The Total Addressable Market (TAM) for Packaged Soup was valued at USD 13.57 billion in 2022. It is projected to reach USD 23.12 billion by 2031, growing at a CAGR of 6.1% during the forecast period (2023-2031).
Packaged soup is an instant soup that is easy to prepare in a short amount of time. It comes in sterile packaging that is flexible and keeps it safe and fresh from the time it is filled until the time it is dispensed for the final time. There is a tremendous amount of variety in terms of the types, tastes, and styles of packaged soup currently available.
In addition, it can be purchased in a variety of containers, including cans, bottles, pouches, and cups. These soups are available in various varieties on the market, including tomato, smoked corn, mixed vegetable, and more. Packaged soup is readily accessible through multiple distribution methods, such as online retailers, supermarkets and hypermarkets, and others.
Growing Demand for Convenience Foods Worldwide
Consumer demand for canned soup and other convenience foods has increased over the past few years. This is because convenience foods, like bottled soup, make life easier for consumers because they require little to no additional preparation before eating. Many consumers, especially those who work, are drawn to convenience foods like canned soup due to their busy schedules, inability to cook, lack of time, weariness, and other considerations. Additionally, convenience foods, such as packaged soup, have several benefits, such as taking less time to plan meals and prepare food, leaving fewer leftovers because packaged soup contains single-portion meals, and being simpler to clean up.
Adverse Effects of Synthetic Preservatives
Artificial preservatives are chemicals or other substances created by humans that are added to a variety of goods, including beverages, food, pharmaceuticals, and other goods. They are added to packaged foods, specially packaged soups, to stop undesired chemical changes or breakdowns. Monosodium glutamate (MSG), a synthetic preservative that can harm the neurological system, is a common ingredient in prepackaged soups. Consumers are becoming less likely to choose to eat packaged soup as they become more aware of the harmful consequences of the preservatives used to extend the soup's shelf life. This is anticipated to limit the expansion of the packaged soup market in terms of volume sales over the forecast period.
Rising Demand for Vegan or Plant-Based Products
Demand for plant-based diets, particularly plant-based boxed soup, has significantly grown over the past several years as more and more consumers try to replace animal-based products. Cutting out animal products like meat, fish, dairy, and eggs is a requirement of the vegan diet. Many consumers are converting to a plant-based diet due to the health dangers of ingesting animal products and the ethical and environmental consequences of animal agriculture. Thus, several major companies in the packaged soup market are adding plant-based packaged soup to their product portfolios and launching it to the market due to the expanding number of vegans.
For instance, Conagra, Inc. has offered many flavors of packaged soup made from plants, including vegan chicken soup and sausage soup. Thus, it is predicted that the market for packaged plant-based soup will experience significant growth due to the rising number of vegan consumers worldwide.
The global packaged soup market is segmented by product type, packaging, end-user, and distribution channel.
Based on product type, the global market is bifurcated into dried and wet.
The dried segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.90% during the forecast period. The preparation of dried soup takes little time and does not require refrigeration. It possesses flavor stability even at ambient temperature for a long time and resists oxidative and enzymatic deterioration (6 to 12 months approx.). Consequently, hotels, restaurants, caterers, and other businesses that serve the working class favor them. Additionally, dried soup is lightweight, stable, and has a long shelf life, making it easy to carry. The demand for dried soup is boosted by rising instant food demand and rising health consciousness, two significant drivers fueling the global market expansion. Additionally, dried soup is offered in standard, organic, and vegan varieties, drawing consumers' attention to these dry soups.
Wet soup is a basic soup that can be eaten by itself or as a foundation for various recipes. Condensed soup and ready-to-drink soup are both considered watery soups. Condensed soup is prepared by mixing various ingredients, such as vegetables and flavorings, and by reducing the amount of water. It is packaged in cans. Additionally, ready-to-drink soup is available in liquid form and is typically chilled straight from the store refrigerator. They are packaged in bottles or other to-go containers, making them suitable for any lifestyle.
Based on packaging, the global market is bifurcated into bottles and canned packets.
The packets segment owns the highest market share and is estimated to grow at a CAGR of 5.90% during the forecast period. The category of packets also includes containers in the form of pouches and cups. Manufacturers frequently offer soups in eye-catching cups and pouches, which attract customers in retail settings, including supermarkets and hypermarkets, convenience stores, and others. The major market players use pouch-based packaging designs for soup because they are useful and efficient. The pouches now used for packaging dry soup serve to lengthen the product's shelf life and lower the danger of contamination and alterations to the soup's natural flavor.
Manufacturers favor HDPE and PET bottles because they are less expensive. These bottles' shelf lives are extended when kept at room temperature or in a refrigerator. Leading producers, including ZÜPA NOMA, Fawen, and Tó Gazpacho, are introducing their chilled ready-to-drink soup in beautifully packaged, portable PET bottles. Additionally, customers worldwide are becoming increasingly accustomed to soups in bottle packaging because they are an easy-to-transport hydration option. As a result, this fact will probably present a massive chance for the packaged soup market to grow in value sales over the forecast period.
Based on end-users, the global market is bifurcated into the commercial and household sectors.
The household sector segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.85% during the forecast period. The primary sector for an economy's consumption is the household sector. Industry participants in this sector are the ultimate recipients of the goods and services offered by numerous commercial enterprises. They influence market demand by defining it in terms of their tastes and preferences. The enterprises produce and provide goods and services to the market in response to consumer demand.
Universities, catering, hospitality, mobile kitchens, and cafés and coffee shops are commercial segments in the packaged soup business. In terms of value sales, several business sectors significantly contribute to the expansion of the packaged soup market. Restaurants work hard to give their clients authentic flavors from throughout the world. As a result, canned soup with various national and foreign flavors is frequently used in restaurants since it can be cooked fast and consistently. Therefore, it helps businesses attract clients who value fast service, various soups with both domestic and international flavors, and a consistent dining experience throughout trips.
Based on distribution channels, the global market is bifurcated into supermarkets/hypermarkets, convenience stores, online stores, food services, and others.
The supermarket or hypermarket segment owns the highest contributor market share and is expected to boost at a CAGR of 5.80% during the forecast period. Supermarkets and hypermarkets are self-service stores that have been expanded from commercial sector stores. It offers a vast range of packaged foods, personal care items, and other items neatly categorized and arranged on big shelves. These goods are categorized and placed on shelves with placards that list their specifications and costs. Supermarkets and hypermarkets typically cover a vast space and include a variety of brands in a single location. For further convenience and accessibility, they are precisely placed close to residential areas.
Customers increasingly prefer to buy packaged food, functional food, and other items through online platforms or e-commerce. This is because packaged soup is widely available and offers advantages like ingredient disclosure, usage instructions, time-saving features, and the opportunity to deliver food directly to customers' homes. Additionally, growth in the number of deals or discounts and the increased penetration of different online portals in both developed and emerging regions entice customers to buy packaged soup online.
Convenience stores sell consumer items, exceptionally packaged soups, and other non-perishable foods. These goods are packaged in corrugated boxes, cans, and bottles. Prices at convenience stores are much higher than those at supermarkets or traditional grocery stores because these establishments purchase products in smaller quantities from wholesalers at higher per-unit costs.
The global packaged soup market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North America Dominates the Global Market
North America is the most significant global packaged soup market shareholder and is expected to grow at a CAGR of 5.45% during the forecast period. Lifestyles are becoming increasingly hectic for consumers in North America. As a result, North American consumers gravitate toward prepared and convenient foods, such as packaged soup that can be eaten right away or requires little preparation. In terms of value sales, this fact significantly impacts expanding the global market. Additionally, introducing premium and unique flavors is anticipated to accelerate the expansion of the packaged soups market in this region regarding value sales as consumers' perceptions of packaged soups as commonly preferred quick meals change.
Europe is expected to boost at a CAGR of 5.60% during the forecast period. The packaged soup market in the UK, Germany, France, Italy, Spain, and the rest of Europe are all examined. The food and beverage business is Europe's most secure and resilient sector. In terms of revenue, the top manufacturers of food and beverages are France, the UK, Germany, and Italy. The packaged soup market is rapidly growing in Europe due to the hectic lifestyles of Europeans and the high per capita consumption markets in Germany, France, and the UK. Additionally, the increased desire for high-quality meals that can be cooked quickly among Europeans has fueled the expansion of this sector in Europe. This has fueled the packaged soup market's expansion in value sales in this region.
The packaged soup market in the Asia-Pacific is expected to grow significantly due to the massive demand and the presence of several producers. Due to the growing number of working professionals willing to spend money on ready-to-eat meals like packaged soup, Asia-Pacific will see a significant increase in packaged soup sales. The sales of packaged food products, especially packaged soup, are boosted by rising disposable income and expanding urbanization. As a result, the market will experience a considerable increase in value sales during the projected period.
The modern lives of LAMEA consumers, especially those in the middle- to upper-income categories, have increased the demand for nutritious and convenient meal options like packed soup. This is one of the main elements fueling the expansion of the packaged soup business. As a result, it is projected that this will increase demand for packed soup during the forecast period. Additionally, producers' innovations in terms of tastes and more practical packaging are likely to fuel the expansion of packaged soup in the area. This will undoubtedly increase consumer demand for packaged soup in the LAMEA region, which will increase the price of packaged soup there.
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