Packaged Food Market

Packaged Food Market Size

The global packaged food market was estimated at USD 3.3 trillion in 2024 and is expected to grow at a CAGR of 6.1% from 2025 to 2034, driven by the expansion of organized food retail and e-commerce. Also, the use of convenience foods surged along with high rates of e-commerce spending during the surge of the covid-19 pandemic and lockdowns, especially in North America, the European Union, and parts of Asia Pacific.

Rise of organic foods is one of the many factors enabling the developing countries to experience higher disposable income which will drive packaged food market. As one of the leading economies, China and India are expected to see a surging demand for health foods like fortified plant-based organics. Also, people are increasingly leaning towards protein and gluten enriched superfoods that provide wellness wellbeing. Furthermore, this shift to a better lifestyle is being witnessed across the globe.

The incorporation of intelligent labeling and biodegradable materials into packing, restores the industry’s compliance with sustainability and improves the shelf life. While the growth potential seems promising, the industry is still finding it hard to cope with the supply chain complexities, ever rising raw material costs, and stringent government policies.

Furthermore, it appears like there is increasing competition between private label brands and local competitors which adds more pressure on the existing players. Due to the global push for spending and reducing food waste, emphasis on sustainable innovation has impacted certain manufacturers particularly hard. However, adopting a more aggressive stance toward product and market development alongside digital marketing can relieve some of the burden in the coming period.

Packaged Food Market Trends

• Smart Packaging & Tech Integration: Global market for packaged food is swiftly changing owing to technology, consumer habits, and regulation. The surge in smart packaging solutions such as QR codes, RFID tracking, and intelligent labels that allow real time monitoring of food’s quality and safety is a critical example. They are also implementing Artificial Intelligence and the Internet of Things for supply chain management as well as for diminishing food waste.
  
• The claims by leading firms focus on the assertion that smart packaging will gain adoption at a CAGR of 7% from now until 2030 due to the brand’s focus on sustainability and increased spending on traceability.
  
• Rise of Functional & Plant-Based Foods: There is an increase in demand for functional foods and those that are plant-based due to consumers growing in health consciousness. The segment of the global economy based on plant-based packaged goods is expected to surpass 100 billion dollars over the next 6 years because of the rise in vegan and flexitarian diets.
  
• In parallel, the organic protein enriched gluten-free crowd is becoming exceedingly popular in North America and Europe. Furthermore, low sugar, low sodium, and other fortified products are being requested more frequently. Consequently, this requires producers to reformulate their products while trying to maintain the taste and longevity of the product.
  
• The Legal Environment & Sustainability Motivation: Government policies and sustainability objectives are influencing the industry; thus, laws on plastic packaging use reduction, control of carbon emissions, and food safety are making companies move towards biowaste packaging and Circular Economy adoption.
  
• For example, the European Union has set a target to achieve a reduction of 50 percent in plastic packaging waste by the year 2040, hence forcing brands to switch to sustainable alternatives. Likewise, the FDA’s Food Safety Modernization Act (FSMA) in the USA is accelerating spending on technologies for food traceability and contamination mitigation.
  
• Changes to regulations and consumer attitudes are changing the dynamics of the packaged food industry, which has forced businesses to be more transparent, innovative, and sustainable, as everything about the industry itself transforms.
  

Packaged Food Market Analysis

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The bakery & confectionery segment dominated the global packaged food industry accounting for around 21.5% revenue share in 2024 due to because of its distinct convenience and high demand from customers.

• The bakery & confectionery segments have greatly benefited from expansion in the market due to increased purchases of baked products such as loaves, pastries, cookies, and even premium confectionary like chocolates and candies. Moreover, the growing culture of snacking on the go and fortified benign bakery goods continue to aid the growth of this sector.
  
• The category offers new innovative products like gluten-free, organic, or low-sugar options that target the health conscious. Increased adoption of American diets in developing countries paired with their robust retail infrastructure composed of supermarkets and e-commerce sites has propelled the American diet.
  

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Based on packaging, the chili-based segment dominated the 30.5% share of the packaged food market in 2024 because they are less expensive and easy to store.

• Cans & Tins are widely used for their ease of consumption and prolonged storage without the need for refrigeration. There is also a growing need for environmentally friendly and reusable packing which strengthens the leading position of metal cans over their plastic counterparts due to the higher rate of recycling.
  
• Also, the marketing of lightweight aluminum cans with BPA free coatings and pull-tab tops has increased sales for these products. Market growth for canned beverages including soft and energizing drinks has also increased the strength of this segment’s market position in conjunction with strong retail and e-Commerce distribution.
  

Based on distribution channel, the packaged food market is segmented into online, and offline. The online retail segment is projected to grow at the fastest CAGR of 6.8% during 2025 to 2034, owing to the rise of e-commerce, ease and convenience, and extensive range of products.

• In the packaged food industry, urban and semi urban areas have a better concentration of organized retail chain stores which enhances the availability of food products. This further strengthens the offline distribution channel in the regions. The development of organized retail chains in urban and suburban areas also supports the dominance of offline channels because these chains make food products easily accessible.
  
• In addition, sales of snacks, beverages, and confectionery items are primarily driven by impulse purchases. Many retailers are enhancing their shopping experience with example sample dispensers. Plus, self-checkout counters are also emerging as a very popular option for completing a purchase. With the expansion of e-commerce, traditional brick and mortar stores still sell fresh packed perishable food causing the segment to perform strongly within the market.
  

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The U.S. packaged food market is projected to exceed USD 707.4 billion by 2034 as it is the most developed industry in the world.

• Approximately 40% of customers have shown interest in clean-label products due to the growing marketing of organic and plant-based high-protein foods. Also, there is a growing trend of sustainable packaging advents, as most marketers have committed to using recyclable or compostable products by 2035.
  
• The government of the U.S. together with the FDA has undertaken actions that have significantly affected market forces. The Nutrition Innovation Strategy has positioned sodium reduction rules as well as the front of package descriptions, which have compelled changes in modifications by the producers. Furthermore, to meet the health, clarity and sustainability demands of consumers, food brands in the U.S. are competing for the best clean-label ingredients, enhanced preservation, and minimal processing of food.
  

The packaged food market in China is expected to experience promising growth from 2025 to 2034 due to growth of increasing consumption within the country.

• The plant based and functional convenience food trends are driving changes in industry. In addition, China also leads the world in e-commerce share for packaged food sales accounting for over 30% of the share which is enjoyed by Alibaba’s Tmall and JD.com. Also, the Healthy China 2030 initiative has accelerated the uptake of low sugar, low fat, and fortified foods which in turn has created pressure on the manufacturers to comply with governmental policies and reformulate healthier products.
  
• The recent ban on single-use non-recyclable plastic packaging is driving companies towards compostable and biodegradable alternatives. The combination of these regulatory approaches, alongside increased awareness among consumers, are strengthening the competitive landscape for China’s packaged food industry.
  

Packaged Food Market Share

Top 5 companies in the packaged food industry are Nestlé, PepsiCo, The Kraft Heinz Company, General Mills, Unilever. Profitable growth is key in the packaged food industry and companies are pursuing it through innovation, sustainability, pricing, and strategic partnerships. Major companies such as Nestlé, Pepsi, Kraft Heinz, General Mills, and Unilever drove more than 35% of the industry in 2023.

The focus now is on premium, functional, and plant-based foods as consumers continue to shift in their spending habits. Furthermore, M&A activities are on a rise dramatically as brands look to acquire niche label businesses to enhance their market reach. Nestlé acquired Freshly, a meal design company boosting its presence in the ever-growing ready-to-eat segment, while Pepsi strengthened its focus on health, investing in various functional beverage brands.

The primary competitors focus on reformulation through innovation. Creating new and investing in existing R&D to manufacture cleaner, healthier, organic products and advanced smart packaging make up the competitive edge. Going forward, Direct to consumer and e-commerce sales, which eliminate cost heavy traditional retail, are rising sharply. Businesses are also investing in AI controlled supply chain management to streamline operations and minimize food waste.

Packaged Food Market Companies

Nestlé, the world’s biggest player in the packaged food industry, is aggressively pursuing product and market expansion through innovation and acquisitions. Their investments in plant-based foods, dairy alternatives, and functional nutrition are significant. Revenue from Garden Gourmet (plant-based meat) and Purina (pet food) brands are substantial.

PepsiCo is expanding its horizon and branching out from its beverage category. Their packaged foods from Lay’s, Quaker, and even Tropicana are contributing to this growth. Because of rising health consciousness, the company has also taken steps to reduce the sodium and sugar content of their products. Also, much effort is placed towards sustainable supply chain farming, regenerative agriculture and long-term supply chain sustainability.

Some of the eminent market participants operating in the packaged food market include:

• Associated British Foods plc
• Conagra Brands, Inc.
• Danone S.A.
• Foshan Haitian Flavouring and Food Company Ltd
• General Mills, Inc.
• Hormel Foods Corporation
• JBS S.A.
• Kellogg Company
• Mars, Incorporated
• Mondelez International, Inc.
• Nestlé S.A.
• PepsiCo, Inc.
• The Kraft Heinz Company
• Tyson Foods, Inc.
• Unilever
  

Packaged Food Industry News:

• In February 2025, J.M. Smucker intends to sell its Cloverhill, Big Texas, and private label brands to JTM Foods for $40 million, looking to emphasize on increasing the value of the Hostess brand.
  
• In December 2024, Conagra Brands, an American food manufacturer marketed its Healthy Choice frozen meals as ‘GLP-1 friendly’ to cash in on weight-loss drug users. These meals are designed for this balanced nutrition because they are high in protein, fiber and low calories.
  
• In January 2023, Pepsi launched Pepsi Zero Sugar and offered the fans up to $10 million in free sugar during the NFL playoffs on the route to the Superbowl, proving that “zero has never tasted this good”.
  

The Packaged Food Market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Product Type

• Bakery & Confectionery
• Dairy Products
• Frozen & Ready-to-Eat Meals
• Snacks
• Beverages
• Meat, Poultry & Seafood
• Breakfast Cereals & Grains
• Sauces, Dressings, and Condiments
• Others

Market, By Packaging

• Cans & Tins
• Bottles & Jars
• Flexible Packaging
• Boxes & Cartons
• Trays & Containers
• Others

Market, By Distribution Channel

• Online
  • Brand Websites
  • E-commerce Platforms 
• Offline
  • Supermarkets/Hypermarkets
  • Specialty Stores
  • Convenience Stores
  • Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands 
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE