Canned And Ambient Food Global Market Report 2021: COVID 19 Impact and Recovery to 2030

Canned And Ambient Food Global Market Report 2021: COVID 19 Impact and Recovery to 2030

  • January 2021 •
  • 300 pages •
  • Report ID: 6018919 •
  • Format: PDF
Major companies in the fruit and vegetables canning, pickling, and drying market include Bolton Group; ConAgra Foods; Del Monte; Kraft Heinz and General Mills.

The global canned and ambient food market is expected to grow from $239.73 billion in 2020 to $266.2 billion in 2021 at a compound annual growth rate (CAGR) of 11%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $361.06 billion in 2025 at a CAGR of 8%.

The fruit and vegetables canning, pickling, and drying market consists of sales of canned, pickled, and dried vegetables, fruits and specialty foods by entities (organizations, sole traders and partnerships) that produce canned, pickled, and dried vegetables, fruits and specialty foods. These establishments may package the dried or dehydrated ingredients they make along with other purchased ingredients. The companies in the industry package and distribute their products through various distribution channels to both individual customers and commercial establishments. The canned and ambient market is segmented into fruit and vegetable canning; specialty canning and dried and dehydrated food.

Western Europe was the largest region in the global canned and ambient food market, accounting for 32% of the market in 2020. Asia Pacific was the second largest region accounting for 27% of the global canned and ambient food market. Africa was the smallest region in the global canned and ambient food market.

Some canned and ambient food manufacturers are using organic fruits and vegetables to keep pace with the changing consumer preferences for pesticide-free organic fruits and vegetables. Organic canned fruits and vegetables have negligible pesticides and fertilizers content and are comparatively safer and healthier than conventionally grown food. Some of the companies specializing in organic canned food products include Simpletruth, Native Forest, Naturz Organics.

The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the canned and ambient food manufacturing market in 2020 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. Food and beverage manufacturers depend on supply of raw materials from domestic and international suppliers. As many governments restricted the movement of goods across countries and locally, manufacturers had to halt production due to lack of raw materials. Also, restrictions on trade of non-essential goods and fear of contamination through manufacturing facilities contributed to the decline. The outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the canned and ambient food manufacturing market will recover from the shock across the forecast period as it is a ’black swan’ event and not related to ongoing or fundamental weaknesses in the market or the global economy.

Many countries across the globe are experiencing falling prices of crops due to overcapacity; this is expected result in low raw material costs for food and beverage companies. For example, in 2019, the Indian government spent $873 million to subsidize the export of sugar as a result of overproduction of sugarcane, thereby reducing prices. Thus, overproduction of certain crops is likely to result in higher profit margins for food and beverage companies. Higher profit margins will be canned and ambient food manufacturing companies to increase their production and drive the market going forward.