Packaged Food Market - Growth, Trends and Forecast (2022 - 2027)

Global packaged food market is projected to grow at a CAGR of 7.43% during the forecast period (2021 - 2026).

Key Highlights

• The continuously burgeoning packaged food industry of the global market is driven by continuous innovation in the market, supported by augmenting consumers demand. Additionally, the more players entering the market are further boosting the growth of the market.
• Specific consumer-based demand such as plant-based food, vegan food, dairy-free products, and others are also propelling the growth of the market for it creates opportunity for the players to expand their product portfolio to cater all such specific requirements.
• Moreover, factors such as on-the-go healthy snacking is insisting the players to introduce wide range of meat snacks, cereal and granola bars. Thus, the healthy snacking sector of the market is growing at a considerable level. The other reason supporting the growth is due to globally rising health awareness among the consumers.
• The demand for healthy packaged food products has also inclined the manufacturers to focus on producing fortified food products, thus, contributing to value-addition of the product.
• After, the onset of COVID-19, many countries implied a strict lockdown measures which contributed to panic purchase of packaged food products leading to increased demand. Other than that, the leading packaged food players have identified emerging behavioral changes among the consumers during the pandemic that are expected to influence innovation and product development in the months ahead. Among the trending areas of interest for consumers are gut health, immunity, personalized nutrition, and emotional wellbeing.

Key Market Trends

Plant-based Packaged Food are Witnessing Immense Growth

Globally, the demand for plant-based food has intensified, supported by rising vegan or vegetarian population across the globe. According to the Vegan Society, the number of consumers identifying themselves as vegans in the Great Britain rose sharply from 150 thousand in 2014 to 600 thousand in 2018. An approximate 13% of millennials are vegetarians and 4% are vegans who avoid dairy products, thus, resulting in the increased demand for the most suitable alternatives, like soy and almond based products. Further the rising trend of health and sustainability among the well-aware consumers is also driving the market. Globally, the consumers are becoming more aware about the food source and sustainability, and thus, becoming more selective about the source of protein they consume, which, in turn, increases the demand for plant-based food and beverages. The intake of animal protein, which is associated with high cholesterol level, fat, and calories, increases the risk of cardiac diseases, high blood sugar level, and obesity. Hence, people are showing an inclination toward vegan sources of protein. Additionally, owing to the allergies caused by animal-based products, the percentage of consumers looking for alternatives have also increased. This has created a good platform for the growth of plant-based products. The production of plant proteins is considered more environmentally economic than animal proteins. Moreover, plant-based products exhibit beneficial properties, in terms of weight management, heart health, and biological availability. Subsequently, there is a great potential for the plant-based food and beverages market, as consumers are showing an inclination toward healthy food eating habits.

Asia-Pacific is the Fastest Growing Market

The Asia-Pacific packaged food market is highly competitive with numerous players adding to the industry every day which is one of the major reasons driving the economy of the region. The key players operating in the Asian market are focusing on the product innovation to meet the demand for nutritious and healthy products in the region, however, the major focus of the manufacturers lie in coordinating the flavor of the product with the local palate. In September 2018, Coca-Cola launched Minute Maid smoothie taking an important step into ‘Health & Wellness’ space in India. It is a combination of ‘Power of 3’ ingredients - Fruits, Milk, and Nutrients. It is made from locally sourced fruits; the product has been designed to suit the Indian palate and cater to the increasing needs of mothers looking for a combination of nutritious goodness and taste. The popularity of packaged fermented or fortified food and beverages is attributed to its perceived health benefits. Enriched with organic acids, kombucha drinks exhibits a significant anti-microbial activity and can be utilized for many therapeutic applications, which is expected to boost the market growth across the region.

Competitive Landscape

The major players of the market have been indulging in strategies, like product innovation, mergers, acquisitions, partnerships, and geographical expansions, which in turn, has leveraged them to gain an esteemed position in the market. Owing to the changing taste and preferences of consumers there have been considerable development of products by various global and regional players. Moreover, owing to the increasing demand for fruit flavored and dairy free products primarily in North American and European countries with increased lactose intolerance consumers, the major players are expanding its product portfolio with new products to suffice the market needs. For instance: Coca-Cola expanded its footprints in dairy free smoothie under its AdeZ. Major players operating in the market inclde, Nestle SA., The Coca Cola Company, PepsiCo Inc., General Mills, among others.

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