Sales of Ready-to-Eat Soups Soar, as Production Ramps up amid panic Buying
Ready to eat (RTE) soups are amongst some of the food products that consumers are stocking and panic buying owing to the fears of shortage amid Covid-19 pandemic. Eyeing this, manufacturers of RTE soups have increased production of RTE soups as their production facilities are yet to feel the brunt of lockdowns.
However, sourcing of ingredients has become difficult owing to a disruption in supply chain. RTE soup manufacturers that have been sourcing raw materials locally are in an advantageous position, whereas those largely dependent on imports are finding it difficult to cater to the rising demand.
Campbell Soup Company, for instance, sources around 90% of its raw materials from within the US and thus is capable of meeting the sudden spurt in demand due to pandemic.
Expected Surge in Demand for Vegetarian Ready-to-Eat Soup Market will lead to Higher CAGR growth
Vegetarian Ready-to-Eat Soup currently accounts for nearly 1/3rd of the overall Ready-to-Eat Soup market owing to the shift in consumer demand for vegan food products. In South Asian market vegetarian soup segment is expected to generate higher revenue with growth pegged at 2.5X during the forecasted period. However, in United States and Europe growth is pegged at a CAGR of 5% owing to the demographic shift towards vegan products.
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Opportunities Abound for Ready-to-Eat Soups in Business to Consumer Sales
The demand for Ready-to-Eat Soup has been observed to surge through online stores. Online stores are one of the trending channels in the countries which are generating significant demand for Ready-to-Eat Soup products. In the current pandemic, customers are heavily relying on online sales channels in developing countries like India and China, thus bolstering growth within the ready-to-eat soup market.
North America has exhibited the strongest distribution networks where nearly 50% of the sales are carried down by modern sales channels for ready-to-eat soup market. Departmental stores account for nearly 12% of the global supply distribution channel for Ready-to-Eat Soup market however, it is forecasted to grow up to 15% by 2029 tending to be an opportunity.
Besides, easy availability of soups through multiple sales channels has enabled a smooth supply-chain framework for manufacturers. Innovative aisle marketing in supermarkets and retail stores are set to position the Ready-to-Eat Soup products to match the consumer behavior. This has been turning out to be a new trend among players, owing to the strong partnership between companies and stores.
Emerging Countries to Create Notable Opportunities for Marketers
The emergence of veganism and clean label products have increased market share for ready-to-eat soups in South Asia and is projected to bolster growth of the market in this region. India is expected to retain its dominance in revenue generation for Ready-to-Eat Wet Soup. However, demand from other emerging markets like China, Turkey, Russia, Thailand etc. will show a prolific absolute $ opportunity.
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Competition in Ready-to-Eat Soup Market heating up with Innovative Product Launches
Global Ready-to-Eat Soup market is a consolidated market where tier 1 players hold nearly 80% of market share. Among tier 1 players, Campbell’s holds nearly 90% share, while tier 2 and tier 3 companies are focusing in emerging markets and are expanding their processing plants in these regions.
- In October 2019, Campbell’s launched Signature Reduced Sodium Soups, where the company has targeted the Ready-to-Eat Soup market to cater to the growing low sodium soup demand. The company states that its products is for patients and consumers who follow low sodium diets.
- In February 2020, Knorr launched three different flavored vegan soups in United Kingdom, where the products were part of “cheat on meat” campaign carried out by the company.
- In October 2019, Amy’s Kitchen launched a new range of soup products in a new packaging format to attract more consumers. Along with this, company is opening up a new facility in New York to increase sustainable capacity.
Impact of Covid-19 on ready-to-eat soup market
Ready to eat soups are considered healthy and an effective remedial measure for consumers suffering from cough and cold. COVID-19 positive consumers showcasing similar symptoms are accelerating the demand for RTE soups owing to which sales for ready to eat soups have soared.
A moderate demand-supply gap is expected for 2020, as supply will be limited to fewer manufacturing facilities and is dependent on a limited operational workforce. Moreover, due to disruption in trade, export to other countries is stalled, thereby representing a heterogeneous distribution of ready to eat soups.
“South Asia has a consolidated market for ready-to-eat soup market. However, vegetarian ready-to-eat soups have comparatively better growth opportunities than non-vegetarian soups owing to an expanding vegetarian population in the region” says Fact.Mr analyst.
An Adaptive Approach to Modern-day Research Needs
Regional analysis includes:
- North America (U.S., Canada)
- Latin America (Mexico, Brazil, Rest of Latin America)
- Europe (Germany, Italy, France, U.K, Spain, Benelux, Russia, Rest of Europe)
- South Asia (India, Thailand, Malaysia, Rest of South Asia)
- East Asia (China, Japan, South Korea)
- Oceania (Australia & New Zealand)
- Middle East and Africa (GCC Countries, North Africa, South Africa, Turkey, Rest of MEA)
Ready-to-Eat Soup Market: Segmentation
FactMR’s study has done the segmentation of ready-to-eat soup market on the basis of product type, base ingredient, nature, packaging type, sales channel and region.
- Wet Soup
- Dry Soup
- Vegetarian soup
- Other ingredient
- Non-vegetarian soup
- Sea food
- Other ingredients
- Modern Trade
- Online Stores
- Drug Stores
- Departmental Stores
- Conventional Stores
- Departmental Stores
- Convenience Stores
- Other Sales Channels
- North America
- Latin America
- W. Europe
- E. Europe
Ready-to-Eat Soup market is anticipated to witness a notable upsurge during the forecast period 2020 to 2030, conferring to a new Fact.MR study. The study promotes crucial trends that are presently determining the growth of ready-to-eat soup market.
This newly published and perceptive report sheds light on vital dynamics, which are likely to convert the future of ready-to-eat soup market, in turn generating worthwhile opportunities for key companies as well as evolving players who are interested in the manufacturing of ready-to-eat soup.
Ready-to-Eat Soup market study is a detailed market intellect on key revenue progression factors, challenges, industry trends, and opportunities, which will eventually influence the growth of ready-to-eat soup market. The report primarily conveys a summary of the ready-to-eat soup market, considering present and upcoming toppings and fillings industry scenarios, to reveal striking sides relating to the acceptance of ready-to-eat soup across prominent regional markets.
A detailed assessment on few of ready-to-eat soup raw material suppliers accessible in the report allows the report readers to obtain detailed findings that have resulted from ready-to-eat soup supply chain analysis, business execution, and value chain analysis across the regional markets incorporated in the report. A list of prominent companies functioning in ready-to-eat soup market provided in the report enhances reliability of this ample research study.
Ready-to-Eat Soup Market: Report Summary and Scope
Study offers a comprehensive overview on diverse features that are inducing demand, revenue generation and sales in ready-to-eat soup market across the globe.
A comprehensive estimate on ready-to-eat soup market has also been made accessible by the experts, who have considered the market estimates on the basis of a likely scenario, an optimistic scenario, and a conservative scenario regarding sales of ready-to-eat soup during the forecast period. Analysis and estimation of price point comparison by region and by product with the global average price has been included in this study.
Ready-to-Eat Soup Market: Analysis on Market Size Evaluation
Predictions of ready-to-eat soup market, encompassing current as well as forthcoming projected values estimate and analysis on region-wise demand trends and price index have been assimilated in the report.
Market estimates at the regional and global scale for ready-to-eat soup are available in terms of “US$ Mn.” A Y-o-Y growth contrast on prominent ready-to-eat soup market segments, along with the market attractiveness valuation computes understandings brought in the report. Metrics mentioned above are also followed based on ready-to-eat soup ingredients where Ready-to-eat soup witness a steady demand.
Ready-to-eat Soup Market: Scrutinized Assessment on Regional Segments
Weighted sections have been elaborated in the report on ready-to-eat soup market, which delivers projection on the regional markets. These chapters brighten the regional macros (political economic, and business environment outlook), which are expected to have a significant impact on the growth of ready-to-eat soup market during period of forecast.
Country-specific valuation on demand for ready-to-eat soup has been offered for each regional market, along with the market scope estimate and forecast, price index, price point assessment, and impact analysis of dynamics of prominent regions and countries. For all regional markets Y-o-Y growth estimates have also been incorporated in the report.
Ready-to-Eat Soup Market: In-depth Analysis on Competitive Landscape
The report ends with a section on the competition scenario of ready-to-eat soup market, along with the profiles of major companies contributing to the market expansion. Essential and up-to-date data as well as information correlated to the market performers, who principally engage in the production and supply of ready-to-eat soup, has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permits the report readers to plan preemptive steps to advance their businesses.
Impact of Covid-19 on Ready-to-Eat Soup Market
The report includes a scenario based assessment of impact of Covid-19 across key regions for all four quarters of 2020. The report discusses the market forecast under optimistic, probabilistic and pessimistic scenario. Under the three scenarios, the demand loss and recovery has been illustrated and described through L-shaped and U-shaped recovery curves. Alongside, the Covid-19 impact has been benchmarked with previous crisis including sub-prime crisis, Eurozone crisis and SARS pandemic.
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Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
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Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
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