Bad seed: Industry profit margins may be squeezed as a new subsidy scheme comes into effect

The Fruit Growing industry consists of 6,600 establishments and produces over 743,000 tonnes of fruit per year. Latest Defra estimates suggest that domestic production contributed approximately 16% of the total UK supply of fruit in 2017, down slightly from 17% in 2016. Increases in the supply capabilities of domestic growers are limited to certain fruits, because the climate is unsuitable for tropical fruits like bananas and oranges. Soft fruits such as strawberries and raspberries are amongst the most commonly grown in the industry. Orchard fruits, pears, plums, cherries and apples, including those used for eating, cooking and cider production, are also widely grown.Over the five years through 2018-19, industry revenue is expected to increase at a compound annual rate of 2.4%...read more.

Industry Statistics & Market Size
Revenue
£796.5m
Annual Growth 14-19
2.4%
Forecast Growth 19-24
Profit
Employment
24,942
Businesses
5,736
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Adverse weather conditions caused some volatility and decline over the past five years
  • Import penetration has been mitigated as environmental fears encourage demand for local growers
  • The Environmental Land Management subsidy scheme is set to be phased in over the next five years
  • Industry Report - Industry Locations Chapter

    Fruit growers tend to base their operations in areas with low rent and labour costs and good transport links. Over 80% of industry establishments are located in the southern half of England, which includes the South East, the South West, the West Midlands and the East of England. These areas provide favourable conditions for fruit growing.The South EastThe South East is expected to account for 28.9% of industry establishments. The South East has rich and fertile soil that is ideal for industry operations. The counties of Kent and East Sussex grow a high proportion of Britain's fruit and vegetables.The South WestThe South West is estimated to account for 21.7% of industry establishments in the current year. The...purchase to read more.

    Additional Insights for the Fruit Growing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fruit Growing Industry are

  • Establishment of export markets
  • Ability to effectively communicate and negotiate
  • Production of premium goods/services
  • IBISWorld analysts also discuss how external factors such as Level of annual rainfall and Demand from fruit and vegetable processing in the Fruit Growing industry impact industry performance..

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    What's in this report

    What is the Fruit Growing Industry?

    This industry comprises firms involved in growing a wide rangeof fruit, generally outdoors in orchards or polytunnels. A significant amount of soft fruits is grown in the United Kingdom.

    Industry Products
  • Strawberries
  • Raspberries
  • Apples
  • Blackberries
  • Pears
  • Plums
  • Blackcurrants
  • Other fruits
  • Industry Activities
  • Stone fruit growing
  • Pome fruit growing
  • Grape growing
  • Citrus fruit growing
  • Soft fruit growing
  • Oleaginous fruit growing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Level of annual rainfall
  • Demand from fruit and vegetable processing
  • Demand from fruit and vegetable wholesaling
  • Fruit and vegetable prices
  • Health consciousness

  • Current Performance
  • Weathering volatility
  • Increasing demand
  • Margins and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Funding and tariffs
  • Slim pickings
  • Fresh demand
  • Profit pressure
  • Table: Fruit Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fruit Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Juice Production
  • Fruit & Vegetable Processing
  • Fruit & Vegetable Wholesaling
  • Supermarkets
  • Fruit & Vegetable Retailers

  • Key Selling Industries
  • Fertiliser & Nitrogen Compound Manufacturing
  • Pesticide & Other Agrochemical Manufacturing
  • Water Collection, Treatment & Supply

  • Products & Services
  • Strawberries
  • Apples
  • Raspberries
  • Other fruits
  • Blackcurrants
  • Blackberries
  • Pears
  • Plums
  • Chart: Fruit Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Marketing agents
  • Wholesalers
  • Supermarkets
  • Fruit processors
  • Box schemes, farmers' markets and farm shops
  • Chart: Major Market Segmentation for the Fruit Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilitiesDepreciationOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Fruit Growing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fruit Growing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Fruit Growing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Fruit Growing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Box Scheme
  • Box schemes provide locally grown mixtures of fruit and vegetables directly to customers from farms, usually in cardboard boxes or wooden crates.
  • Marketing Intermediaries/Agents
  • Agents facilitating business between fruit growers and buyers.
  • Polytunnels
  • Temporary plastic tunnel structures designed to protect fruit and vegetables from the elements.
  • Producer Organisation (Po)
  • A group through which growers market produce, build strong supply chain relationships and realise economies of scale by pooling resources and skills.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fruit Growing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Fruit Growing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Fruit Growing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Fruit Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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