Seeds of doubt: Future changes to funding are expected to significantly affect profit

The Vegetable Growing industry consists of farms that produce any number of root, leafy, fruit-bearing or other vegetables, as well as melons. Industry produce may be cultivated in fields or covered nurseries. The industry has performed well over the past five years despite the high level of import penetration, with growth having been supported by rising production and strong demand from consumers seeking healthier diets. The increased use of greenhouses has extended growing seasons, which has boosted output. Overall, industry revenue is forecast to increase at a compound annual rate of 3.3% over the five years through 2018-19 to reach £3 billion. Industry revenue is estimated to increase by 2.1% in 2018-19, as more consumers choose to improve their health through healthier more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The rising influence of supermarkets on the supply chain has pushed down profit
  • Sales of wonky veg, as retailers have aimed to reduce food waste, have supported industry revenue
  • Changes to subsidy payments from the Basic Payment System are expected to heavily affect profit
  • Industry Report - Industry Key Buyers Chapter

    The Vegetable Growing industry has a low level of market share concentration. The industry is fragmented and characterised by many small independent growers, and no company accounts for more than 5% of revenue. The four largest players in the industry are estimated to account for just 5.2% of industry revenue in 2018-19.Farms in the United Kingdom are generally family-owned operations, and workers are hired cyclically according to harvest seasons. The majority of farms in Britain have a small proportion of full-time staff. According to the Office for National Statistics, 94.3% of vegetable growing businesses employ fewer than 10 people. The industry is highly fragmented, with no single farm dominating the industry in terms of production or income...purchase to read more.

    Additional Insights for the Vegetable Growing Industry

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

  • Establishment of export markets
  • Economies of scale
  • Membership of joint marketing/distribution operations
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and Real effective exchange rate in the Vegetable Growing industry impact industry performance..

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    What's in this report

    What is the Vegetable Growing Industry?

    The industry consists of farmers growing vegetables and melons in fields and greenhouses. The industry supplies produce for both the fresh and processing markets.

    Industry Products
  • Carrots
  • Lettuces
  • Potatoes
  • Sugar beets
  • Tomatoes
  • Mushrooms
  • Industry Activities
  • Growing leafy or stem vegetables including artichokes, asparagus, cabbages, cauliflower, broccoli and lettuce
  • Growing fruit-bearing vegetables including cucumbers, gherkins, aubergines, tomatoes, watermelons and cantaloupes
  • Growing root, bulb or tuberous vegetables including potatoes, cassava, carrots, turnips, garlic, onions and leeks
  • Growing mushrooms, truffles, sugar beets and other vegetables
  • Growing vegetable seeds
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets
  • Real effective exchange rate
  • Level of annual rainfall
  • Fertiliser prices
  • Health consciousness

  • Current Performance
  • Weather conditions
  • Market conditions
  • EU effects
  • Industry profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Funding caps
  • EU trade and labour
  • Organic growth
  • Table: Vegetable Growing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Fruit & Vegetable Processing
  • Fruit & Vegetable Wholesaling
  • Supermarkets
  • Fruit & Vegetable Retailers
  • Full-Service Restaurants

  • Key Selling Industries
  • Agricultural Machinery & Equipment Wholesaling
  • Agricultural Support Services
  • Fertiliser & Nitrogen Compound Manufacturing
  • Pesticide & Other Agrochemical Manufacturing
  • Water Collection, Treatment & Supply

  • Products & Services
  • Other
  • Potatoes
  • Sugar beets
  • Mushrooms
  • Lettuces
  • Carrots
  • Tomatoes
  • Chart: Vegetable Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retail chains
  • Fresh produce wholesalers
  • Fruit and vegetable processors
  • Other
  • Chart: Major Market Segmentation for the Vegetable Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRentUtilitiesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Vegetable Growing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Vegetable 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 Vegetable 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 Vegetable Growing Industry
  • 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
  • A woody shrub native to South America. Its tuberous root is a staple food in many developing countries and used to make tapioca.
  • Fruit-Bearing Vegetable
  • A vegetable crop that contains seeds. Fruit-bearing vegetables include tomato plants, aubergines and peppers.
  • Sugar Beet
  • A plant high in sucrose, grown commercially for sugar production.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Vegetable Growing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Vegetable 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 Vegetable 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 Vegetable Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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