Ready-to-Eat Soup Sales Soar as Consumer Preference for Convenience Foods Continues to Surge
Published : 25 Mar 2019 Industry: Food & Beverage
A new research report published by Fact.MR predicts that the global ready-to-eat soup market will grow at an estimated CAGR of 5.9% during the period 2017-2022 and exceed a value of US$ 750 Mn by the end of 2019. The study opines that ready-to-eat soups market will be driven by a cohort of factors, including rising demand for convenience foods, increasing number of women in workforce, and consumption of soups for treating common colds and sore throats. According to the study, manufacturers are aware of the evolving consumer preferences, and are diversifying their product portfolio to cater to the tastes of a wide range of consumers.
North America to Lead the Ready-to-Eat Soup Market with a CAGR of over 6% during 2017-2022
According to the study, North America will continue to be one of the leading markets for ready-to-soup over the forecast period. Sales of ready-to-eat soups are relatively higher in countries with harsh winters, and the US with its established food & beverage industry and expansive distribution channels continues to lead the rally. The study opines that ready-to-eat soups will continue to outsell other variants in North America.
Increasing Use of Corn Starch to Beset the Growth of the Ready-to-Eat Soup Market
“Rising preference for flavors over ingredients in the ready-to-eat soup market has encouraged manufacturers to diversify their product portfolio with flavor as the front-of-the-mind interest. To meet this demand, corn starch is gaining popularity for enhancing the flavor of soups. Intake of high consumption of corn starch results in high blood sugar level, which can lead to more health impacts than benefits which are gradually being recognized by the diet-conscious consumers. Attributing to the health risks posed by corn starch, the global ready-to-eat soup market is anticipated to witness limited growth opportunities,” finds Fact.MR.
Another challenge for the ready-to-eat soup market is the extensive use of preservative to extend the shelf life of the soups. Rising health consensus among consumers, coupled with the known health impacts of preservatives can create reluctance among consumers. The study finds that constantly fluctuating prices of raw materials continue to pose challenges in terms of supply-demand.
Sales through Online Channels Creating Growth Opportunities
According to the study, surge in the online purchasing patterns of the consumers, coupled with the advancement of ecommerce portals is expected to highly influence the growth of the ready-to-eat soup market. North America is poised to remain as the largest contributor to the online sales of ready-to-eat soup and exceed US$ 31 Mn in online stores segment by the end of 2019. As per the statistics mentioned in the study, online stores will be the fastest growing segment in the ready-to-eat soup market and record a CAGR of 6.8% during the forecast period.