Global Statistics Representing Packaged Food Market Scenario
Packaged food has gained popularity owing its easy consumption, handling, cooking, and safety from external tampering. The packaged food market is growing at a tremendous rate, owing to the increasing number of health conscious consumers, and growing awareness regarding modern care practices in baby health and food hygiene. The non-alcoholic drinks sector is expected to dominate the market due to the high demand for ready to drink (RTD) beverages. Moreover, non-alcoholic drinks and baked foods are together likely to contribute to almost three-fourths of the packaged food market.
Changing lifestyle, convenience of consumption and increasing health awareness are projected to drive the market growth in the coming years. Prominent key players such as Nestle, and the Kraft Foods are significantly investing in enhancing brand awareness and promotions for product differentiation. With the increasing adoption of baked food (such as cake, bread and pastries) and non-alcoholic drinks, the market is expected to witness significant growth during the forecast period. For instance, Grupo Bimbo S.A.B. de C.V. acquired East Balt Bakeries for USD 650 million to expand its market footprint.
Over the past few years, the evolution in science and nanotechnology has revolutionized the packaged food market. The use of nanotechnology has led to improvements in functional food packaging, preservation, processing and production. Nano applications have been designed to create lightweight materials, and improve recyclability and biodegradability.
The global packaged food market was valued at USD 2.70 trillion in 2018 and is expected to reach USD 3.86 trillion by 2026 with an anticipated CAGR of 4.56% during the forecast period, 2019–2026.
The global packaged food market can be segmented by product type and distribution channel.
On the basis of product type, the market can be 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. The baby products segment is expected to hold a prominent market share, owing to the increasing number of working parents, and growing awareness regarding nutritional benefits for infants and toddlers. Beverages are also in demand in the packaging industry on account of the shifting consumer spending behaviour, changing consumer taste, and demand for nutritious and healthy food.
On the basis of distribution channel, the market can be segmented into supermarkets/hypermarket, online/e-retails and others. The online/e-retails segment is expected to drive the growth of the packaged food market. Food manufacturing companies are making hefty investments in digital marketing to advertise their products on the web, and understand customer preferences and interest with programmed languages to target customer networks with similar preferences and taste.
Geographically, the global packaged food market has been segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
North America is expected to account for a significant share in the global packaged food market throughout the forecast period, 2019–2026. Cutting-edge technology such as nanotechnology, and significant investments by market players in the region to achieve higher efficiency are expected propel market growth. Moreover, the presence of a large number of key players in the region also supplements market growth.
Europe is projected to witness substantial growth in the packaged food market, owing to the growing working population, and increasing awareness regarding the benefits of a healthy lifestyle. According to the Organization for Economic Co-operation and Development (OECD), household disposable income in Europe stood at 2.2% in 2015 and therefore, with improvement in household annual income growth rate, consumers are increasingly shifting towards packaged food items.
Asia Pacific is the fastest growing packaged food market and is projected to contribute a massive share over the forecast period. Market growth in the region can be attributed to the increasing adoption of packaged food and growing awareness, which make Asia Pacific a lucrative market for manufacturers to expand and invest. Increasing disposable income, hectic lifestyles, and changing preferences towards regular consumption of ready-to-eat foods have led to the emergence of a number of instant food alternatives.
Latin America is witnessing notable market growth, owing to rapid population growth and greater levels of urbanization. Food processing infrastructure, transportation and cold chain facilities, and unreliable power supply are boosting the demand for processed food and additives.
The Middle East & Africa region is expected to account for the least market share, owing to the lack of awareness and poor standard of living. In the Middle East, there is significant demand for packaged food due to the region’s sizable working population, and low rate of cultivation. Africa is witnessing steady growth in the packaged food market as the availability of food is low in this region and a number of foods are imported.
Some of the key players in the global packaged food market are Nestle (Switzerland), General Mills, Inc. (U.S.), THE HERSHEY COMPANY (U.S.) The Kraft Heinz Company (U.S.), ConAgra foods, Inc. (U.S.), Tyson Foods, Inc. (U.S.), Kellogg Co. (U.S.), Frito-Lay North America, Inc. (U.S.), JBS (U.S.), Smithfield Food, Inc. (U.S.), and Mars (U.S.).
Packaged Food Market: Segmentation
By Product Type
By Distribution Channel