Canned Soup Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Canned Soup Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Canned Soup Market size is expected to grow from USD 8.20 billion in 2023 to USD 9.98 billion by 2028, at a CAGR of 4.01% during the forecast period (2023-2028).

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, advancements in canning technologies have attracted a larger consumer base in the region. For instance, according to the Institute of Food Technologists Organization, canned products are packaged in multilayer barrier plastic cups with flexible, peelable heat-sealing lids. These are allegedly more consumer-friendly than small metal cans with full-panel easy-open cans. 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.

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. The trade handles these rejections and other food safety issues directly without the government intervening in the region.

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. ​

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. In addition, they eat out more often, burying the demand for convenient food snacks/meals across the country.​ New hybrid working patterns and significant home investments made during the COVID-19 pandemic point to a larger number of canned meals being consumed at home for the foreseeable future.

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, transparency is a powerful purchasing driver for consumers, with many consumers actively seeking out products that promote sustainability, contain organic and natural ingredients, and have clean and more precise labels. Consumers read product labels, and the less they can understand the ingredient deck, the less likely they are to commit to purchasing. According to the Canada Organic Trade Association (2021), Canadians spend USD 184 weekly on organic foods/groceries. Therefore, retailers increasingly seek brands with certifications, labels, or claims that consumers value, like non-GMO, organic, or women-or minority-owned. The free-from ingredients are also reflected in food labeling. Following the widespread adoption of labels such as vegetarian, vegan, non-GMO, free from additives, and high nutritional value, a new term – ‘all-natural’’ – has been introduced, which is strongly correlated with the clean-food label. Regulations have introduced various rules and conditions that companies must adhere to for most nutritional claims (such as ‘‘free from’, ‘’low in’’ or ‘’high in’ products).

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.

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