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PackagingLatest headlinesManufacturing News

Market Research

FMI Reports eCommerce is Expanding in Packaged Food Market

eCommerce in packaged food market

Photo by rupixen.com on Unsplash

September 21, 2023

Future Market Insights Inc. (FMI) reports that the global packaged food market size is estimated to clock a valuation of $62,11,619.50 million by 2033. Its food and beverage industry researchers observe that packaged food providers can expect a CAGR of 4.3% through 2033, with the present valuation of $40,79,495 million in 2023.

The report revealed:

  • Strengthened consumer commitment to good health is expected to imbue the product offerings by leading food and beverages (F&B) companies. As consumers prioritize food items enriched with healthful ingredients, key players stay focused on delivering packaged food products corresponding to that demand.
  • An increasing number of consumers are willing to pay a greater price for sustainable elements in food packaging than they used to. However, consumers show promptness in the purchase when the price becomes closer to parity or slight premiums.
  • In the time ahead, key players are expected to overcome market competition by focusing on speed, productivity, eco-efficiency and supply-chain resilience.
  • Snack food packaging is a prominent contributor in the packaged food market revenue. A surge in the growth of the global snack food packaging market is expected to be directly proportionate to the growth of the packaged food industry.

Comparative View of Adjacent Packaged Food Market
Smart technology has started making splashes in the food packaging market. As per the market insights on smart plant-based food packaging, safety is the number one concern for manufacturers, which encourages them to use technology. However, the trend of technology adoption is slower.

It underscores that the frozen food packaging market is extending its reach at a pace higher than the other two markets. However, the packaged food market is expected to generate a greater revenue than the markets in juxtaposition. Food safety and convenience are expected to be defining factors across the below-mentioned markets.

Frozen food packaging is also a significant category in the packaged food industry. Therefore, sales of frozen food packaging are expected to have a direct impact on the overall market growth.

Ready-to-eat Meals Gain Center stage as Convenience Becomes a Key Determinant
The ready-to-eat (RTE) meals segment in the packaged food market accounts for a significant share. The latest market numbers show that the RTE segment captured 34.6% of the market share in 2023. Since RTE forms a crucial component of the food and beverage packaging market, the massive demand for convenience in the food items is expected to be a vital growth driver. A string of factors that account for market growth include the pace of hectic life, urbanization, and an increase in working professionals.

Along with the offline sales channel, online shopping stores are dishing out a wide variety of RTE meals and snacks with the benefit of cost-saving offers. Online stores are also working on building consumer reliability by advertising that they have stocked genuine products.

eCommerce Boom is Resounding in the Packaged Food Market of the U.S.
The U.S. is a market leader in the packaged food industry, racking up a market value of 18.6% as of 2023. The packaged food industry is impacted by trends related to conscious eating, which gained hyper-significance in the wake of the pandemic. American customers are currently seeking food items that bring them closer to their varied health and sustainability objectives, with conventional food objectives like losing weight into the bargain.

Younger consumers are highly inspired to stay on track to consume sustainable packaged foods. They appear to be more concerned about their personal impact on the climate change, in relation to other age groups.

Another trend, like the eCommerce boom, has pronounced the growth of the packaged food industry, particularly in the U.S. eCommerce has reached a tipping point, and sales of packed goods like groceries have grown substantially in the past few years. The e-commerce in grocery skyrocketed from 3% to 17% in no time. As eCommerce progresses and proliferates, the trend is expected to rush for a 20% market cut in the next five years.

New market dynamics make it imperative for key players to develop packages that meet the distinctive demands of customers and the supply chain. At present, general packaging solutions are not intended for direct shipment to consumers. To meet this current gap, manufacturers are concentrating their resources on bringing about a shift in this context.

Packaged Food Brands in Germany Adopting Personalized Marketing Communications for Better Reach
The German packaged food market has a strong presence in the Europe packaged food market. The market is expected to garner a total of 5.8% in the 2023 end. In Germany, sustainability ranks high as a major deciding factor for the purchase of a food item, as per the customer survey. However, in reality, only 28% of the surveyed consumers report consuming sustainable products, and not even 30% are ready to pay more for options designed for environmental protection. A major difference between this lag can be reasoned out with the amount of effort required to use those food products.

German consumers are different from other geographical areas in the way that they are motivated to try new things as long as they are contented with animal welfare. This indicates a strong movement toward the consumption of plant-based food alternatives. The general view in Germany is that less than 50% of consumers feel that the principal grocery store supplies products that align with their healthy and sustainable eating requirements. Consequently, consumers are extremely critical of the shortage of plastic-free products, organic foods and small and independent brands. This, thus, presents a remarkable opportunity for retailers to elevate their product assortment game.

A key strategy that market players can use as a vital competitive differentiator is the personalization of services and marketing communications. New players embarking on paving their path or leading giants with entrenched regional presence can generate more leads by way of personalization.

Key News Intensifying the Competitive Scene in the Market

  • In April 2023, Tyson Foods and Amcor teamed up to launch a sustainable packaging solution that offers a 70% reduction in the carbon footprint. These efforts are aimed at lowering the overall packaging pollution generated by the company.
  • In June 2021, Tyson Foods introduced new plant-based products under the brand of First Pride catering to Asia’s expanding market. Post launch, this line has been available on eCommerce channels and select retail markets across Asia Pacific.
  • In May 2023, Reliance Consumer Products Ltd reportedly entered the western snacking category with the debut of General Mills’ Alan’s Bugles brand of chips in the India market. This move is set to give tight competition to ITC and PepsiCo.
  • In August 2023, General Mills announced that it would release and test its newest brand, Yumble, a DTC delivery service that intends to give a stress-free spin to lunch and snack time for parents by offering customizable lunch kits.
KEYWORDS: e-commerce e-commerce trends ecommerce packaging

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