The packaged food market is anticipated to experience a significant growth rate from 2023 to 2032, bolstered by the rapid expansion of the food industry. This growth is driven by tech-centric innovations tailored to meet the increasing consumer demand for packaged food, and an emerging emphasis on technology is evident with the growing preference for online ordering and delivery applications that offer enhanced food tracking and traceability.
As technologies merge with new packaging solutions, sustainability becomes a key contributor to market growth. For example, in December 2022, Kellogg demonstrated this trend by integrating NaviLens technology into the packaging of several iconic cereal brands to better serve customers with visual impairments.
Dairy products segment to record considerable revenue
Focusing on product types, dairy products within the packaged food sector are predicted to see a notable compound annual growth rate (CAGR) from 2023-2032. The driving force behind this surge is the critical need for safety, longevity, and consumer convenience, along with a heightened environmental consciousness demanding eco-friendly materials and designs. Companies like Mondelēz International are responding, as seen in their August 2021 announcement of recyclable packaging for Philadelphia and Dairylea brands in the U.K. and Ireland.
Increasing usage of pouches
The use of pouches in the packaged food market is set to reach a substantial valuation by 2032. Pouches offer a reduced carbon footprint compared to heavier alternatives and are favored for their portability and resealability, catering to the increasing number of consumers seeking convenience, particularly for single servings and portable options. Innovations in recycling technology and the need to recycle flexible materials are spurring growth in this segment. This is illustrated by Nescafé’s launch in March 2023 of its first instant coffee refill pouch, offering in-store recycling and packaging reduction.
APAC to emerge as a profitable revenue hub
Asia Pacific stands out as a particularly lucrative market, poised for considerable growth in the same period, propelled by an uptick in frozen and pre-packaged foods consumption and a robust e-commerce trend. Countries like China and India are witnessing a surge in mobile app-based shopping, providing easy access to a diverse array of packaged food products. With projections by Invest India pointing towards a $350 billion valuation of the Indian e-commerce industry by 2030, the trend is set to accelerate, further fueled by increasing urbanization and fast-paced lifestyles.
Packaged Food Market Participants
The competitive landscape of the packaged food market features key players such as Nestlé S.A., PepsiCo Inc., and The Kraft Heinz Company, to name a few. These companies are heavily investing and engaging in collaborations to expand their market presence. A notable initiative is Tyson Foods’ investment through Tyson Ventures, which allocated $10 million in September 2023 to support robotic technology for food picking and packing, underscoring the industry’s forward-thinking approach.
In essence, the packaged food market is navigating a transformative era marked by technological integration, sustainable practices, and strategic corporate initiatives, positioning itself for a decade of remarkable growth and innovation.