Food and beverage makers around the world have reason to rejoice, according to a new report from Allied Market Research that estimates the global packaged food market will reach sales of $3.03 trillion by 2020.
According to the “World Packaged Food - Market Opportunities and Forecasts, 2014 – 2020" report, the non-alcoholic drinks sector dominates the overall packaged food market thanks to the large demand of ready to drink (RTD) beverages on a global level. Baby food is the fastest-growing segment, primarily driven by the growing awareness toward modern care practices in baby health and food hygiene, primarily, in the developing nations. North America currently is the highest revenue-generating region in the global market and will continue to maintain its dominant position throughout the analysis period; however, APAC region is predicted to be the fastest-growing market in terms of growth during 2015-2020.
Packaged foods include ready meals, baked foods, breakfast cereals, soups, baby food, potato chips, nuts, instant noodles, pasta, cookies, chocolate confectionery, cheese, yogurt, ice cream, sauces, dressings, condiments and non-alcoholic drinks. In terms of value, non-alcoholic drinks and baked foods together contribute to nearly three-fourths of the market. The dominance of these product categories in the market is primarily supplemented by the global demand for baked food (including food products such as cake, pastries and bread) and drink products (carbonated and non-carbonated). RTD beverages contribute for a major share in the non-alcoholic drinks market and has witnessed remarkable growth and acceptance in the APAC countries over the last decade. Bottled water also is seeing tremendous growth in developing nations where growing per capita income, health awareness and changing lifestyles significantly has boosted the demand for packaged and purified water.
Chocolate confectionery is the major market after non-alcoholic drinks and baked food, followed by cheese. The demand for cheese is expected to witness a significant rise due to the emergence of fast-food restaurants worldwide. Other categories expected to grow at a notable pace include yogurt and baby food. Yogurt is increasingly gaining acceptance throughout the globe, with yogurt drinks expected to grow at a faster pace compared to standard yogurt. In addition, baby food is expected to witness the highest growth due to the growing awareness among parents regarding nutritional benefits associated with baby food.