According to a report by Altus Market Research titled, “Food And Beverages Market Analysis 2022-2031 By Type(Alcoholic, Non-Alcoholic; Grain Products; Bakery & Confectionery; Frozen, Canned & Dried Food; Dairy Food; Meat, Poultry & Seafood; Syrup, Oils; Animal Food); Distribution Channel; by Nature”, the global food and beverages market size reached a value of nearly $5,818.25 billion in 2021, having grown at a compound annual growth rate (CAGR) of 3.5% since 2016. The market is expected to grow from $5,818.25 billion in 2021 to $8,010.98 billion in 2026 at a rate of 6.6%. The market is then expected to grow at a CAGR of 5.4% from 2026 and reach $10,406.81 billion in 2031.
Market Growth Drivers:
Growth in the historic period resulted from an increase in clean-label, organic, and non-GMO (genetically codified organism) products, a rise in alcohol consumption, increased pet ownership by Gen Z and Gen Y adults, strong economic growth in emerging markets, influence of digital media marketing and social media, low interest rates and growing number of health-conscious consumers.
Going forward, the increasing organic food consumption, growing demand for immunity boosting foods and beverages, rising penetration of organized retail, rapid growth in ecommerce, increasing demand for premium and organic pet food, faster economic growth and food security initiatives will drive the growth. Factors that could hinder the growth of the food and beverages market in the future include complexity of acceptance and purchase intentions of consumers, climate change and global warming, a shift towards vegan eating and the Russian-Ukrainian war.
Market Growth by Segments:
The food and beverages market is segmented by type into alcoholic – beverages, non alcoholic – beverages, grain products, bakery and confectionery, frozen, canned and dried food, dairy food, meat, poultry and seafood, syrup, seasoning, oils, and general food, animal and pet food, tobacco products, and other foods products. The meat, poultry and seafood market was the largest segment of the food and beverages market segmented by type, accounting for 23.4% of the total in 2021. Going forward, the other food products segment is expected to be the fastest growing segment in the food and beverages market segmented by type, at a CAGR of 8.1% during 2021-2026.
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The alcoholic-beverages market is further segmented by type into beer (breweries), wine and brandy (wineries), and spirits (distilleries). The beer (breweries) market was the largest segment of the alcoholic-beverages market segmented by type, accounting for 44.8% of the total in 2021. Going forward, the wine and brandy (wineries) segment is expected to be the fastest growing segment in the alcoholic-beverages market segmented by type, at a CAGR of 8.1% during 2019-2023.
The non alcoholic – beverages market is further segmented by type into coffee and tea, and soft drink and ice. The soft drink and ice market was the largest segment of the non alcoholic-beverages market segmented by type, accounting for 70.5% of the total in 2021. Going forward, the coffee and tea segment is expected to be the fastest growing segment in the non alcoholic – beverages market segmented by type, at a CAGR of 7.4% during 2021-2026.
The grain products market is further segmented by type into flour, rice and malt, and other grain products. The other grain products market was the largest segment of the grain products market segmented by type, accounting for 57.5% of the total in 2021. Going forward, the flour, rice and malt segment is expected to be the fastest growing segment in the grain products market segmented by type, at a CAGR of 6.13% during 2021-2026.
The bakery and confectionery market is further segmented by type into sugar and confectionery products, cookie, cracker, pasta, and tortilla, bread and bakery products, and breakfast cereal. The sugar and confectionery product market was the largest segment of the bakery and confectionery market segmented by type, accounting for 39.4% of the total in 2021. Going forward, the bread and bakery products segment is expected to be the fastest growing segment in the bakery and confectionery market segmented by type, at a CAGR of 6.6% during 2021-2026.
The frozen, canned and dried food market is further segmented by type into frozen food, and canned and ambient food. The frozen food market was the largest segment of the frozen, canned and dried food market segmented by type, accounting for 54.1% of the total in 2021. Going forward, the frozen food segment is expected to be the fastest growing segment in the frozen, canned and dried food market segmented by type, at a CAGR of 6.7% during 2021-2026.
The dairy food market is further segmented by type into milk and butter, cheese, dry, condensed, and evaporated dairy products, and ice cream and frozen dessert. The milk and butter market was the largest segment of the dairy food market segmented by type, accounting for 43.9% of the total in 2021. Going forward, the ice cream and frozen dessert segment is expected to be the fastest growing segment in the dairy food market segmented by type, at a CAGR of 7.0% during 2021-2026.
The meat, poultry and seafood market is further segmented by type into meat products, poultry, and seafood. The meat products market was the largest segment of the meat, poultry and seafood market segmented by type, accounting for 59.2% of the total in 2021. Going forward, the seafood segment is expected to be the fastest growing segment in the meat, poultry and seafood market segmented by type, at a CAGR of 8.1% during 2021-2026.
The syrup, seasoning, oils, and general food market is further segmented by type into fats and oils, seasoning and dressing, and flavoring syrup and concentrate. The fats and oils market was the largest segment of the syrup, seasoning, oils, and general food market segmented by type, accounting for 46.0% of the total in 2021. Going forward, the seasoning and dressing segment is expected to be the fastest growing segment in the syrup, seasoning, oils, and general food market segmented by type, at a CAGR of 7.8% during 2021-2026.
The animal and pet food market is further segmented by type into animal food, and pet food. The animal food market was the largest segment of the animal and pet food market segmented by type, accounting for 78.0% of the total in 2021. Going forward, the animal food segment is expected to be the fastest growing segment in the animal and pet food market segmented by type, at a CAGR of 7.8% during 2021-2026.
The tobacco products market is further segmented by type into cigarettes, cigars and cigarillos, and smoking and other tobacco products. The cigarettes, cigars and cigarillos market was the largest segment of the tobacco products market segmented by type, accounting for 89.4% of the total in 2021. Going forward, the smoking and other tobacco products segment is expected to be the fastest growing segment in the tobacco products market segmented by type, at a CAGR of 4.4% during 2021-2026.
The other foods products market is further segmented by type into perishable prepared food, snack food, and all other miscellaneous food. The snack food market was the largest segment of the other foods products market segmented by type, accounting for 51.8% of the total in 2021. Going forward, the all other miscellaneous food segment is expected to be the fastest growing segment in the other foods products market segmented by type, at a CAGR of 9.5% during 2021-2026.
Market Growth distribution channel
The food and beverages market is also segmented by distribution channel into supermarkets/hypermarkets, convenience stores, e-commerce and other channels. The supermarkets/hypermarkets market was the largest segment of the food and beverages market segmented by distribution channel, accounting for 58.7% of the total in 2021. Going forward, the e-commerce segment is expected to be the fastest growing segment in the food and beverages market segmented by distribution channel, at a CAGR of 13.2% during 2021-2026.
The food and beverages market is also segmented by nature into organic and conventional food and beverages. The conventional market was the largest segment of the food and beverages market segmented by nature, accounting for 94.9% of the total in 2021. Going forward, the organic segment is expected to be the fastest growing segment in the food and beverages market segmented by nature, at a CAGR of 15.2% during 2021-2026.
Market Growth by Region:
Asia Pacific was the largest region in the food and beverages market, accounting for 41.9% of the total in 2021. It was followed by Western Europe, and then the other regions. Going forward, the fastest-growing regions in the food and beverages market will be Africa, and, Middle East where growth will be at CAGRs of 13.7% and 10.6% respectively. These will be followed by Eastern Europe, and, South America where the markets are expected to grow at CAGRs of 7.0% and 6.8% respectively.
COVID-19 Impact
The food and beverage industry is a significant contributor to global economies. The coronavirus outbreak has had a severe impact on the F&B market, from closure of manufacturing facilities and production sites to disruptions in the supply chain. Worldwide lockdown measures, social distancing practices and increased sanitation protocols in place have also impacted the demand for food and beverages, as consumers are shifting their preferences towards home-cooked and ready-to-eat meals. Consumer preference has shifted towards at-home food rather than dining in restaurants, due to safety and sanitation concerns. Despite the reopening of some restaurants with proper safety protocols in place, many consumers are still hesitant to visit the outdoors and are relying more on online food delivery systems.
Market Growth by Key Players:
The global food and beverages market is highly fragmented, with a large number of players. The top ten competitors in the market made up to 8.96% of the total market in 2021. Nestle S.A. was the largest competitor with 1.49% share of the market, followed by PepsiCo, Inc. with 1.37%, Anheuser-Busch InBev with 0.93%, JBS S.A. with 0.90%, Tyson Foods Inc with 0.81%, Archer-Daniels-Midland Company (ADM) with 0.81%, Mars, Incorporated with 0.69%, Imperial brands plc with 0.67%, The Coca-Cola Company with 0.66%, and Cargill with 0.65%.
Future Investment Opportunities:
The top opportunities in the food and beverages market segmented by type will arise in the meat, poultry and seafood market segment, which will gain $499.7 billion of global annual sales by 2026. The top opportunities in the alcoholic-beverages market segmented by type will arise in the beer market segment, which will gain $86.6 billion of global annual sales by 2026. The top opportunities in the non alcoholic-beverages market segmented by type will arise in the soft drink and ice market segment, which will gain $76.6 billion of global annual sales by 2026. The top opportunities in the grain products market segmented by type will arise in the other grain products market segment, which will gain $58.8 billion of global annual sales by 2026.
The top opportunities in the bakery and confectionery market segmented by type will arise in the sugar and confectionery market segment, which will gain $109.5 billion of global annual sales by 2026. The top opportunities in the frozen, canned and dried food market segmented by type will arise in the frozen food market segment, which will gain $79.3 billion of global annual sales by 2026. The top opportunities in the dairy food market segmented by type will arise in the milk and butter market segment, which will gain $114.7 billion of global annual sales by 2026. The top opportunities in the meat, poultry and seafood market segmented by type will arise in the meat products market segment, which will gain $260.8 billion of global annual sales by 2026. The top opportunities in the syrup, seasoning, oils, and general food market segmented by type will arise in the fats and oils market segment, which will gain $71.0 billion of global annual sales by 2026.
The top opportunities in the animal and pet food market segmented by type will arise in the animal food market segment, which will gain $123.1 billion of global annual sales by 2026. The top opportunities in the tobacco products market segmented by type will arise in the cigarettes, cigars, and cigarillos market segment, which will gain $49.1 billion of global annual sales by 2026. The top opportunities in the other food products market segmented by type will arise in the snack food market segment, which will gain $91.8 billion of global annual sales by 2026.
The top opportunities in the food and beverages market segmented by nature will arise in the conventional market segment, which will gain $1,888.6 billion of global annual sales by 2026. The top opportunities in the food and beverages market segmented by distribution channel will arise in the supermarkets/hypermarkets market segment, which will gain $895.4 billion of global annual sales by 2026. The food and beverages market size will gain the most in China at $295.3 billion.
Market: Trend-based Strategies
Market-trend-based strategies for the food and beverages market include use of natural ingredients in products, focus on offering functional beverages, focus on micro-distilled/artisan spirits, use of alcohol e-commerce, use of high-pressure pasteurization technique, focus on clean label products, adoption of robotics and automation technology, use of advanced cigarette filter technologies and use of artisan cooking methods.
Player-adopted strategies in the food and beverages market include increasing investments in new factories, focusing on expansion of product portfolios, expanding operations across different geographies through acquisitions and improving efficiency through new digital solutions and technologies.
Growth Strategies by Altus Market Research for Companies in the Market:
To take advantage of the opportunities, Altus Market Research recommends the food and beverages companies to increase focus on ready-to-mix hybrid beverages, continue to offer health beverages, invest in novel packaging, offer organic frozen food products, increase focus on lactose-free dairy products, expand in emerging markets, increase online presence, offer competitive pricing, focus on premium pricing for pet food, focus more on direct-to-consumer (DTC) advertising, aggressively use social media marketing, target health-conscious consumers and aggressively target online consumers.
