ID: MRFR/F-B & N/9059-HCR | April 2021 | Region: Global | 90 pages
The concept of packaged food emerged from factors like quick-cooking, easy handling, and easy consumption of food. The materials used for packing the food should be convenient enough for opening, closing, and carrying the food. Nowadays, the manufacturers provide such materials that can help the consumers to keep the food on the shelf for a longer time. An increase in health awareness is a major reason that is responsible for driving the growth of the packaged food market.
The packaged food market is growing rapidly at a huge pace and is expected to reach a valuation of USD 4.11 trillion by the end of 2028 if the CAGR is measured at 4.52% during the forecast period 2021-2028. The demand for such foods is increasing due to the inclination of the consumers towards the benefits of the food products. The packaged foods are usually made by the manufacturers much prior to packaging and then it is packed and the containers are sent to the retail stores for further delivery. It usually contains enough shelf life but nowadays, the manufacturers are implementing various ways that can help their customers to retain the product for a longer time.
The outbreak of the COVID-19 pandemic has forced governments across the world to impose lockdown and social distancing norms. Strict measures were taken to stop the spread of the virus. Hence, it created pressure on hypermarkets, food suppliers, convenience stores, and supermarkets. People started buying packaged foods for stockpiling. This has created a huge increase in the sales of packaged foods in various stores across the world. This practice led to a sudden rise in the value of the Packaged Food Market. Due to excessive stockpiling of packaged foods, there is a lack of availability of foods currently, and this is considered a major problem. However, this increase in demand for packaged food will decrease post the COVID-19 pandemic. Some food manufacturing industries are also hiring personnel in order to keep up the demand for the products during the pandemic. Though the pandemic affected the growth of various industries, the market for packaged food rose during the pandemic due to its excessive demand and the practice of stockpiling.
There is a huge increase in the demand for fortified foods among the consumers which act as a major driver responsible for driving the packaged food market. Due to easy production and good availability of packaged food, the demand of the customers towards packaged food is increasing day by day. Another major driving factor is the increase in health consciousness.
The manufacturers are trying to implement new strategies that can drive their sales of packaged food. Hence, they are trying to induce various innovations in the product flavors to make more customers demand the packaged foods. This can serve as a major opportunity for the packaged food market.
Along with the drivers that are constantly driving the growth of the market, a strict regulatory framework in the consumer packaged food market is a major factor that may hamper the market for packaged food.
The food which is packed may often react with the material used for packaging. Most industries are unaware of this factor and hence, this stands as a major challenge for the global packaged food market. The risk of food contamination is another challenging factor for the market.
The packaged food market witnessed a medium level of growth in the last few years. Nowadays, consumers are preferring snacks or multiple small meals over a three-course meal. Due to the increase in the number of convenience stores and rise in the brand expansion, the demand for packaged foods has increased more rapidly. Also, the change in the breakfast habits of the customers has been escalating the growth of the market. The market value is expected to rise more in the coming years if the CAGR is measured at 4.52% during the forecast period.
Value Chain Analysis
The value of the global packaged food market is increasing rapidly due to the trending needs of the consumers which are constantly fulfilled by the key players of the market. The players have also adopted excellent packing solutions of the food for the customers in order to help them maintain the freshness and shelf life of the consumers. There is a sudden change in consumer eating habits which has also posed as a major driver in the market for packaged food. The growth in the availability of the packaged food is another reason that is escalating the growth of the market.
The packaged food market size is segmented into three major categories. They are by category type, by distribution channel, and by product type. These segments are further divided into their sub-segments. Here are the segments along with their sub-segments mentioned below.
By Product Type,
By Distribution Channel,
Geographically, the canned and packaged food market is segmented into five main regions which include Europe, North America, Latin America, Asia Pacific, and the Middle East and Africa. Among these five major regions, Europe is expected to hold the largest packaged food industry share. This region also dominated the market in the year 2020 because of the excessive consumer inclination towards snacking. The packaged food industry is trying to expand its market and this is creating a major demand among the customers. Moreover, the region is dominating the market for packaged food because of the presence of key players in that region. The manufacturers in Europe are concentrating on expanding and creating a great product portfolio that can attract more customers.
JBS, Nestle, Kellog, and Kraft Foods are some of the most prominent companies that are constantly making efforts to implement their ways based on the current packaged food market trends. They are investing a lot of money to understand the changing preferences and demands of the consumers. Keeping in mind the high level of competition, the key players are concentrating on creating an exceptional product portfolio and implement strong promotional activities that can help them to gain a better position in the competition. Along with these strategies, the players are also forming mergers and acquisitions to strengthen their position in the market. This is a very common growth strategy that helps smaller companies to expand their prospects as well.
List of Key Companies:
In July 2020, Nestle SA Company introduced a new type of vegetable protein bar that is made from pea and dried fruit. They named it YES.
The packaged food market research report outlines a brief overview of the market along with the various growth factors that are affecting the market in various ways such as the drivers, opportunities, challenges, and restraints. This report also covers the various segments of the market and the regions into which the market size has been divided. The impact of the COVID-19 pandemic on the packaged food industry is also discussed in this report. The competition of the key players of the market is also highlighted in the competitive analysis section of the report. Finally, the report ends with a series of frequently asked questions.
|Market Size||USD4.11 trillion|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Channel|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Nestlé SA (Switzerland) Kraft Foods (US) Tyson Foods, Inc. (US) General Mills, Inc. (US) ConAgra, Inc. (US) Kellogg Co. (US) Smithfield Foods, Inc. (US) Mars, Incorporated (US) PepsiCo, Inc. (US) JBS USA Holdings, Inc. (US)|
|Key Market Opportunities||Innovations in product flavors|
|Key Market Drivers||Increasing demand for convenience food|
Frequently Asked Questions (FAQ) :
There are many factors that are responsible for escalating the growth of the market. An increase in the demand for convenient foods and readily available products in the market are some of the factors that are driving the market for packaged foods. Also, the increase in the health consciousness among people and the proper availability of packed foods are also serving as major drivers of the market
The packaged food industry is increasing rapidly due to the various drivers that are responsible for driving the market. The market is estimated to grow and reach a valuation of USD 4.11 trillion during the forecast period if the CAGR is measured at 4.52%.
Among the various product segments that are present in the market for packaged foods, the grains and cereals segment is accounted for holding the largest market share during the forecast period. This product is widely available in various retail stores and hence, the demand for grains and cereals among the people are satisfied.