Concentrated tomatoes can be processed in both conventional and organic ways. Organic processing of concentrated tomatoes does not involve the use of harmful chemicals, and this is the main reason why the demand and consumption of organic concentrated tomatoes is witnessing a rapid increase in the worldwide market. This shifting trend towards the use of organic concentrated tomatoes is expected to continue into the future as well and will hence augur well for the concentrated tomatoes market. Organic concentrated tomatoes are made from natural and vine ripened tomatoes and include natural spices and non GMO ingredients. Consumers the world over prefer using organic concentrated tomatoes in their daily food preparations, as organic tomato concentrate is rich in flavor and taste.
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Regional Production of Concentrated Tomatoes Shifting Towards Organic Methods
The production of tomato concentrate across key regions such as North America is moving towards organic methods for harvesting and processing. In North America, there has been a steady inclination towards greenhouse tomato production, which uses alternative soils and new methods for climate control. Owing to this, the quality of tomatoes in the region has improved significantly, thereby resulting in enhanced quality of concentrated tomatoes. This is expected to fuel revenue growth of the concentrated tomatoes market in the region. Some of the other regions such as Europe are also increasing local production of organic concentrated tomatoes to cater to the demands of a health conscious population.
Volatile Pricing and Decrease in Production of Tomatoes to Hamper Concentrated Tomatoes Market Growth
The production of concentrated tomatoes across the world has been hit lately with the volatile prices of tomatoes across certain regional markets. Manufacturers of concentrated tomatoes are facing challenges in sourcing good quality raw material at optimal prices and balancing the product costs at the same time. Long-term planning of the production of concentrated tomatoes given the current procurement scenario is also becoming an issue. Rising prices of tomatoes inevitably lead to bulk procurement and this can create issues in the quality of the raw material used to produce concentrated tomatoes. This has forced manufacturers to indulge in mass processing of tomatoes for producing concentrated tomatoes. Raw material prices directly impact the pricing structure of the final product, and this can inhibit revenue growth of the concentrated tomatoes market significantly in the coming years. With just about 20% fresh tomatoes used for processing, manufacturers are compelled to sell concentrated tomatoes in bulk, thereby adding to the current production and sales challenges. This factor can negatively impact growth in revenue of the concentrated tomatoes market in the long run.
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Another factor restraining revenue growth of the concentrated tomatoes market is a decrease in the production of tomatoes across the globe. Worldwide production of tomatoes is anticipated to take a hit in 2018. This means a reduction in the availability of fresh tomatoes for producing concentrated tomatoes. Low tomato production is expected to impact the demand and supply scenario of concentrated tomatoes. This is further likely to hamper growth in revenue of the concentrated tomatoes market.
Online Stores Most Preferred Channel for Sales of Concentrated Tomatoes
Concentrated tomatoes are currently being sold through multiple sales channels such as direct sales, modern trade, departmental stores, online stores, drug stores, and other sales channels. Of these, sales through online stores is projected to witness a high growth rate in the next decade. The proliferation of e-commerce in the retail sector has created good opportunities for manufacturers of concentrated tomatoes to sell their products through online channels. Departmental stores are the second most preferred sales channel for concentrated tomatoes.
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