COVID-19 Crisis to Bolster Bulk Purchase of Ready-to-Eat Soups, Manufacturers Realigning their Pricing Strategy, Infers Fact.MR
Published : 16 Apr 2020 Industry: Food & Beverage
Covid-19 pandemic has disrupted the supply chain of several food products including ready to eat soups. With people panic buying and hoarding on several food products irrespective of brand, companies have been planning to cut their advertisement and marketing budgets and offering large-scale discounts to further speed up sales. During the second and third quarter, a moderate demand-supply gap can be expected owing to high pressure on production and limited mobility for shipment of ready-to-eat soups. The ready-to-eat soups market is poised to grow at a CAGR of 5% during the forecast period (2020-2030).
Key Takeaways of the Global Ready-to-Eat Soups Market
- Owing to stringent lockdowns and social distancing, sales of ready to eat soups in HoReCa has experienced significant decline in the first quarter of 2020, however, sales from this end user is expected to increase by the end of 2020
- North America & Europe hold nearly 4/5th of the global Ready-to-Eat soup market. However South Asia will grow at nearly 10% CAGR which is higher than the overall global average during the forecasted period
- Ready-to-eat soups in cans have a market share 4X more as compared to that of packets. On the other hand, demand for bottle packaging will grow at a CAGR of nearly 8% during the forecast period.
- United Kingdom is expected to dominate the European market by accounting for 40% of the market, owing to its rising contribution to modern trade and efficient sales channels
- The market share of conventional ready-to-eat soup has a dominance in the overall soup demand. However, organic ready-to-eat soup will grow at a CAGR of nearly 7% during the forecast period.
“Online retail accounts for a significant portion in distribution channel of Oceania and the market is further expected to grow in the region owing to high serviceability over distant locations.” Says Fact.Mr Analyst.
Tier 1 Players to Hold Nearly 90% of Overall Ready-to-Eat Soup Market in Terms of Value
The Ready-to-Eat market has seen a dominance of tier 1 players in many regions however, the strategies of new players to penetrate the market through developing nations have turned out to be effective. These players are extending their focus on the markets where the continuous demand for Ready-to-Eat soup are projected. An emerging market player Tideford organic food ltd. is channelizing its Ready-to-Eat soup products through e-commerce in U.K and Germany in order to standardize growth over the region.
Find More Valuable Insights on the Global Ready-to-Eat Market
Fact.MR, in its new offering, provides a scenario based assessment of impact of Covid-19 across key regions for all four quarters of 2020 and an unbiased analysis of the global market for ready-to-eat, with historical data on demand (2015-2019) and expected projections for the period (2020-2030). The global ready-to-eat soup report discloses compelling insights into the demand for ready-to-eat soup based on product type (wet soup and dry soup) ingredient i.e. vegetarian soup and non-vegetarian soup; nature (organic and conventional), packaging type (bottles, cans, packets), sales channel (HoReCa and B2C i.e modern stores, online stores, drug stores, departmental stores, convenience stores and others) across 7 key regions and 22 + countries.
About the Food and Beverages Division at Fact.MR
Expert analysis, actionable insights, and strategic recommendations – the food & beverage team at Fact.MR helps clients from all over the globe with their unique business intelligence needs. With a repertoire of over 1,000 reports and 1 million plus data points, the team has analyzed the food & beverage industry lucidly in 50+ countries for over a decade. The team provides end-to-end research and consulting services; reach out to explore how we can help.