Packaged Food Market Report

Market Overview:

The global packaged food market size reached US$ 2,259 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 2,690 Billion by 2028, exhibiting a growth rate (CAGR) of 8.05 % during 2023-2028. The significant expansion in the e-commerce and online shopping industry, the extensive development in food packaging technology, and the implementation of stringent regulations due to the growing focus on food safety standards are some of the major factors propelling the market.

Packaged food, or processed or convenience food, refers to food items pre-prepared and sealed in packaging for sale to consumers. It undergoes numerous levels of processing, including washing, cooking, freezing, canning, or adding preservatives to extend shelf life. It is available in several forms, such as canned goods, frozen meals, snacks, and beverages. It ensures its preservation and protection from contamination, enhancing its shelf life and safety. Additionally, packaging often includes labelling with important information, such as ingredients, nutritional facts, and expiration dates, allowing consumers to make informed choices. It also offers convenience and can save time in meal preparation.

The market is primarily driven by the rising demand for convenient meal options requiring minimal preparation time among consumers. In addition, the increasing use of packaged foods, such as ready-to-eat meals, microwaveable snacks, and pre-cut vegetables, offers a quick and hassle-free solution for busy individuals and families, thus influencing market growth. Moreover, several advances in food preservation techniques and packaging technology are extending the shelf life of products, which reduces food waste and allows consumers to stock up on non-perishable items, especially during uncertain times such as the recent onset of the coronavirus disease (COVID-19) pandemic, thus representing another major growth-inducing factor. Besides this, the evolving market offers numerous choices, catering to various dietary preferences and restrictions, including gluten-free, vegan, and allergen-free options, thus accelerating the sales demand. Furthermore, the rise of online shopping has made it easier for consumers to access various food products while offering convenience and the ability to compare prices and read reviews, thus propelling market growth.

Packaged Food Market Trends/Drivers:

The significant expansion in e-commerce and online shopping industry

The market is driven by the growing e-commerce and the online shopping sector. In addition, the changing consumer preference for convenience, and the ability to browse and select from several food products from the comfort of their homes are augmenting the market growth. Along with this, the growing number of working professionals looking for ready-to-eat (RTE) meals or families seeking quick meal solutions with numerous products on online platforms offering a one-stop-shop experience catering to various consumer needs, are propelling the market growth. Besides this, the easy availability of customer reviews and ratings on online platforms is empowering consumers with information and insights, influencing their purchasing decisions. Also, this shift toward greater transparency is motivating food manufacturers to prioritize product quality and consistency to maintain positive online reputations, thus contributing to market growth.

The extensive development in food packaging technology

The market is primarily driven by the growing demand for convenience, sustainability concerns, and the need to ensure food safety. In addition, the growing developments in food packaging technology are increasing the demand for sustainable and eco-friendly packaging materials. Along with this, with the increasing awareness of environmental issues, consumers are now inclined toward products that have minimal impact on the planet. Consequently, many food manufacturers have shifted toward using biodegradable and recyclable packaging materials which appeal to environmentally conscious consumers and help companies meet their corporate social responsibility goals. Moreover, the incorporation of smart packaging technology including features such as quick response (QR) codes for product information, freshness indicators, and even interactive elements that engage consumers through their smartphones, represents another major growth-inducing factor that provides consumers with valuable information. Furthermore, several innovations such as tamper-evident seals and modified atmosphere packaging are gaining traction across the globe.

The implementation of stringent regulations for food safety standards

The market is primarily driven by the implementation of several initiatives to ensure food safety standards. In addition, it safeguards consumer health and ensures the quality and safety of food products, thus accelerating the product adoption rate. Moreover, authorities demand that food producers adhere to meticulous hygiene and safety protocols throughout the entire production process, including everything from the sourcing of raw materials to the final packaging of products, thus representing another major growth-inducing factor. These measures are essential in preventing contamination, bacterial growth, and the presence of harmful substances in food items. Besides this, food manufacturers provide detailed information about the ingredients used, potential allergens, nutritional content, and expiration dates, which empowers consumers to make informed choices and minimizes the risk of allergic reactions or other health issues, thus accelerating the sales demand.

Packaged Food Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global packaged food market report, along with forecasts at the global, regional, and country levels for 2023-2028. Our report has categorized the market based on product type and distribution channel.

Breakup by Product Type:

• Bakery Products
• Dairy Products
• Beverages
• Breakfast Products
• Meals
• Others
   

Bakery products hold the largest share of the market

A detailed breakup and analysis of the market based on the product type has also been provided in the report. This includes bakery products, dairy products, beverages, breakfast products, meals, and others. According to the report, bakery products accounted for the largest market share.

The popularity of bakery products among consumers is influencing the market growth. In addition, the increasing demand for numerous food items such as bread, pastries, and cakes is augmenting the market growth. These products are versatile and serve as convenient snacks and essential components of meals.

Moreover, bakery products often align with prevailing consumer trends such as indulgence and nostalgia, with innovative flavor profiles and unique presentations continually entering the market, thus representing another major growth-inducing factor.

Furthermore, the growing demand for bakery products due to their extended shelf life when properly packaged which aligns with the convenience-oriented preferences of modern consumers, who seek products that offer longer freshness and reduced food waste is propelling the market growth. Along with this, the easy availability of numerous kinds of bakery products, catering to various dietary preferences, including gluten-free, organic, and other healthier alternatives are contributing to the market growth.

Breakup by Distribution Channel:

• Supermarket/Hypermarket
• Specialty Stores
• Convenience Stores
• Online Retail Stores
• Others
   

Supermarkets/hypermarkets presently account for the largest market share

A detailed breakup and analysis of the market based on the distribution channel has also been provided in the report. This includes supermarkets/hypermarkets, specialty stores, convenience stores, online retail stores, and others. According to the report, supermarkets/hypermarkets accounted for the largest market share.

Supermarkets and hypermarkets provide consumers with a one-stop shopping experience, where they can find several packaged food products under a single roof. This convenience factor aligns with the fast-paced lifestyles of modern consumers who seek efficiency in their shopping endeavors.

Moreover, supermarkets and hypermarkets allow them to offer competitive prices, where they can negotiate favorable deals with suppliers due to their large purchasing volumes, which saves costs, thus representing another major growth-inducing factor.

Additionally, the extensive reach of supermarkets and hypermarkets is essential as they are located in urban and suburban areas, ensuring accessibility to consumers. This widespread presence makes it convenient for individuals from various income brackets to access packaged food products, thus contributing to the market growth.

Furthermore, supermarkets and hypermarkets are investing in marketing and promotions, using their resources to create brand awareness and improve sales, thus allowing for effective cross-promotions and upselling, further propelling market growth.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance in the market

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

The Asia Pacific market is driven by the growing demand for packaged food products among working professionals, students, and busy individuals is influencing the market growth. Presently, rapid urbanization and shifting lifestyles led to a rising demand for ready-to-eat (RTE) and on-the-go food options, thus augmenting the market growth.

Moreover, the rising disposable incomes across many Asian countries are improving consumer purchasing power which expands the consumer base and allows for greater spending on food products, representing another major growth-inducing factor. Also, the sheer diversity of cuisines and preferences across Asia Pacific has led to a rich tapestry of food offerings, catering to various tastes and preferences.

Furthermore, several innovative approaches taken by many companies in the region are essential in propelling the Asia Pacific industry. Along with this, rising investments in research and development (R&D), and a growing focus on adapting products to local tastes, resulted in several successful products thus contributing to the market growth.

Competitive Landscape:

At present, key players in the industry are implementing strategic initiatives to fortify their positions in the market. These actions are essential to maintain competitiveness and adapt to evolving consumer preferences. They are expanding their product portfolios including, the introduction of healthier options, organic and natural products, and catering to dietary preferences such as vegan or gluten-free. Moreover, key players are targeting emerging markets to establish production facilities and distribution networks to reach consumers in these regions more efficiently. Along with this, companies are investing in research and development (R&D) to create novel products and improve existing ones including enhancing flavor profiles, extending shelf life, and addressing health concerns. Furthermore, they are engaging with consumers and gathering feedback through social media, surveys, and direct communication channels to understand consumer preferences and adapt their offerings accordingly.

The market research report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Conagra Brands Inc.
• Danone S.A.
• General Mills Inc.
• Hormel Foods Corporation
• JBS S.A.
• Kellogg Company
• Maple Leaf Foods Inc
• Nestlé S.A
• PepsiCo Inc.
• The Coca-Cola Company
• The Kraft Heinz Company
• Tyson Foods Inc.
• WH Group Limited

Recent Developments:

• In July 2023, Conagra Brands, Inc., the leading branded food company in the United States, launched more than 50 new products this summer across the company-packed frozen, grocery, and snack divisions with new recipes that deliver contemporary, flavorful food in new ways.
• In December 2022, Kellogg Company announced the incorporation of innovative NaviLens technology into the packaging of four of its iconic cereal brands such as Kellogg's Corn Flakes, Special K Original, Rice Krispies, and Crispix with a feature of NaviLens optical smart code consisting of high-contrast colorful squares on a black background that can be detected and read by the NaviLens and NaviLens GO application, allowing consumers to locate the boxes from several feet away.
• In July 2022, Danone S.A introduces a new dairy and plants blend baby formula to meet parents’ desire for feeding options suitable for flexitarian, vegetarian, and plant-based diets while meeting the specific nutritional requirements of babies.

Packaged Food Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the packaged food market from 2017-2028.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global packaged food market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the packaged food industry and its attractiveness.