkets, including E. Leclerc, Auchan and Carrefour, dominate the fruit and vegetable market in France. Given that fruit and vegetables are largely commodity items, there is little to differentiate between retailers and therefore many factors affecting buyer power, within the fruit and vegetable market, are interdependent with those of supermarket retail collectively, especially the brand loyalty enjoyed by leading supermarkets and their ability to offer low prices. Fruit and vegetables provide key nutrients that are vital to buyers, such as vitamins and minerals and therefore buyer power is reduced. Overall buyer power within the fruit and vegetable market is weak.

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Supplier power
Figure 43: Drivers of supplier power in the fruit & vegetables market in France, 2010
Source: Datamonitor
DATAMONITOR
A large number of independent farmers constitute the main supply channel for the fruit and vegetable market. In dominating the fruit and vegetable market, large supermarket chains wield their large purchasing power to negotiate low prices and extended terms of credit through bulk purchasing. Contractual arrangements between suppliers and the large supermarkets typically favor the interests of the latter, especially where a small supplier is heavily dependent on one large supermarket chain for revenues. EU countries are subject to stringent quality laws which can impact upon profitability. For example, EU directive 2257/94 states that class one bananas must be free of abnormal curvature and at least 14cm long. Some directives have recently been discarded, such as one which stated that carrots less than 1.9 cm in diameter at the thick end may not be sold as class one unless marketed as a baby variety, so regulation has eased somewhat. However, many others (such as 2257/94) still exist and make it essential for farmers to get their crop compliant or risk throwing away produce. Low switching costs, combined with a relatively low level of product differentiation, detract considerably from supplier power. Overall, the French fruit and vegetables market displays weak supplier power.

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New entrants
Figure 44: Factors influencing the likelihood of new entrants in the fruit & vegetables market in France, 2010
Source: Datamonitor
DATAMONITOR
Entering the retail market is possible without extensive capital outlay, i.e. finding a niche market or offering organic products, may form a successful strategy. However, with the dominance of leading supermarkets, newcomers must be prepared such companies usually enjoy strong brand recognition and benefit from scale economies. The latter allows them to compete more intensely on price, something which appeals to consumers. Consumers within this market incur negligible costs on switching from incumbent retailers to newcomers and the product on offer is hard to differentiate, which attracts new players. The French fruit and vegetables market's modest growth forecast during the 2010-2015 period also serves to deter new entrants. The threat of new entrants into the fruit and vegetables market is deemed to be moderate.

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Substitutes
Figure 45: Factors influencing the threat of substitutes in the fruit & vegetables market in France, 2010
Source: Datamonitor
DATAMONITOR

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Rivalry
Figure 46: Drivers of degree of rivalry in the fruit & vegetables market in France, 2010
Source: Datamonitor
DATAMONITOR
In France, a small number of players, typically leading supermarkets, dominate highly concentrated food retail markets and there is little opportunity for retailers to differentiate their offering strongly. Switching costs for consumers are negligible, and there is little opportunity for retailers to differentiate their offering. Fruit and vegetables are perishable, thus it is important for retailers to be able to sell their entire inventory to avoid losses due to waste. This effectively means that storage costs are inherently high for this market. Rivalry within the fruit and vegetable market is strong, reflecting the high level of competition between the large supermarkets who are its leading constituents.

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Market forecasts
In 2015, the French fruit & vegetables market is forecast to have a value of $17.7 billion, an increase of 16.4% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 3.2%. Table 23: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor France fruit & vegetables market value forecast: $ billion, 201015 $ billion 15.2 15.6 16.2 16.9 17.6 17.7 billion 11.4 11.8 12.3 12.8 13.3 13.4 % Growth 3.8% 3.2% 3.8% 4.2% 4.1% 0.6% 3.2% DATAMONITOR
Figure 47: France fruit & vegetables market value forecast: $ billion, 201015
Source: Datamonitor
DATAMONITOR

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In 2015, the French fruit & vegetables market is forecast to have a volume of 6.9 million tonne, an increase of 11.2% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 2.2%. Table 24: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor France fruit & vegetables market volume forecast: million tonne, 201015 million tonne 6.2 6.6 6.7 6.8 6.8 6.9 % Growth (5.8%) 6.6% 1.2% 1.1% 1.0% 1.0% 2.2% DATAMONITOR
Figure 48: France fruit & vegetables market volume forecast: million tonne, 201015
Source: Datamonitor
DATAMONITOR

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Macroeconomic indicators
Table 25: Year 2006 2007 2008 2009 2010 Source: Datamonitor France size of population (million), 200610 Population (million) 61.6 62.0 62.3 62.6 63.0 % Growth 0.7% 0.6% 0.5% 0.5% 0.5% DATAMONITOR
Table 26: Year 2006 2007 2008 2009 2010
France gdp (constant 2000 prices, $ billion), 200610 Constant 2000 Prices, $ billion 1,474.7 1,508.6 1,507.1 1,466.4 1,486.9 % Growth 2.5% 2.3% (0.1%) (2.7%) 1.4% DATAMONITOR
Source: Datamonitor
Table 27: Year 2006 2007 2008 2009 2010
France gdp (current prices, $ billion), 200610 Current Prices, $ billion 2,245.9 2,548.2 2,820.3 2,599.6 2,554.4 % Growth 5.1% 13.5% 10.7% (7.8%) (1.7%) DATAMONITOR
Source: Datamonitor

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Table 28: Year 2006 2007 2008 2009 2010
France inflation, 200610 Inflation Rate (%) 1.7% 1.6% 3.2% 0.1% 1.7% DATAMONITOR
Source: Datamonitor
Table 29: Year 2006 2007 2008 2009 2010
France consumer price index (absolute), 200610 Consumer Price Index (2000 = 100) 112.1 113.9 117.5 117.6 119.6 DATAMONITOR
Source: Datamonitor
Table 30: Year 2006 2007 2008 2009 2010
France exchange rate, 200610 Exchange rate ($/) 0.7970 0.7308 0.6834 0.7192 0.7549 DATAMONITOR
Source: Datamonitor

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FRUIT & VEGETABLES IN GERMANY

Market overview
Research highlights
The German fruit & vegetables market had total revenue of $16.3 billion in 2010, representing a compound annual rate of change (CARC) of -5.9% for the period spanning 2006-2010. Market consumption volumes decreased with a CARC of -2.5% between 2006 and 2010, to reach a total of 8.6 million tons in 2010. The performance of the market is forecast to accelerate, with an anticipated compound annual growth rate (CAGR) of 2.3% for the five-year period 2010-2015, which is expected to drive the market to a value of $18.3 billion by the end of 2015.
Market analysis
The German fruit & vegetables market experienced a recovery in growth during 2010 after 2009 saw a 24.4% decline in value. The volume of fruit and vegetables sold is anticipated to see a slight decline during the 2010-2015 period. The German fruit & vegetables market had total revenues of $16.3 billion in 2010, representing a compound annual rate of change (CARC) of -5.9% for the period spanning 2006-2010. In comparison, the French and UK markets grew with compound annual growth rate (CAGR) of 3% and 2.9% respectively, over the same period, to reach respective values of $15.2 billion and $17 billion in 2010. Market consumption volumes decreased with a CARC of -2.5% between 2006 and 2010, to reach a total of 8.6 million tons in 2010. The market's volume is expected to fall to 7.9 million tons by the end of 2015, representing a CARC of -1.7% for the 2010-2015 period. The vegetables segment was the market's most lucrative in 2010, with total revenues of $9.4 billion, equivalent to 57.4% of the market's overall value. The fruit segment contributed revenues of $7 billion in 2010, equating to 42.6% of the market's aggregate value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 2.3% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $18.3 billion by the end of 2015. Comparatively, the French and UK markets will grow with CAGRs of 3.2% and 3.8% respectively, over the same period, to reach respective values of $17.7 billion and $20.5 billion in 2015.

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Market value
The German fruit & vegetables market grew by 1.6% in 2010 to reach a value of $16.3 billion. The compound annual rate of change of the market in the period 200610 was -5.9%. Table 31: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Germany fruit & vegetables market value: $ billion, 200610 $ billion 20.8 20.8 21.2 16.1 16.3 billion 15.7 15.7 16.0 12.1 12.3 % Growth 0.3% 1.9% (24.4%) 1.6% (5.9%) DATAMONITOR
Figure 49: Germany fruit & vegetables market value: $ billion, 200610
Source: Datamonitor
DATAMONITOR

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Market volume
The German fruit & vegetables market shrank by 4.6% in 2010 to reach a volume of 8.6 million tonne. The compound annual rate of change of the market in the period 200610 was -2.5%. Table 32: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Germany fruit & vegetables market volume: million tonne, 200610 million tonne 9.5 9.3 9.2 9.0 8.6 % Growth (2.8%) (1.0%) (1.3%) (4.6%) (2.5%) DATAMONITOR
Figure 50: Germany fruit & vegetables market volume: million tonne, 200610
Source: Datamonitor
DATAMONITOR

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Vegetables is the largest segment of the fruit & vegetables market in Germany, accounting for 57.4% of the market's total value. The fruit segment accounts for the remaining 42.6% of the market. Table 33: Category Vegetables Fruit Total Source: Datamonitor Germany fruit & vegetables Market segmentation I:% share, by value, 2010 % Share 57.4% 42.6% 100% DATAMONITOR
Figure 51: Germany fruit & vegetables Market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Germany accounts for 10.7% of the European fruit & vegetables market value. Spain accounts for a further 15% of the European market. Table 34: Category Spain Italy United Kingdom Germany France Rest of Europe Total Source: Datamonitor Germany fruit & vegetables Market segmentation II: % share, by value, 2010 % Share 15.0% 11.7% 11.2% 10.7% 10.0% 41.5% 100% DATAMONITOR
Figure 52: Germany fruit & vegetables Market segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Summary
Figure 53: Forces driving competition in the fruit & vegetables market in Germany, 2010
Source: Datamonitor
DATAMONITOR
The fruit and vegetables market is concentrated, with large supermarket chains using their bargaining power and brand strength to establish their domination. The German fruit and vegetables market is dominated by large supermarkets, such as Rewe, ALDI and Edeka. Buyers power is considered to be weak due to the products indispensable nature, and as suppliers are typically quite small and supply only a small number of products, they are vulnerable to players sourcing alternatives, coming from competing suppliers. Capital requirements for entry to food retail markets are generally not very high, and even with government regulations being stricter than in other regions, there is a risk of new companies entering the market; this is however eased by the presence of large supermarket chains, which exercise great bargaining power, constituting entry barriers.

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Buyer power
Figure 54: Drivers of buyer power in the fruit & vegetables market in Germany, 2010
Source: Datamonitor
DATAMONITOR
Leading supermarkets, including Rewe, ALDI and Edeka, dominate the fruit and vegetable market in Germany. Given that fruit and vegetables are largely commodity items, there is little to differentiate between retailers and therefore many factors affecting buyer power, within the fruit and vegetable market, are interdependent with those of supermarket retail collectively, especially the brand loyalty enjoyed by leading supermarkets and their ability to offer low prices. Fruit and vegetables provide key nutrients that are vital to buyers, such as vitamins and minerals and therefore buyer power is reduced. Overall buyer power within the fruit and vegetable market is weak.

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Supplier power
Figure 55: Drivers of supplier power in the fruit & vegetables market in Germany, 2010
Source: Datamonitor
DATAMONITOR
A large number of independent farmers constitute the main supply channel for the fruit and vegetable market. In dominating the fruit and vegetable market, large supermarket chains wield their large purchasing power to negotiate low prices and extended terms of credit through bulk purchasing. Contractual arrangements between suppliers and the large supermarkets typically favor the interests of the latter, especially where a small supplier is heavily dependent on one large supermarket chain for revenues. EU countries are subject to stringent quality laws which can impact upon profitability. For example, EU directive 2257/94 states that class one bananas must be free of abnormal curvature and at least 14cm long. Some directives have recently been discarded, such as one which stated that carrots less than 1.9 cm in diameter at the thick end may not be sold as class one unless marketed as a baby variety, so regulation has eased somewhat. However, many others (such as 2257/94) still exist and make it essential for farmers to get their crop compliant or risk throwing away produce. Low switching costs combined, with a relatively low level of product differentiation, detract considerably from supplier power. Overall, the German fruit and vegetables market displays weak supplier power.

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New entrants
Figure 56: Factors influencing the likelihood of new entrants in the fruit & vegetables market in Germany, 2010
Source: Datamonitor
DATAMONITOR
Entering the retail market is possible without extensive capital outlay, i.e. finding a niche market or offering organic products, may form a successful strategy. However, with the dominance of leading supermarkets, newcomers must be prepared such companies usually enjoy strong brand recognition and benefit from scale economies. The latter allows them to compete more intensely on price, something which appeals to consumers. Consumers within this market incur negligible costs on switching from incumbent retailers to newcomers and the product on offer is hard to differentiate, which attracts new players. The German fruit and vegetables market's modest growth forecast during the 2010-2015 period also serves to deter new entrants. The threat of new entrants into the fruit and vegetables market is deemed to be moderate.

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Substitutes
Figure 57: Factors influencing the threat of substitutes in the fruit & vegetables market in Germany, 2010
Source: Datamonitor
DATAMONITOR

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Rivalry
Figure 58: Drivers of degree of rivalry in the fruit & vegetables market in Germany, 2010
Source: Datamonitor
DATAMONITOR
In Germany, a small number of players, typically leading supermarkets, dominate highly concentrated food retail markets and there is little opportunity for retailers to differentiate their offering strongly. Switching costs for consumers are negligible, and there is little opportunity for retailers to differentiate their offering. Fruit and vegetables are perishable, thus it is important for retailers to be able to sell their entire inventory to avoid losses due to waste. This effectively means that storage costs are inherently high for this market. Rivalry within the fruit and vegetable market is strong, reflecting the high level of competition between the large supermarkets who are its leading constituents.

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Market forecasts
In 2015, the German fruit & vegetables market is forecast to have a value of $18.3 billion, an increase of 12.3% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 2.3%. Table 35: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Germany fruit & vegetables market value forecast: $ billion, 201015 $ billion 16.3 18.3 18.2 18.2 18.2 18.3 billion 12.3 13.8 13.8 13.8 13.8 13.8 % Growth 1.6% 12.0% (0.1%) 0.0% 0.1% 0.1% 2.3% DATAMONITOR
Figure 59: Germany fruit & vegetables market value forecast: $ billion, 201015
Source: Datamonitor
DATAMONITOR

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In 2015, the German fruit & vegetables market is forecast to have a volume of 7.9 million tonne, a decrease of 8.1% since 2010. The compound annual rate of change of the market in the period 201015 is predicted to be -1.7%. Table 36: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Germany fruit & vegetables market volume forecast: million tonne, 201015 million tonne 8.6 8.5 8.3 8.2 8.0 7.9 % Growth (4.6%) (1.7%) (1.9%) (1.7%) (1.6%) (1.5%) (1.7%) DATAMONITOR
Figure 60: Germany fruit & vegetables market volume forecast: million tonne, 201015
Source: Datamonitor
DATAMONITOR

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Table 37: Year 2006 2007 2008 2009 2010 Source: Datamonitor Germany size of population (million), 200610 Population (million) 82.4 82.3 82.1 81.9 81.7 % Growth (0.1%) (0.1%) (0.2%) (0.3%) (0.3%) DATAMONITOR
Table 38: Year 2006 2007 2008 2009 2010
Germany gdp (constant 2000 prices, $ billion), 200610 Constant 2000 Prices, $ billion 2,029.3 2,096.3 2,117.0 2,009.1 2,081.9 % Growth 3.4% 3.3% 1.0% (5.1%) 3.6% DATAMONITOR
Source: Datamonitor
Table 39: Year 2006 2007 2008 2009 2010
Germany gdp (current prices, $ billion), 200610 Current Prices, $ billion 3,036.1 3,502.0 3,902.8 3,512.8 3,507.6 % Growth 5.9% 15.3% 11.4% (10.0%) (0.1%) DATAMONITOR
Source: Datamonitor

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Table 40: Year 2006 2007 2008 2009 2010
Germany inflation, 200610 Inflation Rate (%) 1.7% 2.3% 2.8% 0.2% 1.1% DATAMONITOR
Source: Datamonitor
Table 41: Year 2006 2007 2008 2009 2010
Germany consumer price index (absolute), 200610 Consumer Price Index (2000 = 100) 110.1 112.6 115.7 116.0 117.3 DATAMONITOR
Source: Datamonitor
Table 42: Year 2006 2007 2008 2009 2010
Germany exchange rate, 200610 Exchange rate ($/) 0.7970 0.7308 0.6834 0.7192 0.7549 DATAMONITOR
Source: Datamonitor

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FRUIT & VEGETABLES IN ITALY

Market overview
Research highlights
The Italian fruit & vegetables market had total revenues of $17.8 billion in 2010, representing a compound annual growth rate (CAGR) of 1.8% for the period spanning 2006-2010. Market consumption volumes increased with a CAGR of 0.2% between 2006 and 2010, to reach a total of 8.3 million tons in 2010. The performance of the market is forecast to accelerate, with an anticipated CAGR of 1.9% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $19.6 billion by the end of 2015.
Market analysis
The Italian fruit & vegetables market experienced minimal growth during 2010; however growth during the 2010-2015 period is forecast to see a slight acceleration. The volume of fruit and vegetables sold is expected to suffer a decline during the forecast period. The Italian fruit & vegetables market had total revenues of $17.8 billion in 2010, representing a compound annual growth rate (CAGR) of 1.8% for the period spanning 2006-2010. In comparison, the French market increased with a CAGR of 3%, and the German market declined with a compound annual rate of change (CARC) of -5.9%, over the same period, to reach respective values of $15.2 billion and $16.3 billion in 2010. Market consumption volumes increased with a CAGR of 0.2% between 2006 and 2010, to reach a total of 8.3 million tons in 2010. The market's volume is expected to fall to 7.6 million tons by the end of 2015, representing a CARC of -1.7% for the 2010-2015 period. The fruit segment was the market's most lucrative in 2010, with total revenues of over $8.9 billion, equivalent to 50.2% of the market's overall value. The vegetables segment contributed revenues of just under $8.9 billion in 2010, equating to 49.8% of the market's aggregate value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 1.9% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $19.6 billion by the end of 2015. Comparatively, the French and German markets will grow with CAGRs of 3.2% and 2.3% respectively, over the same period, to reach respective values of $17.7 billion and $18.3 billion in 2015.

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Market value
The Italian fruit & vegetables market grew by 0.4% in 2010 to reach a value of $17,816 million. The compound annual growth rate of the market in the period 200610 was 1.8%. Table 43: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Italy fruit & vegetables market value: $ million, 200610 $ million 16,590.9 17,459.5 17,483.9 17,745.4 17,816.0 million 12,524.1 13,179.8 13,198.3 13,395.7 13,448.9 % Growth 5.2% 0.1% 1.5% 0.4% 1.8% DATAMONITOR
Figure 61: Italy fruit & vegetables market value: $ million, 200610
Source: Datamonitor
DATAMONITOR

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Market volume
The Italian fruit & vegetables market grew by 0.2% in 2010 to reach a volume of 8.3 million tonne. The compound annual growth rate of the market in the period 200610 was 0.2%. Table 44: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Italy fruit & vegetables market volume: million tonne, 200610 million tonne 8.2 8.2 8.2 8.3 8.3 % Growth 0.4% (0.4%) 0.7% 0.2% 0.2% DATAMONITOR
Figure 62: Italy fruit & vegetables market volume: million tonne, 200610
Source: Datamonitor
DATAMONITOR

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Fruit is the largest segment of the fruit & vegetables market in Italy, accounting for 50.2% of the market's total value. The vegetables segment accounts for the remaining 49.8% of the market. Table 45: Category Fruit Vegetables Total Source: Datamonitor Italy fruit & vegetables Market segmentation I:% share, by value, 2010 % Share 50.2% 49.8% 100% DATAMONITOR
Figure 63: Italy fruit & vegetables Market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Italy accounts for 11.7% of the European fruit & vegetables market value. United Kingdom accounts for a further 11.2% of the European market. Table 46: Category Italy United Kingdom Germany France Rest of Europe Total Source: Datamonitor Italy fruit & vegetables Market segmentation II: % share, by value, 2010 % Share 11.7% 11.2% 10.7% 10.0% 56.5% 100% DATAMONITOR
Figure 64: Italy fruit & vegetables Market segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Summary
Figure 65: Forces driving competition in the fruit & vegetables market in Italy, 2010
Source: Datamonitor
DATAMONITOR
The fruit and vegetables market is concentrated, with large supermarket chains using their bargaining power and brand strength to establish their domination. The Italian fruit and vegetables market is dominated by large supermarkets, such as Coop Italia, Conad and Carrefour. Buyers power is considered to be weak due to the products indispensable nature, and as suppliers are typically quite small and supply only a small number of products, they are vulnerable to players sourcing alternatives, coming from competing suppliers. Capital requirements for entry to food retail markets are generally not very high, and even with government regulations being stricter than in other regions, there is a risk of new companies entering the market; this is however eased by the presence of large supermarket chains, which exercise great bargaining power, constituting entry barriers.

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Buyer power
Figure 66: Drivers of buyer power in the fruit & vegetables market in Italy, 2010
Source: Datamonitor
DATAMONITOR
Leading supermarkets, including Coop Italia, Conad and Carrefour, dominate the fruit and vegetable market in many countries. Given that fruit and vegetables are largely commodity items, there is little to differentiate between retailers and therefore many factors affecting buyer power, within the fruit and vegetable market, are interdependent with those of supermarket retail collectively, especially the brand loyalty enjoyed by leading supermarkets and their ability to offer low prices. Fruit and vegetables provide key nutrients that are vital to buyers, such as vitamins and minerals and therefore buyer power is reduced. Overall buyer power within the fruit and vegetable market is weak.

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Supplier power
Figure 67: Drivers of supplier power in the fruit & vegetables market in Italy, 2010
Source: Datamonitor
DATAMONITOR
A large number of independent farmers constitute the main supply channel for the fruit and vegetable market. In dominating the fruit and vegetable market, large supermarket chains wield their large purchasing power to negotiate low prices and extended terms of credit through bulk purchasing. Contractual arrangements between suppliers and the large supermarkets typically favor the interests of the latter, especially where a small supplier is heavily dependent on one large supermarket chain for revenues. EU countries are subject to stringent quality laws which can impact upon profitability. For example, EU directive 2257/94 states that class one bananas must be free of abnormal curvature and at least 14cm long. Some directives have recently been discarded, such as one which stated that carrots less than 1.9 cm in diameter at the thick end may not be sold as class one unless marketed as a baby variety, so regulation has eased somewhat. However, many others (such as 2257/94) still exist and make it essential for farmers to get their crop compliant or risk throwing away produce. Low switching costs, combined with a relatively low level of product differentiation, detract considerably from supplier power. Overall, the Italian fruit and vegetables market displays weak supplier power.

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New entrants
Figure 68: Factors influencing the likelihood of new entrants in the fruit & vegetables market in Italy, 2010
Source: Datamonitor
DATAMONITOR
Entering the retail market is possible without extensive capital outlay, i.e. finding a niche market or offering organic products, may form a successful strategy. However, with the dominance of leading supermarkets, newcomers must be prepared such companies usually enjoy strong brand recognition and benefit from scale economies. The latter allows them to compete more intensely on price, something which appeals to consumers. Consumers within this market incur negligible costs on switching from incumbent retailers to newcomers and the product on offer is hard to differentiate, which attracts new players. However, the Italian fruit and vegetables market's stagnant growth forecast during the 2010-2015 period serves to deter new entrants. Overall the threat of new entrants into the fruit and vegetables market is deemed to be moderate.

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Substitutes
Figure 69: Factors influencing the threat of substitutes in the fruit & vegetables market in Italy, 2010
Source: Datamonitor
DATAMONITOR

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Rivalry
Figure 70: Drivers of degree of rivalry in the fruit & vegetables market in Italy, 2010
Source: Datamonitor
DATAMONITOR
In Italy, a small number of players, typically leading supermarkets, dominate highly concentrated food retail markets and there is little opportunity for retailers to differentiate their offering strongly. Switching costs for consumers are negligible, and there is little opportunity for retailers to differentiate their offering. Fruit and vegetables are perishable, thus it is important for retailers to be able to sell their entire inventory to avoid losses due to waste. This effectively means that storage costs are inherently high for this market. Rivalry within the fruit and vegetable market is strong, reflecting the high level of competition between the large supermarkets who are its leading constituents.

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Market forecasts
In 2015, the Italian fruit & vegetables market is forecast to have a value of $19,579.2 million, an increase of 9.9% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 1.9%. Table 47: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Italy fruit & vegetables market value forecast: $ million, 201015 $ million 17,816.0 17,422.5 17,934.3 18,443.2 18,980.1 19,579.2 million 13,448.9 13,151.9 13,538.2 13,922.4 14,327.7 14,779.9 % Growth 0.4% (2.2%) 2.9% 2.8% 2.9% 3.2% 1.9% DATAMONITOR
Figure 71: Italy fruit & vegetables market value forecast: $ million, 201015
Source: Datamonitor
DATAMONITOR

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In 2015, the Italian fruit & vegetables market is forecast to have a volume of 7.6 million tonne, a decrease of 8.4% since 2010. The compound annual rate of change of the market in the period 201015 is predicted to be -1.7%. Table 48: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Italy fruit & vegetables market volume forecast: million tonne, 201015 million tonne 8.3 7.9 7.8 7.7 7.6 7.6 % Growth 0.2% (5.2%) (1.0%) (0.9%) (0.8%) (0.7%) (1.7%) DATAMONITOR
Figure 72: Italy fruit & vegetables market volume forecast: million tonne, 201015
Source: Datamonitor
DATAMONITOR

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Table 49: Year 2006 2007 2008 2009 2010 Source: Datamonitor Italy size of population (million), 200610 Population (million) 58.9 59.4 59.8 60.2 60.5 % Growth 0.6% 0.7% 0.8% 0.6% 0.5% DATAMONITOR
Table 50: Year 2006 2007 2008 2009 2010
Italy gdp (constant 2000 prices, $ billion), 200610 Constant 2000 Prices, $ billion 1,173.6 1,191.0 1,175.2 1,113.7 1,127.6 % Growth 2.0% 1.5% (1.3%) (5.2%) 1.2% DATAMONITOR
Source: Datamonitor
Table 51: Year 2006 2007 2008 2009 2010
Italy gdp (current prices, $ billion), 200610 Current Prices, $ billion 1,839.4 2,078.7 2,279.5 2,059.8 2,019.0 % Growth 5.0% 13.0% 9.7% (9.6%) (2.0%) DATAMONITOR
Source: Datamonitor

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Table 52: Year 2006 2007 2008 2009 2010
Italy inflation, 200610 Inflation Rate (%) 2.1% 2.0% 3.5% 0.8% 1.6% DATAMONITOR
Source: Datamonitor
Table 53: Year 2006 2007 2008 2009 2010
Italy consumer price index (absolute), 200610 Consumer Price Index (2000 = 100) 115.3 117.7 121.8 122.7 124.7 DATAMONITOR
Source: Datamonitor
Table 54: Year 2006 2007 2008 2009 2010
Italy exchange rate, 200610 Exchange rate ($/) 0.7970 0.7308 0.6834 0.7192 0.7549 DATAMONITOR
Source: Datamonitor

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FRUIT & VEGETABLES IN JAPAN

Market overview
Research highlights
The Japanese fruit & vegetables market had total revenues of $42.1 billion in 2010, representing a compound annual growth rate (CAGR) of 0.3% for the period spanning 2006-2010. Market consumption volumes decreased with a compound annual rate of change (CARC) of -0.2% between 2006 and 2010, to reach a total of 26.7 million tons in 2010. The performance of the market is forecast to accelerate, with an anticipated CAGR of 0.7% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $43.5 billion by the end of 2015.
Market analysis
The Japanese fruit & vegetables market grew slowly in 2010 after suffering a slight decline in growth during 2009. The market is expected to experience stagnated growth during the 2010-2015 period. The volume of fruit and vegetables sold declined slightly in 2010; this trend is expected to continue towards the end of 2015. The Japanese fruit & vegetables market had total revenues of $42.1 billion in 2010, representing a compound annual growth rate (CAGR) of 0.3% for the period spanning 2006-2010. In comparison, the Chinese and Indian markets grew with CAGRs of 7.9% and 8.6% respectively, over the same period, to reach respective values of $153.9 billion and $28 billion in 2010. Market consumption volumes decreased with a compound annual rate of change (CARC) of -0.2% between 2006 and 2010, to reach a total of 26.7 million tons in 2010. The market's volume is expected to fall to 25.6 million tons by the end of 2015, representing a CARC of -0.9% for the 2010-2015 period. The vegetables segment was the market's most lucrative in 2010, with total revenues of $28 billion, equivalent to 66.4% of the market's overall value. The fruit segment contributed revenues of $14.1 billion in 2010, equating to 33.6% of the market's aggregate value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 0.7% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $43.5 billion by the end of 2015. Comparatively, the Chinese and Indian markets will grow with CAGRs of 6% and 8.8% respectively, over the same period, to reach respective values of $206 billion and $42.7 billion in 2015.

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Market value
The Japanese fruit & vegetables market grew by 1.9% in 2010 to reach a value of $42.1 billion. The compound annual growth rate of the market in the period 200610 was 0.3%. Table 55: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Japan fruit & vegetables market value: $ billion, 200610 $ billion 41.6 41.6 41.5 41.3 42.1 billion 3,652.6 3,657.6 3,644.9 3,627.9 3,695.1 billion 31.3 31.4 31.3 31.1 31.7 % Growth 0.1% (0.3%) (0.5%) 1.9% 0.3% DATAMONITOR
Figure 73: Japan fruit & vegetables market value: $ billion, 200610
Source: Datamonitor
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Market volume
The Japanese fruit & vegetables market shrank by 0.1% in 2010 to reach a volume of 26.7 million tonne. The compound annual rate of change of the market in the period 200610 was -0.2%. Table 56: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Japan fruit & vegetables market volume: million tonne, 200610 million tonne 26.9 26.9 26.9 26.8 26.7 % Growth (0.1%) (0.1%) (0.4%) (0.1%) (0.2%) DATAMONITOR
Figure 74: Japan fruit & vegetables market volume: million tonne, 200610
Source: Datamonitor
DATAMONITOR

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Vegetables is the largest segment of the fruit & vegetables market in Japan, accounting for 66.4% of the market's total value. The fruit segment accounts for the remaining 33.6% of the market. Table 57: Category Vegetables Fruit Total Source: Datamonitor Japan fruit & vegetables Market segmentation I:% share, by value, 2010 % Share 66.4% 33.6% 100% DATAMONITOR
Figure 75: Japan fruit & vegetables Market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Japan accounts for 15.9% of the Asia-Pacific fruit & vegetables market value. China accounts for a further 58% of the Asia-Pacific market. Table 58: Category China Japan India South Korea Rest of Asia-Pacific Total Source: Datamonitor Japan fruit & vegetables Market segmentation II: % share, by value, 2010 % Share 58.0% 15.9% 10.6% 2.8% 12.7% 100% DATAMONITOR
Figure 76: Japan fruit & vegetables Market segmentation II: % share, by value, 2010
Source: Datamonitor
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Summary
Figure 77: Forces driving competition in the fruit & vegetables market in Japan, 2010
Source: Datamonitor
DATAMONITOR
The fruit and vegetables market is concentrated, with large supermarket chains using their bargaining power and brand strength to establish their domination. The Japanese fruit and vegetables market is dominated by large supermarkets, such as Ito-Yokado, Aeon, and Daiei. Buyers power is considered to be weak due to the products indispensable nature, and as suppliers are typically quite small and supply only a small number of products, they are vulnerable to players sourcing alternatives, coming from competing suppliers. Capital requirements for entry to food retail markets are generally not very high, which tends to encourage new companies entering the market; however, the presence of large supermarket chains, which exercise great bargaining power, as well as heavy market regulations, act as a significant barrier to entry.

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Buyer power
Figure 78: Drivers of buyer power in the fruit & vegetables market in Japan, 2010
Source: Datamonitor
DATAMONITOR
Leading supermarkets, including Daiei and AEON, dominate the fruit and vegetable market in Japan. Given that fruit and vegetables are largely commodity items, there is little to differentiate between retailers and therefore many factors affecting buyer power, within the fruit and vegetable market, are interdependent with those of supermarket retail collectively, especially the brand loyalty enjoyed by leading supermarkets and their ability to offer low prices. Fruit and vegetables provide key nutrients that are vital to buyers, such as vitamins and minerals and therefore buyer power is reduced. Overall buyer power within the fruit and vegetable market is weak.

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Supplier power
Figure 79: Drivers of supplier power in the fruit & vegetables market in Japan, 2010
Source: Datamonitor
DATAMONITOR
A large number of independent farmers constitute the main supply channel for the fruit and vegetable market. In dominating the fruit and vegetable market, large supermarket chains wield their large purchasing power to negotiate low prices and extended terms of credit through bulk purchasing. Contractual arrangements between suppliers and the large supermarkets typically favor the interests of the latter, especially where a small supplier is heavily dependent on one large supermarket chain for revenues. The resultant low switching costs, combined with a relatively low level of product differentiation, detract considerably from supplier power. Overall, the Japanese fruit and vegetables market displays weak supplier power.

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New entrants
Figure 80: Factors influencing the likelihood of new entrants in the fruit & vegetables market in Japan, 2010
Source: Datamonitor
DATAMONITOR
Entering the retail market is possible without extensive capital outlay, i.e. finding a niche market or offering organic products, may form a successful strategy. However, with the dominance of leading supermarkets, newcomers must be prepared such companies usually enjoy strong brand recognition and benefit from scale economies. The latter allows them to compete more intensely on price, something which appeals to consumers. Consumers within this market incur negligible costs on switching from incumbent retailers to newcomers and the product on offer is hard to differentiate, which attracts new players. The fruit and vegetables market in Japan is highly regulated with the Ministry of Health, Labor and Welfare assuming responsibility for food standards. This covers everything from the sale of diseased meat to labeling standards. Such heavy regulation and the need for approval could act as a deterrent to potential newcomers. Moreover, the Japanese fruit and vegetables market has experienced stagnant growth for a number of years with stagnant growth forecast for the 2010-2015 period offering little in the way of incentives for new entrants. Overall, the Japanese fruit and vegetables market displays moderate threat of new entrants.

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Substitutes
Figure 81: Factors influencing the threat of substitutes in the fruit & vegetables market in Japan, 2010
Source: Datamonitor
DATAMONITOR

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Rivalry
Figure 82: Drivers of degree of rivalry in the fruit & vegetables market in Japan, 2010
Source: Datamonitor
DATAMONITOR
In Japan, a small number of players, typically leading supermarkets, dominate highly concentrated food retail markets and there is little opportunity for retailers to differentiate their offering strongly. Switching costs for consumers are negligible, and there is little opportunity for retailers to differentiate their offering. Fruit and vegetables are perishable, thus it is important for retailers to be able to sell their entire inventory to avoid losses due to waste. This effectively means that storage costs are inherently high for this market. Rivalry within the fruit and vegetable market is strong, reflecting the high level of competition between the large supermarkets who are its leading constituents.

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Market forecasts
In 2015, the Japanese fruit & vegetables market is forecast to have a value of $43.5 billion, an increase of 3.3% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 0.7%. Table 59: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Japan fruit & vegetables market value forecast: $ billion, 201015 $ billion 42.1 42.3 42.6 42.9 43.2 43.5 billion 3,695.1 3,717.1 3,741.3 3,767.6 3,795.5 3,824.9 billion 31.7 31.9 32.1 32.3 32.6 32.8 % Growth 1.9% 0.6% 0.7% 0.7% 0.7% 0.8% 0.7% DATAMONITOR
Figure 83: Japan fruit & vegetables market value forecast: $ billion, 201015
Source: Datamonitor
DATAMONITOR

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In 2015, the Japanese fruit & vegetables market is forecast to have a volume of 25.6 million tonne, a decrease of 4.4% since 2010. The compound annual rate of change of the market in the period 201015 is predicted to be -0.9%. Table 60: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Japan fruit & vegetables market volume forecast: million tonne, 201015 million tonne 26.7 26.5 26.3 26.1 25.8 25.6 % Growth (0.1%) (0.7%) (0.8%) (0.9%) (1.0%) (1.1%) (0.9%) DATAMONITOR
Figure 84: Japan fruit & vegetables market volume forecast: million tonne, 201015
Source: Datamonitor
DATAMONITOR

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Table 61: Year 2006 2007 2008 2009 2010 Source: Datamonitor Japan size of population (million), 200610 Population (million) 127.8 127.8 127.7 127.5 127.4 % Growth 0.0% 0.0% (0.1%) (0.1%) (0.1%) DATAMONITOR
Table 62: Year 2006 2007 2008 2009 2010
Japan gdp (constant 2000 prices, $ billion), 200610 Constant 2000 Prices, $ billion 4,799.7 4,873.4 4,702.8 4,452.0 4,561.7 % Growth 0.8% 1.5% (3.5%) (5.3%) 2.5% DATAMONITOR
Source: Datamonitor
Table 63: Year 2006 2007 2008 2009 2010
Japan gdp (current prices, $ billion), 200610 Current Prices, $ billion 4,362.6 4,378.0 4,880.0 5,033.0 5,457.7 % Growth (4.2%) 0.4% 11.5% 3.1% 8.4% DATAMONITOR
Source: Datamonitor

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Table 64: Year 2006 2007 2008 2009 2010
Japan inflation, 200610 Inflation Rate (%) 0.3% 0.1% 1.4% (1.4%) (0.7%) DATAMONITOR
Source: Datamonitor
Table 65: Year 2006 2007 2008 2009 2010
Japan consumer price index (absolute), 200610 Consumer Price Index (2000 = 100) 98.1 98.2 99.5 98.2 97.5 DATAMONITOR
Source: Datamonitor
Table 66: Year 2006 2007 2008 2009 2010
Japan exchange rate, 200610 Exchange rate ($/) 116.3366 117.8145 103.4662 93.6167 87.8289 Exchange rate (/) 145.9627 161.2087 151.3969 130.1751 116.5760 DATAMONITOR
Source: Datamonitor

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FRUIT & VEGETABLES IN BELGIUM

Market overview
Research highlights
The Belgian fruit & vegetables market had total revenues of $6.4 billion in 2010, representing a compound annual growth rate (CAGR) of 6.2% for the period spanning 2006-2010. Market consumption volumes decreased with a compound annual rate of change (CARC) of -0.6% between 2006 and 2010, to reach a total of just under 1.9 million tons in 2010. The performance of the market is forecast to decelerate, with an anticipated CAGR of 3.3% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $7.5 billion by the end of 2015.
Market analysis
The Belgian fruit & vegetables market has experienced decelerating growth since 2008 with moderate growth during 2010. The market is expected to experience decelerated growth during the 2010-2015 period. The volume of fruit and vegetables experienced a fractional decline during 2010 which is expected to continue through to 2015. The Belgian fruit & vegetables market had total revenues of $6.4 billion in 2010, representing a compound annual growth rate (CAGR) of 6.2% for the period spanning 2006-2010. In comparison, the French market increased with a CAGR of 3%, and the German market declined with a compound annual rate of change (CARC) of -5.9%, over the same period, to reach respective values of $15.2 billion and $16.3 billion in 2010. Market consumption volumes decreased with a compound annual rate of change (CARC) of -0.6% between 2006 and 2010, to reach a total of just under 1.9 million tons in 2010. The market's volume is expected to fall fractionally to 1.88 million tons by the end of 2015, representing a CARC of -0.2% for the 2010-2015 period. The vegetables segment was the market's most lucrative in 2010, with total revenues of $3.7 billion, equivalent to 57.6% of the market's overall value. The fruit segment contributed revenues of $2.7 billion in 2010, equating to 42.4% of the market's aggregate value. The performance of the market is forecast to decelerate, with an anticipated CAGR of 3.3% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $7.5 billion by the end of 2015. Comparatively, the French and German markets will grow with CAGRs of 3.2% and 2.3% respectively, over the same period, to reach respective values of $17.7 billion and $18.3 billion in 2015.

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Market value
The Belgian fruit & vegetables market grew by 4.6% in 2010 to reach a value of $6,431.5 million. The compound annual growth rate of the market in the period 200610 was 6.2%. Table 67: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Belgium fruit & vegetables market value: $ million, 200610 $ million 5,054.0 5,118.6 5,717.1 6,147.8 6,431.5 million 3,815.2 3,864.0 4,315.7 4,640.9 4,855.0 % Growth 1.3% 11.7% 7.5% 4.6% 6.2% DATAMONITOR
Figure 85: Belgium fruit & vegetables market value: $ million, 200610
Source: Datamonitor
DATAMONITOR

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Market volume
The Belgian fruit & vegetables market shrank by 0.2% in 2010 to reach a volume of 1.9 million tonne. The compound annual rate of change of the market in the period 200610 was -0.6%. Table 68: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Belgium fruit & vegetables market volume: million tonne, 200610 million tonne 1.9 2.0 2.0 1.9 1.9 % Growth 1.0% 0.6% (3.8%) (0.2%) (0.6%) DATAMONITOR
Figure 86: Belgium fruit & vegetables market volume: million tonne, 200610
Source: Datamonitor
DATAMONITOR

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Vegetables is the largest segment of the fruit & vegetables market in Belgium, accounting for 57.6% of the market's total value. The fruit segment accounts for the remaining 42.4% of the market. Table 69: Category Vegetables Fruit Total Source: Datamonitor Belgium fruit & vegetables Market segmentation I:% share, by value, 2010 % Share 57.6% 42.4% 100% DATAMONITOR
Figure 87: Belgium fruit & vegetables Market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Belgium accounts for 4.2% of the European fruit & vegetables market value. Germany accounts for a further 10.7% of the European market. Table 70: Category Germany France Netherlands Belgium Rest of Europe Total Source: Datamonitor Belgium fruit & vegetables Market segmentation II: % share, by value, 2010 % Share 10.7% 10.0% 7.4% 4.2% 67.8% 100% DATAMONITOR
Figure 88: Belgium fruit & vegetables Market segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Summary
Figure 89: Forces driving competition in the fruit & vegetables market in Belgium, 2010
Source: Datamonitor
DATAMONITOR
The fruit and vegetables market is concentrated, with large supermarket chains using their bargaining power and brand strength to establish their domination. The Belgian fruit and vegetables market is dominated by large supermarkets, such as Wal-Colruyt, Delhaize Group and Carrefour. Buyers power is considered to be weak due to the products indispensable nature, and as suppliers are typically quite small and supply only a small number of products, they are vulnerable to players sourcing alternatives, coming from competing suppliers. Capital requirements for entry to food retail markets are generally not very high, and even with government regulations being stricter than in other regions, there is a risk of new companies entering the market; this is however eased by the presence of large supermarket chains, which exercise great bargaining power, constituting entry barriers.

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Buyer power
Figure 90: Drivers of buyer power in the fruit & vegetables market in Belgium, 2010
Source: Datamonitor
DATAMONITOR
Leading supermarkets, including Colruyt, Delhaize Group and Carrefour, dominate the fruit and vegetable market in Belgium. Given that fruit and vegetables are largely commodity items, there is little to differentiate between retailers and therefore many factors affecting buyer power, within the fruit and vegetable market, are interdependent with those of supermarket retail collectively, especially the brand loyalty enjoyed by leading supermarkets and their ability to offer low prices. Fruit and vegetables provide key nutrients that are vital to buyers, such as vitamins and minerals and therefore buyer power is reduced. Overall buyer power within the fruit and vegetable market is weak.

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Supplier power
Figure 91: Drivers of supplier power in the fruit & vegetables market in Belgium, 2010
Source: Datamonitor
DATAMONITOR
A large number of independent farmers constitute the main supply channel for the fruit and vegetable market. In dominating the fruit and vegetable market, large supermarket chains wield their large purchasing power to negotiate low prices and extended terms of credit through bulk purchasing. Contractual arrangements between suppliers and the large supermarkets typically favor the interests of the latter, especially where a small supplier is heavily dependent on one large supermarket chain for revenues. EU countries are subject to stringent quality laws which can impact upon profitability. For example, EU directive 2257/94 states that class one bananas must be free of abnormal curvature and at least 14cm long. Some directives have recently been discarded, such as one which stated that carrots less than 1.9 cm in diameter at the thick end may not be sold as class one unless marketed as a baby variety, so regulation has eased somewhat. However, many others (such as 2257/94) still exist and make it essential for farmers to get their crop compliant or risk throwing away produce. Low switching costs, combined with a relatively low level of product differentiation, detract considerably from supplier power. Overall, the Belgian fruit and vegetables market displays weak supplier power.

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New entrants
Figure 92: Factors influencing the likelihood of new entrants in the fruit & vegetables market in Belgium, 2010
Source: Datamonitor
DATAMONITOR
Entering the retail market is possible without extensive capital outlay, i.e. finding a niche market or offering organic products, may form a successful strategy. However, with the dominance of leading supermarkets, newcomers must be prepared such companies usually enjoy strong brand recognition and benefit from scale economies. The latter allows them to compete more intensely on price, something which appeals to consumers. Consumers within this market incur negligible costs on switching from incumbent retailers to newcomers and the product on offer is hard to differentiate, which attracts new players. Furthermore, the Belgian market's modest growth forecast during the 2010-2015 period also serves to deter new entrants. The threat of new entrants into the fruit and vegetables market is deemed to be moderate.

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Substitutes
Figure 93: Factors influencing the threat of substitutes in the fruit & vegetables market in Belgium, 2010
Source: Datamonitor
DATAMONITOR

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Rivalry
Figure 94: Drivers of degree of rivalry in the fruit & vegetables market in Belgium, 2010
Source: Datamonitor
DATAMONITOR
In Belgium, a small number of players, typically leading supermarkets, dominate highly concentrated food retail market and there is little opportunity for retailers to differentiate their offering strongly. Switching costs for consumers are negligible, and there is little opportunity for retailers to differentiate their offering. Fruit and vegetables are perishable, thus it is important for retailers to be able to sell their entire inventory to avoid losses due to waste. This effectively means that storage costs are inherently high for this market. Rivalry within the fruit and vegetable market is strong, reflecting the high level of competition between the large supermarkets who are its leading constituents.

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Market forecasts
In 2015, the Belgian fruit & vegetables market is forecast to have a value of $7,549.6 million, an increase of 17.4% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 3.3%. Table 71: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Belgium fruit & vegetables market value forecast: $ million, 201015 $ million 6,431.5 6,313.2 6,608.8 6,901.4 7,213.1 7,549.6 million 4,855.0 4,765.7 4,988.8 5,209.7 5,445.0 5,699.0 % Growth 4.6% (1.8%) 4.7% 4.4% 4.5% 4.7% 3.3% DATAMONITOR
Figure 95: Belgium fruit & vegetables market value forecast: $ million, 201015
Source: Datamonitor
DATAMONITOR

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In 2015, the Belgian fruit & vegetables market is forecast to have a volume of 1.9 million tonne, a decrease of 0.8% since 2010. The compound annual rate of change of the market in the period 201015 is predicted to be -0.2%. Table 72: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Belgium fruit & vegetables market volume forecast: million tonne, 201015 million tonne 1.9 1.9 1.9 1.9 1.9 1.9 % Growth (0.2%) (0.2%) (0.2%) (0.2%) (0.1%) (0.1%) (0.2%) DATAMONITOR
Figure 96: Belgium fruit & vegetables market volume forecast: million tonne, 201015
Source: Datamonitor
DATAMONITOR

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Table 73: Year 2006 2007 2008 2009 2010 Source: Datamonitor Belgium size of population (million), 200610 Population (million) 10.5 10.6 10.7 10.8 10.8 % Growth 0.7% 0.7% 0.8% 0.8% 0.1% DATAMONITOR
Table 74: Year 2006 2007 2008 2009 2010
Belgium gdp (constant 2000 prices, $ billion), 200610 Constant 2000 Prices, $ billion 258.8 266.3 269.0 261.7 267.2 % Growth 2.7% 2.9% 1.0% (2.7%) 2.1% DATAMONITOR
Source: Datamonitor
Table 75: Year 2006 2007 2008 2009 2010
Belgium gdp (current prices, $ billion), 200610 Current Prices, $ billion 397.5 454.7 515.3 474.3 472.0 % Growth 5.9% 14.4% 13.3% (8.0%) (0.5%) DATAMONITOR
Source: Datamonitor

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Table 76: Year 2006 2007 2008 2009 2010
Belgium inflation, 200610 Inflation Rate (%) 2.3% 1.8% 4.5% (0.1%) 2.3% DATAMONITOR
Source: Datamonitor
Table 77: Year 2006 2007 2008 2009 2010
Belgium consumer price index (absolute), 200610 Consumer Price Index (2000 = 100) 113.1 115.1 120.3 120.2 123.0 DATAMONITOR
Source: Datamonitor
Table 78: Year 2006 2007 2008 2009 2010
Belgium exchange rate, 200610 Exchange rate ($/) 0.7970 0.7308 0.6834 0.7192 0.7549 DATAMONITOR
Source: Datamonitor

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FRUIT & VEGETABLES IN CANADA

Market overview
Research highlights
The Canadian fruit & vegetables market had total revenues of $10.2 billion in 2010, representing a compound annual growth rate (CAGR) of 2% for the period spanning 2006-2010. Market consumption volumes increased with a CAGR of 0.2% between 2006 and 2010, to reach a total of 7 million tons in 2010. The performance of the market is forecast to accelerate, with an anticipated CAGR of 2.1% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $11.4 billion by the end of 2015.
Market analysis
The Canadian fruit & vegetables market experienced slow growth during 2010. The market is expected to continue growing steadily towards 2015. The volume of fruit and vegetables sold grew very little during 2010 and is expected to experience stagnant growth towards the end of the forecast period 2015. The Canadian fruit & vegetables market had total revenues of $10.2 billion in 2010, representing a compound annual growth rate (CAGR) of 2% for the period spanning 2006-2010. In comparison, the US and Mexican markets grew with CAGRs of 3.8% and 6% respectively, over the same period, to reach respective values of $108.4 billion and $7.4 billion in 2010. Market consumption volumes increased with a CAGR of 0.2% between 2006 and 2010, to reach a total of 7 million tons in 2010. The market's volume is expected to rise to 7.1 million tons by the end of 2015, representing a CAGR of 0.4% for the 2010-2015 period. The vegetables segment was the market's most lucrative in 2010, with total revenues of $6.2 billion, equivalent to 61% of the market's overall value. The fruit segment contributed revenues of $4 billion in 2010, equating to 39% of the market's aggregate value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 2.1% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $11.4 billion by the end of 2015. Comparatively, the US market will decline with a compound annual rate of change (CARC) of 4.1%, and the Mexican market will increase with a CAGR of 8.8%, over the same period, to reach respective values of $87.7 billion and $11.2 billion in 2015.

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Market value
The Canadian fruit & vegetables market grew by 2.6% in 2010 to reach a value of $10,221.4 million. The compound annual growth rate of the market in the period 200610 was 2%. Table 79: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Canada fruit & vegetables market value: $ million, 200610 $ million 9,460.8 9,606.7 9,504.4 9,965.5 10,221.4 C$ million 9,751.7 9,902.1 9,796.7 10,272.0 10,535.7 million 7,126.2 7,236.1 7,159.1 7,506.4 7,699.1 % Growth 1.5% (1.1%) 4.9% 2.6% 2.0% DATAMONITOR
Figure 97: Canada fruit & vegetables market value: $ million, 200610
Source: Datamonitor
DATAMONITOR

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Market volume
The Canadian fruit & vegetables market grew by 0.3% in 2010 to reach a volume of 7 million tonne. The compound annual growth rate of the market in the period 200610 was 0.2%. Table 80: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Canada fruit & vegetables market volume: million tonne, 200610 million tonne 6.9 6.9 6.8 7.0 7.0 % Growth (0.4%) (0.7%) 1.6% 0.3% 0.2% DATAMONITOR
Figure 98: Canada fruit & vegetables market volume: million tonne, 200610
Source: Datamonitor
DATAMONITOR

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Vegetables is the largest segment of the fruit & vegetables market in Canada, accounting for 61% of the market's total value. The fruit segment accounts for the remaining 39% of the market. Table 81: Category Vegetables Fruit Total Source: Datamonitor Canada fruit & vegetables Market segmentation I:% share, by value, 2010 % Share 61.0% 39.0% 100% DATAMONITOR
Figure 99: Canada fruit & vegetables Market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Canada accounts for 7% of the Americas fruit & vegetables market value. The United States accounts for a further 74.2% of the Americas market. Table 82: Category United States Canada Mexico Rest of the Americas Total Source: Datamonitor Canada fruit & vegetables Market segmentation II: % share, by value, 2010 % Share 74.2% 7.0% 5.0% 13.7% 100% DATAMONITOR
Figure 100: Canada fruit & vegetables Market segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Summary
Figure 101: Forces driving competition in the fruit & vegetables market in Canada, 2010
Source: Datamonitor
DATAMONITOR
The fruit and vegetables market is concentrated, with large supermarket chains using their bargaining power and brand strength to establish their domination. The market is dominated by large supermarkets, such as Metro Inc., Safeway, and Empire. Buyers power is considered to be weak due to the products indispensable nature, and as suppliers are typically quite small and supply only a small number of products, they are vulnerable to players sourcing alternatives, coming from competing suppliers. Capital requirements for entry to food retail markets are generally not very high and government regulations are relatively light, which tends to encourage new companies entering the market; however, the presence of large supermarket chains, which exercise great bargaining power, acts as a significant barrier to entry.

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Buyer power
Figure 102: Drivers of buyer power in the fruit & vegetables market in Canada, 2010
Source: Datamonitor
DATAMONITOR
Leading Canadian supermarkets, including Metro Inc. and Safeway, dominate the fruit and vegetable market. Given that fruit and vegetables are largely commodity items, there is little to differentiate between retailers and therefore many factors affecting buyer power, within the fruit and vegetable market, are interdependent with those of supermarket retail collectively, especially the brand loyalty enjoyed by leading supermarkets and their ability to offer low prices. Fruit and vegetables provide key nutrients that are vital to buyers, such as vitamins and minerals and therefore buyer power is reduced. Overall buyer power within the fruit and vegetable market is weak.

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Supplier power
Figure 103: Drivers of supplier power in the fruit & vegetables market in Canada, 2010
Source: Datamonitor
DATAMONITOR
A large number of independent farmers constitute the main supply channel for the fruit and vegetable market. In dominating the fruit and vegetable market, large supermarket chains wield their large purchasing power to negotiate low prices and extended terms of credit through bulk purchasing. Contractual arrangements between suppliers and the large supermarkets typically favor the interests of the latter, especially where a small supplier is heavily dependent on one large supermarket chain for revenues. The resultant low switching costs, combined with a relatively low level of product differentiation, detract considerably from supplier power. Overall, the Canadian fruit and vegetables market displays weak supplier power.

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New entrants
Figure 104: Factors influencing the likelihood of new entrants in the fruit & vegetables market in Canada, 2010
Source: Datamonitor
DATAMONITOR
Entering the retail market is possible without extensive capital outlay, i.e. finding a niche market or offering organic products, may form a successful strategy. However, with the dominance of leading supermarkets, newcomers must be prepared such companies usually enjoy strong brand recognition and benefit from scale economies. The latter allows them to compete more intensely on price, something which appeals to consumers. Consumers within this market incur negligible costs on switching from incumbent retailers to newcomers and the product on offer is hard to differentiate, which attracts new players. Furthermore, modest growth is forecast between 2010-2015 which may ease the threat of newcomers. The threat of new entrants into the Canadian fruit and vegetables market is deemed to be moderate.

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Substitutes
Figure 105: Factors influencing the threat of substitutes in the fruit & vegetables market in Canada, 2010
Source: Datamonitor
DATAMONITOR

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Rivalry
Figure 106: Drivers of degree of rivalry in the fruit & vegetables market in Canada, 2010
Source: Datamonitor
DATAMONITOR
In Canada, a small number of players, typically leading supermarkets, dominate highly concentrated food retail markets and there is little opportunity for retailers to differentiate their offering strongly. Switching costs for consumers are negligible, and there is little opportunity for retailers to differentiate their offering. Fruit and vegetables are perishable, thus it is important for retailers to be able to sell their entire inventory to avoid losses due to waste. This effectively means that storage costs are inherently high for this market. Rivalry within the fruit and vegetable market is strong, reflecting the high level of competition between the large supermarkets who are its leading constituents.

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Market forecasts
In 2015, the Canadian fruit & vegetables market is forecast to have a value of $11,360.2 million, an increase of 11.1% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 2.1%. Table 83: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Canada fruit & vegetables market value forecast: $ million, 201015 $ million 10,221.4 10,282.9 10,501.0 10,766.1 11,062.8 11,360.2 C$ million 10,535.7 10,599.1 10,823.9 11,097.1 11,402.9 11,709.5 million 7,699.1 7,745.4 7,909.7 8,109.4 8,332.9 8,556.9 % Growth 2.6% 0.6% 2.1% 2.5% 2.8% 2.7% 2.1% DATAMONITOR
Figure 107: Canada fruit & vegetables market value forecast: $ million, 201015
Source: Datamonitor
DATAMONITOR

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In 2015, the Canadian fruit & vegetables market is forecast to have a volume of 7.1 million tonne, an increase of 2% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 0.4%. Table 84: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Canada fruit & vegetables market volume forecast: million tonne, 201015 million tonne 7.0 7.0 7.0 7.0 7.1 7.1 % Growth 0.3% 0.5% 0.0% 0.4% 0.6% 0.5% 0.4% DATAMONITOR
Figure 108: Canada fruit & vegetables market volume forecast: million tonne, 201015
Source: Datamonitor
DATAMONITOR

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Table 85: Year 2006 2007 2008 2009 2010 Source: Datamonitor Canada size of population (million), 200610 Population (million) 32.6 32.9 33.3 33.7 34.1 % Growth 1.0% 1.1% 1.2% 1.2% 1.1% DATAMONITOR
Table 86: Year 2006 2007 2008 2009 2010
Canada gdp (constant 2000 prices, $ billion), 200610 Constant 2000 Prices, $ billion 845.1 863.7 868.2 846.8 873.9 % Growth 2.8% 2.2% 0.5% (2.5%) 3.2% DATAMONITOR
Source: Datamonitor
Table 87: Year 2006 2007 2008 2009 2010
Canada gdp (current prices, $ billion), 200610 Current Prices, $ billion 1,266.3 1,396.0 1,446.1 1,320.7 1,539.2 % Growth 12.1% 10.2% 3.6% (8.7%) 16.5% DATAMONITOR
Source: Datamonitor

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Table 88: Year 2006 2007 2008 2009 2010
Canada inflation, 200610 Inflation Rate (%) 2.0% 2.1% 2.4% 0.3% 1.8% DATAMONITOR
Source: Datamonitor
Table 89: Year 2006 2007 2008 2009 2010
Canada consumer price index (absolute), 200610 Consumer Price Index (2000 = 100) 114.4 116.9 119.7 120.0 122.2 DATAMONITOR
Source: Datamonitor
Table 90: Year 2006 2007 2008 2009 2010
Canada exchange rate, 200610 Exchange rate ($/C$) 1.1346 1.0744 1.0667 1.1417 1.0308 Exchange rate (/C$) 1.4236 1.4701 1.5608 1.5876 1.3684 DATAMONITOR
Source: Datamonitor

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FRUIT & VEGETABLES IN CHINA

Market overview
Research highlights
The Chinese fruit & vegetables market had total revenues of $153.9 billion in 2010, representing a compound annual growth rate (CAGR) of 7.9% for the period spanning 2006-2010. Market consumption volumes increased with a CAGR of 0.7% between 2006 and 2010, to reach a total of 195.8 million tons in 2010. The performance of the market is forecast to decelerate, with an anticipated CAGR of 6% for the five-year period 2010-2015, which is expected to drive the market to a value of $206 billion by the end of 2015.
Market analysis
The Chinese fruit & vegetables market has experienced strong growth during the 2006-2010 period, however this growth is expected to decelerate during 2010-2015. The volume of fruit and vegetables is expected to experience accelerated growth during the 2010-2015 period. The Chinese fruit & vegetables market had total revenues of $153.9 billion in 2010, representing a compound annual growth rate (CAGR) of 7.9% for the period spanning 2006-2010. In comparison, the Japanese and Indian markets grew with CAGRs of 0.3% and 8.6% respectively, over the same period, to reach respective values of $42.1 billion and $28 billion in 2010. Market consumption volumes increased with a CAGR of 0.7% between 2006 and 2010, to reach a total of 195.8 million tons in 2010. The market's volume is expected to rise to 203.8 million tons by the end of 2015, representing a CAGR of 0.8% for the 2010-2015 period. The vegetables segment was the market's most lucrative in 2010, with total revenues of $108.8 billion, equivalent to 70.7% of the market's overall value. The fruit segment contributed revenues of $45.1 billion in 2010, equating to 29.3% of the market's aggregate value. The performance of the market is forecast to decelerate, with an anticipated CAGR of 6% for the five-year period 2010-2015, which is expected to drive the market to a value of $206 billion by the end of 2015. Comparatively, the Japanese and Indian markets will grow with CAGRs of 0.7% and 8.8% respectively, over the same period, to reach respective values of $43.5 billion and $42.7 billion in 2015.

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Market value
The Chinese fruit & vegetables market grew by 0.9% in 2010 to reach a value of $153.9 billion. The compound annual growth rate of the market in the period 200610 was 7.9%. Table 91: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor China fruit & vegetables market value: $ billion, 200610 $ billion 113.8 121.3 131.7 152.6 153.9 CNY billion 771.2 822.5 892.6 1,034.5 1,043.5 billion 85.7 91.4 99.2 114.9 115.9 % Growth 6.7% 8.5% 15.9% 0.9% 7.9% DATAMONITOR
Figure 109: China fruit & vegetables market value: $ billion, 200610
Source: Datamonitor
DATAMONITOR

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Market volume
The Chinese fruit & vegetables market grew by 0.8% in 2010 to reach a volume of 195.8 million tonne. The compound annual growth rate of the market in the period 200610 was 0.7%. Table 92: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor China fruit & vegetables market volume: million tonne, 200610 million tonne 190.3 191.0 192.6 194.2 195.8 % Growth 0.4% 0.9% 0.8% 0.8% 0.7% DATAMONITOR
Figure 110: China fruit & vegetables market volume: million tonne, 200610
Source: Datamonitor
DATAMONITOR

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Vegetables is the largest segment of the fruit & vegetables market in China, accounting for 70.7% of the market's total value. The fruit segment accounts for the remaining 29.3% of the market. Table 93: Category Vegetables Fruit Total Source: Datamonitor China fruit & vegetables Market segmentation I:% share, by value, 2010 % Share 70.7% 29.3% 100% DATAMONITOR
Figure 111: China fruit & vegetables Market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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China accounts for 58% of the Asia-Pacific fruit & vegetables market value. Japan accounts for a further 15.9% of the Asia-Pacific market. Table 94: Category China Japan India South Korea Rest of Asia-Pacific Total Source: Datamonitor China fruit & vegetables Market segmentation II: % share, by value, 2010 % Share 58.0% 15.9% 10.6% 2.8% 12.7% 100% DATAMONITOR
Figure 112: China fruit & vegetables Market segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Summary
Figure 113: Forces driving competition in the fruit & vegetables market in China, 2010
Source: Datamonitor
DATAMONITOR
The Chinese fruit and vegetables market remains fragmented, despite the presence of large supermarket chains using their bargaining power and brand strength to establish their domination, there are also small vendors with minimal fixed assets, who lack brand strength and the economies of scale operating in it. Buyers power is considered to be weak due to the products indispensable nature, and as suppliers are typically quite small and supply only a small number of products, they are vulnerable to players sourcing alternatives, coming from competing suppliers. Capital requirements for entry to food retail markets are generally not very high and government regulations are relatively light, which tends to encourage new companies entering the market.

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Buyer power
Figure 114: Drivers of buyer power in the fruit & vegetables market in China, 2010
Source: Datamonitor
DATAMONITOR
The Chinese fruit and vegetables market is fragmented with many small, independent retailers operating. This gives consumers a greater choice than they have in many other countries and so boosts buyer power. However, large supermarket chains, such as Lianhua, are now starting to tighten their grip. Given that fruit and vegetables are largely commodity items, there is little to differentiate between retailers and therefore many factors affecting buyer power, within the fruit and vegetable market, are interdependent with those of supermarket retail collectively, especially the brand loyalty enjoyed by leading supermarkets and their ability to offer low prices. Fruit and vegetables provide key nutrients that are vital to buyers, such as vitamins and minerals and therefore buyer power is reduced. Overall buyer power within the fruit and vegetable market is weak.

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Supplier power
Figure 115: Drivers of supplier power in the fruit & vegetables market in China, 2010
Source: Datamonitor
DATAMONITOR
A large number of independent farmers constitute the main supply channel for the fruit and vegetable market. In dominating the fruit and vegetable market, large supermarket chains wield their large purchasing power to negotiate low prices and extended terms of credit through bulk purchasing. Contractual arrangements between suppliers and the large supermarkets typically favor the interests of the latter, especially where a small supplier is heavily dependent on one large supermarket chain for revenues. The resultant low switching costs, combined with a relatively low level of product differentiation, detract considerably from supplier power. Overall, the Chinese fruit and vegetables market displays weak supplier power.

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New entrants
Figure 116: Factors influencing the likelihood of new entrants in the fruit & vegetables market in China, 2010
Source: Datamonitor
DATAMONITOR
Entering the retail market is possible without extensive capital outlay, i.e. finding a niche market or offering organic products, may form a successful strategy. However, with the dominance of leading supermarkets, newcomers must be prepared such companies usually enjoy strong brand recognition and benefit from scale economies. The latter allows them to compete more intensely on price, something which appeals to consumers. Consumers within this market incur negligible costs on switching from incumbent retailers to newcomers and the product on offer is hard to differentiate. This, coupled with strong growth in recent years and a healthy forecast during the 2010-2015 makes the market attractive to potential new entrants. The threat of new entrants into the fruit and vegetables market is deemed to be strong.

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Substitutes
Figure 117: Factors influencing the threat of substitutes in the fruit & vegetables market in China, 2010
Source: Datamonitor
DATAMONITOR

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Rivalry
Figure 118: Drivers of degree of rivalry in the fruit & vegetables market in China, 2010
Source: Datamonitor
DATAMONITOR
In many developed economies, a small number of players, typically leading supermarkets, dominate highly concentrated food retail markets. In China however, concentration is lower but the number of players is correspondingly larger. Switching costs for consumers are negligible, and there is little opportunity for retailers to differentiate their offering. Fruit and vegetables are perishable, thus it is important for retailers to be able to sell their entire inventory to avoid losses due to waste. This effectively means that storage costs are inherently high for this market. Rivalry within the fruit and vegetable market is strong.

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Market forecasts
In 2015, the Chinese fruit & vegetables market is forecast to have a value of $206 billion, an increase of 33.9% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 6%. Table 95: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor China fruit & vegetables market value forecast: $ billion, 201015 $ billion 153.9 164.0 173.5 183.8 194.8 206.0 CNY billion 1,043.5 1,111.6 1,176.1 1,246.1 1,320.7 1,396.6 billion 115.9 123.5 130.7 138.5 146.7 155.2 % Growth 0.9% 6.5% 5.8% 6.0% 6.0% 5.7% 6.0% DATAMONITOR
Figure 119: China fruit & vegetables market value forecast: $ billion, 201015
Source: Datamonitor
DATAMONITOR

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In 2015, the Chinese fruit & vegetables market is forecast to have a volume of 203.8 million tonne, an increase of 4.1% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 0.8%. Table 96: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor China fruit & vegetables market volume forecast: million tonne, 201015 million tonne 195.8 197.3 198.9 200.5 202.1 203.8 % Growth 0.8% 0.8% 0.8% 0.8% 0.8% 0.8% 0.8% DATAMONITOR
Figure 120: China fruit & vegetables market volume forecast: million tonne, 201015
Source: Datamonitor
DATAMONITOR

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Table 97: Year 2006 2007 2008 2009 2010 Source: Datamonitor China size of population (million), 200610 Population (million) 1,311.0 1,317.9 1,324.7 1,331.4 1,338.0 % Growth 0.6% 0.5% 0.5% 0.5% 0.5% DATAMONITOR
Table 98: Year 2006 2007 2008 2009 2010
China gdp (constant 2000 prices, $ billion), 200610 Constant 2000 Prices, $ billion 2,407.2 2,822.5 3,148.9 3,440.2 3,794.5 % Growth 15.3% 17.3% 11.6% 9.3% 10.3% DATAMONITOR
Source: Datamonitor
Table 99: Year 2006 2007 2008 2009 2010
China gdp (current prices, $ billion), 200610 Current Prices, $ billion 2,712.9 3,494.2 4,520.0 4,987.6 5,734.6 % Growth 20.2% 28.8% 29.4% 10.3% 15.0% DATAMONITOR
Source: Datamonitor

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Table 100: China inflation, 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Inflation Rate (%) 1.5% 4.8% 5.9% (0.7%) 3.3% DATAMONITOR
Table 101: China consumer price index (absolute), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Consumer Price Index (2000 = 100) 108.6 113.8 120.5 119.6 123.6 DATAMONITOR
Table 102: China exchange rate, 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Exchange rate ($/CNY) 7.9819 7.6172 6.9623 6.8409 6.7788 Exchange rate (/CNY) 10.0145 10.4228 10.1875 9.5123 9.0005 DATAMONITOR

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FRUIT & VEGETABLES IN THE NETHERLANDS

Market overview
Research highlights
The Dutch fruit & vegetables market had total revenue of $11.2 billion in 2010, representing a compound annual growth rate (CAGR) of 7.5% for the period spanning 2006-2010. Market consumption volumes increased with a CAGR of 5.3% between 2006 and 2010, to reach a total of 5.3 million tons in 2010. The performance of the market is forecast to accelerate, with an anticipated CAGR of 8.1% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $16.5 billion by the end of 2015.
Market analysis
The Dutch fruit & vegetables market experienced strong growth during 2006-2010 with growth during 2010-2015 forecast to accelerate. The volume of fruit and vegetables sold is expected to experience a marginal deceleration in growth. The Dutch fruit & vegetables market had total revenues of $11.2 billion in 2010, representing a compound annual growth rate (CAGR) of 7.5% for the period spanning 2006-2010. In comparison, the German market declined with a compound annual rate of change (CARC) of -5.9%, and the Belgian market increased with a CAGR of 6.2%, over the same period, to reach respective values of $16.3 billion and $6.4 billion in 2010. Market consumption volumes increased with a CAGR of 5.3% between 2006 and 2010, to reach a total of 5.3 million tons in 2010. The market's volume is expected to rise to 6.8 million tons by the end of 2015, representing a CAGR of 5% for the 2010-2015 period. The vegetables segment was the market's most lucrative in 2010, with total revenues of $6.9 billion, equivalent to 61.9% of the market's overall value. The fruit segment contributed revenues of $4.3 billion in 2010, equating to 38.1% of the market's aggregate value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 8.1% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $16.5 billion by the end of 2015. Comparatively, the German and Belgian markets will grow with CAGRs of 2.3% and 3.3% respectively, over the same period, to reach respective values of $18.3 billion and $7.5 billion in 2015.

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Market value
The Dutch fruit & vegetables market grew by 8.2% in 2010 to reach a value of $11,211.2 million. The compound annual growth rate of the market in the period 200610 was 7.5%. Table 103: Netherlands fruit & vegetables market value: $ million, 200610 Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor $ million 8,403.9 8,952.4 9,631.4 10,362.9 11,211.2 million 6,343.9 6,758.0 7,270.5 7,822.7 8,463.1 % Growth 6.5% 7.6% 7.6% 8.2% 7.5% DATAMONITOR
Figure 121: Netherlands fruit & vegetables market value: $ million, 200610
Source: Datamonitor
DATAMONITOR

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Market volume
The Dutch fruit & vegetables market grew by 8.7% in 2010 to reach a volume of 5.3 million tonne. The compound annual growth rate of the market in the period 200610 was 5.3%. Table 104: Netherlands fruit & vegetables market volume: million tonne, 200610 Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor million tonne 4.3 4.4 4.7 4.9 5.3 % Growth 2.1% 6.0% 4.5% 8.7% 5.3% DATAMONITOR
Figure 122: Netherlands fruit & vegetables market volume: million tonne, 200610
Source: Datamonitor
DATAMONITOR

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Vegetables is the largest segment of the fruit & vegetables market in the Netherlands, accounting for 61.9% of the market's total value. The fruit segment accounts for the remaining 38.1% of the market. Table 105: Netherlands fruit & vegetables Market segmentation I:% share, by value, 2010 Category Vegetables Fruit Total Source: Datamonitor % Share 61.9% 38.1% 100% DATAMONITOR
Figure 123: Netherlands fruit & vegetables Market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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The Netherlands accounts for 7.4% of the European fruit & vegetables market value. Germany accounts for a further 10.7% of the European market. Table 106: Netherlands fruit & vegetables Market segmentation II: % share, by value, 2010 Category Germany France Netherlands Belgium Rest of Europe Total Source: Datamonitor % Share 10.7% 10.0% 7.4% 4.2% 67.8% 100% DATAMONITOR
Figure 124: Netherlands fruit & vegetables Market segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Summary
Figure 125: Forces driving competition in the fruit & vegetables market in the Netherlands, 2010
Source: Datamonitor
DATAMONITOR
The fruit and vegetables market is concentrated, with large supermarket chains using their bargaining power and brand strength to establish their domination. The market is dominated by large supermarkets, such as Ahold, Aldi, and Jumbo Group. Buyers power is considered to be weak due to the products indispensable nature, and as suppliers are typically quite small and supply only a small number of products, they are vulnerable to players sourcing alternatives, coming from competing suppliers. Capital requirements for entry to food retail markets are generally not very high, and even with government regulations being stricter than in other regions, there is a risk of new companies entering the market; this is however eased by the presence of large supermarket chains, which exercise great bargaining power, constituting entry barriers.

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Buyer power
Figure 126: Drivers of buyer power in the fruit & vegetables market in the Netherlands, 2010
Source: Datamonitor
DATAMONITOR
Leading supermarkets, including ALDI and the Jumbo Group, dominate the fruit and vegetable market in the Netherlands. Given that fruit and vegetables are largely commodity items, there is little to differentiate between retailers and therefore many factors affecting buyer power, within the fruit and vegetable market, are interdependent with those of supermarket retail collectively, especially the brand loyalty enjoyed by leading supermarkets and their ability to offer low prices. Fruit and vegetables provide key nutrients that are vital to buyers, such as vitamins and minerals and therefore buyer power is reduced. Overall buyer power within the fruit and vegetable market is weak.

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Supplier power
Figure 127: Drivers of supplier power in the fruit & vegetables market in the Netherlands, 2010
Source: Datamonitor
DATAMONITOR
A large number of independent farmers constitute the main supply channel for the fruit and vegetable market. In dominating the fruit and vegetable market, large supermarket chains wield their large purchasing power to negotiate low prices and extended terms of credit through bulk purchasing. Contractual arrangements between suppliers and the large supermarkets typically favor the interests of the latter, especially where a small supplier is heavily dependent on one large supermarket chain for revenues. The resultant low switching costs, combined with a relatively low level of product differentiation, detract considerably from supplier power. EU countries are subject to stringent quality laws which can impact upon profitability. For example, EU directive 2257/94 states that class one bananas must be free of abnormal curvature and at least 14cm long. Some directives have recently been discarded, such as one which stated that carrots less than 1.9 cm in diameter at the thick end may not be sold as class one unless marketed as a baby variety, so regulation has eased somewhat. However, many others (such as 2257/94) still exist and make it essential for farmers to get their crop compliant or risk throwing away produce. Overall, the Dutch fruit and vegetables market displays weak supplier power.

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New entrants
Figure 128: Factors influencing the likelihood of new entrants in the fruit & vegetables market in the Netherlands, 2010
Source: Datamonitor
DATAMONITOR
Entering the retail market is possible without extensive capital outlay, i.e. finding a niche market or offering organic products, may form a successful strategy. However, with the dominance of leading supermarkets, newcomers must be prepared such companies usually enjoy strong brand recognition and benefit from scale economies. The latter allows them to compete more intensely on price, something which appeals to consumers. Consumers within this market incur negligible costs on switching from incumbent retailers to newcomers and the product on offer is hard to differentiate, which attracts new players. The Dutch fruit and vegetables market's strong growth forecast during the 2010-2015 period also creates a more attractive prospect to new entrants. Overall, the threat of new entrants into the fruit and vegetables market is deemed to be moderate.

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Substitutes
Figure 129: Factors influencing the threat of substitutes in the fruit & vegetables market in the Netherlands, 2010
Source: Datamonitor
DATAMONITOR

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Rivalry
Figure 130: Drivers of degree of rivalry in the fruit & vegetables market in the Netherlands, 2010
Source: Datamonitor
DATAMONITOR
In the Netherlands, a small number of players, typically leading supermarkets, dominate highly concentrated food retail markets and there is little opportunity for retailers to differentiate their offering strongly. Switching costs for consumers are negligible, and there is little opportunity for retailers to differentiate their offering. Fruit and vegetables are perishable, thus it is important for retailers to be able to sell their entire inventory to avoid losses due to waste. This effectively means that storage costs are inherently high for this market. Rivalry within the fruit and vegetable market is strong, reflecting the high level of competition between the large supermarkets who are its leading constituents.

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Market forecasts
In 2015, the Dutch fruit & vegetables market is forecast to have a value of $16,534.3 million, an increase of 47.5% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 8.1%. Table 107: Netherlands fruit & vegetables market value forecast: $ million, 201015 Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor $ million 11,211.2 12,262.5 13,327.1 14,391.2 15,452.5 16,534.3 million 8,463.1 9,256.7 10,060.4 10,863.7 11,664.8 12,481.4 % Growth 8.2% 9.4% 8.7% 8.0% 7.4% 7.0% 8.1% DATAMONITOR
Figure 131: Netherlands fruit & vegetables market value forecast: $ million, 201015
Source: Datamonitor
DATAMONITOR

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In 2015, the Dutch fruit & vegetables market is forecast to have a volume of 6.8 million tonne, an increase of 27.8% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 5%. Table 108: Netherlands fruit & vegetables market volume forecast: million tonne, 201015 Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor million tonne 5.3 5.7 6.0 6.3 6.6 6.8 % Growth 8.7% 6.2% 5.7% 5.0% 4.4% 3.9% 5.0% DATAMONITOR
Figure 132: Netherlands fruit & vegetables market volume forecast: million tonne, 201015
Source: Datamonitor
DATAMONITOR

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Table 109: Netherlands size of population (million), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Population (million) 16.3 16.4 16.4 16.5 16.6 % Growth 0.2% 0.2% 0.4% 0.5% 0.5% DATAMONITOR
Table 110: Netherlands gdp (constant 2000 prices, $ billion), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Constant 2000 Prices, $ billion 426.4 443.1 451.1 435.1 442.5 % Growth 3.4% 3.9% 1.8% (3.5%) 1.7% DATAMONITOR
Table 111: Netherlands gdp (current prices, $ billion), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Current Prices, $ billion 662.8 763.9 855.9 789.0 771.4 % Growth 5.4% 15.3% 12.0% (7.8%) (2.2%) DATAMONITOR

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Table 112: Netherlands inflation, 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Inflation Rate (%) 1.2% 1.6% 2.5% 1.0% 0.9% DATAMONITOR
Table 113: Netherlands consumer price index (absolute), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Consumer Price Index (2000 = 100) 114.4 116.2 119.1 120.3 121.4 DATAMONITOR
Table 114: Netherlands exchange rate, 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Exchange rate ($/) 0.7970 0.7308 0.6834 0.7192 0.7549 DATAMONITOR

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FRUIT & VEGETABLES IN SPAIN

Market overview
Research highlights
The Spanish fruit & vegetables market had total revenues of $22.8 billion in 2010, representing a compound annual growth rate (CAGR) of 2.8% for the period spanning 2006-2010. Market consumption volumes increased with a CAGR of 1.3% between 2006 and 2010, to reach a total of 10.65 million tons in 2010. The performance of the market is forecast to accelerate, with an anticipated CAGR of 2.9% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $26.3 billion by the end of 2015.
Market analysis
The Spanish fruit & vegetables market had slow growth in 2010 after suffering a decline during 2009. The market is expected to experience moderate growth rates during 2010-2015. The volume of fruit and vegetables sold had very little growth in 2010 and is expected to have negligible growth towards 2015. The Spanish fruit & vegetables market had total revenues of $22.8 billion in 2010, representing a compound annual growth rate (CAGR) of 2.8% for the period spanning 2006-2010. In comparison, the French market increased with a CAGR of 3%, and the German market declined with a compound annual rate of change (CARC) of -5.9%, over the same period, to reach respective values of $15.2 billion and $16.3 billion in 2010. Market consumption volumes increased with a CAGR of 1.3% between 2006 and 2010, to reach a total of 10.65 million tons in 2010. The market's volume is expected to fall to 10.62 million tons by the end of 2015, representing a CARC of -0.05% for the 2010-2015 period. The vegetables segment was the market's most lucrative in 2010, with total revenues of $14.6 billion, equivalent to 64% of the market's overall value. The fruit segment contributed revenues of $8.2 billion in 2010, equating to 36% of the market's aggregate value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 2.9% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $26.3 billion by the end of 2015. Comparatively, the French and German markets will grow with CAGRs of 3.2% and 2.3% respectively, over the same period, to reach respective values of $17.7 billion and $18.3 billion in 2015.

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Market value
The Spanish fruit & vegetables market grew by 1.3% in 2010 to reach a value of $22,830 million. The compound annual growth rate of the market in the period 200610 was 2.8%. Table 115: Spain fruit & vegetables market value: $ million, 200610 Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor $ million 20,410.1 22,330.2 23,686.7 22,545.2 22,830.0 million 15,407.2 16,856.6 17,880.6 17,018.9 17,233.9 % Growth 9.4% 6.1% (4.8%) 1.3% 2.8% DATAMONITOR
Figure 133: Spain fruit & vegetables market value: $ million, 200610
Source: Datamonitor
DATAMONITOR

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Market volume
The Spanish fruit & vegetables market grew by 0.2% in 2010 to reach a volume of 10.6 million tonne. The compound annual growth rate of the market in the period 200610 was 1.3%. Table 116: Spain fruit & vegetables market volume: million tonne, 200610 Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor million tonne 10.1 10.6 10.7 10.6 10.6 % Growth 5.3% 0.2% (0.4%) 0.2% 1.3% DATAMONITOR
Figure 134: Spain fruit & vegetables market volume: million tonne, 200610
Source: Datamonitor
DATAMONITOR

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Vegetables is the largest segment of the fruit & vegetables market in Spain, accounting for 64% of the market's total value. The fruit segment accounts for the remaining 36% of the market. Table 117: Spain fruit & vegetables Market segmentation I:% share, by value, 2010 Category Vegetables Fruit Total Source: Datamonitor % Share 64.0% 36.0% 100% DATAMONITOR
Figure 135: Spain fruit & vegetables Market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Spain accounts for 15% of the European fruit & vegetables market value. United Kingdom accounts for a further 11.2% of the European market. Table 118: Spain fruit & vegetables Market segmentation II: % share, by value, 2010 Category Spain United Kingdom Germany France Rest of Europe Total Source: Datamonitor % Share 15.0% 11.2% 10.7% 10.0% 53.2% 100% DATAMONITOR
Figure 136: Spain fruit & vegetables Market segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Summary
Figure 137: Forces driving competition in the fruit & vegetables market in Spain, 2010
Source: Datamonitor
DATAMONITOR
The fruit and vegetables market is concentrated, with large supermarket chains using their bargaining power and brand strength to establish their domination. The Spanish fruit and vegetables market is dominated by large supermarkets, such as Carrefour and Auchan. Buyers power is considered to be weak due to the products indispensable nature, and as suppliers are typically quite small and supply only a small number of products, they are vulnerable to players sourcing alternatives, coming from competing suppliers. Capital requirements for entry to food retail markets are generally not very high, and even with government regulations being stricter than in other regions, there is a risk of new companies entering the market; this is however eased by the presence of large supermarket chains, which exercise great bargaining power, constituting entry barriers.

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Buyer power
Figure 138: Drivers of buyer power in the fruit & vegetables market in Spain, 2010
Source: Datamonitor
DATAMONITOR
Leading Spanish supermarkets, including Carrefour and E. Leclerc, dominate the fruit and vegetable market. Given that fruit and vegetables are largely commodity items, there is little to differentiate between retailers and therefore many factors affecting buyer power, within the fruit and vegetable market, are interdependent with those of supermarket retail collectively, especially the brand loyalty enjoyed by leading supermarkets and their ability to offer low prices. Fruit and vegetables provide key nutrients that are vital to buyers, such as vitamins and minerals and therefore buyer power is reduced. Overall buyer power within the fruit and vegetable market is weak.

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Supplier power
Figure 139: Drivers of supplier power in the fruit & vegetables market in Spain, 2010
Source: Datamonitor
DATAMONITOR
A large number of independent farmers constitute the main supply channel for the fruit and vegetable market. In dominating the fruit and vegetable market, large supermarket chains wield their large purchasing power to negotiate low prices and extended terms of credit through bulk purchasing. Contractual arrangements between suppliers and the large supermarkets typically favor the interests of the latter, especially where a small supplier is heavily dependent on one large supermarket chain for revenues. EU countries are subject to stringent quality laws which can impact upon profitability. For example, EU directive 2257/94 states that class one bananas must be free of abnormal curvature and at least 14cm long. Some directives have recently been discarded, such as one which stated that carrots less than 1.9 cm in diameter at the thick end may not be sold as class one unless marketed as a baby variety, so regulation has eased somewhat. However, many others (such as 2257/94) still exist and make it essential for farmers to get their crop compliant or risk throwing away produce. Low switching costs, combined with a relatively low level of product differentiation, detract considerably from supplier power. Overall, the global fruit and vegetables market displays weak supplier power.

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New entrants
Figure 140: Factors influencing the likelihood of new entrants in the fruit & vegetables market in Spain, 2010
Source: Datamonitor
DATAMONITOR
Entering the retail market is possible without extensive capital outlay, i.e. finding a niche market or offering organic products, may form a successful strategy. However, with the dominance of leading supermarkets, newcomers must be prepared such companies usually enjoy strong brand recognition and benefit from scale economies. The latter allows them to compete more intensely on price, something which appeals to consumers. Consumers within this market incur negligible costs on switching from incumbent retailers to newcomers and the product on offer is hard to differentiate, which attracts new players. Sluggish growth in recent years coupled with a modest forecast during the 2010-2015 period will do little to entice new entrants. Overall, the threat of new entrants into the fruit and vegetables market is deemed to be moderate.

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Substitutes
Figure 141: Factors influencing the threat of substitutes in the fruit & vegetables market in Spain, 2010
Source: Datamonitor
DATAMONITOR

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Rivalry
Figure 142: Drivers of degree of rivalry in the fruit & vegetables market in Spain, 2010
Source: Datamonitor
DATAMONITOR
In Spain, a small number of players, typically leading supermarkets, dominate highly concentrated food retail markets and there is little opportunity for retailers to differentiate their offering strongly. Switching costs for consumers are negligible, and there is little opportunity for retailers to differentiate their offering. Fruit and vegetables are perishable, thus it is important for retailers to be able to sell their entire inventory to avoid losses due to waste. This effectively means that storage costs are inherently high for this market. Rivalry within the fruit and vegetable market is strong, reflecting the high level of competition between the large supermarkets who are its leading constituents.

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Market forecasts
In 2015, the Spanish fruit & vegetables market is forecast to have a value of $26,274.7 million, an increase of 15.1% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 2.9%. Table 119: Spain fruit & vegetables market value forecast: $ million, 201015 Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor $ million 22,830.0 23,607.2 24,213.2 24,843.0 25,535.5 26,274.7 million 17,233.9 17,820.6 18,278.1 18,753.5 19,276.2 19,834.3 % Growth 1.3% 3.4% 2.6% 2.6% 2.8% 2.9% 2.9% DATAMONITOR
Figure 143: Spain fruit & vegetables market value forecast: $ million, 201015
Source: Datamonitor
DATAMONITOR

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In 2015, the Spanish fruit & vegetables market is forecast to have a volume of 10.6 million tonne, a decrease of 0.2% since 2010. The market is therefore expected to be stagnant in the period 201015. Table 120: Spain fruit & vegetables market volume forecast: million tonne, 201015 Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor million tonne 10.6 10.6 10.6 10.6 10.6 10.6 % Growth 0.2% (0.2%) (0.2%) 0.0% 0.0% 0.0% (0.0%) DATAMONITOR
Figure 144: Spain fruit & vegetables market volume forecast: million tonne, 201015
Source: Datamonitor
DATAMONITOR

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Table 121: Spain size of population (million), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Population (million) 44.6 45.2 45.9 46.7 47.1 % Growth 1.7% 1.2% 1.6% 1.7% 0.9% DATAMONITOR
Table 122: Spain gdp (constant 2000 prices, $ billion), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Constant 2000 Prices, $ billion 711.4 736.8 743.1 715.5 714.4 % Growth 4.0% 3.6% 0.9% (3.7%) (0.1%) DATAMONITOR
Table 123: Spain gdp (current prices, $ billion), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Current Prices, $ billion 1,168.9 1,359.0 1,532.3 1,392.4 1,351.4 % Growth 8.5% 16.3% 12.8% (9.1%) (2.9%) DATAMONITOR

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Table 124: Spain inflation, 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Inflation Rate (%) 3.5% 2.8% 4.1% (0.3%) 2.0% DATAMONITOR
Table 125: Spain consumer price index (absolute), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Consumer Price Index (2000 = 100) 120.9 124.3 129.5 129.1 131.7 DATAMONITOR
Table 126: Spain exchange rate, 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Exchange rate ($/) 0.7970 0.7308 0.6834 0.7192 0.7549 DATAMONITOR

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FRUIT & VEGETABLES IN THE UNITED KINGDOM

Market overview
Research highlights
The UK fruit & vegetables market had total revenues of $17 billion in 2010, representing a compound annual growth rate (CAGR) of 2.9% for the period spanning 2006-2010. Market consumption volumes decreased with a CARC of -0.9% between 2006 and 2010, to reach a total of 7.12 million tons in 2010. The performance of the market is forecast to accelerate, with an anticipated CAGR of 3.8% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $20.5 billion by the end of 2015.
Market analysis
The UK fruit & vegetables market is forecast to experience moderate growth during the 2010-2015 period whilst the volume of fruit and vegetables sold is expected to continue to decline, albeit it at a lower rate. The UK fruit & vegetables market had total revenues of $17 billion in 2010, representing a compound annual growth rate (CAGR) of 2.9% for the period spanning 2006-2010. In comparison, the French market increased with a CAGR of 3%, and the German market declined with a compound annual rate of change (CARC) of -5.9%, over the same period, to reach respective values of $15.2 billion and $16.3 billion in 2010. Market consumption volumes decreased with a CARC of -0.9% between 2006 and 2010, to reach a total of 7.12 million tons in 2010. The market's volume is expected to fall to 7.06 million tons by the end of 2015, representing a CARC of -0.1% for the 2010-2015 period. The vegetables segment was the market's most lucrative in 2010, with total revenues of $9.3 billion, equivalent to 54.7% of the market's overall value. The fruit segment contributed revenues of $7.7 billion in 2010, equating to 45.3% of the market's aggregate value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 3.8% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $20.5 billion by the end of 2015. Comparatively, the French and German markets will grow with CAGRs of 3.2% and 2.3% respectively, over the same period, to reach respective values of $17.7 billion and $18.3 billion in 2015.

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Market value
The United Kingdom fruit & vegetables market grew by 7% in 2010 to reach a value of $17 billion. The compound annual growth rate of the market in the period 200610 was 2.9%. Table 127: United Kingdom fruit & vegetables market value: $ billion, 200610 Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor $ billion 15.2 15.9 15.8 15.9 17.0 billion 9.9 10.3 10.3 10.3 11.0 billion 11.5 11.9 11.9 12.0 12.8 % Growth 4.2% (0.1%) 0.5% 7.0% 2.9% DATAMONITOR
Figure 145: United Kingdom fruit & vegetables market value: $ billion, 200610
Source: Datamonitor
DATAMONITOR

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Market volume
The United Kingdom fruit & vegetables market grew by 3% in 2010 to reach a volume of 7.1 million tonne. The compound annual rate of change of the market in the period 200610 was -0.9%. Table 128: United Kingdom fruit & vegetables market volume: million tonne, 200610 Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor million tonne 7.4 7.3 7.0 6.9 7.1 % Growth (1.1%) (4.0%) (1.4%) 3.0% (0.9%) DATAMONITOR
Figure 146: United Kingdom fruit & vegetables market volume: million tonne, 200610
Source: Datamonitor
DATAMONITOR

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Vegetables is the largest segment of the fruit & vegetables market in the United Kingdom, accounting for 54.7% of the market's total value. The fruit segment accounts for the remaining 45.3% of the market. Table 129: United Kingdom fruit & vegetables Market segmentation I:% share, by value, 2010 Category Vegetables Fruit Total Source: Datamonitor % Share 54.7% 45.3% 100% DATAMONITOR
Figure 147: United Kingdom fruit & vegetables Market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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The United Kingdom accounts for 11.2% of the European fruit & vegetables market value. Spain accounts for a further 15% of the European market. Table 130: United Kingdom fruit & vegetables Market segmentation II: % share, by value, 2010 Category Spain Italy United Kingdom Germany France Rest of Europe Total Source: Datamonitor % Share 15.0% 11.7% 11.2% 10.7% 10.0% 41.5% 100% DATAMONITOR
Figure 148: United Kingdom fruit & vegetables Market segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Summary
Figure 149: Forces driving competition in the fruit & vegetables market in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
The fruit and vegetables market is concentrated, with large supermarket chains using their bargaining power and brand strength to establish their domination. The UK fruit and vegetables market is dominated by large supermarkets, such as Asda/Wal-Mart, Tesco and Morrison's. Buyers power is considered to be weak due to the products indispensable nature, and as suppliers are typically quite small and supply only a small number of products, they are vulnerable to players sourcing alternatives, coming from competing suppliers. Capital requirements for entry to food retail markets are generally not very high, and even with government regulations being stricter than in other regions, there is a risk of new companies entering the market; this is however eased by the presence of large supermarket chains, which exercise great bargaining power, constituting entry barriers.

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Buyer power
Figure 150: Drivers of buyer power in the fruit & vegetables market in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
Leading supermarkets, including Asda/Wal-Mart, Tesco and Morrison's, dominate the fruit and vegetable market in the UK. Given that fruit and vegetables are largely commodity items, there is little to differentiate between retailers and therefore many factors affecting buyer power, within the fruit and vegetable market, are interdependent with those of supermarket retail collectively, especially the brand loyalty enjoyed by leading supermarkets and their ability to offer low prices. Fruit and vegetables provide key nutrients that are vital to buyers, such as vitamins and minerals and therefore buyer power is reduced. Overall buyer power within the fruit and vegetable market is weak.

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Supplier power
Figure 151: Drivers of supplier power in the fruit & vegetables market in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
A large number of independent farmers constitute the main supply channel for the fruit and vegetable market. In dominating the fruit and vegetable market, large supermarket chains wield their large purchasing power to negotiate low prices and extended terms of credit through bulk purchasing. Contractual arrangements between suppliers and the large supermarkets typically favor the interests of the latter, especially where a small supplier is heavily dependent on one large supermarket chain for revenues. As an example of this, Tesco hit the headlines in 2009, when it was revealed that fruit pickers in South Africa are paid the minimum wage of 97.9 a month, which campaigners say is not a living wage. EU countries are subject to stringent quality laws, which can impact upon profitability. For example, EU directive 2257/94 states that class one bananas must be free of abnormal curvature and at least 14cm long. Some directives have recently been discarded, such as one which stated that carrots less than 1.9 cm in diameter at the thick end may not be sold as class one unless marketed as a baby variety, so regulation has eased somewhat. However, many others (such as 2257/94) still exist and make it essential for farmers to get their crop compliant or risk throwing away produce. In addition to this, the governmentrun Food Standards Agency also has strict laws which cover everything from the quality of the produce to its packaging and marketing. This again reduces supplier power as they are forced to comply. Low switching costs, combined with a relatively low level of product differentiation, detract considerably from supplier power. Overall, the UK fruit and vegetables market displays weak supplier power.

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New entrants
Figure 152: Factors influencing the likelihood of new entrants in the fruit & vegetables market in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
Entering the retail market is possible without extensive capital outlay, i.e. finding a niche market or offering organic products, may form a successful strategy. However, with the dominance of leading supermarkets, newcomers must be prepared such companies usually enjoy strong brand recognition and benefit from scale economies. The latter allows them to compete more intensely on price, something which appeals to consumers. Consumers within this market incur negligible costs on switching from incumbent retailers to newcomers and the product on offer is hard to differentiate, which attracts new players. However, the need to comply with strict EU and Food Standards Agency legislation may act as a deterrent to potential newcomers. The threat of new entrants into the fruit and vegetables market is deemed to be moderate.

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Substitutes
Figure 153: Factors influencing the threat of substitutes in the fruit & vegetables market in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR

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Rivalry
Figure 154: Drivers of degree of rivalry in the fruit & vegetables market in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
In the UK, a small number of players, typically leading supermarkets, dominate highly concentrated food retail markets and there is little opportunity for retailers to differentiate their offering strongly. Switching costs for consumers are negligible, and there is little opportunity for retailers to differentiate their offering. Fruit and vegetables are perishable, thus it is important for retailers to be able to sell their entire inventory to avoid losses due to waste. This effectively means that storage costs are inherently high for this market. Rivalry within the fruit and vegetable market is strong, reflecting the high level of competition between the large supermarkets who are its leading constituents.

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Market forecasts
In 2015, the United Kingdom fruit & vegetables market is forecast to have a value of $20.5 billion, an increase of 20.6% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 3.8%. Table 131: United Kingdom fruit & vegetables market value forecast: $ billion, 201015 Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor $ billion 17.0 17.7 18.4 19.1 19.8 20.5 billion 11.0 11.5 11.9 12.4 12.8 13.3 billion 12.8 13.4 13.9 14.4 14.9 15.5 % Growth 7.0% 4.2% 3.7% 3.7% 3.7% 3.7% 3.8% DATAMONITOR
Figure 155: United Kingdom fruit & vegetables market value forecast: $ billion, 201015
Source: Datamonitor
DATAMONITOR

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In 2015, the United Kingdom fruit & vegetables market is forecast to have a volume of 7.1 million tonne, a decrease of 0.7% since 2010. The compound annual rate of change of the market in the period 201015 is predicted to be -0.1%. Table 132: United Kingdom fruit & vegetables market volume forecast: million tonne, 201015 Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor million tonne 7.1 7.1 7.1 7.1 7.1 7.1 % Growth 3.0% (0.2%) (0.2%) (0.1%) (0.1%) (0.1%) (0.1%) DATAMONITOR
Figure 156: United Kingdom fruit & vegetables market volume forecast: million tonne, 201015
Source: Datamonitor
DATAMONITOR

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Table 133: United Kingdom size of population (million), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Population (million) 60.6 61.0 61.4 61.8 62.1 % Growth 0.6% 0.7% 0.7% 0.6% 0.6% DATAMONITOR
Table 134: United Kingdom gdp (constant 2000 prices, $ billion), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Constant 2000 Prices, $ billion 1,721.6 1,767.8 1,766.0 1,679.5 1,703.0 % Growth 2.8% 2.7% (0.1%) (4.9%) 1.4% DATAMONITOR
Table 135: United Kingdom gdp (current prices, $ billion), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Current Prices, $ billion 2,300.0 2,625.2 2,515.9 2,063.5 2,136.4 % Growth 6.5% 14.1% (4.2%) (18.0%) 3.5% DATAMONITOR

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Table 136: United Kingdom inflation, 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Inflation Rate (%) 2.3% 2.3% 3.6% 2.2% 3.3% DATAMONITOR
Table 137: United Kingdom consumer price index (absolute), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Consumer Price Index (2000 = 100) 109.9 112.5 116.5 119.1 123.0 DATAMONITOR
Table 138: United Kingdom exchange rate, 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Exchange rate ($/) 0.5435 0.4999 0.5449 0.6416 0.6475 Exchange rate (/) 0.6820 0.6840 0.7973 0.8921 0.8589 DATAMONITOR

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FRUIT & VEGETABLES IN THE UNITED STATES

Market overview
Research highlights
The US fruit & vegetables market had total revenues of $108.4 billion in 2010, representing a compound annual growth rate (CAGR) of 3.8% for the period spanning 2006-2010. Market consumption volumes increased with a CAGR of 0.5% between 2006 and 2010, to reach a total of 43.6 million tons in 2010. The performance of the market is forecast to decelerate, with an anticipated CARC of -4.1% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $87.7 billion by the end of 2015.
Market analysis
The US fruit & vegetables market has experienced moderate growth in 2010; however this is forecast to be offset with a decline during the 2010-2015 period. The volume of fruit and vegetables sold is expected to experience stagnant growth during the same period. The US fruit & vegetables market had total revenues of $108.4 billion in 2010, representing a compound annual growth rate (CAGR) of 3.8% for the period spanning 2006-2010. In comparison, the European and Asia-Pacific markets grew with CAGRs of 3.4% and 6.3% respectively, over the same period, to reach respective values of $152.3 billion and $265.2 billion in 2010. Market consumption volumes increased with a CAGR of 0.5% between 2006 and 2010, to reach a total of 43.6 million tons in 2010. The market's volume is expected to rise to 44.3 million tons by the end of 2015, representing a CAGR of 0.3% for the 2010-2015 period. The vegetables segment was the market's most lucrative in 2010, with total revenues of $72.4 billion, equivalent to 66.8% of the market's overall value. The fruit segment contributed revenues of $35.9 billion in 2010, equating to 33.2% of the market's aggregate value. The performance of the market is forecast to decelerate, with an anticipated compound annual rate of change (CARC) of -4.1% for the five-year period 2010-2015, which is expected to drive the market to a value of $87.7 billion by the end of 2015. Comparatively, the European and Asia-Pacific markets will grow with CAGRs of 5.2% and 5.9% respectively, over the same period, to reach respective values of $196.5 billion and $353.9 billion in 2015.

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Market value
The United States fruit & vegetables market grew by 6% in 2010 to reach a value of $108.4 billion. The compound annual growth rate of the market in the period 200610 was 3.8%. Table 139: United States fruit & vegetables market value: $ billion, 200610 Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor $ billion 93.2 95.5 102.7 102.3 108.4 billion 70.2 72.0 77.4 77.0 81.6 % Growth 2.5% 7.5% (0.4%) 6.0% 3.8% DATAMONITOR
Figure 157: United States fruit & vegetables market value: $ billion, 200610
Source: Datamonitor
DATAMONITOR

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Market volume
The United States fruit & vegetables market grew by 1.3% in 2010 to reach a volume of 43.6 million tonne. The compound annual growth rate of the market in the period 200610 was 0.5%. Table 140: United States fruit & vegetables market volume: million tonne, 200610 Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor million tonne 42.8 42.8 42.4 43.0 43.6 % Growth 0.0% (0.8%) 1.4% 1.3% 0.5% DATAMONITOR
Figure 158: United States fruit & vegetables market volume: million tonne, 200610
Source: Datamonitor
DATAMONITOR

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Vegetables is the largest segment of the fruit & vegetables market in the United States, accounting for 66.8% of the market's total value. The fruit segment accounts for the remaining 33.2% of the market. Table 141: United States fruit & vegetables Market segmentation I:% share, by value, 2010 Category Vegetables Fruit Total Source: Datamonitor % Share 66.8% 33.2% 100% DATAMONITOR
Figure 159: United States fruit & vegetables Market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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The United States accounts for 18.4% of the global fruit & vegetables market value. Asia-Pacific accounts for a further 45.1% of the global market. Table 142: United States fruit & vegetables Market segmentation II: % share, by value, 2010 Category Asia-Pacific Europe United States Rest of the World Total Source: Datamonitor % Share 45.1% 25.9% 18.4% 10.6% 100% DATAMONITOR
Figure 160: United States fruit & vegetables Market segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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Summary
Figure 161: Forces driving competition in the fruit & vegetables market in the United States, 2010
Source: Datamonitor
DATAMONITOR
The fruit and vegetables market is concentrated, with large supermarket chains using their bargaining power and brand strength to establish their domination. The US fruit and vegetables market is dominated by large supermarkets, such as Wal-Mart, Safeway and Kroger. Buyers power is considered to be weak due to the products indispensable nature, and as suppliers are typically quite small and supply only a small number of products, they are vulnerable to players sourcing alternatives, coming from competing suppliers. Capital requirements for entry to food retail markets are generally not very high and government regulations are relatively light, which tends to encourage new companies entering the market; however, the presence of large supermarket chains, which exercise great bargaining power, acts as a significant barrier to entry.

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Buyer power
Figure 162: Drivers of buyer power in the fruit & vegetables market in the United States, 2010
Source: Datamonitor
DATAMONITOR
Leading supermarkets, including Wal-Mart and Kroger, dominate the fruit and vegetable market in the US. Given that fruit and vegetables are largely commodity items, there is little to differentiate between retailers and therefore many factors affecting buyer power, within the fruit and vegetable market, are interdependent with those of supermarket retail collectively, especially the brand loyalty enjoyed by leading supermarkets and their ability to offer low prices. Fruit and vegetables provide key nutrients that are vital to buyers, such as vitamins and minerals and therefore buyer power is reduced. Overall buyer power within the fruit and vegetable market is weak.

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Supplier power
Figure 163: Drivers of supplier power in the fruit & vegetables market in the United States, 2010
Source: Datamonitor
DATAMONITOR
A large number of independent farmers constitute the main supply channel for the fruit and vegetable market. In dominating the fruit and vegetable market, large supermarket chains wield their large purchasing power to negotiate low prices and extended terms of credit through bulk purchasing. Moreover, some companies, i.e.Wal-Mart, have a strict code of conduct, to which suppliers must adhere, if they are to sell to the supermarket giant, illustrating the supermarkets power. Contractual arrangements between suppliers and the large supermarkets typically favor the interests of the latter, especially where a small supplier is heavily dependent on one large supermarket chain for revenues. The resultant low switching costs, combined with a relatively low level of product differentiation, detract considerably from supplier power. Overall, the US fruit and vegetables market displays weak supplier power.

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New entrants
Figure 164: Factors influencing the likelihood of new entrants in the fruit & vegetables market in the United States, 2010
Source: Datamonitor
DATAMONITOR
Entering the retail market is possible without extensive capital outlay, i.e. finding a niche market or offering organic products, may form a successful strategy. However, with the dominance of leading supermarkets, newcomers must be prepared as such companies usually enjoy strong brand recognition and benefit from scale economies. The latter allows them to compete more intensely on price, something which appeals to consumers. Consumers within this market incur negligible costs on switching from incumbent retailers to newcomers and the product on offer is hard to differentiate, which attracts new players. New entrants to the market may be deterred by heavy regulation courtesy of the FDA (US Food and Drug Administration) which oversees everything from food safety to labeling and packaging procedures. Overall, the threat of new entrants into the fruit and vegetables market is deemed to be moderate.

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Substitutes
Figure 165: Factors influencing the threat of substitutes in the fruit & vegetables market in the United States, 2010
Source: Datamonitor
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Rivalry
Figure 166: Drivers of degree of rivalry in the fruit & vegetables market in the United States, 2010
Source: Datamonitor
DATAMONITOR
In the US, a small number of players, typically leading supermarkets, dominate concentrated food retail markets and there is little opportunity for retailers to differentiate their offering strongly. Switching costs for consumers are negligible, and there is little opportunity for retailers to differentiate their offering. Fruit and vegetables are perishable, thus it is important for retailers to be able to sell their entire inventory to avoid losses due to waste. This effectively means that storage costs are inherently high for this market. Rivalry within the fruit and vegetable market is strong, reflecting the high level of competition between the large supermarkets who are its leading constituents.

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Market forecasts
In 2015, the United States fruit & vegetables market is forecast to have a value of $87.7 billion, a decrease of 19% since 2010. The compound annual rate of change of the market in the period 201015 is predicted to be -4.1%. Table 143: United States fruit & vegetables market value forecast: $ billion, 201015 Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor $ billion 108.4 104.2 100.1 96.0 91.9 87.7 billion 81.6 78.5 75.4 72.3 69.2 66.1 % Growth 6.0% (3.8%) (4.0%) (4.1%) (4.3%) (4.5%) (4.1%) DATAMONITOR
Figure 167: United States fruit & vegetables market value forecast: $ billion, 201015
Source: Datamonitor
DATAMONITOR

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In 2015, the United States fruit & vegetables market is forecast to have a volume of 44.3 million tonne, an increase of 1.6% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 0.3%. Table 144: United States fruit & vegetables market volume forecast: million tonne, 201015 Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor million tonne 43.6 43.7 43.9 44.0 44.1 44.3 % Growth 1.3% 0.3% 0.5% 0.2% 0.2% 0.4% 0.3% DATAMONITOR
Figure 168: United States fruit & vegetables market volume forecast: million tonne, 201015
Source: Datamonitor
DATAMONITOR

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Table 145: United States size of population (million), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Population (million) 298.4 301.4 304.2 306.7 309.1 % Growth 1.0% 1.0% 0.9% 0.8% 0.8% DATAMONITOR
Table 146: United States gdp (constant 2000 prices, $ billion), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Constant 2000 Prices, $ billion 11,509.5 11,733.0 11,697.8 11,288.4 11,627.0 % Growth 2.7% 1.9% (0.3%) (3.5%) 3.0% DATAMONITOR
Table 147: United States gdp (current prices, $ billion), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Current Prices, $ billion 13,475.5 14,129.5 14,627.9 14,065.8 14,725.5 % Growth 6.0% 4.9% 3.5% (3.8%) 4.7% DATAMONITOR

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Table 148: United States inflation, 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Inflation Rate (%) 3.2% 2.9% 3.8% (0.4%) 1.6% DATAMONITOR
Table 149: United States consumer price index (absolute), 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Consumer Price Index (2000 = 100) 117.1 120.4 125.0 124.6 126.6 DATAMONITOR
Table 150: United States exchange rate, 200610 Year 2006 2007 2008 2009 2010 Source: Datamonitor Exchange rate (/$) 1.2547 1.3683 1.4633 1.3905 1.3279 DATAMONITOR

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COMPANY PROFILES
COMPANY PROFILES
Carrefour S.A.
Table 151: Carrefour S.A.: key facts Head office: Telephone: Website: Financial year-end: Ticker: Stock exchange: Source: company website 26 quai Michele, TSA 20016, 92695 Levallois-Perret Cedex, FRA 33 1 55 63 39 00 www.carrefour.com December CA Paris DATAMONITOR
Carrefour SA is one of the leading grocery and consumer goods distribution groups in the world. The group operates more than 15,000 stores. Carrefour's primary grocery formats include hypermarkets, supermarkets, and hard discount and convenience stores. Carrefour primarily organizes its business segments based on geographic presence: France; Europe excluding France; Asia; and Latin America. In addition, the group's business operation can be segmented on the basis of its store formats. Carrefour is the leading hypermarket retailer in the world. The group operates about 1,395 hypermarket stores across the world, of which 203 hypermarkets are in France, 449 in European countries outside France, 309 in Latin America, and 339 in Asia. In Brazil, the group operates its hypermarket business under the Atacadao brand name; these hypermarkets offer a range of competitively priced companyowned and branded products in both food and non-food categories. In addition, the hypermarkets also offer services such as insurance, financial services, home computer support, travel and entertainment reservations and mobile phones. The group operates approximately 2,949 supermarket stores under the banners Carrefour Express, Carrefour market, GB, GS, Carrefour Bairro and Champion. The supermarkets offer a wide selection of mostly food products and some non-food products related to apparel, culture and leisure and tableware. Carrefour's hard discount segment, Dia, operates about 6,475 hard discount stores in Spain, France (under the Ed brand), Portugal (under the Minipreco brand), Greece, Turkey, Argentina, Brazil and China.

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The group's hard discount stores offer a range of food, basic health and cleaning products at discounted rates. The group's other activities comprise convenience stores, cash and carry foodservice stores, and the ecommerce retail format. Carrefour operates about 4,698 convenience stores and also operates cash and carry stores. Convenience stores are mainly operated by the franchisees under the banners Marche Plus, Shopi, 8 a Huit and Proxi in France; Carrefour Express in Belgium and Brazil; Carrefour 5 Minut stores in Poland; Carrefour City stores in Spain; and Carrefour Convenient Buy in Thailand. These stores primarily offer a wide selection of food products; these also offer a range of services such as home delivery, dry cleaning, 48-hour photo development, ticket distribution, photocopying, stamps and newspapers. Cash and carry foodservice stores provide wholesale and retail self-service mainly intended for businesses. Carrefour operates cash and carry foodservice stores under the trade name Promocash. Most of the cash and carry stores are operated by franchisees. In addition to the above mentioned store formats, Carrefour also sells its products through various ecommerce websites. Carrefour operates an online grocery store, Ooshop, a leading French online supermarket in terms of sales. It allows customers to shop on the Internet, and select from product listings including fresh and frozen items, at the same price as they would pay in Carrefour's hypermarkets with the added benefit of home delivery. Key Metrics The company recorded revenues of $121,227 million in the fiscal year ending December 2010, an increase of 6.5% compared to fiscal 2009. Its net income was $574 million in fiscal 2010, compared to a net income of $579 million in the preceding year.

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Table 152: Carrefour S.A.: key financials ($) $ million Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings 2006 115,809.1 3,221.2 62,966.3 46,068.2 456,295 2007 122,234.0 3,284.2 68,795.0 54,669.6 490,042 2008 116,873.1 2,038.5 68,993.7 54,485.5 495,000 2009 113,876.4 578.9 68,293.0 53,568.8 495,000 2010 121,227.2 573.6 71,070.9 57,077.9 475,967
DATAMONITOR
Table 153: Carrefour S.A.: key financials () million Revenues Net income (loss) Total assets Total liabilities Source: company filings 2006 87,422.0 2,431.6 47,532.0 34,776.0 2007 92,272.0 2,479.2 51,932.0 41,269.0 2008 88,225.2 1,538.8 52,082.0 41,130.0 2009 85,963.0 437.0 51,553.0 40,438.0 2010 91,512.0 433.0 53,650.0 43,087.0
DATAMONITOR
Table 154: Carrefour S.A.: key financial ratios Ratio Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings 2006 2.8% 4.4% 2.8% (5.7%) 73.2% 5.2% $253,803 $7,059 2007 2.7% 5.5% 9.3% 18.7% 79.5% 5.0% $249,436 $6,702 2008 1.7% (4.4%) 0.3% (0.3%) 79.0% 3.0% $236,107 $4,118 2009 0.5% (2.6%) (1.0%) (1.7%) 78.4% 0.8% $230,053 $1,169 2010 0.5% 6.5% 4.1% 6.6% 80.3% 0.8% $254,697 $1,205
DATAMONITOR

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Figure 169: Carrefour S.A.: revenues & profitability
Source: company filings
DATAMONITOR
Figure 170: Carrefour S.A.: assets & liabilities
DATAMONITOR

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Safeway Inc
Table 155: Safeway Inc: key facts Head office: Telephone: Website: Financial year-end: Ticker: Stock exchange: Source: company website 5918 Stoneridge Mall Road, Pleasanton, California, USA 1 925 467 3000 www.safeway.com January SWY New York DATAMONITOR
Safeway is one of the leading food and drug retailers in the US. The company primarily operates in California, Oregon, Washington, Alaska, Colorado, Arizona, Texas, the Chicago metropolitan area and the Mid-Atlantic region in the US and in British Columbia, Alberta and Manitoba/Saskatchewan in Canada. By the end of FY2010, Safeway operated about 1,725 stores. The company conducts its business through a single reporting segment. However, the revenue breakdown is reported based on product lines. Safeway owns and operates GroceryWorks.com Operating Company, an online grocery channel which operates the websites Safeway.com, Vons.com and Genuardis.com. Safeway also has a 49% ownership interest in Casa Ley, S.A. de C.V. which operates 156 food and general merchandise stores in Western Mexico. Another subsidiary, Blackhawk provides third-party gift cards, prepaid cards, telecom cards and sports and entertainment cards to a broad group of top North American retailers for sale to retail customers. Blackhawk also has gift card businesses in the UK, France, Mexico and Australia. Safeway's average store size is 46,000 square feet. Safeway's "Lifestyle" concept, with several stores being remodeled in this line, has an expanded line of perishables. It features an earth-toned decor package that is warm and inviting with special lighting to highlight products and departments, custom flooring and unique display features. Safeway's stores provide a full array of grocery items tailored to local preferences. Most stores offer a wide selection of food and general merchandise and feature a variety of specialty departments such as bakeries, delicatessens, florists and pharmacies. In addition, many stores offer Starbucks coffee shops and adjacent fuel centers. The company continues to operate a number of smaller stores that also offer an extensive selection of food and general merchandise, generally including one or more specialty departments. These stores are located in smaller communities and certain other

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COMPANY PROFILES
locations where larger stores may not be feasible because of space limitations and/or community needs or restrictions. Safeway operates manufacturing units to purchase, manufacture and process the private-label products sold in the stores. The company operated 20 manufacturing plants in the US and 12 in Canada. The manufacturing plants include milk plants, bakery plants, ice cream plants, cheese and meat packaging plants, soft drink bottling plants, fruit and vegetable processing plants and cake commissaries. Safeway's Canadian subsidiary has a wholesale operation that distributes both national brands and private-label products to independent grocery stores and institutional customers. In addition, the company operates laboratory facilities for quality assurance and research and development in certain plants and at its corporate offices. Safeway has 17 distribution/warehousing centers (13 in the US and four in Canada), which collectively provide the majority of all products to Safeway's 12 retail operating areas. The company's distribution centers in Maryland and British Columbia are operated by third parties. Key Metrics The company recorded revenues of $40,851 million in the fiscal year ending January 2010, a decrease of 7.4% compared to fiscal 2009. Its net loss was $1,098 million in fiscal 2010, compared to a net income of $965 million in the preceding year.
Table 156: Safeway Inc: key financials ($) $ million Revenues Net income (loss) Total assets Total liabilities Source: company filings 2006 38,416.0 561.1 15,756.9 10,837.2 2007 40,185.0 870.6 16,273.8 10,606.9 2008 42,286.0 888.4 17,651.0 10,949.2 2009 44,104.0 965.3 17,484.7 10,698.5 2010 40,850.7 (1,097.5) 14,963.6 10,017.2
DATAMONITOR

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Table 157: Safeway Inc: key financial ratios Ratio Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Source: company filings 2006 1.5% 7.2% 2.5% (2.1%) 68.8% 3.6% 2007 2.2% 4.6% 3.3% (2.1%) 65.2% 5.4% 2008 2.1% 5.2% 8.5% 3.2% 62.0% 5.2% 2009 2.2% 4.3% (0.9%) (2.3%) 61.2% 5.5% 2010 (2.7%) (7.4%) (14.4%) (6.4%) 66.9% (6.8%)
DATAMONITOR
Figure 171: Safeway Inc: revenues & profitability
DATAMONITOR

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Figure 172: Safeway Inc: assets & liabilities
DATAMONITOR

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The Kroger Co.

Table 158: The Kroger Co.: key facts Head office: Telephone: Website: Financial year-end: Ticker: Stock exchange: Source: company website 1014 Vine Street, Cincinnati, Ohio 45202, USA 1 513 762 4000 www.kroger.com January KR New York DATAMONITOR
Kroger is one of the largest retailers in the US. As of January 2009, the company operated 2,481 supermarkets and multi-department stores directly or through its subsidiaries in 31 US states. In addition, the company operates 40 food processing plants to manufacture its private label products. Kroger also markets its products through its e-commerce website, kroger.com. Kroger operates a single segment, retail sale of merchandise. However, based on the company's activities its operations can be divided into grocery store, convenience, jewelry and manufacturing. The company's grocery retail stores consist of supermarket stores, multi-department stores, price-impact warehouse stores, and marketplace stores. Kroger's supermarket formats are a combination of food and drug stores. The company operates its supermarket under a number of local brands such as Kroger, Ralphs, Dillons, Smith's, King Soopers, Fry's, QFC, City Market, Hilander, Owen's, Jay C, Pay Less, Baker's, Gerbes, and Scott's Food & Pharmacy. These stores primarily serve customers within a 2.0 - 2.5 mile radius. The supermarket stores house specialty departments such as whole health sections, pharmacies, pet centers and world-class perishables, such as fresh seafood and organic produce. In addition, Kroger's operates approximately 2,000 pharmacies in its combination food and drug stores. Kroger operates its multi-department stores under Fred Meyer, Dillons Marketplace, Fry's Marketplace, Kroger Marketplace, and Smith's Marketplace brand names. Fred Meyer department stores are on average 150,000 square feet in size and are promoted as one-stop shopping centers. The multidepartment stores carry more than 225,000 national and private label products in multiple product categories including apparel, home fashion, shoes, accessories, garden equipment, home electronics, and paint and hardware. Some of the multi-department stores include a fuel center. Some of the major nation brand products of the department stores include Levi's, Columbia Sportswear, Nike, Kitchen Aid, Adidas, Skechers, Dockers, Carhartt, Apple, Panasonic, Nikon, Canon, Jockey, Krups, Ashley, and Sony. Fruit & vegetables: Global Industry Guide
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The marketplace stores have an average store size of 100,000 to 130,000 square feet. These stores primarily offer grocery, pharmacy and expanded general merchandise including outdoor living products, electronics, home goods and toys. The company operates its price impact warehouse stores under Food 4 Less and Foods Co brands. These stores offer a limited variety of merchandise at a low price due to the 'no frills' format of the store. The average size of this store is 56,000 square feet. Price impact warehouse stores serve budgetconscious shoppers with a wide range of national brands in categories such as groceries, health and beauty care items, meat, dairy products, baked goods and fresh produce at low prices. In addition, the grocery retail segment comprises supermarket fuel centers. As of January 2009, the company operated 781 fuel centers. These fuel centers comprise fuel pumps (three to seven); kiosks to buy cigarettes, snacks, candy and miscellaneous oil-related products. The gasoline offered in these centers is usually tied to the loyalty program. In addition to supermarkets, Kroger operates 771 convenience stores in 15 US states. The company operates the convenience stores under five banners such as Kwik Shop, Loaf N' Jug, Quik Stop Markets, Tom Thumb Food Stores and Turkey Hill Mini Markets. These stores market a limited selection of private label products in the food and general merchandise categories. Some of the convenience stores also provide gasoline. The average size of the store ranges from 2,900 to 4,900 square feet. The convenience stores target small to medium-sized towns located near interstate highways. Approximately two-thirds of the stores are located in towns with less than 75,000 residents. Kroger operated 385 fine jewelry stores in 34 states as of January 2009. The company operates its jewelry stores under banners such as Fred Meyer Jewelers, Littman Jewelers, Barclay Jewelers, and Fox Jewelers. These jewelry stores are primarily stand-alone units in malls and shops inside the multidepartment stores of Fred Meyer. Fred Meyer Jewelers also offer jewelry products through the websites www.fredmeyerjewelers.com and www.littmanjewelers.com. The company manufactures approximately 43% of its 14,400 private label items in 40 manufacturing plants. The remaining items are produced by outside manufacturers, based on Kroger's specifications. The manufacturing plants comprise 18 dairies, 10 deli or bakery plants, five grocery product plants, three beverage plants, two meat plants and two cheese plants. Kroger's dairies produce all varieties of fluid milk, cultured products such as yogurt and cottage cheese, ice cream, novelty treats and non-carbonated beverages. The company's bakery plants produce a full line of breads, rolls, buns, sweet goods, cookies, crackers, snacks and deli items. Kroger's frozen dough plants supply frozen cakes and dough to its retail stores. The company's meat plants produce fresh meats and meat products. Kroger's grocery manufacturing plants pack peanut butter, coffee, spaghetti sauce, cashews and flavored oatmeal products. The company also produces a wide range of carbonated beverages, fruit drinks and spring Fruit & vegetables: Global Industry Guide
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water. In addition, Kroger's cheese plants process a variety of natural and processed cheeses for its supermarkets. In addition to selling merchandise, Kroger also offers various financial services such as credit cards, gift and prepaid cards, insurance, loans, and other in store financial services. Kroger offers the 1-2-3 REWARDS MasterCard as a loyalty card to its customers. Key Metrics The company recorded revenues of $76,000 million in the fiscal year ending January 2009, an increase of 8.2% compared to fiscal 2008. Its net income was $1,249 million in fiscal 2009, compared to a net income of $1,181 million in the preceding year.
Table 159: The Kroger Co.: key financials ($) $ million Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings 2005 56,434.0 (104.0) 20,491.0 16,872.0 290,000 2006 60,553.0 958.0 20,482.0 16,092.0 290,000 2007 66,111.0 1,115.0 21,215.0 16,292.0 310,000 2008 70,235.0 1,181.0 22,299.0 17,385.0 323,000 2009 76,000.0 1,249.0 23,211.0 18,035.0 334,000
DATAMONITOR
Table 160: The Kroger Co.: key financial ratios Ratio Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings 2005 (0.2%) 4.9% (1.3%) 1.0% 82.3% (0.5%) $194,600 ($359) 2006 1.6% 7.3% 0.0% (4.6%) 78.6% 4.7% $208,803 $3,303 2007 1.7% 9.2% 3.6% 1.2% 76.8% 5.3% $213,261 $3,597 2008 1.7% 6.2% 5.1% 6.7% 78.0% 5.4% $217,446 $3,656 2009 1.6% 8.2% 4.1% 3.7% 77.7% 5.5% $227,545 $3,740
DATAMONITOR

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Figure 173: The Kroger Co.: revenues & profitability
DATAMONITOR
Figure 174: The Kroger Co.: assets & liabilities
DATAMONITOR

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Wal-Mart Stores, Inc.

Table 161: Wal-Mart Stores, Inc.: key facts Head office: Telephone: Website: Financial year-end: Ticker: Stock exchange: Source: company website 702 Southwest 8th Street, Bentonville, Arkansas 72716, USA 1 479 273 4000 www.walmartstores.com January WMT New York DATAMONITOR
Wal-Mart Stores is the largest retail company in the world. The company operates retail stores in various formats worldwide. Wal-Mart offers a wide assortment of merchandises. In addition, Wal-Mart offers its products through various e-commerce websites including walmart.com and samsclub.com. Wal-Mart operates three business segments: Wal-Mart US, the international segment, and Sam's Club. The company also generates revenues from a fourth, non-operating segment named "others" which includes a variety of income categories such as Sam's Club membership fee revenues, tenant income and financial services income. Wal-Mart US operates three different retail formats in the US; discount stores, supercenters and neighborhood markets. The segment has retail operations in all 50 states of the US. Wal-Mart operates 803 discount stores, each with an average store size of 108,000 square feet, in 47 states. The company also operates 2,747 supercenters (average size of 185,000 square feet) in 48 US states and 158 neighborhood markets (average size of 42,000 square feet) in 16 US states. In addition, the segment also markets its products through its e-commerce website walmart.com. The stores operated by Wal-Mart US offer branded and private label merchandise in various product categories including grocery, entertainment, electronics, apparel, health and wellness, and home furnishing and houseware. These stores also offer financial services such as money order sales, wire transfers, check cashing and bill payment. To support the retail operations of the Wal-Mart US segment, Wal-Mart operates 120 distribution facilities across the US, of which the company owns 105; the remaining are owned and operated by third parties. A few of these distribution centers also service Wal-Mart's Sam's Club for certain items. During FY2010,

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these distribution centers shipped approximately 79% of the merchandize sold by Wal-Mart US. The remaining merchandise was shipped directly by the suppliers to the company's stores. The international segment comprises wholly owned subsidiaries operating in Argentina, Brazil, Canada, Japan, Puerto Rico and the UK. Wal-Mart's majority-owned subsidiaries operate in five countries in Central America, Chile and Mexico; the company has joint venture operations in India and China; and other controlled subsidiaries in China. The operating formats vary from country to country, and include discount stores, supermarkets, supercenters, hypermarkets and other formats which comprise Sam's Club, combination discount and grocery stores, cash-n-carry stores, department stores and restaurants. To support the international segment's retail operations, Wal-Mart utilizes a total of 132 distribution facilities located in Argentina, Brazil, Canada, Chile, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the UK and two export consolidation facilities in the US. The company owns and operates 34 of these facilities, 37 are leased and operated and the remaining facilities are operated by third parties. Wal-Mart distributes both import and domestic products to the international retail stores through these distribution facilities. During FY2010, approximately 83% of the international segment's purchases were shipped from these distribution facilities. Sam's Club operates Wal-Mart's warehouse membership clubs in the US; it also operates the website, www.samsclub.com. Wal-Mart operates 596 Sam's Club (average store size of 133,000 square feet) in 48 US states. Sam's Club serves both individuals and businesses. Sam's Club offers bulk displays of brand name merchandise including hard goods, some soft goods, institutional-size grocery items, and selected private-label items under the Member's Mark, Bakers & Chefs and Sam's Club brands. A significant number of Sam's Club warehouses offer photo processing services, pharmaceuticals, optical departments and gasoline stations. The company operates 26 distribution facilities across the US to support Sam's Club retail operation, of which the company owns eight and the remaining are third party owned facilities. During FY2010, approximately 63% of Sam's Club non-fuel purchases were shipped from these distribution centers; the balance merchandize was shipped directly by the suppliers to the warehouses. Sam's Club uses a combination of private fleet and common carriers to transport non-perishable merchandise from distribution centers to Sam's Club. Key Metrics The company recorded revenues of $408,214 million in the fiscal year ending January 2010, an increase of 1.7% compared to fiscal 2009. Its net income was $14,335 million in fiscal 2010, compared to a net income of $13,400 million in the preceding year.

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Table 162: Wal-Mart Stores, Inc.: key financials ($) $ million Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings 2006 308,945.0 11,231.0 135,624.0 82,453.0 1,800,000 2007 344,992.0 11,284.0 151,193.0 89,620.0 1,900,000 2008 374,307.0 12,731.0 163,514.0 98,906.0 2,100,000 2009 401,204.0 13,400.0 163,429.0 98,144.0 2,095,000 2010 408,214.0 14,335.0 170,706.0 99,957.0 2,100,000
DATAMONITOR
Table 163: Wal-Mart Stores, Inc.: key financial ratios Ratio Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings 2006 3.6% 9.8% 15.8% 21.7% 60.8% 8.9% $171,636 $6,239 2007 3.3% 11.7% 11.5% 8.7% 59.3% 7.9% $181,575 $5,939 2008 3.4% 8.5% 8.1% 10.4% 60.5% 8.1% $178,241 $6,062 2009 3.3% 7.2% (0.1%) (0.8%) 60.1% 8.2% $191,505 $6,396 2010 3.5% 1.7% 4.5% 1.8% 58.6% 8.6% $194,388 $6,826
DATAMONITOR

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Figure 175: Wal-Mart Stores, Inc.: revenues & profitability
DATAMONITOR

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Figure 176: Wal-Mart Stores, Inc.: assets & liabilities
DATAMONITOR

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APPENDIX
APPENDIX
Data Research Methodology
Datamonitor Industry Guides draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style. Review of in-house databases Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitors in-house databases provide the foundation for all related industry profiles Preparatory research We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends Datamonitor aggregates and analyzes a number of secondary information sources, including: National/Governmental statistics International data (official international sources) National and International trade associations Broker and analyst reports Company Annual Reports Business information libraries and databases
Modeling & forecasting tools Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and upto-date

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