Consumer Food and Beverages Market Research Reports

"Savoring Success: Key Insights and Future Directions in the Global Food and Beverage Market (2024 Market Size: USD 6.7 trillion)"!

Consumer Food and Beverages Industry Overview

In 2023 and 2024, the consumer food and beverage market has undergone substantial changes as a result of evolving consumer preferences, technological advancements, and global economic shifts. According to cognitive market research, In 2023, the global food and beverage market size was USD 6.3 trillion and will be USD 6.7 trillion in 2024, with a compound annual growth rate (CAGR) of 3.2%. In 2031, the consumer foods and beverages market size will be USD 8.6 trillion,with a CAGR 3.20%. In 2023, consumer spending on food and beverages comprised 10.7% of total global consumer expenditure. A modest increase is in 2024 as a result of urbanization and increasing incomes. The plant-based food market is experiencing significant growth, with sales reaching USD 29.4 billion in 2023 and will be USD 35.4 billion in 2024. This growth is being driven by the growing demand for healthier and more sustainable food options among consumers. Functional foods are experiencing an increasing demand, with an annual growth rate of 8.5%, culminating in a USD 267 billion market in 2024.

These foods contain fortified foods, prebiotics, and probiotics, which include additional health benefits. 60% of consumers expressed a preference for products with sustainable packaging in 2023. The demand for environmentally responsible packaging solutions will increase by 12% annually, which is indicative of a trend toward the reduction of plastic waste. The global sales of organic food will increase from USD 208 billion in 2023 to USD 227 billion in 2024 as the segment continues to expand. This growth is being driven by the growing recognition of the health and environmental benefits of organic food. In 2023, investments in food technology totaled USD 18.1 billion, with an emphasis on supply chain innovations, alternative proteins, and food delivery platforms. This trend will persist, with a 15% increase in 2024. Consumers' preferences for automation and convenience are propelling the expansion of the smart kitchen market, which is expanding at a compound annual growth rate (CAGR) of 19.1%.

The integration of IoT and smart appliances in kitchens is becoming increasingly prevalent, which is improving the efficiency and quality of the culinary experience. In 2023, online grocery sales amounted to USD 285 billion, indicating a substantial increase in e-commerce in the food and beverage market. This figure will increase to USD 325 billion in 2024, which is indicative of the pandemic-accelerated transition to online purchasing. More firms are implementing direct-to-consumer (DTC) models to interact with consumers directly. DTC food and beverage sales comprised 15% of the total market in 2023, and this figure will increase to 18% in 2024. In 2023, 45% of consumers expressed interest in customized food and beverage products that were tailored to their health requirements, indicating that personalized nutrition is gaining traction and this trend will continue to expand as technology facilitates the development of more customized solutions.

Top Countries Contributing to Consumer Food and Beverages Market

United States (2024 Market Size: USD 1.6 trillion)

According to cognitive market research, the United States consumer food and beverage market size was USD 1.5 trillion in 2023 and will be USD 1.6 trillion in 2024 with a stable growth rate of 3.3%. The United States continues to be a global leader in this market. Retail (supermarkets, hypermarkets), food service (restaurants, cafés, fast food chains), and institutional sectors (schools, hospitals) are the primary sectors that utilize food and beverage products. The retail sector alone accounted for 60% of the market share in 2023, while the food service and institutional sectors contributed 30% and 10%, respectively. The United States' dominance is underscored by its 24% global market share. Key trends include a rise in the popularity of plant-based and organic products, which health-conscious consumers are driving. The sustainability and health trends that continue to influence consumer choices result in a 10% increase in the plant-based food segment and an 8% increase in organic foods in 2024.

China (2024 Market Size: USD 1.3 trillion)

The China's consumer food and beverage market holds a revenue share of 20% of the total revenue generated and its market size was USD 1.2 trillion in 2023 and will be 1.3 trillion in 2024, with a compound annual growth rate (CAGR) of 3.5%. The retail sector is the most significant, accounting for 65% of the market share. Food service and institutional sectors follow at 25% and 10%, respectively. The primary development drivers are the increasing disposable incomes and rapid urbanization. The expectation is that the trend of 20% growth in e-commerce in food and beverages in 2023 will persist into 2024. Although traditional cuisines continue to be favored, there is a growing demand for convenience and health-oriented foods. Market dynamics are also influenced by the government's emphasis on food safety and quality standards.

Japan (2024 Market Size: USD 670 billion)

As per cognitive market research, The consumer food and beverage market in Japan was valued at USD 650 billion in 2023 and will increase by 3% to market size USD 670 billion in 2024. The three largest sectors are retail with 55%, food service with 35%, and institutional with 10% market share. Japan holds 10% of the global market share. Key trends include the increasing popularity of functional foods and beverages, as well as an emphasis on health and wellness. The growth of functional foods in 2023 was 12%, primarily due to the health-conscious consumer market and the geriatric demographic. Convenience stores continue to be a critical distribution channel, as they reflect the fast-paced lifestyle of urban populations. The demand for eco-friendly packaging solutions is on the rise, and sustainability is also a critical focus.

Germany (2024 Market Size: USD 395 billion)

In 2023, the Germany's food and beverage market share is 6% of total revenue generated and its market size was USD 380 billion in 2023 and will be USD 395 billion in 2024, with a compound annual growth rate (CAGR) of 2.9%. The retail sector occupies 60% of the market, while the food service and institutional sectors each account for 30% and 10%, respectively. Organic and health-oriented products are significant growth sectors, with organic food sales increasing by 10% in 2023. The demand for plant-based products is also on the rise, with a 15% increase in 2024. Germany is a center for food technology innovation, with substantial investments in sustainable food production and packaging solutions.

United Kingdom (2024 Market Size: USD 280 billion)

According to cognitive market research, The food and beverage market in the United Kingdom was valued at USD 270 billion in 2023 and will be USD 280 billion in 2024, with a growth rate of 3.7%. The retail sector holds a 65% market share, with food service and institutional sectors following at 25% and 10%, respectively. United Kingdom holds 4% of the global market share. The demand for organic and free-from products is on the rise as health and wellness trends continue to be prominent. In 2023, there was a 9% increase in the sale of organic products. The plant-based segment is also experiencing significant growth, with a 12% increase in 2024. Sustainability is a critical concern, as consumers are increasingly seeking products that are ethically sourced and utilize eco-friendly packaging.

India (2024 Market Size: USD 560 billion)

The consumer food and beverage market in India was valued at USD 530 billion in 2023 and will be USD 560 billion in 2024 with a growth rate of 5.7%. The three largest sectors are retail holding 70%, food service with 20%, and institutional with 10%. India consumer food and beverages market holds 8% of the global market share. Market growth is driven by a youthful population, rising middle-class incomes, and rapid urbanization. The packaged food segment experienced a 15% increase in growth in 2023, which is indicative of the growing demand for convenience goods. The market for health-oriented and organic products is also expanding, with a growth rate of 10% in 2024. E-commerce is a significant growth driver, with a 25% increase in online food and beverage sales in 2023.

France (2024 Market Size: USD 345 billion)

According to cognitive market research, the France food and beverage market share is 5% of the total revenue generated and its market size is USD 330 billion in 2023 and will be USD 345 billion in 2024, with a compound annual growth rate (CAGR) of 3.6%. The retail sector occupies 60% of the market, while the food service and institutional sectors each account for 30% and 10%, respectively. In 2023, organic sales experienced an 11% increase, indicating that organic and gourmet goods are significant growth sectors. The demand for plant-based products is also on the rise, with a 13% increase in 2024. France is renowned for its gastronomic heritage, which places a significant emphasis on the quality and provenance of food products.

Brazil (2024 Market Size: USD 230 billion)

In 2023, the food and beverage market in Brazil was valued at USD 220 billion and will be USD 230 billion in 2024, with a growth rate of 4.5%. The three largest sectors are retail accounting for 65%, food service with 25%, and institutional with 10%. Brazil holds 3% of the global market. A youthful population and increasing disposable incomes are the primary growth drivers. The packaged food market is expand by 14% in 2023, and this trend is expected to persist. Brazil is a prominent producer of agricultural products, and there is an increasing demand for foods that are sustainably produced and organic. With a growth rate of 20% in 2023, e-commerce in food and beverages is also expanding significantly.

Italy (2024 Market Size: USD 240 billion)

The Italy food and beverage market share is 4% of the total revenue generated and its market size was USD 230 billion in 2023 and will be USD 240 billion in 2024, with a growth rate of 4.3%. The retail sector holds a 60% market share, with the food service holds 30% and institutional sectors with 10% following in that order. Organic and premium products are significant growth sectors, with organic food sales increased by 9% in 2023. The demand for plant-based products is also on the rise, with a 12% increase in 2024. Consumer preferences are significantly influenced by Italy's rich culinary tradition and emphasis on quality, with a particular emphasis on artisanal and locally sourced products.

Canada (2024 Market Size: USD 220 billion)

According to cognitive market research, the food and beverage market in Canada market size is USD 220 billion in 2024, with a growth rate of 3.8%. In 2023, the market was valued at USD 210 billion. The three largest sectors are retail with 60%, food service with 30%, and institutional with 10%. Canada holds 3% of the global market share. The demand for organic and free-from products is on the rise as health and wellness trends continue to be prominent. Organic food sales increased by 10% in 2023. The plant-based segment is also experiencing significant growth, with a 14% increase in 2024. Sustainability is a critical concern, as consumers are increasingly seeking products that are ethically sourced and utilize eco-friendly packaging. E-commerce is a substantial growth driver, with an 18% increase in online food and beverage sales in 2023.

PESTEL Analysis of Consumer Food and Beverages Market

Political

The consumer food and beverage market is substantially affected by the political landscape. Government policies, regulations, and political stability significantly influence industry dynamics. Food safety, labeling, and advertising regulations are of the utmost importance. In order to guarantee consumer protection and equitable competition, governments worldwide implement rigorous regulations. For example, the European Food Safety Authority (EFSA) and the U.S. Food and Drug Administration (FDA) establish standards for nutritional labeling and food safety. It is imperative to adhere to these regulations in order to prevent legal repercussions and preserve consumer confidence despite the potential financial burden. International relations and trade policies also influence the market. Tariffs, trade agreements, and import-export restrictions can influence the availability and cost of raw materials and finished products. For instance, the U.S.-China trade conflict led to elevated tariffs on a variety of food products, which had an impact on pricing and supply chains. Another critical factor is political stability. Supply chains can be disrupted by political unrest or instability in key agricultural regions, resulting in price volatility and shortages. For example, the global wheat supply has been affected by the recent geopolitical tensions in Eastern Europe, which have influenced the availability and prices of the food and beverage market.

Economical

The economic environment significantly influences the consumer food and beverage market. Consumer spending and business operations within the industry are directly influenced by economic factors such as inflation, disposable income, economic growth, and currency exchange rates. The consumption of food and beverages, including premium and organic products, is typically higher during periods of economic growth due to the increased disposable income. On the other hand, economic downturns frequently lead to a decrease in consumer expenditure, which can lead to a preference for more affordable and essential food items. The market is significantly impacted by inflation, which affects the cost of raw materials, production, and transportation. Increased production costs may be incurred as a result of the increasing prices of constituents such as wheat, corn, and dairy products, which may be reflected in higher retail prices for consumers. This can affect demand, particularly for price-sensitive consumers. For example, the global food price index experienced a substantial increase in 2023 as a result of supply chain disruptions and geopolitical tensions, which had an impact on consumer behavior and purchasing patterns.

Social

The consumer food and beverage market is significantly influenced by social factors, which influence consumer preferences, behaviors, and market trends. Key social determinants that are propelling the industry include demographic changes, lifestyle shifts, cultural influences, and health consciousness. The growing awareness of health among consumers is one of the most significant social trends. The demand for healthful food and beverage options, including organic, non-GMO, gluten-free, and plant-based products, is on the rise. Rising awareness of the correlation between diet and health, which is bolstered by government campaigns, healthcare professionals, and the media, is the driving force behind this change. For example, the global plant-based food market is expand substantially as a result of consumers' pursuit of healthier and more sustainable alternatives. Demographic changes also influence market dynamics. The demand for products that cater to specific dietary requirements, such as low-sodium and high-fiber foods, is on the rise in numerous developed countries due to the aging population.

Technological

The consumer food and beverage market is transforming as a result of technological advancements, which are fostering innovation, efficiency, and improved consumer experiences. Technology is instrumental in the industry's future, from production and supply chain management to marketing and consumer engagement. The emergence of food technology (food tech) is one of the most significant technological trends. This encompasses improvements in the processing, preservation, and packaging of food. High-pressure processing (HPP) and modified atmosphere packaging (MAP) are among the innovations that preserve the nutritional value and flavor of products while extending their expiration life. These technologies are of particular significance in light of the increasing demand for minimally processed, fresh foods among consumers. Manufacturing and supply chain operations are being transformed by automation and robotics. Automated systems optimize efficiency, minimize human error, and decrease labor expenses. For instance, robotic process automation (RPA) in food production lines can automate repetitive tasks, thereby enabling human employees to concentrate on more intricate tasks.

Environmental

The consumer food and beverage market is being significantly influenced by environmental factors, with sustainability becoming a primary concern. Sustainable sourcing, resource scarcity, waste management, and climate change are critical environmental considerations that affect the industry. The food and beverage industry is confronted with substantial obstacles as a result of climate change. Agricultural productivity and food supply chains are impacted by extreme weather events, altering precipitation patterns, and rising temperatures. For example, severe storms can disrupt transportation and logistics, while protracted droughts can decrease crop yields. Companies must adjust to these changes by diversifying their supply sources and investing in climate-resilient agricultural practices to mitigate risks. Another urgent concern is the scarcity of resources, particularly water and arable land. Water scarcity is a critical concern for food and beverage companies, as agriculture accounts for 70% of global freshwater use. In order to guarantee sustainable production, it is imperative to implement effective water management strategies, including water recycling and trickle irrigation. Furthermore, the health and productivity of soil can be improved by optimizing land use through methods such as agroforestry and crop rotation.

Legal

The consumer food and beverage market is significantly influenced by the legal landscape, which impacts a variety of factors, including product development, marketing, supply chain management, and corporate responsibility. In order to operate efficiently and prevent legal repercussions, businesses must comply with regulations, standards, and compliance requirements. The food and beverage industry is fundamentally reliant on food safety and labeling regulations. In order to guarantee the safety and purity of food products, governments worldwide implement rigorous regulations. The Food and Drug Administration (FDA) in the United States is responsible for the regulation of food safety, mandating that companies adhere to the Food Safety Modernization Act (FSMA). Similar standards are established by the European Food Safety Authority (EFSA) in the European Union. It is imperative to adhere to these regulations in order to prevent hazardous illnesses and preserve consumer confidence. Failure to comply may lead to severe penalties, product recalls, and harm to a company's reputation.

Key Players of Consumer Food and Beverages Market

Nestlé

In 2023, Nestlé, the world's largest food and beverage company, reported a revenue of USD 95 billion and will be USD 98 billion in 2024. Nestlé's dedication to innovation in the consumer food and beverage market is exemplified by its substantial annual R&D investment of USD 2 billion. Nestlé's primary business segments consist of water, milk products and ice cream, pet care, confectionery, prepared dishes and culinary aids, nutrition and health science, and powdered and liquid beverages. Nutrition and health science products, as well as powdered and liquid beverages such as Nespresso and Nescafé, are substantial contributors to its revenue in the consumer food and beverage market. Nestlé's extensive market reach and expansive product portfolio are evident in its 8% global market share in the consumer food and beverage market.

PepsiCo

In 2023, PepsiCo, a prominent global food and beverage company, generated USD 86 billion in revenue and will increase to USD 89 billion in 2024. PepsiCo allocates USD 700 million annually to research and development, with an emphasis on sustainability and product innovation. Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Latin America, Europe, Africa, Middle East and South Asia, and Asia Pacific, Australia/New Zealand, and China comprise the organization's principal business segments. The PepsiCo Beverages North America and Frito-Lay North America segments primarily influence the consumer food and beverage market. PepsiCo's global market share is 6%, a result of its robust presence in the beverage and convenience food industries. The company is known for its iconic brands, including Pepsi, Gatorade, Lay's, and Quaker.

Coca-Cola Company

In 2023, the Coca-Cola Company, a significant participant in the global beverage industry, reported a revenue of USD 43 billion, and will be USD 45 billion in 2024. Coca-Cola allocates USD 1 billion annually to research and development, which is indicative of its dedication to the advancement of sustainable practices and innovative products. Sparkling soft drinks, water, sports drinks, enhanced water, juice, dairy and plant-based beverages, tea and coffee, and energy drinks comprise its business segments. The effervescent soft drinks segment, which includes brands such as Coca-Cola, Sprite, and Fanta, continues to be the largest source of revenue. Coca-Cola's extensive distribution network and global brand recognition are indicative of its 7% global market share in the consumer food and beverage market.

Unilever

In 2023, Unilever, a significant multinational corporation with a broad product line, generated USD 60 billion in revenue, with an increase to USD 62 billion in 2024. Unilever allocates USD 1 billion annually to research and development, with an emphasis on sustainability and product innovation. Beauty & Personal Care, Home Care, and Foods & Refreshments comprise the organization's business segments. The primary source of its consumer food and beverage revenue is the Foods & Refreshment segment, which encompasses brands such as Knorr, Hellmann's, and Ben & Jerry's. Unilever's comprehensive product line and robust market presence in numerous regions have enabled the company to maintain 5% of the global market share in the consumer food and beverage market.

Danone

In 2023, Danone, a prominent global food and beverage company, reported a revenue of USD 30 billion and will be USD 31 billion in 2024. Danone allocates USD 600 million annually to research and development, with an emphasis on product innovations that are health-oriented. Waters, Essential Dairy and Plant-Based Products, and Specialized Nutrition comprise its principal business segments. Danone's revenue in the consumer food and beverage market is primarily derived from the Essential Dairy and Plant-Based Products segment, which includes brands such as Activia, Actimel, and Alpro. Danone's commitment to sustainable and nutritious products, which appeal to the increasing consumer demand for nutrition and wellness, has resulted in an 4% of the global market share.

Recent developments in Consumer Food and Beverages Market

In March 2023, Red Bull introduced its Summer Edition product line in the United Kingdom, which includes the thrilling new flavor of Juneberry. These energy drinks, which are now widely available, are distributed by prominent retailers nationwide. (Source: https://www.redbull.com/us-en/red-bull-summer-edition-juneberry)
In July 2023, Britvic expanded its portfolio by acquiring Jimmy's, the UK's fastest-growing ' ready-to-drink' iced coffee brand, for USD 300 million. (Source: https://www.britvic.com/our-news/performance/britvic-acquires-jimmy-s-iced-coffee/)

Conclusion

In spite of worldwide economic difficulties and changing customer tastes, the consumer food and beverage industry showed extraordinary resilience and flexibility in 2023 and 2024. The global consumer food and beverages market size was USD 6.3 trillion in 2023 and will be USD 6.7 trillion in 2024, with a consistent compound annual growth rate (CAGR) of 3.2%. In 2031, the consumer foods and beverages market size will be USD 8.6 trillion,with a CAGR 3.20%. In 2023, the market value of the market was USD 1.5 trillion, with the United States at the top and China at USD 1.2 trillion. This reflects the tremendous worldwide impact of these two countries.

The plant-based food market will grow from USD 29.4 billion in 2023 to USD 35.4 billion in 2024, driven by health and wellness trends. Also booming is the functional foods industry, which will reach USD 267 billion in 2024, an increase of 8.5% yearly. Rising consumer consciousness and a preference for environmentally friendly and nutritionally sound products are propelling this trend toward health-conscious consumption. An increasing number of consumers are showing a preference for items with sustainable packaging, with 60% of consumers showing this preference in 2023. The importance of sustainability is clearly being highlighted. Concerns about pollution and health are driving the organic food industry, which was worth USD 208 billion in 2023 and will be USD 227 billion in 2024.

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