Authored By: Sarah
27 Jun 2024

 Ultra Processed Food Market Size to grow by USD 594.71 billion between 2024-2028

According to a research report “ Ultra Processed Food Market” by Product Type (Chocolate and sugar confectionery, Beverages, Ready-made and convenience food, Salty snacks, Others) Distribution Channel (Offline, Online) Geography (Europe, APAC, North America, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 594.71 billion, at a CAGR of  8.39% during the forecast period. Ultra processed foods have gained significant market share due to intensive advertising and marketing efforts by major food corporations. Strategic campaigns are designed to create consumer awareness, evoke positive emotions, and influence purchasing behaviors. Brands like Nestle effectively utilize captivating advertising to reinforce their ultra processed food and beverage offerings, such as NESTEA Iced Tea and NESCAFE Cappuccino, as refreshing and synonymous with enjoyable moments. Fast-food chains, such as McCain Foods Ltd, employ persuasive marketing to position their processed offerings as desirable, indulgent choices. These marketing initiatives highlight the convenience and lifestyle benefits associated with ultra processed foods, making them a prominent fixture in the global market.

Browse market data tables, figures, and in-depth TOC on “Ultra Processed Food Market” by Product Type (Chocolate and sugar confectionery, Beverages, Ready-made and convenience food, Salty snacks, Others) Distribution Channel (Offline, Online) Geography (Europe, APAC, North America, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample

 

By Product Type, the Chocolate and sugar confectionery segment is projected to dominate the market size in 2024

The offline distribution of ultra processed foods is primarily driven by established brick-and-mortar retailers. Supermarkets, including industry leaders like Walmart Inc, Tesco plc, and Carrefour, serve as crucial channels for providing a vast assortment of ultra processed food products. These extensive retail spaces offer consumers the convenience and accessibility to browse and purchase a wide range of packaged and processed food items. Hypermarkets, such as Costco and Target, represent another significant segment of the offline distribution channel. These large-format stores offer not only a comprehensive selection of ultra processed foods but also a variety of household goods, often in bulk quantities.

By Distribution Channel, Offline  segment is expected to hold the largest market size for the year 2024

The ultra processed food market's chocolate and sugar confectionery segment showcases an enticing selection of indulgent treats, catering to consumers' cravings. Notable players, such as Nestle, offer globally renowned brands like Kit Kat, recognized for their iconic wafer layers covered in milk chocolate. Kit Kat's convenience and satisfying nature epitomize the appeal of this segment. The Kraft Heinz Co also contributes significantly, presenting classic products, including Chocolate Bars, renowned for their creamy texture and signature chocolate flavor, appealing to a broad consumer base seeking comforting and timeless chocolate indulgence.

Europe is forecasted to hold the largest market size by region in 2024

The European ultra processed food market is experiencing significant growth, primarily driven by the high consumption of such products in major contributing countries, including the UK, France, and Germany. Factors such as busy lifestyles, urbanization, and the rise of dual-income households have led to an increased demand for convenient and time-saving food options. Furthermore, changing family structures and the prevalence of single-person households have fueled the need for individually packaged and ready-to-eat products. Economic prosperity in European countries has also played a role, as consumers allocate more disposable income towards these convenient and often high-priced ultra processed food items.

The Ultra Processed Food Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • 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.
  • Unilever PLC
.

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Research Analysis Overview

The Ultra-processed Food Market encompasses directly consumable food products that undergo extensive industrial processing, often using agricultural goods and raw materials, to create new products. Food processing methods include additives, preservatives, and artificial colors and flavors. Industry influencers have been introducing innovative food products, but concerns over health risks associated with ultra-processed foods continue to rise. Cancer, diabetes, and cardiovascular disease are just a few health issues linked to ultra-processed foods. Rapid urbanization and changing lifestyles have led to increased demand for convenience and affordability, driving the market growth. However, the organic food industry offers a healthier alternative, using natural processing methods and raw food ingredients. As consumers become more health-conscious, there is a growing demand for transparency in food labeling and ethical production practices. The ultra-processed food market is expected to face regulatory challenges and increasing competition from organic and raw food industries. Stay tuned for the latest trends and developments in this dynamic and evolving market.

Market Research Overview

Title: Ultra-Processed Food Market: A Deep Dive into Vegan Food, Texturizers, and Health Risks The ultra-processed food market is witnessing a significant surge, driven by the rising urbanization, growing disposable income, and changing lifestyle. While vegan food is gaining popularity for its unique textures and sensory experiences, ultra-processed foods continue to dominate the industry due to their convenience and long shelf life. Ultra-processed foods rely on texturizers, stabilizers, preservatives, and precise temperature control to maintain their consistency and freshness. Scientists are increasingly studying the health risks associated with these foods, including diabetes, cardiovascular disease, and cancer. The supply chain systems for ultra-processed foods involve the use of raw materials, such as plant fiber, minerals and vitamins, and agricultural produces and goods. Food processing methods, including fermentation, extrusion, induction heating, and microwaves, play a crucial role in creating innovative food products. However, the use of additives, electromagnetic elements, and electromagnetic heating in food manufacturing raises concerns about the quality of food and the potential health risks. The demand for natural food products, organic food, and nutrient-dense food is on the rise, as consumers seek healthier options. Existing restraints, such as the high cost of raw materials and energy savings, and disruptions in the supply chain, present challenges to the industry. Emerging opportunities include the development of clean-label food ingredients, energy-efficient processing methods, and the growing demand for dairy-free products. In conclusion, the ultra-processed food market is a complex and dynamic industry, shaped by a range of factors, from consumer preferences and health concerns to technological innovations and supply chain disruptions. As the market continues to evolve, it will be crucial for industry influencers to stay informed about the latest trends, challenges, and opportunities.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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