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The Ultra Processed Food Market size is projected to increase by USD 594.71 billion at a CAGR of 8.39% between 2023 and 2028. The growth of the ultra-processed food market is driven by several key factors, including the strong advertising and marketing of these products to attract consumers and create brand loyalty, increasing their visibility and popularity. The rising demand for convenience food products,health and wellness food driven by changing lifestyles and the need for quick and easy meal options,packaged food and meat is also boosting market expansion by creating a demand for convenient and ready-to-eat food products. Additionally, the increasing adoption of Western dietary patterns, driven by globalization and urbanization, is driving market growth by enhancing the acceptance and consumption of processed and convenience food products across various regions and demographics. These interconnected trends collectively contribute to the expansion of the ultra-processed food market, as manufacturers adapt their strategies to meet the evolving preferences and needs of consumers seeking quick, accessible, and familiar food options in an increasingly globalized and urbanized world.
The Market shows an Accelerate CAGR during the forecast period.
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The report includes a comprehensive outlook on the market offering forecasts for the industry segmented by Product Type, which comprises chocolate and sugar confectionery, beverages, ready-made and convenience food, salty snacks, and others. Additionally, it categorizes Distribution Channel into offline and online and covers Geography regions, including North America, APAC, Europe, Middle East and Africa, and South America.
The offline distribution channel for ultra processed foods encompasses a variety of brick-and-mortar retail outlets that are widely recognized and frequented by consumers. Supermarkets, such as industry giants such as Walmart Inc, Tesco plc, and Carrefour, play a pivotal role in offering a diverse array of ultra processed food products. These expansive retail spaces provide convenience and accessibility for consumers to browse and select from a wide range of packaged and processed food items. Thus, the growing consumer preferences for in-person shopping experiences and immediate access to products will continue to drive the growth of the offline segment of the market in focus during the forecast period.
The market share growth by the chocolate and sugar confectionery segment will be significant during the forecast period. The chocolate and sugar confectionery segment in the market is characterized by a tempting array of sweet treats that cater to consumers' indulgent cravings. Nestle, a prominent player in this segment, offers the globally recognized Kit Kat chocolate bars, which have become synonymous with the break-time snacking experience.
The chocolate and sugar confectionery was the largest segment and was valued at USD 342.69 billion in 2018
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Further, Kraft Heinz Co, another key contributor to this segment, presents iconic products such as Chocolate Bars. These bars, with their creamy texture and signature chocolate flavour, have long been a staple in the confectionery landscape, appealing to a broad consumer base seeking classic and comforting chocolate indulgence. General Mills Inc, contributes to the confectionery segment with products like dunkaroos chocolate cookies. These cookies are known for their playful packaging and variety of flavours, offering consumers a fun and shareable confectionery option. Thus, persistent consumer demand for indulgent and convenient treats will continue to drive the growth of the chocolate and sugar confectionery segment of the market during the forecast period.
Europe is estimated to contribute 38% to the growth of the global market during the forecast period
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The high consumption in Europe is the major factor driving the growth of the regional market in focus. Countries like UK, France, and Germany are the major contributing countries to the growth of the market in Europe. The consumption in Europe is driven by several factors. Busy lifestyles, urbanization, and the rise of dual-income households contribute to the demand for convenient and time-saving food options. Further, changing family structures and the prevalence of single-person households drive the need for individually packaged and ready-to-eat products. Economic prosperity in many European countries has increased disposable incomes, enabling consumers to allocate more spending towards convenient and often high-priced ultra processed foods.
Additionally, the appeal of familiar global brands, aggressive marketing strategies, and the convenience of online retail further stimulate consumption. Furthermore, changing dietary habits influenced by a desire for international flavors contribute to the popularity of ultra processed products. While health considerations have led to the emergence of alternative and healthier options, factors such as taste, convenience, and globalized food culture will continue to drive the consumption of ultra-processed foods across Europe during the forecast period.
The changing lifestyle patterns of modern consumers have spurred a significant rise in out of home consumption trends. This shift has profound implications across various sectors, notably in health, where cardiovascular disease prevention is increasingly prioritized. To meet these evolving needs, the food industry is witnessing a surge in innovative food products that cater to on-the-go lifestyles and promote heart health. Industry influencers play a crucial role in shaping consumer preferences towards healthier choices, including raw food options and sustainable agricultural goods. These developments not only enhance benefits to consumers by offering convenient, nutritious options but also present opportunities for businesses to capitalize on emerging market demands. By integrating these keywords, stakeholders can navigate and capitalize on the dynamic landscape of modern food consumption, ensuring relevance and sustainability in an evolving marketplace. The introduction of new products such as organic food, that offer directly consumable food options that provide numerous benefits to consumers and businesses.
Strong advertising and marketing of ultra-processed food products is notable driving the market growth. Advertising and marketing are crucial in influencing consumer perceptions and increasing the popularity of ultra-processed foods worldwide. Leading food companies invest significantly in strategic campaigns to raise awareness, evoke positive feelings, and impact purchasing decisions. Additionally, social media and digital marketing platforms amplify the impact of these campaigns, building brand loyalty and sustaining the appeal of ultra-processed foods among consumers.
Moreover, the rising demand for processed food and advancements in technology in food processing systems further contribute to this trend, as industries adopt more efficient food processing methods. Changing lifestyles, rapid urbanization, and the increasing prevalence of out-of-home consumption also play a role, despite the associated health risks linked to the consumption of ultra-processed foods. Therefore, the influence of advertising will remain pivotal in shaping consumer views and choices, driving market growth in the foreseeable future.
The growing shift towards plant-based and clean eating is an emerging trend shaping the market growth. Consumers are increasingly seeking alternatives that align with their preferences for healthier, more sustainable food choices. In response to this trend, numerous brands within the ultra processed food sector are introducing plant-based products, reducing reliance on animal-derived ingredients, and incorporating plant-based proteins such as soy, pea, and almond. For example, on May 3, 2021, Raised and Rooted, a brand under Tyson Foods specializing in plant protein products, announced the expansion of its product line to cater to the growing demand for plant-based protein alternatives.
Moreover, brands emphasize clean labelling by prominently featuring recognizable ingredients on their packaging, such as whole nuts and fruit. The clean label trend extends beyond ingredient transparency to include the exclusion of artificial additives, preservatives, and excessive processing. Thus, the growing shift towards plant-based and clean eating is one of the trends that will lead to slow growth in the market during the forecast period.
Health risks associated with consumption of ultra processed food products are a significant challenge hindering the market growth. Consuming a high proportion has been consistently linked to various adverse health outcomes. Studies indicate a strong association between increased ultra processed foods intake and elevated risks of conditions such as overweight, obesity, type 2 diabetes, depression, cardiovascular and cerebrovascular diseases, hypertension, breast cancer, overall cancer, declining kidney function, frailty in older adults, and all-cause mortality.
Notably, individuals on ultra-processed-food-based diets tend to consume more calories, leading to weight gain. Thus, the health concerns associated with the consumption of ultra processed food can pose a major challenge to the growth of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The ultra processed food market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The global food processing market is pivotal in transforming agricultural produces into a diverse array of products that offer numerous advantages to both consumers and businesses. From clean-label food ingredients and dairy-free products to nutrient-dense food and vegan options, food processing enhances convenience of preparation while ensuring consistent cooking results and foods with long shelf life.
Moreover, emerging opportunities in food processing machinery, including advancements in electric heating, microwaves, and induction heating, contribute to energy savings and precise temperature control. However, challenges like the high cost of raw materials and risk of foodborne illness require ongoing investment in food manufacturing technology and supply chain systems to maintain quality and safety.
In addition, the innovations such as Fibertex CF citrus fibers for texturizers and stabilizers highlight the industry's commitment to preservation and sensory experiences. As urbanization and rising disposable incomes drive demand for healthy diets and natural food products, the food processing sector remains poised for growth despite existing restraints and disruptions.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.39% |
Market Growth 2024-2028 |
USD 594.71 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.74 |
Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
Performing market contribution |
Europe at 38% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Archer Daniels Midland Co., Atkins Nutritionals Inc., Campbell Soup Co., Corporativo Bimbo SA de CV, Danone SA, Dr. August Oetker KG, General Mills Inc., Hansen Foods LLC, Hormel Foods Corp., International Flavors and Fragrances Inc., McCain Foods Ltd., Mondelez International Inc., Nestle SA, One Planet Pizza, Otsuka Holdings Co. Ltd., Sudzucker AG, Sysco Corp., The Kraft Heinz Co., Tyson Foods Inc., and Unilever PLC |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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