Processed Food Market Research Report - Global Forecast Till 2025
As per credible estimates, the global processed food market was worth USD 5763.1 million in 2019 and is expected to grow with a CAGR of 4% during the forecast period, hence reaching USD 6753.9 million by 2025. Growing population and increasing number of working professionals has enhanced the demand for ready-to-eat (RTE) and ready-to-cook (RTC) food thereby, driving the processed food market growth. The processed foods offer a broad spectrum of advantages including low-cost, ease of storage, preservation, handling, consumption, and cooking. Moreover, technological advancements in food processing industry along with evolving consumer lifestyle are aiding the market expansion.
The governments across the globe are promoting healthy and safe processed food products. This factor along with rising concerns regarding unhealthy lifestyle and increasing healthy food awareness are fostering the demand for processed food products across the globe. However, rising concerns regarding food additives and food contamination my hinder the market growth. Adding to this, strict FDA approvals and government regulations may further inhibit the expansion of this industry vertical.
As per type, the processed food market is categorized into fruits & vegetables, grains & cereals, dairy products, meat & poultry, marine products, edible oil, and others. The fruits & vegetables segment is expected to register substantial growth during the estimated timeframe. Food processing helps in preserving the taste and nutritional value of fruits & vegetables. This factor along with rising consciousness regarding the consumption of nutritionally rich food are stimulating the industry outlook. However, high costs of such products may hinder the market growth.
On the other hand, grains & cereals processed food will witness commendable growth owing to its nutritional value and rising consumption of breakfast cereals, pasta, and other ready-to-cook products. The demand for dairy processed food is predicted to surge during the forecast period. Increasing consumption of processed yogurt, cheese, cream, butter and other dairy products due to their low cost, high nutritional value, and convenience properties are facilitating the business scenario.
Based on the application spectrum, the processed food market is classified into instant food, catering, and household. The instant food application of processed food is presumed to expand significantly in the subsequent years. Rising adoption of hectic lifestyle has led to shifting preferences towards ready-to-eat meals, thereby favoring the market outlook.
As per the regional analysis, the processed food market is divided into Americas, APAC, Europe, and Middle East & Africa. North America processed food industry holds substantial share of the global market and is expected to expand considerably during the projected timeframe. Rising capita per income along with increasing health concerns are fueling the adoption rates of convenience food, which in turn is augmenting the regional demand for processed food products.
On the other hand, the demand for processed food in Europe will observe significant growth owing to high concentration of key industry players and technological advancements. However, strict government regulations regarding food safety may hamper the Europe processed food industry growth.
Nestle, Tyson Foods, Kellogg’s, Mars, JBS Foods, PepsiCo, WH Group, General Mills, Kraft Heinz, Mondelez International, Hormel Foods, COFCO, Saputo, Maple Leaf Foods, Cargill, and ConAgra are the prominent companies operating in the processed food market.