Packaged foods are having many benefits including easy handling, consumption, cooking, and free from external tampering. Packaged food is highly adopted by urban consumers, who look forward for convenient, ready to eat meal, which is well suited for their fast-paced lifestyles. With the increase health awareness among people, demand for improved and healthy alternatives for snacks which contain less artificial ingredients are projected to drive the Packaged food market growth in the coming years. Moreover, companies are offering a variety of snacks item for consumers such as Tortilla chips by General Mills, which are marketed as a healthy snack. Key market drivers for Packaged food market incorporate technological improvement, modern retail trades, changing lifestyle, and increased popularity of fast service restaurants. Furthermore, development of science and nanotechnology has transformed the food and processing industry. Nanotechnology has grown in the field of improvement of functional foods, processing, packaging, preservation, and food production.
Geographically, global Packaged food market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
North America is expected to hold the largest share of global Packaged food market, powered by the immense markets in the U.S. and Canada. Owning to busy schedules, consumers in this region are frequently adopting ready to eat Packaged food instead of conventional meal, which leads to growth of the market. Another factor promoting market in North America is the food manufacturing companies revising their product lines to comprise snack food categories as well as healthier packaged foods. According to survey done by U.S. Census data and Simmons National Consumer Survey (NHCS), In 2018, 238.94 million Americans used bagged and packaged salads. The increasing demand for artificial ingredients in Packaged foods is a key trend observed in Packaged food market.
Asia Pacific is likely to be the fastest growing Packaged food market, where China and India play a vital role in terms of consumption and demand. Increase in number of working women populations has a considerable impact on the demand for Packaged foods in India. In addition to this, evolving lifestyles, rapid urbanization, and rising disposable income has resulted for the superior consumption of packaged foods. China’s packaged food market has observed a remarkable growth due to the introduction of premium products by food manufacturers and increasing health awareness among people. For instance, Kraft foods aligned with ketchup giant Heinz to expand their business and also Tyson foods collaborate with Godrej foods in India to grow in market.
Europe is likely to witness considerable growth for Packaged food market. This is attributed to Continuing increase in disposable income of consumers coupled with rise in number of household units. European consumers are increasingly looking for premium ready meals which offer a quality dining experience. There is also a demand for healthier ready meals as part of a balanced diet.
Middle East and Africa Packaged food market is expected to witness considerable growth in CAGR during the forecast period. This is attributed to better taste, freshness and the quality of the ingredients used in these products remain a critical point among the consumer to consume the ready-to-eat food products.
Latin America is witnessing steady growth in the Packaged food market. This is attributed to increasing demand for convenience by consumers, increase in disposable income, and changing consumer behavior.
Global Packaged food market is segmented by product type and distribution channel.
On the basis of product type, market is segmented into ingredients and extracts, baby products, sweet and savoury snacks, bakery and confectionery, oils and fats, dairy product, beverages, sauces and dressings, and others. Baby products are expected to hold highest share of market owing to rising consumer awareness regarding child health is increasing the sales of these products. Beverages are another growing segment followed by bakery and confectionery, and dairy product. Non-alcoholic drinks and ready to drink beverages are increasing the demand in Packaged food market. The factor which positively influencing the growth of the baked food segment is innovation and advancement in the baking industry.
On the basis of distribution channel, market is segmented into supermarkets/hypermarket, online/e-retails, and others. Online/e-retails segment is likely to witness significant growth in global Packaged food market. This is attributed to spending on marketing of different products on web. Moreover, according to IBEF (Indian Brand Equity Foundation), Amazon is scheduling to come into the Indian food retailing sector by investing 515 million USD in the next five years. Supermarkets/hypermarket is merely beneficial for local food manufacturers. For instance, In 2016, U.K. supermarket giant Tesco signed up with the National Farmers’ Union fruit and veg pledge, which highlights on reducing food wastage, treating suppliers fairly and focus to buy more British seasonable fruits and vegetable.
Packaged Food Market Segmentation
By Product Type
By Distribution Channel