U.S. Packaged Salads Market Size, Share & Trends Analysis Report By Category, By Product, By Processing (Organic, Conventional), By Type, By Distribution Channel (Online, Offline), By State, And Segment Forecasts, 2023 - 2030

Report Overview

The U.S. packaged salads market size was valued at USD 4.91 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.8% from 2023 to 2030. Over the last few years, the demand for healthy food has increased in the U.S., which can be attributed to the rising popularity of salads and the ease of consumption provided by packaged salad products. The availability of packaged food in combinations of different vegetables and fruits, accompanied by various condiments and dressings, as well as an assortment of meats and seafood, has driven their popularity across the region.

Retail demand for fresh vegetables packed in containers, bags, and overwrapped trays has been rising for several years across the U.S., and shippers and retailers have been responding by increasing the available options. This trend for packaged/covered salads was likely beneficial in supporting retail vegetable sales in 2020, especially among safety-wary consumers.

Over the past decade, consumer interest in plant-based diets has surged tremendously. Now, the trend is further supported by the rising demand for gluten-free products. These foods containing numerous leafy vegetables are full of nutritional properties and are excellent sources of fiber, minerals, vitamins, and proteins. Moreover, it is also rich in antioxidants, vitamins A, K, C, & E, iron, calcium, and potassium.

Rising health consciousness among consumers, along with increasing awareness about the numerous health benefits associated with leafy vegetables, has been driving the market growth in the U.S. Leafy as well as other kinds of vegetables are excellent sources of nutrients, low in lipids, high in dietary fiber, and rich in ascorbic acid, folate, and vitamins K, A, and E. Moreover, these vegetables carry plenty of phytochemicals such as β-carotene flavonoids.

Vegetable consumption generally increases with age. Though the total number of vegetable-eating occasions has been falling over the last decade, the frequency has been rising among certain age groups. According to the Produce for Better Health Foundation (PBH), vegetable-eating occasions among people aged 14-18 years, 19-30 years, and 70 years & above increased by 16.3%, 15.1%, and 9.3%, respectively, from 2015 to 2020.

Consumption of potato and Caesar salad has increased significantly in the U.S. Furthermore, the consumption frequency of lettuce/vegetable salads, french fries, onions, tomatoes, carrots, mashed potatoes, beans/legumes, corn, peppers, broccoli, and celery, has also increased notably in the country. Over the past few years, there has been an increase in vegetable consumption undertaken away from home. Despite this, vegetables are eaten largely as part of dinner and lunch and are often consumed as a side dish on various eating occasions.

Category Insights

The branded packaged salads segment dominated the market with a share of around 78% in 2022. Branded salads offer an exclusive range of packaged salads at affordable prices. These include monovarietal fresh-cut products (rocket, lettuce, iceberg); multi-varietals (mixed salads); ready-to-eat raw or cooked (spinach, herbs, green side dishes, legume soups); peeled fruits (citrus, pears, apples, pineapple); opportunely cut (wedges, slices, cubes) produce; or complete meals sold in single-serve containers. These offerings are enticing an increasing number of consumers to opt for branded salads.

Retailers across the U.S. have extended and diversified private-label packaged salad assortment by offering premium-quality private-label food products. With price being the major barrier for packaged salad purchases, private-label packaged salads emerged as a more suitable and affordable alternative for several consumers. In-store or private-label brands are offered by retailers to differentiate their retail brand and assortment from other competitors. Private label brands carry the retailer’s identity, used exclusively by that retailer.

Product Insights

The vegetarian packaged salads segment held the major share of 67.1% in 2022. As with other sectors within the food & beverage industry, the demand for vegetarian packaged salads is driven by a growing number of health-conscious consumers in the U.S. One of the main reasons why many people follow a vegetarian diet is that they prefer to consume a high proportion of fresh, healthy, plant-based salads that provide antioxidants and fiber, along with various long-term health benefits.

According to NPR, Americans tend to eat meat as it is relatively cheap in the U.S. and because they can afford it. Other factors such as economic stability and growing awareness regarding the benefits of a non-vegetarian diet are driving the demand for non-vegetarian packaged salads.

Processing Insights

The conventional processing segment held a high market share of 75.1 % in 2022. A lack of consumer awareness regarding organic products is expected to favor the conventional segment’s growth over the forecast period. The organic packaged industry is still a fledgling industry, with considerable lacking consumer awareness regarding the benefits of organically processed packaged salads.

The organic segment is projected to grow at the highest CAGR of 8.4% over the forecast period. Organically processed salads are generally perceived to contain more nutrients and antioxidants than conventional salads. Health-conscious consumers who focus on reducing their exposure to artificial chemicals and antibiotic-resistant bacteria usually prefer organically processed salads to conventionally processed products. However, lower shelf life and high costs are among the disadvantages associated with organically processed packaged salads.

Type Insights

Packaged greens segment has been gaining popularity owing to its natural taste without the addition of any type of seasonings, dressings, or condiments. People across the region are increasingly adopting packaged greens to cut down their intake of extra calories, sugar, and fat. Other forms of packaged salads contain several condiments, sauces, and dressings, which are added calories.

The sales of bagged/packaged lettuce have witnessed a Y-O-Y increase and this trend is expected to continue over the coming years as consumers have started including more greens in their diet owing to healthy eating trends and the availability of a variety of flavors. New entrants as well as key players in the market are launching new products to cater to the rising demand for new flavored packaged salads. For instance, in October 2020, Dole Food Company added three new flavors to its DOLE Fresh Takes ready-to-eat bowl salads.

By Distribution Channel

In terms of distribution channels, the offline segment emerged as the largest in 2022 with an 81.8% share. Grocery stores are among the largest offline distribution channel for packaged salads. The mainstream grocery distribution platform includes local grocery stores and national chains such as Kroger in the U.S.

The packaged salad market is yet to adopt e-commerce widely as compared to other sectors like household products and consumer electronics. The perishable nature of packaged salads with unique logistic and storage requirements can act as a barrier in slowing down the distribution of these products through online/e-commerce channels.

However, several companies are engaging in striking deals with grocery stores and online retailers, which widens the potential customer base and helps in cutting down on shipping and delivery coststhat come with shipping perishable ingredients. This is likely to ensure the strong growth of the segment.

By State

Florida accounts for one of the largest markets for packaged salads in the U.S. According to the Florida Department of Agriculture and Consumer Services, there are 47,400 farms in Florida and over 9.7 million acres are utilized to farm a variety of food products, as of April 2021. In 2019, Florida ranked first in the U.S. in terms of value production of bell peppers, oranges, grapefruit, sugarcane, tomatoes, and watermelons. It ranked second in the production of sweet corn and strawberries and was ranked third in the production of cabbage, peanuts, and squash.

New York is expected to accelerate with a CAGR of 9.8% during the forecast period. As per data by the Department of Health, in New York state, adults without consumption of fruits or vegetables per day vary by county from 19.5% to 42.4%. In Jefferson, the percentage for the same stood at 42.4%, in Chautauqua 36.3%, and in Franklin 35.7%. This presents great potential for the packaged salads market in New York. With increasing awareness about leading a healthy lifestyle, the demand for packaged salads has been growing significantly among consumers.

Key Companies & Market Share Insights

The market players face intense competition, especially from the top companies in the packaged salad industry as these have large consumer bases, strong brand recognition, and vast distribution networks The market for packaged salads is highly competitive, with a range of companies offering various products and solutions for car wash and detailing. Lately, market players have been focusing on expanding their product portfolios by incorporating new products.

Some of the key initiatives implemented by packaged salad companies to increase their consumer base are as follows:

• In October 2020, Dole Food Company, Inc. launched four new ‘DOLE Just Add Chicken Salad’ kits. These kits comprise Dole chicken sauté, lettuces, sauces, and original dressings and are available in pesto caesar, sweet orange, roasted red pepper, and lemon-herb varieties. These affordable meal solutions are highly appealing to chicken lovers.

• In December 2020, Dole Food Company, Inc. added three new flavors to its ‘DOLE FreshTakes Ready-To-Eat (RTE)’ bowl salads. These new flavors are chicken club BLT, avocado ranch with chicken, and backyard BBQ. These RTE salad bowls are made with clean-label ingredients and their superior flavors have enhanced the salad-eating experience of North American consumers.

• In June 2020, Dole Food Company, Inc. extended its offerings in Chopped! and Premium salad kits with innovative flavor combinations and new salad ingredients.

Some prominent players in the U.S. packaged salads market include:

• BrightFarms, Inc.

• Dole Food Company, Inc.

• Earthbound Farm

• Eat Smart (Curation Foods)

• Missionero

• Gotham Greens Holdings, LLC

• Mann Packaging Co., Inc.

• Bonduelle

• Fresh Express, Inc.

• VegPro Intenational, Inc.

Recent Development

• In April 2023, Dole Fresh Vegetables introduced five new trending flavor varieties to its popular DOLE® Chopped Salad Kit product line. The new packaging design complements the freshness, quality, and diversity of ingredients.

U.S. Packaged Salads Market Report Scope

U.S. Packaged Salads Market Report Segmentation

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the U.S. packaged salads market report based on category, product, processing, type, distribution channel, and state.

• Category Outlook (Revenue, USD Million, 2017 - 2030)

  • Branded

  • In-store/Private Label

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Non-Vegetarian

  • Vegetarian

• Processing Outlook (Revenue, USD Million, 2017 - 2030)

  • Organic

  • Conventional

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Packaged Greens

  • Packaged Kits

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Online

  • Offline

• State Outlook (Revenue, USD Million; 2017 - 2030)

  • Florida

  • New York

  • Pennsylvania

  • Illinois

  • Ohio

  • Georgia

  • Rest of the U.S.