The US packaged food market size is expected to reach $1,376 billion by 2028 and is expected to expand at a CAGR of 4.1% from 2021 to 2028.
The increasing product innovation, innovative packaging, changing lifestyle, rising number of dual-income families, and hectic schedules of consumers have boosted the demand for packaged foods in the US.
Moreover, the growing trend of plant-based and organic foods is driving the market. With the rising health consciousness, consumers are gradually shifting toward healthy food and drink alternatives. As a result, food products with low-calorie, low-fat, gluten-free, sugar-free, and organic claims gain traction among consumers.
The beverages product segment accounted for the largest share of over 20.0% in 2020, followed by the dairy products segment. Healthy drinks made with natural ingredients and less sugar are gaining traction among consumers.
Furthermore, increasing demand for functional beverages is fueling the growth of this product segment. Milk, butter, and cheese have wide application in the daily lives of consumers in the US. In addition, lately, yogurt and yogurt drinks are gaining significant popularity across the nation.
The market is highly competitive with a large number of well-established companies across the country. Consumers have been preferring companies that are known for prioritizing sustainable production and environment-friendly packaging. As a result, several companies are focusing on sustainable packaging and a transparent supply chain.
For instance, in January 2020, Nestle announced to invest up to $2.12 billion in advanced sustainable packaging solutions to shift to food-grade recycled plastics from virgin plastics. The company has committed to making 100% of its packaging reusable or recyclable by 2025.
According to product, the beverages segment held the largest share of more than 20.0% in 2020. The strong popularity of such products among consumers as healthy drinks is expected to remain a favorable factor for the segment growth over the next few years
The ready-to-eat meals product segment is expected to register the fastest CAGR of 5.7% from 2021 to 2028 owing to the busy lifestyle and hectic work schedule of the consumers
In terms of distribution channel, the supermarkets and hypermarkets segment dominated the market by accounting for over 65.0% share in 2020. Over the past few years, consumers are preferring these distribution channels owing to the availability of a wide range of products and significant price discounts offered in these stores
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SOURCE: Research and Markets