Packaged Food Market Size valued at USD 2845.9 billion in 2022. The Packaged Food market industry is projected to grow from USD 2974.5 Billion in 2023 to USD 4236.5 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.52% during the forecast period (2023 - 2032). The increased importance of hygienic food, health concerns from food products, and technological innovations in processing methods are the key market drivers enhancing the growth of market.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Market CAGR for packaged food market is being driven by the growing demand for ready-to-eat healthy food products and technological advancement. The substantial growth in the number of working people and their busy work schedule is boosting the packaged food market. These people prefer food products that can be ready with few ingredients and in minimum time. The millennial population is inclined towards healthy packaged food alternatives, thus providing opportunities for companies of packaged food products.
Ready-to-eat food products like frozen food, bakery items, snacks, chocolates, and other items have grown. The rising urbanization caused the high urbanization rate that has positively affected the growth of packaged food products with the rising packaged food demand. There is an increased consumer preference for healthy food and beverage alternatives, accelerating market growth. Consumers are now opting for food products that are made up of natural components and contain fewer preservatives. Therefore, packaged food manufacturing companies are now emphasizing the production of healthy organic-based food products. The market of packaged food is boosted by the increasing trend of health and sustainability among well-informed consumers. Consumers are more known of food sources and sustainability as they are becoming selective about the source of protein they consume. Thus, all these aspects and developments are anticipated to gain a boost in packaged food products.
Consumers prefer healthy food products that have rich nutritional value, low cholesterol, less preservatives, and low fat. Owing to the rise in demand for healthy food, many beverage industries started manufacturing organic and non-alcoholic juices to get health-oriented customers. The leading brands are opting for flexible packaging to give multiple environmental benefits. The flexible packaging uses the best qualities of paper, aluminum, or plastic materials without sacrificing the overall food quality. This process increases the food shelf life by replacing flexible films with traditional packaging materials in the market. The manufacturers are focusing on cutting-edge new tech to improve the shelf appeal and also include intelligent packaging and nanotechnology to provide maximum convenience to customers. Thus, driving the Packaged Food market revenue.
The Packaged Food market segmentation, based on type, includes Bakery Products, Dairy Products, Breakfast Products, Meals, Beverages, and Others. The beverage segment dominates the packaged food market due to the availability of a wide range of flavors, attractive packaging, and high expenditure on promoting these products by various companies. The increasing demand for sports drinks and functional drinks in health-conscious sports athletes to maintain their bodies has contributed to market growth.
The Packaged Food market segmentation, based on distribution channels, includes Supermarkets & Hypermarkets, Convenience Stores, Online, and other channel. The supermarket & hypermarkets category dominates the packaged food market because most consumers opt to buy groceries from supermarkets as they provide various options for varying a product physically. The online distribution channel is the fastest growing segment due to the rising internet penetration and rapid growth in mobile phone users globally.
Figure 1: Packaged Food Market, by Distribution Channel, 2022 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
By region, the study gives market insights into North America, Asia-Pacific, Europe, and the Rest of the World. The European packaged food market dominates the market due to the consumers preferring packaged food over any local food that is safe, hygienic, easy, and convenient to use than the local food and the presence of key market players who emphasize expanding their packaged food market. The German packaged food market is the largest contributor, followed by the UK packaged food market in the European region.
Further, the countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: PACKAGED FOOD MARKET SHARE BY REGION 2022 (%)
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
North American Packaged Food market accounts for the second-largest market share due to the rise of hectic lifestyles, high consumer spending power, and various new and attractive options of food products. Further, the US Packaged Food market held the largest market share, and the Canadian Packaged Food market was the fastest-growing market in the European region
The Asia-Pacific Packaged Food Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the ease of accessing packaged food products, evolving consumer lifestyles, and rising disposable income in the region. Moreover, China’s Packaged Food market held the largest market share, and the Indian Packaged Food market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Packaged Food market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Packaged Food industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Packaged Food industry to benefit clients and increase the market sector. In recent years, the Packaged Food industry has offered some of the most significant advantages to the food industry. Major players in the Packaged Food market, including Nestle, The Coca-Cola Company, PepsiCo, Tyson Foods, Inc., Mars, Incorporated, Cargill, Incorporated, The Kraft Heinz Company, General Mills Inc., Conagra Brands, Inc., Kellogg Co., and others, are attempting to increase market demand by investing in research and development operations.
Tyson Foods is a modernized, multi-national, protein-focused food company that produces approximately 20% of the beef, pork, and chicken in the United States. It is also the main protein provider to various national restaurant chains, consisting of quick services, casual, mid-scale, and fine dining restaurants. They provide a variety of food service customers, including schools, military bases, hospitals, nursing homes, and international customers also. In July 2022, Tyson Foods launched its new strategic partnership with Tanmiah, which provides fresh and value-added poultry and meat products. This agreement will provide Tyson Foods Inc. with 15% of the acquisition of the Tanmaih subsidiary and a 60% stake in the Supreme Foods Processing Company. In October 2021, Tyson Foods Inc. Launched air-fried chicken bites, which are 75% less fat and contain 35% fewer calories. The products consisted of Spicy Chicken Bites and Parmesan Chicken Bites; with this Tyson Foods Inc was able to enlarge its packaged food product portfolio in the US market.
The Coca-Cola Company is a complete beverage company, providing over 500 brands in more than 200 countries. The Coca-Cola brand's portfolio consists of the world's most valuable beverage brands like AdeS soy-based beverages, Ayataka green tea, Dasani waters, Del Valle juices and nectars, Fanta, Georgia coffee, Gold Peak teas and coffees, Honest tea, innocent smoothies and juices, Minute Maid juices, Smartwater, Sprite, Vitaminwater, and ZICO coconut water. Coca-Cola is transforming its portfolio by reducing sugar in its drinks with new inventions. In November 2021, the Coca-Cola company acquired complete ownership of BODYARMOR, a sports performance and hydrational beverages line; with this company, was able to spread its beverage portfolio and is anticipated to have long-term growth. In September 2018, the company launched Minute Maid smoothie, an important step into the 'Health & Wellness' space in India. This smoothie is the combination of 'Power of 3' ingredients- Fruits, Milk, and Nutrients, made from locally available fruits, specifically designed to suit the Indian palate.
Packaged Food Industry Developments
January 2020: The new range of Starbucks products, including Cold Brew Concentrate, Fresh Brew Coffee, Starbucks Coffee with Essential Vitamins, Starbucks Coffee with Golden Turmeric, and Starbucks Coffee with 2x the Caffeine, was launched by Nestle.
October 2019: New chopped kit flavors salads were launched by Chiquita Brands, LLC., inspired by the restaurant menu offerings and trending flavors in the US to fortify its presence in the market.
February 2021:Â Keurig Dr. Pepper Inc. acquired Limitless, a US-based caffeinated sparkling water company. This helped the Keurig Dr Pepper spread its beverages portfolio to provide the growing demand for healthy packaged beverages across the US.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 2845.9 billion |
| Market Size 2023 | USD 2974.5 billion |
| Market Size 2032 | USD 4236.5 billion |
| Compound Annual Growth Rate (CAGR) | 4.52% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Distribution Channel, and Region |
| Geographies Covered | Asia Pacific, North America, Europe, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Nestle, The Coca-Cola Company, PepsiCo, Tyson Foods, Inc., Mars, Incorporated, Cargill, Incorporated, The Kraft Heinz Company, General Mills Inc., Conagra Brands, Inc., Kellogg Co. Â |
| Key Market Opportunities | Rising innovation in product s flavors and technological advancement. |
| Key Market Dynamics | Increase in demand for the ready-to-eat food products and growing concerns for health in consumers. |
Frequently Asked Questions (FAQ) :
The Packaged Food market size valued at USD 2845.9 Billion in 2022.
The market is projected to rise at a CAGR of 4.52% during the forecast period, 2023-2032.
Europe had the largest share of the market
The key players in the market are Nestle, The Coca-Cola Company, PepsiCo, Tyson Foods, Inc., Mars, Incorporated, Cargill, Incorporated, The Kraft Heinz Company, General Mills Inc., Conagra Brands, Inc., Kellogg Co.
The beverage Packaged Food category dominated the market in 2022.
The Supermarkets & Hypermarkets channel had the largest share in the market.
Assistant Manager - Research High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. by implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in packaging, construction, and equipment domains. she handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.
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