Packaged Food Market Overview:
Packaged Food Market size is expected to garner $3.03 trillion by 2020, registering a CAGR of 4.5% during the forecast period 2015 - 2020. Food can be described as any substance that is consumed to provide nutritional support to the body. Food contains carbohydrates, minerals, fats, proteins and vitamins to support the growth of the body. The concept of packaged food came into existence owing to factors such as easy cooking, consumption, handling, and safety from external tampering. Changing lifestyle, convenience of consumption and increased health awareness are the main factors driving the growth of the packaged food market. Packaging materials used for food should be convenient for carrying, displaying, opening and closing. Some of the major hindrances to the market growth are due to food contamination, government regulations and emergence of local brands. The leading players in the packaged food market have been focusing on mergers and partnerships as their key strategies to expand their market presence. For instance, Kraft foods partnered with ketchup giant Heinz to expand its business, while Tyson foods collaborated with Godrej foods in India. The Asia-Pacific region is expected to be the fastest growing packaged food markets due to the growing awareness and increasing adoption of packaged foods; thus, making it one of the lucrative markets for investments and expansions.
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The global packaged food market is segmented on the basis of product type and geography. Based on product type, the packaged food market share analysis is categorized into sixteen major food products namely - ready meals, baked foods, breakfast cereals, soup, baby food, potato chips, nuts, instant noodles, pasta, biscuits, chocolate confectionary, cheese, yogurt, ice creams, ‘sauces, dressings & condiments’, and non-alcoholic drinks. The baby food market is expected to grow at the fastest CAGR of 6.4% during the forecast period. The growth is imminent due to factors such as increase in the number of working parents, and safer baby food options for infants and toddlers. Geographically, North America is the largest market in the current scenario followed by Europe, APAC and LAMEA.
Breakfast is considered as the most important meal of the day and this widespread emphasis of consumers on the morning meal is driving the growth of the packaged food industry. Health concern, convenience, and portability are increasing this demand. However, the main driving force of baked food market is the consumers’ demand for products, which are more natural. The factor pushing the growth of the baked food industry is innovation and development in the baking industry. With the wide increase in health consciousness, the use of the baked food items is increasing, and the competition in the market is growing owing to the presence of various players manufacturing baked food products. The global players like Nestle, Kellogg’s and Kraft Foods invest in product innovation and product development. In baked food market, Europe is the highest revenue-generating region amongst others. However, Asia-Pacific is expected to grow at the fastest CAGR of 8.0% during 2015 to 2020.
The key players operating in the packaged food market are Nestlé, General Mills, Kraft Food, Inc., ConAgra foods, Inc., Tyson Foods, Kellogg’s, Frito-Lay, JBS Food, Smithfield Food, Inc. and Mars, Inc. Prominent players like Nestlé and Kraft foods are investing heavily in promotions and increasing brand awareness for aiding product differentiation.
The companies in this market are actively gauging the customers’ insights and preferences to understand the market requirements and gain significant packaged food market share. Nestle was among the first companies to facilitate this process through its R&D centre in India. Moreover, in the processing food division, Tyson Foods had a tie-up with The Hillshire Brand Company, and collaborated with Godrej Foods India to develop new products. Kraft foods and the global ketchup giant, Heinz entered into a merger to expand their prospects in the packed food market.
Top Impacting Factors
Factors such as nutritious food, and innovative packaging technology affect the growth of the packaged food market positively. The top factors, which have an impact on the packaged food market, have been elaborated as follows in the descending order of their impact:
Nowadays, consumers prefer food products, which have high nutrition value, less preservatives, low cholesterol and low fat. Major players in this industry are coming up with new food products that fulfil these requirements of the customers. There is a marked growth in the adoption of organic food. Some of the food products manufactured by the companies are positioned as 99% lactose and gluten free. Therefore, awareness towards proper nutrition has led to an increased consumer inclination towards packaged food.
A variety of packaging materials are available in the packaged food market in the form of paper packets, wooden packaging and stand-up pouches. Packaging is an integral method adopted by the leading manufacturers to ensure full protection of food products from being contaminated by the presence of external agents such as temperature, humidity, and microorganisms among others. Packaging also ensures that perishable food products are not damaged due to transportation. The materials, which are used for packaging the food, should be unreactive with the food product, and durable, capable of withstanding the effects of external factors. With companies trying to fulfil the consumer needs, the packaged food market is expected to witness a surge in years to come.
Multiple Food Options
Packaged food manufacturing companies offer a variety of options, from breakfast solutions to ready meals. The breakfast solutions include different types of breakfast cereals. The awareness among the consumers regarding the benefit and need of a healthy breakfast is affecting the multiple food options. In addition, companies are offering various snacks item for consumers such as Tortilla chips by General mills, which is marketed not as a dessert but as a healthy snack. The multiplicity of option for the consumers has therefore increased the target customer base in the packaged food market.
The impact of social media is another factor driving the packaged food industry. The social media also plays a vital role behind the growth of packaged food industry. Manufacturers are investing huge sum of money on digital marketing for promoting their products on the web. The digital marketing is keeping track on the customer’s preferences and type of interest on the web. Through social media, companies are making a network of customers having same preference and taste. This helps the companies in building customer base and increase product awareness.
Packaged Food Market Key Benefits:
- The study provides an in-depth analysis of the World packaged food market with current and future trends to elucidate the imminent investment pockets in the market
- Current and future trends have been outlined to determine the overall attractiveness and single out profitable trends to gain a stronger foothold in the market
- The report provides information regarding key drivers, restraints and opportunities with impact analysis
- Quantitative analysis of the current market and estimations during the period of 2014-2020 have been provided to highlight the financial appetency of the market
- Porter’s five forces model and SWOT analysis of the packaged food industry illustrate the potency of the buyers and suppliers participating in the market
- Value chain analysis in the report provides a clear understanding of the roles of stakeholders involved in the value chain
Packaged Food Market Key Segmentation:
The market is segmented on the basis of product type and geography.
By Product Type
- Ready Meals
- Baked foods
- Breakfast cereals
- Baby Food
- Potato Chips
- Instant Noodles
- Chocolate Confectionary
- Ice Creams
- Sauces, Dressings & Condiments
- Non-alcoholic drinks
- North America
- Nestle S.A.
- Tyson Foods, Inc.
- Kraft Foods Group, Inc.
- General Mills, Inc.
- ConAgra, Inc.
- Smithfield Food, Inc.
- JBS Foods S.A.
- Hormel Foods Corporation
- Maple Leaf Foods, Inc.