Key Challenges and Trends Shaping the Specialty Crop Industry

During the last decade, the specialty crop industry has faced multiple challenges alongside shifting consumer demand. While some commodities have experienced growth, others have declined due to labor constraints, disease pressures, and increasing import competition. Figures 1 and 2 show acreage trends by commodity group from 2014 to 2024. Over the last decade (2014-2024), harvested acreage for fresh and processed vegetables declined by 23%, while potato acreage decreased by 13%, representing compound annual growth rate (CAGR) declines of 2.5% and 1.4%, respectively (Figure 1). Production declines were smaller due to continued productivity and yield gains.

Combined fruit and nut acreage has increased steadily, driven almost entirely by tree nuts, where planted acreage expanded by 87% over the last decade (Figure 2). Growth has been led by almonds and pistachios, with additional increases in pecans and walnuts. These crops are generally less labor-intensive because harvesting in modern orchards is highly mechanized.

In contrast, fruit acreage has generally declined. Citrus acreage fell by 32%, while other major non-citrus fruit acreage declined by about 12%, representing CAGR declines of 3.7% and 1.3%, respectively. The citrus decline has been largely driven by citrus greening disease and lower orange juice consumption. Meanwhile, stronger consumer demand has supported growth in strawberry and blueberry acreage and production, although imports have increased faster than domestic output.