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The global soup market size was USD 16.12 billion in 2019 and is projected to reach USD 21.0 billion by 2027, exhibiting a CAGR of 2.79% during the forecast period (2020-2027).
The market is growing owing to the increasing consumption of processed food products in the developed and developing regions. This rise in the consumption pattern is owing to factors such as an increased number of working population, a rise in the working women population, a fast-paced lifestyle, increasing westernization & urbanization, and per capita spending, among others on processed food products. Due to these factors, consumers tend to prefer instant food products such as ready-to-eat (RTE), ready-to-drink (RTD), convenience food products, and many more. This directly aids in the growth of the market.
However, the current market for soups will face a rapid increase in its retail sales due to the pandemic situation caused by COVID-19. Consumers are facing a crisis of various instant food products, which eventually propels the sales of soupy products. Currently, 2 million populations are affected by COVID-19, and over 180 countries are under lockdown. This has surged the requirement of various processed food products. Various restrictions imposed by the government bodies are affecting the purchase pattern of the consumers. This has led to the purchase of only essential products and processed food products and beverages. The presence of working professionals and students in various countries has increased the sales of instant food products such as soups. This has led to a rapid sale of the soupy products.
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Increasing Demand for Convenience Food Products
The rising rate of urbanization and the busy lifestyle of the people has facilitated the rise in the purchase of convenience food products. There are different types of convenience food available in the market such as RTE, RTD beverages, packaged snacks, instant food, and others. Soups are one of the processed food products that are consumed by the people. Owing to the speedy cooking, soups are preferred by the consumers. The rising population and increasing disposable income are the macro-economic factors that aid in the growth of the market. Consumers are shifting towards convenient snacking, which positively impacts the market.
According to Agri-Canada report, the overall packaged food sales in China reached USD 272,741 million in 2019 and is expected to grow at a rate of 7%. This is owing to the larger consumption of packaged snack products in the country.
Rise in the Conumption of Vegetable Broths and Stocks to Support the Market Growth
The increasing growth of the vegan population in various developed regions and developing countries is an important factor in the consumption of vegetable stocks and broths. Major manufacturers are involved in the production of vegan soups with different packaging to cater to the current demand from the population. Apart from the vegan population, people prefer drinking healthy vegetable soups when compared to non-veg soups. The growing popularity of these broths among the people has a positive impact on the market.
According to the Vegan Society Organisation, by 2040, 25% of the global population will consume vegan meat replacements, 35% will consume clean-label meat, and 40% will consume regular meat.
Companies Investing in New Product Launches to Spur Demand
The demand for instant products is increasing and consumers are looking for new varieties in their diet. Different countries have different food choices owing to regional and ethnic preferences. These factors encourage manufacturers to launch new flavors and varieties in the market. Few producers are involved in the appealing package, while few are working on producing new flavors. This marks the availability of different varieties according to consumer preference.
In June 2018, Sonoma Brands launched its range of RTD chilled soups under its brand name, Züpa Noma. This acts as a liquid meal replacement and has zero sodium content unlike other processed porridge products.
Continuous Consumption of Corn Starch leads to Health Issues
The regular consumption of salt and corn starch acts as a constraining factor in the market, leading to various health problems such as obesity, high blood pressure, and high blood sugar. The majority of the products, especially canned and dehydrated soups, are made using corn flour and corn starch, as they act as a thickening agent. Countries like Japan incorporate the consumption of soup in their regular diet.
Consumers are being aware of the ingredients that are added to the food they consume, which restraints the market growth. To overcome this, leading manufacturers are involved in the new product development with less corn starch content and more vegetable content. Campbell Soup Company launched a range of its soupy varieties with different vegetable flavors such as carrot, red pepper, sweet potato, and ginger. This launch is to tap the younger generation, which has great knowledge about the ingredient list.
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Instant Soup holds the Largest Market Share Owing to its Speedy Cooking Time
Globally, the instant soup market has a great potential to grow owing to the availability of various options such as poached soup, quick soup, and packet soup. Since the cooking time for all these is low as compared to the other varieties, it is expected to grow at a high CAGR.
These days consumers prefer soups as a snacking food product which has increased the sales of instant soup. Besides, the demand for instant soupy noodles is creating a surge in the market. Consumer preferences and choices in the buying pattern of soups play a vital role in the market. Hence, the manufacturers have strategized in the launching of various instant soups with different flavor formulation to attract consumers.
On the other hand, canned soups hold the second largest market share which is owing to the larger penetration of the product in the developed regions. Countries like the U.S., U.K., and Germany prefer consuming canned soups over chilled and dehydrated soups, as it has a better formulation and retains flavor. The millennial population has started the consumption of dehydrated soups as it has various dried veggies in it. Consumer awareness regarding the products is the main driving factor for the dehydrated soups.
Supermarket/Hypermarkets is expected to hold the Largest Market Share
Amidst the lockdown, consumers are allowed to make their essential purchases through online retail and supermarkets. Retail stores and supermarkets are the only stores that give access to the purchase of essential products, wherein the consumers’ follow proper etiquette by wearing a mask, carrying a sanitizer, and maintaining social distance. Online retails are also utilizing the platform to deliver essentials for elderly people. Most of the countries use online retail to purchase imported processed food products and beverages, which is expected to increase the sales of the products.
Europe Soup Market Size, 2019 (USD Billion)
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Europe to Exhibit Fastest Growth in the Sales of Soup, due to Large Consumer Base
Europe is expected to hold the lion’s share in the market owing to the presence of a larger consumer base for canned soups in the region. In Europe, the U.K. and Russia are the leading consumers of soups due to the ever-growing population in these countries. The processed food consumption in these countries is comparatively high as compared to the other countries present in the region. Consumption of dehydrated soups in the region is expected to grow owing to the continuous product launches to cater to consumer preferences and purchase behavior. Besides, the rising economic independence among the women population creates a demand for processed and instant food products in the region. This is expected to aid the growth of the market.
Due to the pandemic situation, the sales in the region are expected to grow at a higher CAGR in 2020 due to the complete lockdown in various countries in Europe. The Work-from-home situation has paved the way for the consumption of different instant food products, among which soup and noodles sales are expected to be high.
Followed by Europe, North America is expected to hold the second-largest market share in the market. The U.S. is the largest consumer in the region that facilitates the growth of the market by marking larger sales of instant soup. The impact of COVID-19 in the country is certainly not bothering the growth of the market, as consumers prefer instant food over the foods that take a longer time to prepare.
The increasing population and larger consumer base in Asia Pacific, is expected to aid in the fast growth of the market in the region. The presence of various latest emerging economies such as China and India are important factors in the growth of the market. Japan has the largest market in the region as the people include soups and broths in their daily diet. After the U.S., Japan is the largest market for soup, globally.
Industry Focus in Development of New Products in the Market
The global market structure is highly organized with the presence of dominant players. These players are involved in the formulation of different varieties of soups such as increased flavors, packaging, usage of different types of vegetables, and others. The companies are strategizing by the launch of new products in the market. The Campbell Soup Company, Nestle S.A., and General Mills, Inc. are the leading players in the market.
The instant type segment has witnessed significant growth in the overall market globally. The growing world population is stepping towards an increased awareness for varied types of soup. This is anticipated to aid in the expansion of the global market in the future years.
The report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of its utility, distribution channel, types, market size, and growth rate for all possible segments in the market.
An Infographic Representation of Soup Market
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Along with this, the report provides an elaborative analysis of the market, future growth dynamics, and competitive landscape. Various key insights presented in the report include an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key soup industry trends.
Value (USD Billion)
By Distribution Channel
Fortune Business Insights says that the value of the market was USD 16.12 billion in 2019 and is projected to reach USD 21.0 billion by 2027
Growing at a CAGR of 2.79%, the market will exhibit steady growth in the forecast period (2019-2027).
The instant soup segment is expected to be the leading segment based on type in the global market during the forecast period.
Increasing the consumption of packaged food products is the key driving factor.
The Campbell Soup Company, Nestle S.A., and General Mills, Inc. are few key players.
Europe is expected to hold the highest market share in 2019.
Hypermarket/supermarket is expected to grow at a faster rate
Busy lifestyle, increasing westernization and urbanization is the major driver in the market
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