U.S. Packaged Food Market Size, Share & Trends Analysis Report, By Product, Competitive Landscape, And Segment Forecasts, 2018 - 2025

Industry Insights

The U.S. packaged food market size was estimated at USD 806.3 billion in 2016. Changing lifestyles and increased consumption of convenience foods among the masses are some of the major factors driving the overall market.

Packaging provides protection and resistance against bacteria & fungi growth which results in food-borne illnesses otherwise. The shelf life of the concerned products also increases considerably. The packaged foods also ensure that the food safety and quality are tested before it is consumed. These also provide the microbial safety of food products before they are kept for storage in inventories or handled during transportation.

Packaged food, these days, are available in a variety of packaging materials such as wooden packaging, paper packets, and stand-up pouches. Packaging is an essential process implemented by the top manufacturers to guarantee full safety of food products, thus protecting them from being contaminated from external agents such as humidity, temperature, and micro-organisms. It also protects the perishable food products from any damaged during transportation.

However, to achieve this the materials used for packaging should be durable and be capable enough to withstand the effects of the external factors. The materials should also be resistant to chemical reactions and should not react with the contents. Thus, with many companies trying to fulfill such needs, the packaged food market is anticipated to observe a surge in the coming years.

Consumers are demanding products, which are high in nutrition, have fewer preservatives, and are cholesterol & fat-free. Thus, the factors affecting the market include the retention of the nutritive content and innovative packaging technology. Key players in the packaged food business are coming up with new and innovative products which are fulfilling all such needs of the customers.

Moreover, the past few years have seen exponential growth in the adoption of organic food. Most of the food items produced by the companies are claimed to be 99% gluten and lactose-free. Thus, growing awareness towards health is expected to incline the consumers towards packaged foodstuffs.

Along with the nutritive content, consumers also look out for attractive, innovative and easy to use packaging, thus forcing the market competitors to strive for better and creative packaging, while also maintaining the quality of the food. Furthermore, these companies are also offering the consumers multiple options to choose from, i.e., right form of breakfast to ready to eat meals. Rising consciousness among the people concerning the benefits of a healthy breakfast is driving the multiple food options.

Product Insights

Bakery & confectionary products mainly comprise of breakfast cereals, frozen bakery, frozen desserts, and other baked products. Rising consumer awareness and increased preference for a healthier diet in breakfast are expected to drive the bakery product demand over the forecast period.

Moreover, increased demand for flavored bakery & confectionary products such as desserts, donuts, muffins during regional festivals and mass gatherings are expected to drive the demand over the forecast period.

Beverages especially the non-alcoholic drinks segment is expected to emerge as the most significant segment by 2025, owing to the large-scale adoption of tetra packing for fruit juices, and tin cans for sports and functional drinks. Cartons are also one of the most commonly used packaging materials for beverages.

The U.S. fast-food market is anticipated to grow at a faster pace during the forecast period. Increasing per capita income, fast-paced life coupled with the rising popularity of junk food amongst youngsters is anticipated to boost the market further. Ready to eat meals is expected to emerge as the fastest growing segment, on account of the presence of a large number of working professionals, busy schedules, and rapid lifestyle. Baby food is also one of the emerging markets in the industry, due to the rising number of working parents, and availability of multiple safer baby food options for toddlers and infants.

Regional Insights

In the global packaged food market, North America was the leading region, while the U.S. accounted for over 70% of the total market revenue in 2016. The increasing number of supermarkets in the U.S. is one of the leading factors for the expansion of the packaged food industry in the region. According to our recent study, the U.S. supermarket was valued at USD 39.06 billion in 2015 and is expected to reach USD 49.54 billion by 2024, growing at a CAGR of 2.7% over the forecast period. Thus, acting as a boosting factor for the product market.

The U.S. fast-food market is anticipated to grow at a faster pace during the forecast period. Increasing per capita income, fast-paced life coupled with the rising popularity of junk food amongst youngsters is anticipated to boost the market further.

Moreover, an increase in the acceptance of fast-food products in the countries like India has led to the rise in export of packaged items in such regions. This is projected to spur the demand for packaged products during the forecast period.

U.S. Packaged Food Market Share Insights

The U.S. packaged food market is highly fragmented and competitive. The market players mainly focus on packaging, which keeps the food preserved as well as is attractive enough to grab the attention of the buyer. Major market players include Coca-Cola Co., Nestlé S.A., The Kellogg Company, Conagra Foods Inc., General Mills Inc., etc.

These companies are involved in the production and distribution of packaged products. Companies have adopted partnership strategies with raw material suppliers as well as food processing companies to maintain their market presence.

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. packaged food market report on the basis of product and region:

• Product Outlook (Revenue, USD Billion, Volume Kilo Tons 2014 - 2025)

  • Bakery & Confectionery Products

  • R.T.E. Cereals

  • Dairy Products

  • Snacks & Nutrition Bars

  • Beverages

  • Sauces, Dressings & Condiments

  • Others