What Is Driving The Packaged Food Market And How It Has Evolved?

Wed, 15 May 2019 12:36

The whole idea behind the adoption of packaged food came through emergence of an easy and lazy lifestyle. While it was merely an addition to the food industry initially, has now become an alternative to organic food.

Convenience is given upon as the main reason behind the growth of packaged food consumption, whether it is convenience in carrying or an option to “not cooking”.

Earlier, the packaging was limited to luxury items, as it was expensive but it is in no context totally today, everything from cheap to cheapest is sold packed.

Safety from external tampering was considered a major factor to promote packaging. Today, Tyson Foods which recalled 11M pounds of packaged chicken strips over concerns that it might be contaminated with metal throws the latest example over packaged food safety concerns.

Moreover, that's why increased health awareness is one of the main factors driving the growth of the packaged food market. 

The food packaging industry has arrived again at the same point for which it all begins, food safety, which certainly was kind of lost with a large number of companies being accused of unsafe and unhealthy food. Nonetheless, every packaging food giant has been at least once accused of serving items with unhealthy substances or even insects, be it the people’s favorite Cadbury or their go-to brand Nestle.

On the other hand, items which had been conventionally consumed as “health goodies” like soup are sold with a flavor of taste. Unsurprisingly, it's driving a fair amount of consumer attention from both health freaks and taste monsters.

Keith R. McLoughlin, interim president, and chief of Campbell Soup says “Soup is a great business, and Campbell’s is an iconic brand". But he adds that the business has been over-relied upon to generate earnings and has been underinvested in.

The Asia-Pacific region is considered as the fastest growing packaged food market mostly due to increasing adoption of packaged foods.

With India being one of the primary targets of investors as it will become the third biggest market for packaged food in 2020, after China and the United States, according to the forecasts of Euromonitor. Rising incomes, lifestyle changes (urban) and modern retail trade would help the food packaging market to expand.

British market research company Euromonitor International also predicts that the total sales of packaged food will go up by nearly seven percent annually within the next five years.