Food & Beverages Industry Market Research Reports

"Feasting on Trends: Exploring the Global Food and Beverage Market (2024 Market Size: USD 9.2 trillion)"!

Food and Beverage Industry Overview

The food and beverage market continues to be a dynamic and essential component of the global economy, exhibiting adaptability and resilience in the face of changing consumer preferences and economic challenges. According to cognitive market research, the global food and beverage market size was USD 8.7 trillion in 2023, and it will be USD 9.2 trillion in 2024 with a compound annual growth rate (CAGR) of 5.6% from 2023 to 2024. The expansion of middle-class populations in emergent markets, rising disposable incomes, and increasing consumer demand are the primary factors driving this growth. The plant-based food market size was USD 44.2 billion and will be USD 77.8 billion by 2025 with a compound annual growth rate (CAGR) of 12.4%. This increase is driven by environmental concerns, increasing health awareness, and advancements in food technology.

Sales are anticipated to surmount USD 272 billion by 2024, with a compound annual growth rate (CAGR) of 8.1%. The organic food segment will continue its upward trajectory. This expansion is described to the growing recognition of the advantages of sustainable agricultural practices and health benefits. The non-alcoholic segment of the global beverage market is also experiencing robust growth. The market size for functional beverages which includes, fortified waters and energy drinks, will be USD 173 billion by 2024, driven by healthful lifestyle choices. In 2023 and into 2024, there will be a substantial emphasis on health and wellness. Consumers are increasingly selecting products that provide health benefits, including those that are nutrient-dense, low-sugar, and low-calorie.

The functional food market, which encompasses products such as prebiotics and probiotics, will experience substantial growth, with a market size of USD 275 billion in 2024. Consumers continue to prioritize brands that prioritize environmentally favorable practices, as sustainability remains a critical trend. The demand for sustainable packaging will increase at a compound annual growth rate (CAGR) of 7.2%, with a market size of USD 341 billion in 2024. Purchasing decisions are still influenced by ethical consumption, which encompasses cruelty-free items and fair-trade products.

Top Countries Contributing to Food and Beverage Market

United States (2024 Market size: 1.88 trillion)

According to cognitive market research, the United States food and beverage market size was USD 1.8 trillion in 2023, and it will be USD 1.88 trillion in 2024 with a compound annual growth of 4.5%. Retail (grocery stores, supermarkets), food service (restaurants, cafés), and hospitality (hotels, resorts) are the primary sectors that employ the food and beverage industry. The United States food and beverage market holds 20% of the global market share. A combination of key trends, including the increasing demand for health-conscious and organic products, the growing interest in plant-based foods, and technological advancements in food processing and distribution is driving the market. Organic food sales exceeded USD 62 billion in 2023 and will increase by 6% in 2024. The plant-based food segment was valued at USD 7 billion in 2023 and will increase in 2024 by 10%. In 2023, the U.S. e-commerce food and beverage sales were USD 109 billion. It will increase to USD 120 billion in 2024.

China (2024 Market Size: 1.7 trillion)

The China food and beverage market share is 18% of total revenue generated and its market size is USD 1.7 trillion in 2024 with a compound annual growth rate of 6%. In 2023, the market size was USD 1.6 trillion. The primary sectors are e-commerce, culinary service, and retail. Urbanization, the expanding middle class, and the growing awareness of health are the primary drivers. The organic food market in China, was valued at USD 47 billion in 2023 and will grow at a CAGR of 8% in 2024. The beverage segment, notably functional beverages, is undergoing substantial growth, with sales increase from USD 20 billion in 2023 to USD 22 billion in 2024. Online food and beverage sales will increase from USD 150 billion in 2023 to USD 165 billion in 2024, with e-commerce serving as a significant channel.

India (2024 Market Size: USD 642 billion)

According to cognitive market research, the food and beverage market in India was valued at USD 600 billion in 2023 and will be USD 642 billion in 2024 with a compound annual growth rate of 7%. India holds 7% of the global market share, with retail, food service, and hospitality being the most significant sectors. The expansion of modern retail formats, the growth of the middle class, and the increasing demand for packaged foods are among the key trends. In 2024, the packaged food market, was valued at USD 50 billion in 2023 and will expand by 10%. The beverage market, particularly non-alcoholic liquids, is expanding, with sales increase from USD 30 billion in 2023 to USD 33 billion in 2024. E-commerce is experiencing significant growth, with online food sales increase from USD 5 billion in 2023 to USD 6 billion in 2024.

Brazil (2024 Market Size: USD 472 billion)

The Brazil's food and beverage market share is 5% of the total revenue generated and its market size is USD 472 billion in 2024 with a growth rate of 5%. The food and beverage market in Brazil was valued at USD 450 billion. Retail, food service, and export being among its most significant sectors. The country is a significant exporter of agricultural products, with the livestock and coffee industries making substantial contributions. The organic food market size wasUSd 3.5 billion in 2023 and will grow at a CAGR of 7% in 2024. The beverage market, particularly larger, is substantial, with sales increase to USD 15 billion in 2023 to USD 16 billion in 2024. Food and beverage sales are increase from USD 2 billion in 2023 to USD 2.5 billion in 2024 as e-commerce continues to expand.

Germany (2024 Market Size: USD 393 billion)

In 2023, the food and beverage market in Germany was valued at USD 380 billion and in 2024, it will be USD 393 billion and will grow at a CAGR of 3.5%. Germany holds 4.5% of the global market share, Germany's primary sectors are retail, culinary service, and exports. The increasing demand for plant-based diets and organic products is one of the most significant trends. In 2024, the organic food market size was USD 15 billion in 2023, will expand by 6%. The beverage market, notably non-alcoholic beverages, is also expanding, with sales increase from USD 12 billion in 2023 to USD 12.5 billion in 2024. Online food and beverage sales are increase from USD 4 billion in 2023 to USD 4.5 billion in 2024 as e-commerce continues to expand.

United Kingdom (2024 Market Size: 239 billion)

According to cognitive market reserch, the UK food and beverage market share is 2.5% of the total revenue generated and its market size was USD 230 billion in 2023. The food and beverage market in United Kingdom will be USD 239 billion and will grow at a CAGR of 4%. Retail, food service, and hospitality being among the most significant markets. Key trends include the growing demand for premium and organic products and the growing awareness of health. In 2024, the organic food market was valued at USD 3 billion in 2023, will expand by 5%. The beverage market, notably craft beer and non-alcoholic drinks, is substantial, with sales rise from USD 7 billion in 2023 to USD 7.5 billion in 2024. Online food sales will increase from USD 15 billion in 2023 to USD 16 billion in 2024 as e-commerce is expanding at a rapid pace.

France (2024 Market Size: USD 291 billion)

France's food and beverage market size was USD 280 billion in 2023, and will be USD 291 billion in 2024 with a CAGR of 3.8%. France accounts for 3% of the global market share, with retail, culinary service, and exports being among its most significant markets. Key trends include the increasing demand for organic products, premiumization, and the significance of gastronomy. In 2024, the organic food market was valued at USD 12 billion in 2023, will expand by 7%. The beverage market, particularly wine, continues to be substantial, with sales rise from USD 10 billion in 2023 to USD 10.5 billion in 2024. Online food and beverage sales are anticipated to increase from USD 8 billion in 2023 to USD 8.5 billion in 2024 as e-commerce continues to expand.

Japan (2024 Market Size: USD 690 billion)

According to cognitive market research, the Japan food and beverage market share is 7.5% of total revenue generated and its market size was USD 670 billion in 2023, and will be USD 690 billion in 2024 with a CAGR of 3%. The Retail, restaurant service, and exports are the significant markets. Technological advancements in food processing and the demand for healthy foods among an aging population are among the most significant trends. In 2024, the health food market was valued at USD 20 billion in 2023, and will expand by 5%. The beverage market, notably functional drinks, is substantial, with sales rise from USD 8 billion in 2023 to USd 8.5 billion in 2024. Online food sales will increase from USD 25 billion in 2023 to USD 26 billion in 2024, indicating that e-commerce is expanding.

Italy (2024 Market Size: USD 413 billion)

Italy's food and beverage market size was USD 400 billion in 2023 and will be USD 413 billion in 2024 with a compound annual growth rate of 63.2%. Italy accounts for 4% of the global market share, with retail, culinary service, and exports being among its most significant markets. The significance of traditional cuisine and the increasing demand for organic and premium products are among the most significant trends. In 2024, the organic food market, which was valued at USD 6 billion in 2023, will expand by 6%. The beverage market, particularly wine and spirits, is substantial, with sales rise from USD 12 billion in 2023 to USD 12.5 billion in 2024. Online food sales will increase from USD 5 billion in 2023 to USD 5.5 billion in 2024 as e-commerce continues to expand.

Canada (2024 Market Size: USD 229 billion)

In 2023, the Canada's food and beverage market size was USD 220 billion and it will be USD 229 billion in 2024 with a CAGR of 4.2%. The global market share of Canada is 2.5%, with the country's major sectors being retail, restaurant service, and exports. Key trends include the increasing demand for health-conscious consumables, organic products, and technological advancements. In 2024, the organic food market, which was valued at USD 5 billion in 2023, will expand by 7%. The beverage market, notably craft beer and non-alcoholic drinks, is substantial, with sales increase from USD 4 billion in 2023 to USD 4.2 billion in 2024. E-commerce is expanding as online food and beverage sales will increase from USD 6 billion in 2023 to USD 6.5 billion in 2024.

PESTEL Analysis of Food and Beverage Industry

Political

The food and beverage industry is significantly impacted by political factors, which shape market dynamics, trade policies, and regulatory frameworks. Government interventions, such as taxation, subsidies, and trade agreements, directly influence the operational costs and profitability of businesses. For example, the cost of raw materials and finished products can be influenced by import tariffs and export regulations, which can have an impact on market competitiveness and pricing strategies. Furthermore, supply channels may be disrupted and market uncertainties may result from states of political stability or instability in regions where food production and sourcing occur. Industry participants must adhere to government regulations and policies regarding food safety, labeling requirements, and quality standards. While stringent food safety regulations guarantee consumer protection and product integrity, they also impose compliance costs and regulatory burdens on businesses. Public advocacy groups and political pressure can also influence policy decisions regarding health and nutrition, resulting in modifications to product formulations, marketing practices, and labeling disclosures.

Economical

The food and beverage market is substantially influenced by economic factors, which affect consumer spending patterns, pricing strategies, and overall market growth. Key economic indicators, including inflation levels, exchange rates, interest rates, and GDP growth rates, directly influence consumer purchasing power and demand for food products. Consumer behavior can be altered as a result of economic downturns, recessions, or periods of economic uncertainty. Consumers may choose value-based or lower-priced food options, which can influence market trends and product preferences. Consumer preferences within the food and beverage industry are also significantly influenced by disposable income levels and employment rates. Increased expenditures on organic and natural foods, premium or gourmet food products, and healthier alternatives are frequently associated with higher disposable incomes. In contrast, market dynamics and competitive strategies may be impacted by economic challenges, such as unemployment or income disparities, which may result in a transition toward budget-friendly or private-label brands.

Social

In the food and beverage industry, social factors comprise demographic trends, cultural influences, lifestyle changes, and societal values that influence consumer preferences and consumption patterns. The demand for convenience foods, ready-to-eat meals, and on-the-go snacks is influenced by demographic shifts, including urbanization, elderly populations, and changing family structures. Trends toward plant-based diets, sustainable packaging, and transparent sourcing practices are being driven by Millennials and Generation Z consumers, who are recognized for their health-conscious attitudes and digital savvy. The demand for a variety of culinary experiences, flavors, and cuisines has also been influenced by globalization and cultural diversity. In the food and beverage industry, innovation and product differentiation are driven by consumers' taste preferences, which are influenced by their cultural heritage, travel experiences, and exposure to international cuisines. In order to attract a wide range of consumer segments, brands that prioritize multicultural tastes and dietary preferences acquire a competitive edge. Consumer decisions within the food and beverage sector are significantly influenced by health and wellness trends. The demand for organic, natural, and functional foods has increased as a result of the growing awareness of food sensitivities, dietary restrictions, and nutrition.

Technological

Production processes, supply chain management, marketing strategies, and consumer experiences have all been significantly altered by technological advancements in the food and beverage industry. Manufacturing operations are optimized, efficiency is improved, and product quality and consistency are improved through the implementation of automation, robotics, and artificial intelligence (AI) technologies. Automated systems for food processing, packaging, and labeling guarantee precision, minimize human errors and adhere to regulatory standards. Digital technologies, such as e-commerce platforms, mobile applications, and online ordering systems, have revolutionized the manner in which consumers purchase food and beverages. The market has been expanded by the emergence of online grocery purchasing, meal delivery services, and subscription-based models, which provide consumers with personalized experiences and convenience. In order to maximize marketing strategies, customize product offerings, and comprehend consumer behavior, food businesses implement predictive modeling, consumer insights, and data analytics. Traceability technologies, including blockchain, improve transparency and trust in the food supply chain.

Environmental

In the food and beverage industry, environmental factors are of the utmost importance, as resource conservation initiatives, climate change impacts, and sustainability concerns influence consumer preferences and industry practices. The demand for eco-friendly products, sustainable packaging, and responsible procurement practices has seen an increase as a result of the increasing awareness of environmental challenges, including deforestation, water scarcity, carbon emissions, and plastic pollution. Industry initiatives to reduce environmental footprints and implement green initiatives are motivated by regulatory pressures and sustainability certifications. Businesses are encouraged to invest in sustainable technologies and practices by government policies that encourage the adoption of renewable energy, waste reduction, and circular economy practices. Sustainable agriculture practices, including organic farming, regenerative agriculture, and biodiversity conservation, enhance environmental stewardship and food system resilience. Purchasing decisions, brand loyalty, and market trends are all influenced by consumer preferences for eco-friendly products and packaging. Environmentally conscientious consumers favor brands that prioritize environmental sustainability, implement waste reduction initiatives, and utilize recyclable materials.

Legal

Legal factors are the regulations, laws, and industry standards that govern the food and beverage market, ensuring compliance, consumer protection, and industry integrity. Government agencies enforce food safety regulations that establish rigorous standards for hygiene practices, production processes, and quality control measures. Transparency and consumer confidence are guaranteed by adhering to food labeling regulations, allergen disclosures, and nutritional information. Within the food and beverage industry, intellectual property rights, such as patents, trademarks, and copyrights, safeguard innovation, product formulations, and brand identities. Companies invest in research and development (R&D) initiatives to safeguard their competitive advantage and market differentiation by developing distinctive brand assets, proprietary technologies, and unique formulas. Labor laws, employment regulations, and industry codes of conduct regulate workforce practices, ethical standards, and corporate responsibility initiatives. Diversity and inclusion policies, workplace safety standards, and fair labor practices foster stakeholder trust, organizational resilience, and employee well-being.

Key Players of Food and Beverage Market

Nestlé

Nestlé, a Swiss multinational corporation, is a dominant force in the food and beverage market. Nestlé's market presence and influence were underscored by its staggering revenues of USD 94 billion in 2023. Nestlé maintain its upward trajectory, with revenues to surpass USD 98 billion by 2024. Nestlé's dedication to innovation is demonstrated by its substantial investment in research and development (R&D), which amounts USD 2.5 billion annually. This investment is allocated to the exploration of new products, the improvement of existing ones, and the resolution of sustainability issues. Nestlé's portfolio is both extensive and diverse within the food and beverage market. It encompasses a variety of well-known brands, including Maggi, Nescafé, KitKat, Purina, Nespresso, and many others. Various categories, including coffee, dairy products, confectionery, pet care, and culinary solutions, are represented by these brands. Nestlé's market position is further fortified by its strategic acquisitions and partnerships, which allow it to capitalize on emerging trends and consumer preferences effectively.

PepsiCo

PepsiCo, a well-known American multinational corporation, is a pillar of the food and beverage industry. PepsiCo's global reach is evidenced by its reported revenues of USD 75 billion in 2023, which provide consumers with a diverse selection of beverages and treats throughout the world. The company will experience sustained growth in the future, with revenues to reach USD 78 billion in 2024. Frito-Lay North America and Beverages are the two primary business segments of the organization. Pepsi, Mountain Dew, Gatorade, and Tropicana are among the iconic brands that dominate the beverage segment, which includes a wide range of hydration products, carbonated soft drinks, and non-carbonated beverages. Conversely, Frito-Lay North America is the king of the snacking market, with a portfolio that includes the cherished brands Frito-Lay, Doritos, Quaker Oats, and Lay's. PepsiCo's revenue streams and market presence are founded upon these segments. PepsiCo's influence in the global food and beverage market is substantial, with an 8% of the market share.

The Coca-Cola Company

The Coca-Cola Company, an iconic American beverage behemoth, has forever altered the global food and beverag market. Coca-Cola's collection of still and effervescent beverages continues to captivate consumers worldwide, with reported revenues of USd 40 billion in 2023. The company's enduring relevance and market strength are reflected in its growth of USD 42 billion in 2024. The Coca-Cola Company's principal business segments comprise a wide variety of products and services. The Sparkling Soft Drinks segment is comprised of iconic brands such as Coca-Cola, Sprite, Fanta, and Schweppes, which offer consumers a choice of refreshing carbonated beverages. The Water, Enhanced Water, and Hydration segment is responsible for meeting the increasing demand for bottled water, sports beverages, and enhanced hydration solutions. Furthermore, Coca-Cola's exhaustive market presence is guaranteed by the Tea and Coffee segment, as well as Nutrition, Juice, Dairy, and Plant-based Beverages. The Coca-Cola Company holds a substantial market share of 7% in the global food and beverage market.

Unilever

Unilever, a multinational consumer products corporation, is a significant player in the food and beverage industry. Unilever's portfolio encompasses a wide range of products, including food, beverages, personal care, and home care, with reported revenues of USD 65 billion in 2023. Revenues will increase to USD 68 billion in 2024 as the organization's trajectory continues to be robust. Unilever's strategic initiatives demonstrate its dedication to innovation, sustainability, and product quality despite the fact that specific R&D expenditure figures are not disclosed. Foods & Refreshments, Beauty & Personal Care, and Home Care comprise Unilever's principal business segments. The Foods & Refreshment segment provides a wide range of products, such as ice cream, tea, savory items, and plant-based alternatives, to accommodate the changing preferences and dietary trends of consumers. Unilever's revenue streams are considerably influenced by the global popularity of its brands, including Magnum, Ben & Jerry's, Lipton, and Hellmann's. Unilever's influence in the food and beverage market is substantial, accounting for 6% of the global market share.

Anheuser-Busch InBev

Anheuser-Busch InBev, a multinational brewing corporation that is Belgian-Brazilian, is a dominant player in the alcoholic beverage industry. Anheuser-Busch InBev's portfolio of premium and commonplace brands has a substantial impact on the global market, with reported revenues of USD 55 billion in 2023. The company's revenue will increase to USD 58 billion in 2024, which will serve as an indication of its market strength and resilience. The company's primary business segments are Global Brands, International Brands, and Craft & Specialties, which are designed to meet the diverse preferences and market segments of consumers. Anheuser-Busch InBev's global market share in the beverage market is 5%, which is supported by iconic brands such as Budweiser, Stella Artois, Corona, Beck's, and Michelob. The company's market leadership and global recognition are a result of its continuous emphasis on product quality and consumer engagement, as well as its strategic acquisitions and partnerships.

Recent developments in Food and Beverage Market

In March 2023, CORE Foods disclosed its collaboration with Chloe Kim, a two-time Olympic Gold Medalist and American Professional Snowboarder. This information has fortified the partnership between CORE and the Alterra Mountain Company, which is responsible for the company's diverse mountain destinations throughout the United States.
March 2023: The General Mills brand Cascadian Farm introduced granola bars manufactured in a peanut-free facility in March 2023. The bars are also USDA-certified organic and contain 35% less sugar than the original Annie's Dipped Granola Bars. (Source: https://www.generalmills.com/news/stories/general-mills-launches-first-products-made-in-a-peanut-free-facility)

Conclusion

The food and beverage market is a constantly changing and dynamic landscape, influenced by global economic trends, technological advancements, and changing consumer preferences. The global food and beverage market size was USD 8.7 trillion in 2023, and will be USD 9.2 trillionin 2024 , with a compound annual growth rate (CAGR) of 5.6%. Sustainability initiatives, the rapid expansion of e-commerce channels, the increasing demand for organic and plant-based products, and the increased focus on health and wellness are among the major trends that are shaping the market.

Plant-based and alternative proteins, organic foods, functional beverages, and convenience foods are among the key sectors that are propelling development in the food and beverage industry. The plant-based food market size was USD 44.2 billion in 2022 and will be USD 77.8 billion by 2025, with a compound annual growth rate (CAGR) of 12.4%. In 2024, the sales of organic food will be USD 272 billion, with a compound annual growth rate (CAGR) of 8.1%. In 2024, the market for functional beverages, which includes fortified waters and energy drinks, will be USD 173 billion. The Asia-Pacific region is the fastest-growing market, with a compound annual growth rate (CAGR) of 7% and market size will be USD 4.2 trillion by 2024, as indicated by regional insights. Despite being mature markets, North America and Europe continue to prioritize innovation and premiumization, achieving annual growth rates of 3-4%.

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