Processed Food Market - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2017-25

Food which is altered using freezing, baking, and drying is called processed food. United States Department of Agriculture (USDA) defines processed food as any raw agricultural products that has been subjected to cleaning, washing, milling, chopping, cutting, heating, blanching, pasteurizing, cooking, freezing, canning, drying, mixing, packaging, dehydrating or other procedures that modify the food from its natural state. Such process may include the additional ingredients such as flavors, nutrients, preservatives. These products are having a demand in the global market due to its advantages such as easy cooking or immediate consumption, easy handling, preservation, and storage. Changing lifestyle, safety, and convenience are the major driving factors for the global processed food market. Excellent marketing strategies for such products also play an important role. Innovative packaging is used by processed food industry which in turn increases the demand for the global packaging industry.

The major challenge for the global processed food industry is the health awareness, food contamination, and government regulations. The health problems associated with preservatives and other additives is a major concern. However, the major players are coming up with innovative ideas such as fortification of various nutrients in the processed food to overcome this problem. 

Global Processed Food -Market Taxonomy

The global processed food market is segmented on the basis of process, products, and application.

Based on process, global processed food market is segmented into:

  • Minimally
  • Highly

Based on product type, global processed food market is segmented into:

  • Plant based
    • Fruits  
    • Vegetables
    • Legumes 
    • Extracted foods
    • Others
  • Animal based
    • Milk 
    • Poultry
    • Fleshy
    • Others

Based on application, global processed food market is segmented into:

  • Baked foods
  • Baby food
  • Breakfast Cereal
  • Biscuits
  • Cheese
  • Chocolate confectionary
  • Ice creams
  • Instant Noodles
  • Non-alcoholic drinks
  • Nuts
  • Pasta
  • Ready meals
  • Sauces, Dressings and condiments
  • Soups
  • Yogurt
  • Others

Baked goods, baby foods, breakfast cereals, chips, nuts, sweet snacks, candy, pet food, ready to eat meals, cheese yoghurt, salad dressing, instant products are few examples of processed food which are gaining popularity in the market.

Global Processed Food Market Outlook

  • North America is the largest market for processed food due to increased snacking trend. Furthermore, busy lifestyle, packaging innovation and expanded lifestyle plays a major role in increasing demand of processed food.
  • Europe has high demand for high quality and nutritious food. The strict government regulations is the major challenge in this market. The basic food hygiene and food law requirements are in Regulation (EC) No 178/2002 and in Regulation (EC) No 825/2004 which plays a dominant role in European processed food industry.
  • Processed food market is fast growing in Asia pacific region due to increase in population and increase in consumer buying power. The consumer spending in ndia on processed food is expected to grow to US$ 3.6 trillion by 2020. Cost competitiveness along with availability of raw materials are the growth drivers for the processed food industry in India and China.
  • In Latin America, urbanization and modernization is creating a demand for processed food. However, regulations such as, special 8% tax on high calorie food in Mexico from January 2014 will have a considerable effect on the processed food market. Also, it will increase the demand for nutritious processed food in these regions.  
  • In Middle East, the limited agricultural production because of the nature of climate, terrain and water scarcity has led to a significant increase in the processed food market.
  • United Nations estimated that the population of Africa will be doubled by 2020 which will be a market driver in this region. Low market penetration is the major restraint in Africa.

Key players in the global processed food market

The companies are adopting various organic and inorganic growth strategies to sustain their market positions such as partnership and mergers. For instance, in 2015, Krafts food and Hienz merged to expand their business. Also, Tyson food collaborated with Godrej India in 2008. Some of the important players in the global food industry market are  Nestlé, General Mills, Kraft Food, Inc., ConAgra foods, Inc., Tyson Foods, Kellogg’s, Frito-Lay, JBS Food, Smithfield Food, Inc. and Mars, Inc.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.


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  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

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Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

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  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

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