Research and Markets, a Dublin-based market research company, unveils new data, opportunities and forecasts in its latest report, "World Packaged Food - Market Opportunities and Forecasts, 2014 - 2020."
The food market is expected to bring in revenue by 2020 of $3.03 trillion, the report indicates, registering a compound annual growth rate (CAGR) of 4.5 percent from 2015 to 2020.
Segmenting the global packaged food market into product types and geography, the report groups the market based on product type and 6 major food product categories, including ready meals, baked foods, breakfast cereals, soup, baby food, potato chips, nuts, instant noodles, pasta, biscuits, chocolate confectionary, cheese, yogurt, ice creams, sauces, dressings & condiments and non-alcoholic beverages.
Research and Markets sees the baby food market as the fastest growing at a CAGR of 6.4 percent during the forecast period. The firm attributes the growth to factors such as the increase in working parents, safer baby food options for infants and toddlers and parents' growing awareness of nutritional benefits associated with baby food. Yogurt is gaining wider acceptance throughout the world, with yogurt drinks expected to grow at a faster pace than conventional yogurt.
Geographically, North America is the largest market in the current scenario, it notes, followed by Europe, APAC and LAMEA.
Prominent players like Nestlé and the Kraft Foods unit are investing heavily in promotions and increasing brand awareness for aiding product differentiation, the report states.
Other key findings: food & beverage companies are actively assessing customer insights and preferences to understand the market requirements. Nestle was among the first companies to facilitate this process through its R&D center in India. Some of the major hindrances to market growth point to food contamination, government regulations and the emergence of local brands.
The leading players in the market have been focusing on mergers and partnerships as their key strategies to expand their presence. For instance, Kraft foods partnered with ketchup giant Heinz to expand its business, while Tyson foods collaborated with Godrej foods in India. The Asia-Pacific region is expected to be the fastest growing market area, due to the growing awareness and increasing adoption of packaged foods; thus, making it lucrative.
Also, growth of the worldwide packaged food market is mainly due to rising demand from emerging economies. Asia Pacific ranks as the fastest CAGR of 5.4 percent during 2015 – 2020, primarily driven by the growing per capita incomes and increasing health awareness. China and India are expected to show significant market growth for packaged food products.
More information about the report is available from Research and Markets at www.researchandmarkets.com.