U.S. Soup Market Size, Share & Trends Analysis Report, By Product (RTE, Condensed, Dry, Frozen/Refrigerated, Wet Broths/Stocks), By Distribution Channel, Competitive Landscape, And Segment Forecasts, 2020 - 2025

Industry Insights

The U.S. soup market size was estimated at USD 6,825.6 million in 2019. Growing demand for organic soups owing to increasing awareness regarding health and wellness is expected to have a positive impact on the industry. The product aids nutritional and low-calorie intake, which helps to reduce weight.

Rising disposable income, coupled with an extended shelf life of the product is expected to drive the market growth. Burgeoning demand for products with natural and fresh ingredients coupled with the introduction of customized products based on ingredients or soup base as per the consumers’ demand is expected to drive the growth of the market.

U.S. frozen/refrigerated soup industry segment is anticipated to witness the fastest growth over the forecast period followed by wet broths/stocks owing to the changing consumer preferences towards convenience food. Basic ingredients such as vegetables and lean meat increase the health quotient of the product, which increases the consumer affinity towards the product purchase.

The U.S. soups industry follows the growth of convenience foods, which is expected to be driven by a flexible and informal approach by the consumers towards the preparation and consumption of food. Changing consumer demographics in the U.S. are expected to contribute to industry growth over the forecast period.

The raw material industry for the market is characterized by the presence of a large number of suppliers. In addition, the industry is moving towards the use of organic ingredients owing to concerns regarding the excessive use of preservatives products. The use of preservatives and artificial products is highly supervised by authorities such as the U.S. FDA.

Off-trade distribution accounts is one of the dominant distribution channels for the market owing to the expansion of retail and grocery chains. Furthermore, the industry has observed a significant increase in distribution through on-trade channels such as restaurants and hospitality chains. Rise in demand for nutritional meals which can be prepared at short notice is expected to boost the growth of the market.

U.S. Soup Market Trends

Consumers are seeking solutions that allow them to maximize their free time and disposable income. Strong wish to have more free time is driving the convenience trend in consumers. The majority of consumers find it difficult to manage their daily obligations and have time to relax. This trend is having a major impact on food preparation and consumption. Due to changing lifestyles and busy schedules, consumers are spending less time planning and preparation of meals. The majority of the urban population considers cooking a chore and meal preparation is seen as time-consuming. As a result of busy lifestyles and changed eating habits, convenience food is preferred by the majority of consumers.

Convenience foods are generally easy-to-prepare and easy to take away. Consumers also prefer healthy convenience products, with additional attributes. Changing consumer demographics also contributes greatly to the growth of convenience food. Despite the cooking skills, the older population is seeking convenience in food options to have more free time. The younger generation is looking for convenient meal solutions to have more time for academic work. Whereas, mid-lifers are looking for convenience food to have more work-life balance due to increasing pressure of parenthood and other factors. Due to decreasing average size of households in the U.S., with a household consisting of just one or two people, the families are opting for a blend of convenience, health, and comfort in meal solutions.

Growing awareness about leading healthy and active lifestyles is expected to drive the market over the forecast period. The increasing concern regarding the rise of chronic non-communicable diseases including obesity, heart diseases, and diabetes owing to the changing lifestyle, diet, and aging in developing countries has compelled the consumers to adopt healthier diets, and nutrient-rich foods to combat diseases, thereby resulting in increased demand for fat & gluten-free and healthy products over the forecast period.

The aging population in the U.S. coupled with the growth agenda of adopting individual ownership of self-health and wellness owing to the increasing cost of medical care is expected to increase the demand for healthier and natural plant-based foods. In addition, growing consumer awareness & understanding of the link between exercise, health, and a healthy diet, across genders and generations will be a major contributing factor toward the growth of the U.S. soups market. Moreover, advances in nutrition & technology, growing consumer desire for improved health & longevity coupled with increasing frequency of exercising in modern lifestyles will contribute to the increasing consumption of fiber-rich food, and organic and gluten-free foods thereby driving the U.S. soups market.

The demand for soups is expected to be restrained by concerns regarding the increasing use of a preservative in the manufacturing of the products. Frequent use of artificial flavoring agents can cause major health problems. The addition of preservatives to extend the shelf life of the product results in health problems in people. Although there are different types of preservatives used to slow down the ripening of the food, despite their common functions, frequent use of preservatives can pose several health risks to people.

Cancer is one of the major side effects associated with preservatives. Damage to the heart is also one of the major side effects experienced due to the consumption of preserved food. Though U.S. Food & Drug Administration (FDA) is responsible for ensuring the safety of foods, they generally do not review preservatives previously recognized as safe. Due to major health hazards caused by preservatives and some artificial flavoring agents, people tend to avoid the consumption of canned soups as it is assumed that a significant amount of preservatives are used in the canning of food. This factor is expected to hamper the growth of the market.

Product Insights

The demand for ready-to-eat soups is expected to be driven by the consumption of such products by the young population and people with busy lifestyles owing to the low time availability. This segment contributes the largest share to the market, registering a growth rate of 0.3% by revenue.

The demand for condensed soup is expected to witness a rise over the forecast period owing to the increasing use by restaurants and hotels as a base puree for the soups. In addition, a rise in the use of condensed wet soup as a base ingredient for home-cooked meals is also expected to drive the growth of the industry.

The dry/dehydrated soup industry is anticipated to be driven on account of quick and easy preparation and fewer efforts required to cook. In addition, the availability of a wide range of flavors makes the product appealing to consumers, which is expected to boost the growth of the product over the forecast period.

The increasing use of frozen soups can be attributed to the extended shelf life of the product. The product is majorly used by consumers in the Asian economies and nuclear family households. Wet broth/stock is a base soup that can be eaten alone or used as a base for other dishes. This segment is expected to witness a growth rate of 3.6% over the forecast period.

Distribution Channel Insights

Growth in on-trade distribution can be attributed to the preference of consumers for restaurant food. On trade distribution channel includes outlets such as restaurants, schools, hospitals, and hospitality chains. However, a very small share of product distribution takes place through on trade channels, as it is less profitable in terms of sales.

Large hospitality chains such as Hilton, Hyatt, JW Marriott have created a large opportunity for the U.S. soups market. Condensed wet soup and wet broths/stocks are the most widely as a base soup in on trade distribution channel. Professionals working at the outlet play an important role in this distribution channel in the sale of the product.

The distribution of products through off trade distribution channels is expected to gain market share owing to the availability of products at comparatively cheap prices. Most of the sales volume is generated through large supermarket chains, convenience stores, and retail stores and registering higher growth of the U.S. soups market.

Supermarkets and hypermarkets are the most preferred off trade distribution channels. Supermarkets and other retail stores are important distribution channels to reach consumers. Improving scenario of the retail industry is expected to bolster the growth of the market. Increase in distribution channels and their reach in urban and rural areas is one of the major factors having an impact on the industry.

Country Insights

The industry in the U.S. is expected to register a CAGR of 1.5% from 2020 to 2025 on the account of factors such as rising demand from the consumers, favorable government regulations, and increasing disposable income. In addition, rapid urbanization, changing lifestyle of consumers, and changing taste preferences is estimated to drive the U.S. soups industry.

The industry is expected to witness significant demand in frozen/refrigerated soups and wet broths/stocks in the forecast period. Factors such as the increasing number of working women and decreasing average household size are driving the demand for convenience food, which in turn is driving the growth of the soups industry in the U.S.

Consumers in the economy are involved in the consumption of a high volume of ready-to-eat soups with the products being considered one of the most important parts of the American household. In addition, low substitution rates observed in the industry are expected to result in a sustained product over the forecast period.

Consumption of ready-to-eat soups by the young population and people with busy lifestyles owing to the low time availability as a good lunchtime solution is expected to drive the demand. Ready-to-eat soups are considered soup on the go as it does not require any additional water or milk. Ready-to-eat soups are hence regarded as a fast and easy meal choice. Consumption of ready-to-eat soups by the young population and people with busy lifestyles owing to the low time availability as a good lunchtime solution is expected to drive the demand of the U.S. ready-to-eat soups market.

U.S. Soup Market Share Insights

The industry characterized by the presence of a large number of manufacturers catering to the domestic and the international markets. Large players operating in the market account for a relatively large share of the U.S. soups market. The companies enter into a long-term contract with the raw material suppliers to ensure a constant supply.

The companies operate through dedicated distribution channels for major distributors such as Walmart, Costco, Target in order to sustain sales. The market players also resort to product customization such as low sodium soups, no salt soups, gluten-free soups in accordance with the demand from customers.

The companies are focusing on research and development of new products with improved taste and prolonged shelf life in order to expand their customer base and increase the company revenues. Key manufacturers resort to multiple mergers and acquisitions in a bid to improve the market share of the company.

U.S. Soup Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of 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. soup market report on the basis of product and distribution channel:

• Product Outlook (Revenue, USD Million; 2014 - 2025)

  • Ready-to-eat

  • Condensed

  • Dry

  • Frozen/Refrigerated

  • Wet Broths/Stocks

• Distribution Channel Outlook (Revenue; USD Million; 2014 - 2025)

  • On-trade

  • Off-trade