The global processed food market is projected to grow at a CAGR of 6.01% to reach a value of US$2,041.271 billion by 2025, from US$1,438.201 billion in 2019. The rising demand for quick and conveniently available food is significantly driving the demand for processed food market. This has been primarily caused by a relative reduction in the leisure hours available to the individuals, causing them to switch to packaged food.
North America is estimated to hold a significant share in the market.
The North American region is expected to hold a significant share over the forecast period owing to the fact that there is an increasing number of players involved in the provision of advanced and enhanced varieties of processed foods. In addition, there are increasing investments in the R&D for better processing techniques and methods equipment to contribute to the development of the well-established food and beverage sector.
In addition, the Asia Pacific region is expected to witness a significant increase in its market share over the forecast period, which is attributable to the fact that there are initiatives being taken by the government in order to boost the food and beverage sector. There are also strict guidelines that must be complied with known as the FSSAI (Food Safety and Standards Authority of India), which is the regulatory authority in judging the safety of the foods and beverages being sold in countries such as India. In addition, there is an increasing number of individuals, which are consuming good volumes of meat and seafood in different countries of this region such as India, China, and Japan among others.
Online distribution channel to grow at a significant pace owing to the convenience it offers.
The growth of the e-retail and e-commerce channels have been triggered due to the increased availability of high-speed internet services and the global penetration of the internet, thus making it easier for the consumers to order different types of processed food items online. These include items such as cheese, readymade soups, canned fish among others, In addition, the lucrative discounts and convenience it provides are attracting more users, which is contributing to the growth of the segment over the forecast period.
Canning and freezing type of processing methods are gaining popularity at a considerable pace among the consumers
There is an increasing number of individuals, that are getting aware of leading a healthy lifestyle by consuming food quality food loaded with essential minerals and vitamins, which also has a good shelf life. This is causing the most of the urban population to prefer easy and convenient food, In addition, their increased propensity to spend is causing the different types of canned food to gain popularity at a considerable pace and bolstering the demand for canning techniques in food processing.
In addition, the demand for frozen processing is also gaining popularity among the individuals owing to the fact that as many of them are preparing their meals for the week due to the lack of time. This is due to the lack of time as the working class population is getting busier in their corporate lives and the frozen fruits, vegetables are able to stay fresher for longer, and the sensitive vitamins and the nutrients remain intact within the food.
Strict guidelines, storage constraints among some other rules, by different food safety organizations, and government bodies are encouraging the players to adopt and adhere to them in order to avoid the imposition of severe penalties.
Strict rules and guidelines must be followed whilst the processing of foods that are reaching the consumers in order to ensure no ill effects are caused and the health of the consumers does not deteriorate. For example, the processed foods that are manufactured must adhere strictly to the Hazard Analysis and Critical Control Point (HACCP) guidelines for seafood, juices, meats poultry among other products. In conjunction, Sanitary Standard Operating Procedures (SSOP’s) must be followed in order to ensure that there is no contamination in the processed food that may pose harm to the consumers. Therefore, by the presence of these guidelines, the market players are strictly following them to avoid penalties and deliver top-quality products to the consumer and is leading to a surge in the market growth.
Product Offerings by Major Market Players in the Processed Food Market Space
The offering of better and advanced Processed Foods with enhanced shelf life and nutrient composition features among others such as quality by existing and new players in different markets is estimated to lead to increased adoption and propel the market growth further over the forecast period.
Some of the examples of product offerings are as follows: