The U.S. packaged food market was estimated at USD 731.8 billion in 2020 and is projected to expand at a CAGR of 5.3% from 2021 to 2028. The U.S. packaged food market is expected to experience healthy growth due to the rising awareness of health benefits associated with packaged food as well as the increasing demand for convenience food items. The market is further driven by a rising number of nuclear families, together with the increasing working-class population that is leading to the growth in convenience foods. Additionally, the increasing demand for ready-to-eat food items is propelling the growth of the packaged food market in the country.

Key players are focusing on launching new products to cater to the changing consumer preferences. For instance, in February 2021, Kraft Heinz launched a new line of boxed macaroni and cheese called Macaroni & Cheese Crafted by Kraft. The product is made with real cheese, herbs, and spices and comes in four varieties, including Garlic and Herb, Spicy Jalapeno, Creamy White Cheddar, and Classic American. This product launch helped the company to target the health-conscious market segment.

Furthermore, the rising trend of premiumization in the U.S. packaged food market is driving the demand for premium products. Key players are launching premium products with new flavors and ingredients to attract health-conscious customers. For instance, in March 2021, Nestle launched its premium ice cream brand, Mövenpick, which offers a range of flavors, including Nuts & Sea Salt, Dark Chocolate, Caramelita, and Hazelnut. Moreover, in January 2021, Conagra Brands, Inc. launched a premium line of frozen snacks called Reddi-wip Snack’n Waffles, under the iconic Reddi-wip brand.

Other factors such as the growing number of working women, the increasing number of urban consumers, and the rising disposable income are expected to drive the market growth. Furthermore, the growing popularity of online food delivery services, such as Uber Eats and Grubhub, is expected to further support the growth of the U.S. packaged food market in the coming years.

The U.S. packaged food market is segmented on the basis of product type into snacks & bars, bakery & confectionery products, ready-to-eat meals, frozen food, and others. The snacks & bars segment accounted for the largest market share in 2020. Growing demand for convenience food, increasing health consciousness among consumers, and the introduction of innovative products are some of the key factors driving the growth of the segment. According to an article published by Market Watch in February 2021, the global snacks and bars market is expected to reach USD 783.7 billion by 2027.

The bakery & confectionery products segment is projected to expand at the fastest CAGR of 4.3% during the forecast period. The increasing demand for convenience food and growing concerns about health and wellness are the major factors driving the demand for bakery and confectionery products. In addition, rising disposable income, changing lifestyle, and introduction of innovative products are some of the other factors driving the market growth. According to an article published by Food Business News in October 2020, the bakery market in the U.S. is projected to reach USD 79.7 billion by 2026.

The supermarkets and hypermarkets segment captured the major share of over 46.2% in 2022. Supermarkets and hypermarkets are one-stop-shops for customers in the U.S. as they offer convenience and a wide range of products for consumers. According to a survey conducted by Accenture, about 54% of shoppers in the U.S. prefer to buy groceries from supermarkets or hypermarkets. Additionally, these stores offer discounts and loyalty programs to consumers, which are driving their sales of packaged food products.

The online segment is anticipated to expand at the highest CAGR of 10.2% over the forecast period. The convenience of online shopping and the presence of exclusive discounts and offers are the major factors driving the growth of the online segment. Additionally, the rising adoption of smartphones among consumers has led to an increase in the number of online shoppers in the U.S. According to a survey by Statista, in 2020, the online shopping penetration rate in the U.S. was 57.7%.

The processed food segment is anticipated to witness the highest CAGR of 4.2% during the forecast period. The increase in the demand for convenience food among consumers is driving the segment growth. Furthermore, the rise in the consumption of processed food products due to their applications in different recipes is propelling the segment. For instance, in April 2020, Johnsonville, LLC, a US-based manufacturer of sausages and other related products, launched its new line of fully cooked breakfast sausages. This product was developed for consumers who are looking for convenience and a quick breakfast meal.

The organic products segment accounted for the highest revenue share of 20.2% in the year 2022. Organic packaged food products are gaining popularity due to their natural and chemical-free properties. Moreover, the increasing consumer health consciousness and the growing demand for organic products are contributing to the segment growth. For instance, in October 2020, Hormel Foods Corporation launched its new organic range of products, including organic bacon and sausages. The range is labeled as Applegate Organics and is available in the US and UK markets.

The U.S. packaged food market is expected to witness considerable growth in the coming years. The region dominates the global market and is expected to grow at a CAGR of 4.8% from 2021 to 2027. The presence of prominent players, such as Kraft Heinz, General Mills, and Nestlé, and increasing demand for convenience foods is propelling the growth of the market in the region.

Additionally, the U.S. consumers are increasingly opting for healthier and organic food products, which is driving the demand for packaged food products. The rising popularity of plant-based and vegan products and zero-calorie food products, such as sugar-free beverages, is further driving the growth of the market in the region. For instance, in February 2021, Kraft Heinz launched their new plant-based protein product, “Heinz Veggie.”

In this part of the U.S. Packaged Food Products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main source of revenues for the U.S. Packaged Food Products business comes from sales of products. Here you will find a list with a description of each product and other possible sources of profit such as distribution fees, licensing fees, and other fees.

Projecting Expenses
In this section, all the regular expenses related to keeping the U.S. Packaged Food Products business running will be described. The list of operating expenses includes raw materials, manufacturing, packaging, distribution, advertising, labor costs, rent, utilities, and others.

Some of the key companies operating in the U.S. packaged food market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In July 2022, Kraft Heinz Company launched Plant-Based Mac & Cheese, a vegan alternative to their traditional mac & cheese.

– In August 2022, Nestle USA launched Garden Gourmet Incredible Burger, a vegan alternative to beef-based burgers.

– In September 2022, Conagra Brands Inc. launched Healthy Choice Power Bowls, a range of high-protein, high-fiber, and gluten-free meals.

Some of the prominent players in the U.S. packaged food market include:

– Nestle USA
– Conagra Brands Inc.
– Kraft Heinz Company
– General Mills Inc.
– Kellogg Company
– Unilever PLC
– The J.M. Smucker Company
– Hormel Foods Corporation
– Campbell Soup Company
– Tyson Foods Inc.

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global U.S. packaged food products market based on product, distribution channel, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Processed Foods
– Bakery Products
– Confectionery Products
– Dairy Products
– Frozen Foods
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Convenience Stores
– Online
– Others

3. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the Drivers of Increase in the U.S. Packaged Food Market?
[A]: Some of the factors driving the growth of the U.S. packaged food market include increasing health consciousness, evolving lifestyle, rising disposable income, and the growing demand for convenience and portability of food products.

[Q]: Who are the Key Players in the U.S. Packaged Food Market?
[A]: The major players in the U.S. packaged food market include Kraft Heinz, Kellogg’s, General Mills, Nestle, and Conagra Brands.

[Q]: What Segments Are Expected to Drive the U.S. Packaged Food Market?
[A]: The segments expected to drive the growth of the U.S. packaged food market are healthy snacks, breakfast cereals, and frozen meals.

[Q]: What are the Key Trends in the U.S. Packaged Food Market?
[A]: Some of the key trends in the U.S. packaged food market include the introduction of innovative product formulations, the use of natural ingredients, and the rise of organic and gluten-free packaged food products.

[Q]: What are the Opportunities in the U.S. Packaged Food Market?
[A]: Some of the opportunities in the U.S. packaged food market include the emergence of smaller packages with premium ingredients, the growth of niche markets, and the increasing demand for convenience and portability.