Campbell

Part
01
of three
Part
01

Packaged Food Industry: Trends

The seven major trends in the packaged food market are a greater demand for snack foods and beverages; innovative, flexible and smarter packaging; modern types and ways of retail trade including digital marketing; the application of nanotechnology for modern packaging methods; customer preference for healthy food items; presenting transparent food that informs customers about ingredients; and presenting 'free-from' food items. Below is an overview of the findings.

Major trends in THE packaged food market: A COMPILATION


Individual reports AND THE trends THEY MENTION

  • The report, "Packaged Food Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies, And Segment Forecasts, 2014 To 2020", prepared by GrandView Research mentions the following trends in the packaged food industry:
  • Another report, "Packaged Food Market — Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 – 2024", prepared by Transparency Market Research mentions the following trends in the packaged food industry:
  • A 2019 article published by Forbes, mentions that there is a higher presence of nutritional and 'free-from' food items. The article further mentions that eight major packaged food companies are addressing this trend.
  • A 2018 Food Business News report mentions that recently the consumer prefers transparent foods and organic and free-from foods.
  • A 2017 Livemint report identified as recent trends in the packaged food industry the use of digital marketing; the use of technology, including nanotechnology in packaging; smart and innovative packaging.

Research Strategy

We identified notable trends in the packaged food market from market reports (such as those from Grandview Research, Transparency Market Research, and Euromonitor International), trusted media sites (such as Forbes, Reuters, BBC, New York Times), and industry media sites (such as Food Navigator and Food Business News). From these sources, we selected seven trends that were mentioned in multiple sources. These trends have been listed above. Please note that through our search we found three reports from GrandView Research, Transparency Market Research, and Euromonitor International that can be purchased and could provide deeper insight into the trends mentioned above.




Part
02
of three
Part
02

Packaged Food Industry: Future Outlook

The packaged food market is expected to see a 4.5% growth from 2015 to 2020. Baby food will have the fastest growth during this period while yogurt is a promising segment and might gain a more significant share. There are several factors that may increase the demand for packaged food. Some include the convenience culture and rapid urbanization. However, issues like food contamination and strict government regulations may hinder the growth of this market.

PACKAGED FOOD MARKET: PREDICTED GROWTH

  • In 2014, the global market size of packaged food was $2.35 trillion, it increased to $2.58 billion in 2018 at a compound annual growth rate of 1.89%.
  • The global packaged food industry is expected to be worth $3.03 trillion by 2020 reflecting a compound annual growth rate of 4.5% from 2015 to 2020.
  • By geography, North America dominates the packaged food market, closely followed by Europe and Asia-Pacific.
  • Latin America, the Middle East, and Africa have the least share of the packaged food market.
  • The Asia-Pacific market is predicted to see the fastest growth of packaged food due to an increase in the number of people demanding for these products.
  • The Asia-Pacific region will supposedly grow at 8% from 2015 to 2020.

PRODUCTS & SEGMENTS EXPECTED TO GROW FAST

  • During the forecast period (2015 to 2020), the non-alcoholic drinks segment is predicted to generate the highest revenue.
  • The baby food segment is forecast to have the fastest growth with a compound annual growth rate of 6.4% from 2015 to 2020.
  • The yogurt segment is increasingly gaining traction in the packaged food industry.
  • By value, non-alcoholic drinks and baked goods account for almost 75% of the global packaged food industry.
  • Cheese and chocolate confectionery are other promising segments holding a substantial share of the packaged food industry.
  • Sauce, dressings & condiments, soups, and pasta are sectors with the least share of the market.
  • The packaged food segments with the highest retail value are dairy, baked goods, processed meat & seafood, confectionery, and savory snacks.

FACTORS AFFECTING THE MARKET

  • The main factor limiting the growth of the packaged food market is the emergence of local brands which end up becoming strong competitors to large multinational brands like Heinz.
  • Other issues hindering the packaged food market include strict government regulations and food contamination.
  • In order to combat local brands, large brands are partnering with local brands like Tyson Foods recently did with Godrej Foods in India.
  • Factors fueling the growth of segments like baked goods and breakfast and leading to the increasing demand in these segments include health consciousness and the convenience culture in developed countries like the United States and the United Kingdom.
  • Retail development and rapid urbanization in developing countries will also contribute to the growth of the packaged food industry.
  • The increasing awareness of the nutritional benefits associated with segments like baby food will also lead to an increase in demand.
  • The primary impacting factors of the global packaged food market are social media, multiple food choices, innovative packaging, technology, nutritious food, and demographic.

ADDITIONAL DETAILS

  • The companies dominating the global packaged food market are Tyson Foods, Nestlé, Kellogg's, General Mills, Frito-Lay, ConAgra Foods, and Kraft Food.
  • Tyson Foods and Nestlé are now focusing on brand awareness in order to set their products apart when compared to competitors.
  • Nestlé opened an R&D facility in India to increase its share of this market.
  • With a growth rate of 8.4%, Kraft Heinz had the highest growth in the packaged food industry in 2017.


Part
03
of three
Part
03

Company Profile - Campbell Soup Company

Campbell Soup Co was founded in 1869. The company manufactures food and beverages such as snacks, soups and simple meals. The company's operations are located worldwide in countries such as the US, Canada, Australia, England, Malaysia and Indonesia. They currently employ over 23,000 people. In 2018 the company generated $8.6 billion in revenue.

Following our research, we have provided information on the company Campbell Soup Co below. Information provided includes details of the company's products/services, its size, and its business segments market share. Details have been provided below.

Description of product/service

  • The company is focused on producing a diverse range of simple but "real" food, with the aim of becoming the world's "leading snacks and simple meals" company.
  • Its product portfolio is divided into three segments which are the America's simple meals and beverages segment, the global biscuit and snacks segment, and the Campbell fresh segment.
  • The America's simple meals and beverage segment is made up of the company's businesses in food and retail service, located in the US and Canada. Products under this segment include Swanson broth and stocks, Prego pasta sauces, Campbell's condensed and ready-to-serve soups, beans and dinner sauces, plum food and snacks, Swanson canned poultry, Pace Mexican Sauces, V8 juices and beverages, Pacific broth, and other simple meals.
  • The Campbell Fresh segment includes caters for several products including US refrigerated soups, refrigerated beverages, garden fresh gourmet salsa, dips, hummus, tortilla chips, refrigerated salad dressings, Bolthouse farm-fresh carrots and carrot ingredients.

Company Size

  • They have 30 principal manufacturing facilities in the US, located in several states including Arizona, California, Wisconsin, Georgia, Michigan and New Jersey. Outside the US, the company has 11 manufacturing facilities located across Canada, Australia, Indonesia, Malaysia, England, and Denmark.
  • As of July 2018, the company had a total of 23,000 employees located in its offices worldwide.
  • According to the company, 95.8% of households in the US have at least one of their products, while a minimum of 80 Campbell products are purchased every second in North America.

Market Share

  • In the biscuits segment, Campbell Soup Co has a 1.16% market share, and a 0.76% market share in the U.S. simple meals segment.
  • The company's international simple meals & beverages segment holds a 1.06% market share, while the North America food service segment holds a 4.17% market share.
  • Campbell Soup Co holds a 0.34% market share in the U.S. beverages segment, where the highest market share percentage of 12.13% is held by Coca Cola.


Sources
Sources

From Part 01
Quotes
  • "Packaged food market growth is driven by innovative processing techniques for boosting food products’ shelf life. Overall market demand is expected to be led by snack foods and beverages. Key market drivers include technological improvement, changing lifestyle, modern retail trades and increased popularity of quick service restaurants. Over the past few years, evolution of science and nanotechnology has revolutionized the food and processing industry. Nanotechnology has evolved in the field of development of functional foods, preservation, packaging, processing and food production. Food packaging is the earliest commercial application of nanotechnology in the food sector."
Quotes
  • "Digital technologies are transforming our lives in new, profound, and personal ways. “Today, there are more devices connected to the internet than there are humans," said Libby Costin, vice president– Marketing, Tetra Pak South Asia, East Asia and Oceania, at the leadership event that marked Tetra Pak’s 30 years in India. This increased connectivity has impacted all businesses alike, but its effect on food and nutrition is particularly interesting. “Just as the industrial revolution transformed food, the wave of digital technologies underway currently will also drastically alter how we grow, manufacture, package, and eat food," explains Costin. Globally, this hyper-connectedness also means moving to a distributed value web. “Every farm, every grocery store, every kitchen, and all the packaging in between, should not be thought of as part of a linear value-chain but instead as nodes in a distributed network," explains Costin."