Canned Soup - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Canned Soup Market size is estimated at USD 8.53 billion in 2024, and is expected to reach USD 10.38 billion by 2029, growing at a CAGR of 4.01% during the forecast period (2024-2029).

Key Highlights

• The driving factors for canned soups include the increased shelf life of ingredients due to better usage of food preservation methods, an increase in the rate of urbanization, busy lifestyles, and a surge in demand for convenience foods, among other factors. Also, an increase in nuclear households and rising disposable incomes of households have led to changes in the food consumption habits of consumers, with convenience foods finding a major inclination among consumers.
• As a result, manufacturers are introducing innovative products to address consumer needs. For instance, in January 2022, Rex Canning Corporation launched Rex Mushroom Soup as a new entrant in the canned soup category in Malaysia. The product is a condensed soup and can be prepared quickly. The key ingredients include water, canola oil, wheat flour, button mushroom, milk powder, shitake flakes, isolated soy protein, onion powder, garlic powder, and black pepper. The company also claims that the soup has a shelf life of 36 months.
• However, the most frequent problems that have the potential to hamper the growth of the market are corrosion of packaging, excessive content of preservatives and coloring, as well as migration of materials from the packaging into the fruit, such as tin or cadmium.

Canned Soup Market Trends

Rise in Spending on Convenience Products

• The convenience food products market has been growing rapidly worldwide, with an increasing number of consumers, primarily millennials, investing nearly a third of their monthly expenditure on ready-to-eat or on-the-go snack products. Robust distribution channels have strongly augmented the sales of convenience foods, including canned soups, which are expected to continue during the forecast period.
• As soups are a part of several cuisines worldwide, canned ready-to-serve soups with various health claims, such as organic and low-sodium, have gained strong attention among the growing number of time-constrained consumers who are seeking convenient yet healthy food products. The market is primarily driven by rising expenditure on food and beverage, introducing products with longer shelf life, increasing impulse purchasing, and growing demand for convenience foods that can be prepared quickly due to a shortage of available time.
• For instance, in September 2022, Pacific Foods announced the launch of its New Organic Canned Ready-to-Serve Soups and Plant-Based Chilis. The company also claims that its reinvigorated line also features reformulated vegan and non-vegan varieties, such as Vegetable Lentils and Chicken and Wild Rice.
• The rise in the economy, growing working-class population, and evolving consumer lifestyle show a notable rise in the expenditure on convenience food products, such as canned soups.
• According to the World Bank, China had 61.61% female labor participation in 2021. These trends have made canned soups a vital part of the pantries of families worldwide. Additionally, the easy availability of canned fruits and the perception that canned soups deliver better nutritional value at cheaper costs in contrast to fresh fruits enhance the demand for canned soups.
• Younger consumers with disposable incomes are more likely to try new products (many of which are convenient food products) and have non-traditional eating habits, hence acting as major market drivers. Additionally, the new hybrid working patterns point to a larger number of canned meals being consumed at home for the foreseeable future. Therefore, all the above-mentioned points positively affect the market.

North America Emerges as the Largest Market

• The increasing instances of obesity and health awareness campaigns in regions such as North America have resulted in the demand for packaged soups that contain natural and fresh ingredients with minimum preservative content. Owing to the increasing consumption of packaged soups, the canned soup market has paved the way for key manufacturers to expand their product range by launching new flavor and taste variants and new variants concerning health claims.
• As the North American soup market is well established, the region's autonomous production capabilities have made it a potential market for foreign soup manufacturers to expand their business using different packaging techniques, including canned. Increasing product varieties, increasing consumption of health and wellness products, and active promotions by the players in the market are projected to propel the growth of the canned soup market during the forecast period.
• Furthermore, many consumers are actively seeking out products that promote sustainability, contain organic and natural ingredients, and have clean and more precise labels. As a result, manufacturers are planning to launch products that are vegan and sustainable. For instance, in December 2022, Modern Plant Based Foods' portfolio company, Kitskitchen Health Foods Inc., commenced initial R&D for premium dried and canned variations of its plant-based soups line. As per the company, the product will allow Kitskitchen to tap into the USD 2.8 billion-dollar canned soup market.
• Additionally, the region's market growth is mainly attributed to the growing investment in the canned soup industry due to the rapid economic development, changing customer dietary habits and preferences, and increasing demand for flavorful, convenient food products. Thus, driving the canned soup market across the North AAmericanregion.

Canned Soup Industry Overview

The canned soup market is fragmented due to a growing number of global and regional players accounting for a major share of the global market. The diversified product portfolio includes condensed, microwavable, ready-to-eat, and organic soups. Campbell Soup Company accounted for the largest share of the canned soup market in the base year. Over the last few years, expanding in emerging economies has helped boost the company's growth. The other key players in the market include ConAgra Foods, General Mills, Subo Foods, The Kraft Heinz Company, General Mills, Unilever, and Amy's Kitchen.

Further, the companies have been introducing new and innovative products with the inclusion of naturally derived ingredients so as to make their product unique from the existing products. Owing to the rapidly developing nature of the market, new product innovation has become the most commonly used strategy among all, as it helps in understanding the changing needs of the consumers in the market.

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