U.S. Canned Foods Market To Hit Value .23 Billion By 2025Posted by Mrudula Anil Karmarkar on March 19th, 2021 The U.S. canned foods market is expected to reach USD 22.23 billion by 2025, according to a new report by Grand View Research, Inc. owing to the rise in demand for convenience food products which in turn is expected to have a positive impact on industry growth. The market is subjected to regulations on food quality and processing, for safe consumption. The regulations are spread over to processing, harvesting and canning of food products according to the regional presence. Large number of imports are noted for the U.S. from Asia Pacific region and thus the companies need to abide to the rules mentioned by the U.S. Amidst the global pandemic crisis and the indefinite lockdown across nations, the consumer food & beverage industry first witnessed high demand for household staples, healthy food items, and consumables with longer shelf lives. The demand for frozen food products, fruits & vegetables, eggs, flour, and whole grains, among others, witnessed a considerable increase during the early stages of the crisis. Presently, most companies in the industry are faced with low consumption of their products and supply chain challenges. The companies are focusing more on altering their supply chains in order to reinforce their online presence and delivery measures, in an attempt to adapt to the present business environment. The changes in consumer buying behavior and the dynamic shifts towards online and D2C distribution channels may have serious implications on the near future growth of the industry. Our team is diligently working towards accounting these factors in our report with the aim of providing you with the up-to-date, actionable market information and projections. The industry in U.S. is subjected to regulations concerning the ingredients and their composition, safety, packaging, and labeling of canned foods by the U.S. FDA. The FDA regulations specifies the standards to maintain the quality of canned foods sold by various companies, and also prescribes the format of information displayed on the product labels. The industry exhibits the presence of a significant number of substitutes in frozen and dried products category. The players are involved in drying of products that provide similar benefits of convenience and extended storage lifetimes. The price of substitutes is found to be in similar range as canned food and thus switching cost is less leading to a lower threat of substitutes. The market exhibits the presence of large players acquiring smaller entities with these players reducing prices, thus, yielding to intense competition. It is also observed that the exit barriers for canned food companies are high owing to divestment of assets and higher fixed costs of automated processes thus intensifying the rivalry among competitors. Further key findings from the report suggest:
The demand in the U.S. is estimated to be valued at USD 22.23 billion by 2025. In the U.S., sustainable farming techniques coupled with the benefits of these food products has resulted in an increase in its consumption. The various advantages of canned foods such as ease in cooking and increased shelf life are also expected to drive the market growth in the U.S. The industry is characterized by high volume and low margin of the product. The supplier power is anticipated to be weak with canned food processing companies sourcing the input from a large number of suppliers. The retail industry is observed to be fragmented with companies selling products to small buyers. In January 2017, “Control of Listeria monocytogenes in Ready-To-Eat Foods”, draft guidance was released by the U.S. Food and Drug Administration, which aims at preventing ready-to-eat (RTE) foods from the risk of Listeria monocytogenes (L. mono). The FDA supports ongoing efforts by government agencies and industry participants to achieve food safety across the nation. The companies involved in the industry are required to file the processes utilized in the manufacturing of canned food products and report them to the U.S. FDA. The authority under 21 CFR 108 also regulates the type of processes utilized in the manufacturing of canned food products, and container size & quality utilized for packaging purposes. Have a Query? Ask Our Expert: https://www.grandviewresearch.com/inquiry/5061/ibb The U.S. canned foods industry is characterized by the presence of a large number of regional players and is highly competitive in nature. The threat of new entrants in the industry is expected to remain low with buyers concentrating on buying from established brand names for assurance of quality. The major players have strong brands and high-volume production facilities thus reducing the market for smaller players. In addition, the regulatory requirements and government policies are stringent, thus, increasing the threat for new entrants. Also, it is observed that the capital investment is considerable owing to the establishment of canning plants. Companies such as Conagra Brands, Inc.., Universal Canning Inc., StarKist Co., Bumble Bee Seafoods, Wild Planet Foods, Inc., Connors Bros Ltd., and LDH (La Doria) Ltd. are involved in the manufacturing of these food products. Distributors such as Gourmet Food World, Seven Star Ocean Fisheries, and Godrej’s Nature Basket, supply canned food products to consumer companies. Grand View Research has segmented the U.S. Canned Foods Market on the basis of type: Type Outlook (Volume, Kilotons, Revenue, USD Million; 2014 - 2025)
About Grand View Research Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare. For More Information:www.grandviewresearch.com Like it? Share it! More by this author |