Packaged Food Market Size, Share & Trends Analysis Report By Product Type (Breakfast Cereals, Baby Products, Snacks & Beverages, Bakery and Confectionery, Dairy Products, Beverages, Sauces and Dressings, Others), By Packaging (Jugs, Packets, Bottles, Bags, Bowls, Boxes, Cans, Cartons, Crates), By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, Online/e-Retail, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global packaged food market size was valued at USD 2730 billion in 2022. It is projected to reach USD 4573 billion by 2031, growing at a CAGR of 5.9% during the forecast period (2023–2031).

Convenient foods prepared and distributed for consumption are referred to as packaged foods. Depending on their shapes and textures, these products can be put into boxes, plastic bottles, or tin cans. Numerous advantages are provided by packaging materials, including spill prevention, barrier and contamination protection, portion control, aid in maintaining shape and quality, etc. Additionally, they offer a channel for transmitting information regarding the expiration date, nutritional value, cost, country of origin of the packaged goods, etc. The availability of packaged food items is widespread in supermarkets, hypermarkets, online marketplaces, retail stores, etc.

The earliest commercial use of nanotechnology in the food industry is in food packaging. Numerous packaging features useful for packaged goods can be improved or created using various nanomaterials and nanotechnologies. For instance, natural clays are added to packaging to enhance qualities like strength and barrier properties. Nanotechnology has been applied to develop lightweight materials, incorporate sensors or indicators for consumer information, and enhance biodegradability and recycling. Nanomaterials can improve biodegradable packaging, decrease the number needed to facilitate recycling, and alter gas permeability. However, growing safety concerns with packaged food, such as product recalls and scandals involving food contamination, could be a problem for the market.

Market Dynamics

What are the Driving Factors for Packaged Food?

Growing Understanding Of The Importance Of Hygienic Food

Maintaining the highest hygiene standards while working as a food component helps spread pathogenic and altering microorganisms. Food safety and hygiene underpin healthy living. Food hygiene prevents most foodborne infections. Food safety involves handling, storing, and preparing food to prevent infections and preserve nutrients for a healthy diet. Metal containers, paper, board, metal/board composites, plastic, glass, and caps are covered. Companies' food packaging standards require many steps. Chemical or biological food contamination occurs. Fertilizers, pesticides, insecticides, and chemicals are chemicals. Viruses, molds, etc. Food industry hygiene benefits consumers, workers, and establishments. This market is growing due to packaged food companies' hygiene.

Convenient To Use and Hardly Chance of Tampering

Packaging food and drinks have helped people who live far from home. This is because such packaging has improved product storage and preserved quality for longer. Thus, packaged foods can be stored for a long time without spoiling. Buyers can consume them anytime. Wrapping or storing packaged food is optional. Most manufacturers choose to package because it preserves product quality. Packaging protects against all physical and environmental damage. Unpackaged products may be damaged during transportation, handling, and storage. Thus, glass or aluminum packaging protects food from all such damage and preserves its quality. There is no chance of tampering with the packaged food items and ensuring the food’s hygiene and safety.

What are the Main Obstacles to the Market Expansion for Packaged Food?

Side Effects and Packaging Waste

Side effects and packaging waste are slowing the Food Packaging market. As the Commission regulates food packaging and contact materials and slows packaging growth, the food packaging market is expected to remain highly regulated. Packaging today uses multiple materials. They may contain toxic or harmful chemicals. Glass containers are safe, but some contain lead that can leach into food. Bisphenol A (BPA) in plastic bottles can cause endocrine changes. The Packaged Food market is expected to grow slowly due to the complex food service packaging supply chain. Waste from improper packaging can slow the Europe Food Packaging market. Companies pack their food and drinks with preservatives. This extends product shelf life. Experts have found that such preservatives cause serious health problems. Many preservatives have harmful side effects. It has increased chronic and mental health disorders, proving that such preservatives are unhealthy for the body.

What are the Future Opportunities for Packaged Food?

Technological Advancements in Process Methods

Nestle and Kraft Foods invest heavily in brand awareness and product differentiation. Numerous key players are investing in R&D to improve product shelf-life and launch anti-microbial packaging materials, positively affecting the global packaged food market. They are developing lightweight packaging solutions to reduce transportation costs and carbon emissions. The market is expected to grow as baked goods, and non-alcoholic drinks become more popular. Additionally, biodegradable, nanofabrication, flexible, and other food packaging technologies will drive the global packaged food market in the coming years.

Regional Analysis

The global packaged food market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

Europe Dominates the Global Market.

Europe is the most significant shareholder in the global packaged food market and is expected to grow at a CAGR of 5.2% during the forecast period. The UK, Germany, France, Italy, Spain, and the rest of Europe are all included in Europe’s packaged food market analysis. The Organization for Economic Co-operation and Development (OECD) reported 2.2% household disposable income in Europe. As household annual income growth increases, consumers are shifting toward packaged food. The UK food packaging market will grow due to consumer preference for packaged food. New food packaging technologies in Germany will drive growth. This will significantly affect the German food packaging market. France's food packaging market is growing due to FDI and consumer overconsumption. Due to strict health, safety, and food quality regulations, Spain's food packaging market is growing faster.

North America is expected to grow at a CAGR of 6.5% during the forecast period. The U.S. and Canada are included in the analysis of the packaged food market in North America. Industry players benefit from the growing vegan population's demand for plant-based products. Danone S.A., Nestlé, and Unilever have entered the plant-based market to capitalize. Vegan companies like Impossible Foods Inc. and Beyond Meat's groundbreaking innovations have boosted industry growth. The study found that the U.S. food supply is healthier than Australia's but more processed and higher in median sugar and sodium. According to the DHSS, thirty million Americans are lactose intolerant. Thus, lactose-intolerant Americans have embraced plant-based dairy alternatives. U.S. consumers like exotic-flavored, nutrient-rich drinks. The segment is also growing due to health-conscious consumers’ and athletes' demand for functional and sports drinks. Consumers, researchers, and policymakers have no regular surveillance or reporting on grocery shelves, but dietary guidelines are updated. First, assess the food supply.

Segmental Analysis

The market is segmented by product type and distribution channel

Based on product type, the global packaged food market is bifurcated into breakfast cereals, baby products, snacks & beverages, bakery and confectionery, dairy products, sauces and dressings, and others.

The breakfast cereals segment is the highest contributor to the market and is expected to grow at a CAGR of 6.13% during the forecast period due to rising health awareness and easy access to breakfast cereals in department stores, pharmacies, and convenience stores. Consumers emphasize breakfast as the most important meal of the day. Breakfast cereal is processed grains with vitamins and minerals. It's eaten with milk, yogurt, fruit, and nuts. Before drying, breakfast cereals can be puffed, flaked, shredded, or coated in chocolate or frosting. Extrusion, a high-temperature machine-shaped process, makes many breakfast bowls of cereal. Breakfast cereals are growing due to consumers' changing food habits and Western culture's influence. Consumers' preference for healthy food and convenience store expansion that boosts brand visibility is expected to boost the market growth.

Based on distribution channels, the global packaged food market is bifurcated into Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, Online/e-Retail, and Others.

The Supermarkets/Hypermarkets segment is the highest contributor and is expected to grow at a CAGR of 5.71% during the forecast period. The growth of hypermarkets/supermarkets in the packaged food market is due to their wide selection of products and frequent promotions that increase foot traffic and sales. Supermarkets offer an irresistible combination of freshness and value for all your daily needs. Families in the neighborhood shop at the supermarket. These mass merchandisers make buying bakery, dairy, and other packaged foods easy. These stores also offer a wide range of products and tempting deals to attract customers and boost sales. Online stores in the packaged food market grew the fastest during the forecast period.

Impact of covid-19

The pandemic had caused a lockdown in almost all the countries across the world backed up by strict government regulations such as social distancing and quarantine. A severe effect of the lockdown was observed on the economy of various countries which further canceled certain construction projects temporarily or permanently.

Further, immediate long-term effects were seen in the supply chain and the deployment of smart solutions required in the smart buildings. However, the ease offered and the multiple benefits of the smart building solutions are anticipated to increase the deployments during the time.

Recent Developments

• October 2022, MICHAEL BATTLE CREEK Parents require a moment to themselves more than ever during the hectic holiday season. Parents have told Eggo that their "evening me time," when the kids have gone to bed, and they can finally unwind and enjoy it in peace, is one of their favorite times to eat Eggo Waffles.
• October 2022, HERSHEY - This Halloween, fans of the KIT KAT brand will receive a trick-or-treat bowl that never empties. "Please Take One" signs on Trick-or-Treat night are the worst, especially if it's your favorite candy, KIT KAT Bars.