U.S. Packaged Food Market Size, Share & Trends Report

U.S. Packaged Food Market Size, Share & Trends Analysis Report By Product (Beverages, Ready-to-Eat Meals), By Distribution Channel (Supermarkets & Hypermarkets, Online), And Segment Forecasts, 2021 - 2028

  • Published Date: Feb, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-362-1
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 80

Report Overview

The U.S. packaged food market size was valued at USD 996.56 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.1% from 2021 to 2028. The hectic work and life schedules of consumers across the country and the rising preference for convenience have been driving the market over the years. Furthermore, the escalating expansion of e-commerce in the U.S. boosts the sales of the products over the nation. In addition, increasing innovations in food packaging, plant-based products, bold flavors, and healthy ingredients are expected to contribute to the growth of the U.S. market over the next few years. The rising demand for plant-based products due to the growing vegan population in the country has widened the growth opportunities for industry players.

U.S. packaged food market size, by distribution channel, 2016 - 2028 (USD Billion)

Many industry players including Danone S.A, Nestlé, and Unilever have entered the plant-based market to seize the opportunity. Furthermore, the groundbreaking innovations of vegan companies such as Impossible Foods Inc. and Beyond Meat have accelerated the industry's growth. As per the United States Department of Health and Human Services, as of 2020, around 30 million adults in the U.S. are lactose intolerant. As a result, plant-based dairy alternatives have gained significant traction among the nation's lactose intolerant consumers.

Over the past few years, demand for organic, natural, clean, and whole-food products is surging among the health and environment-conscious consumers who are less price sensitive. With the growing organic trend in the food and beverage industry, the organic product segment is becoming a mainstream food category. In addition, consumers seek more transparency in the sourcing and supply chain of the products they are purchasing. Therefore, the industry players are becoming more transparent by providing detailed information about the product on the labels. Furthermore, the rising favor for healthy foods made with natural ingredients, low-calorie, low-fat, and free from artificial color, GMO, and sugar fuels the growth of the packaged food industry in the country.

The sales of the packaged foods surged considerably in 2020 in the U.S. due to the COVID-19 pandemic and lockdown. The retail sales of the products grew with a double-digit growth rate from March to May in 2020. The consumer expenditure on food grew significantly during the pandemic compared to before the pandemic owing to the social distancing practices and quarantine measures. Consumers have stockpiled snacks, ready-to-eat, and ready-to-cook products during the initial months of the pandemic. This emergence of panic shopping has dramatically fueled the demand for packaged foods in the U.S.

Distribution Channel Insights

Supermarkets and hypermarkets accounted for the largest share of more than 65.0% in 2020. The Kroger Co.; Albertsons Companies, Inc.; ALDI; Walmart; Wegmans Food Markets; Ahold Delhaize; and Publix Super Markets are the key supermarket chains of the U.S. for packaged foods. Supermarkets and hypermarkets are the primary distribution channel for household food shopping in the country. However, during the initial weeks of the COVID-19 pandemic, weekly trips to these retail stores increased significantly as consumers ate at home.

The online distribution channel is expected to register the fastest CAGR of 8.5% from 2021 to 2028. Over the past few years, online shopping has been gaining popularity among young consumers. However, in 2020, the adoption of this distribution channel jumped steadily across the nation due to the COVID-19 pandemic. This new shopping behavior is expected to grow significantly in post-pandemic years. Convenience and time saving are the key factors fueling the growth of this segment.

Product Insights

The beverages segment accounted for the largest share of more than 20.0% in 2020. This segment includes a wide range of nonalcoholic packaged beverages. Carbonated soft drinks, fruit beverages, and bottled water accounted for the major share in the beverages segment. Beverages with exotic flavors and essential nutrients are gaining traction among consumers in the U.S. In addition, the increasing demand for functional drinks and sports drinks among the health-conscious consumers and athletes in the country has been driving the segment. Other than beverages, bakery and confectionery products, dairy products, and snacks and nutritional bars account for a significant revenue share in the market.

U.S. packaged food market share, by product, 2020 (%)

The ready-to-eat meals segment is expected to register the fastest CAGR of 5.7% from 2021 to 2028. Consumers in the nation increasingly prefer ready meals. The changing lifestyle has been boosting the demand for ready-to-eat meals that save the consumers' time and efforts. Prepared or ready meals are an extremely convenient alternative for dual-earning households and students across the country. Furthermore, consumers are willing to pay a premium price for higher-quality convenient foods. Ready-to-eat stew, soup, sandwiches, burgers, and salads are gaining traction among consumers in the U.S., especially among the millennials.

Key Companies & Market Share Insights

The U.S. market for packaged food is characterized by a few well-established players and several small and medium players. As of 2020, large companies such as Nestlé S.A., The Coca-Cola Company; PepsiCo; Tyson Foods, Inc.; Mars, Incorporated; and Cargill, Incorporated holds the majority share of the U.S. market. However, over the past few years, private label brands are growing over the nation. Large retail chains including Costco, Whole Foods Market, and Wegmans Food Markets are increasingly offering their private label food brands. The improving quality, better packaging, and lower cost are the key factors boosting private label food products' sales in the U.S. Some prominent players in the U.S. packaged food market include: -

  • Nestlé S.A.

  • The Coca-Cola Company

  • PepsiCo

  • Tyson Foods, Inc.

  • Mars, Incorporated

  • Cargill, Incorporated

  • The Kraft Heinz Company

  • General Mills Inc.

  • Conagra Brands, Inc.

  • Kellogg Co.

U.S. Packaged Food Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 1,005.53 billion

Revenue forecast in 2028

USD 1,376.00 billion

Growth Rate

CAGR of 4.1% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, distribution channel

Country scope

U.S.

Key companies profiled

Nestlé S.A.; The Coca-Cola Company; PepsiCo; Tyson Foods, Inc.; Mars, Incorporated; Cargill, Incorporated; The Kraft Heinz Company; General Mills Inc.; Conagra Brands, Inc.; Kellogg Co.

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Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the U.S. packaged food market report on the basis of product and distribution channel:

  • Product Outlook (Revenue, USD Billion, 2016 - 2028)

    • Bakery & Confectionery Products

    • Dairy Products

    • Snacks & Nutritional Bars

    • Beverages

    • Sauces, Dressings, & Condiments

    • Ready-to-Eat Meals

    • Breakfast Cereals

    • Processed Meats

    • Rice, Pasta, & Noodles

    • Ice Creams & Frozen Novelties

    • Others

  • Distribution Channel Outlook (Revenue, USD Billion, 2016 - 2028)

    • Supermarkets & Hypermarkets

    • Convenience Store

    • Online

    • Others

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