Canned Food Market

Market Overview

The global canned food market size was valued at USD 96.52 billion in 2023. It is estimated to reach USD 124.51 billion by 2032, growing at a CAGR of 2.87% during the forecast period (2024–2032). The global canned food market is primarily driven by surging urbanization and busier lifestyles, thereby increasing the demand for convenience food. Additionally, there has also been a rise in advancements in canning technology and product innovation, thereby fueling the global canned food market growth. Furthermore, in the past few years, consumers have become more concerned regarding the environment and are opting for sustainable and eco-friendly products, which is estimated to create opportunities for global canned food market manufacturers to innovate their packaging solutions.

Canned food is food that has undergone a preservation process in which it is sealed in airtight containers, usually metal cans, to prevent spoilage and increase shelf life. The canning process consists of heating the food to kill bacteria, sealing it in the can to create a vacuum, and sterilizing the sealed can to avoid contamination.

Canned foods include a variety of items such as fruits, vegetables, beans, meat, poultry, soups, stews, and sauces. These foods are convenient, portable, and have a long shelf life, making them ideal for emergencies, camping, and storage. Canned foods must be prepared, canned, and sealed in sanitary conditions to ensure safety and quality. Before consumption, properly canned foods should be inspected for imperfections or damage, and they should be used within a certain timeframe to maintain their freshness and nutritional value.

Highlights

• Canned fruits and vegetables dominate the product type segment.
• Supermarket/hypermarket dominates the distribution channel segment.
• Conventional dominates the type segment.
• North America is the highest shareholder in the global market.

Market Dynamics

Canned Food Market Drivers

Increasing Urbanization and Busy Lifestyles

The rapid pace of urbanization and the shift towards busier lifestyles are significant drivers of the global canned food market. As more people move to urban areas and work longer hours, the demand for convenient and ready-to-eat food options has surged. Canned foods offer an ideal solution, providing a quick, easy, and nutritious meal option that requires minimal preparation time.

This convenience factor is particularly appealing to working professionals, students, and individuals with hectic schedules. Moreover, the extended shelf life of canned foods reduces the frequency of grocery shopping, further appealing to time-constrained consumers. This trend is expected to continue fueling the market as urbanization rates increase globally.

Advancements in Canning Technology and Product Innovation

Advancements in canning technology and continuous product innovation are also crucial drivers of the global canned food market. Modern canning techniques have significantly improved the quality, taste, and nutritional value of canned foods, making them more attractive to health-conscious consumers. Innovations such as BPA-free cans, reduced sodium content, and the incorporation of organic and non-GMO ingredients have broadened the market appeal.

Additionally, manufacturers are introducing a variety of new flavors and international cuisine options, catering to diverse consumer preferences and expanding the market reach. These technological advancements and product innovations are expected to sustain the growth of the canned food market by meeting evolving consumer demands and preferences.

Canned Food Market Restraint

Rise in Awareness Regarding Preservatives and Chemicals

Concerns about the safety of canned foods have increasingly impacted consumer preferences, restraining the growth of the global canned food market. Studies have demonstrated that the frequent consumption of fast food can lead to weight gain and other health issues, which has influenced a transition to healthier dining options such as fast-casual restaurants. Health-conscious consumers, wary of preservatives and chemicals often found in canned foods, are driving this shift.

Additionally, allergies, sensitivities, and health conditions such as diabetes contribute to the avoidance of canned foods. The preference for organic foods, which are perceived to contain fewer or no preservatives, has further fueled this trend. As a result, the canned food market faces significant challenges, with consumers gravitating towards fresher and more natural food options. This shift in consumer behavior underscores the growing awareness and concern regarding the long-term health effects of preservatives and chemicals in packaged foods, thereby restraining the global market growth.

Canned Food Market Opportunities

Growing Demand for Sustainable and Eco-Friendly Packaging

The increasing consumer awareness regarding environmental sustainability presents a significant opportunity for the global canned food market. With growing concerns regarding plastic waste and its environmental consequences, there is a surging need for packaging solutions that are both environmentally benign and can be recycled. Canned food manufacturers can capitalize on this trend by adopting sustainable packaging materials and practices.

For instance, utilizing aluminum cans, which are highly recyclable and have a lower impact on the environment than plastic packaging, may appeal to environmentally conscious consumers. Additionally, promoting the sustainability of canned foods, such as their reduced food waste due to longer shelf life, can further enhance market appeal. By embracing the global move towards sustainability, the canned food market can tap into a new segment of eco-conscious consumers and drive future growth.

Regional Analysis

Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

North America Dominates the Global Market

North America holds the most significant share of the global canned food market and is expected to expand substantially during the forecast period. This region, encompassing the United States and Canada, is the world's largest market for canned food products. According to a report by the American Canned Food Association, the U.S. canned food market was valued at USD 28.1 billion in 2021, making it the largest globally. Several factors contribute to North America's market dominance, including well-established distribution channels, consumer preferences for convenience, and a long-standing tradition of canning as a preservation method.

The United States Department of Agriculture (USDA) reported that per capita consumption of canned vegetables in the U.S. was approximately 16.6 pounds in 2021, underscoring the high demand for canned food products. Major canned food manufacturers, such as Conagra Brands, Del Monte Foods, and Campbell Soup Company, bolster the market's strength. These companies invest heavily in research and development, product innovation, and marketing strategies to adapt to evolving consumer preferences.

Canada also significantly contributes to North America's dominance in the canned food market. According to the Canadian Canned Food Alliance, the Canadian canned food industry generates around $2.5 billion in annual sales, with canned vegetables and fruits being particularly popular. The robust presence of these major manufacturers, combined with the region's efficient distribution networks and consumer demand for convenient food options, cements North America's leading position in the global canned food market.

The Asia-Pacific region is the sub-dominant market for canned food products, driven by factors such as rapid urbanization, changing dietary habits, and the growing demand for convenient and shelf-stable food options. Major markets in the Asia-Pacific region, including China, Japan, and India, contribute significantly to the region's canned food market. The Chinese canned food market, in particular, is experiencing substantial growth due to the country's large population and increasing disposable incomes. According to the China National Food Industry Association, the Chinese canned food market was valued at $13.2 billion in 2021. The rise of modern retail channels, such as supermarkets and hypermarkets, in the Asia-Pacific region has also facilitated the distribution and availability of canned food products.

Additionally, the region's growing middle-class population and the influence of Western dietary habits have contributed to the increasing demand for canned food items. Furthermore, the Asia-Pacific region has a strong tradition of preserving and canning various food products, particularly fruits and seafood. Countries like Thailand, Vietnam, and the Philippines have well-established canning industries catering to both domestic and export markets. The growth of the Asia-Pacific canned food market is also supported by government initiatives and regulations aimed at ensuring food safety and quality standards. Organizations like the ASEAN Food and Beverage Alliance (AFBA) and the Japan Canned Food Association play a crucial role in promoting the development of the canned food industry in the region. Thus, all these factors are estimated to foster the Asia-Pacific canned food market.

Segmental Analysis

The global canned food market is bifurcated into product type, distribution channel, and type.

Based on the product type, the global market is bifurcated into canned fruits and vegetables, canned meat and seafood, canned ready meals, and others.

The canned fruits and vegetables segment dominates the global market over the forecast period. Canned fruits and vegetables are typically made from wholesale raw ingredients that have not yet begun to decompose. They are treated and stored in airtight containers to preserve them longer. The canned fruits and vegetables segment is expanding significantly in the market due to consumer knowledge of the nutrients of canned fruits and vegetables and increased focus on their health. Additionally, consumers favor canned fruits and vegetables due to their simple packaging and extended shelf life, which supports the market's expansion. Increased investments in food processing research and development, a strengthened canned food distribution network, and the long shelf lives of canned fruits and vegetables are all anticipated to contribute significantly to the market's expansion.

Based on distribution channels, the global canned food market is segmented into supermarkets/hypermarkets, convenience stores, e-commerce, and others.

The supermarket/hypermarket segment dominated the global market during the forecast period. Consumers prefer to purchase canned food goods from supermarkets because they typically provide lower prices for products compared to other distribution channels. Supermarkets and hypermarkets assist producers with product introduction and serve a big customer base. In supermarkets and hypermarkets, customers focus more on the complete shopping experience. Customers are drawn to shopping at supermarkets and hypermarkets by the pleasant shopping experience, well-organized selection, tidy surroundings, and welcoming service. Sales of canned food goods are anticipated to increase due to their attractive display and affordable prices in supermarkets and hypermarkets.

Based on type, the global market is bifurcated into organic and conventional.

The conventional segment owns the highest canned food market share over the forecast period. Conventional canned food is food that is preserved using the traditional canning process. This procedure entails sealing the food in vessels that do not allow air to enter and subjecting it to heat in order to eliminate bacteria and other microbes. This method ensures a long shelf life without the need for refrigeration. Common types of conventional canned foods include vegetables (such as peas, carrots, and corn), fruits (like peaches, pineapples, and pears), legumes (such as beans and chickpeas), soups, meats (including tuna, chicken, and beef), and sauces (like tomato sauce and pasta sauce). These foods are popular due to their convenience, affordability, and extended storage capabilities. The canning process typically retains the nutritional value of the food, although some vitamins may be lost during heating. Despite the availability of fresh and frozen alternatives, conventional canned foods remain a staple in many households for their ease of use and versatility in meal preparation.

Recent Developments

• January 2024- The U.S. plans to impose new tariffs on food can metal imports from China, Germany, and Canada, citing unfair trade practices. This move could impact the global canned food market by increasing production costs and potentially leading to supply chain disruptions, affecting the availability and affordability of canned food products.