The market for soups in North America thrives on the presence of a large pool of soup producers. However, only a few of them, namely, Campbell Soup Co., ConAgra Foods Inc., Nissin Foods Co. Inc., General Mills Inc., and Kraft Foods have managed to achieve a strong foothold in this market, finds a research study by Transparency Market Research (TMR).
These players largely rely on product innovation and advancements for the expansion of their businesses. The introduction of new products with extra nutritional value or in different flavors has been the most favored strategy among them over the years, which eventually, has intensified the competition within the market. In order to normalize the competition, companies in the North America soups market need to shift their focus towards partnerships, mergers, and acquisitions in the coming years, recommends TMR.
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As per the research report, the North America market for soups held an opportunity worth US$5.5 bn in 2014. Expanding at a CAGR of 1.08% during the period from 2014 to 2020, the market is estimated to increase to US$5.7 bn by the end of the forecast period. Dried soups or soup powders have emerged as the most valued products in this market and the trend is likely to remain so over the next few years.
Driven by Growing Demand for Convenience Food, U.S. Soups Market to Retain Dominance
According to researchers at TMR, the U.S., Canada, and Mexico are the key domestic markets for soups in North America. Among these, the U.S. led the overall market in 2014, reaching 655.7 kg mn in terms of volume consumed. With the growing demand for convenience and ready-to-eat food products, the U.S. market for soups is expected to retain its dominance in the forthcoming years.
Mexico and Canada are also witnessing a significant rise in the demand for soups, thanks to the growing preference for quick meals among consumers. The introduction of new flavors, such as red pepper and masala curry, is likely to boost the demand for soups in these domestic markets over the next few years, states the research report.
Demand for Soups to Augment due to Busy Lifestyles of Consumers
“The North America soup market is highly influenced by the ever-changing lifestyle and food habits of consumers in the region,” says the author of the study. Due to the very little effort needed in the preparation of soups, they are very convenient for consumers with fast-paced routines.
On account of this time efficiency, soups are gaining a robust popularity across North America, which is leading to a remarkable growth of this market. Other than this, the increase in the launch of new flavors with added nutritional value is also augmenting the consumption of soups in this region, supporting the market considerably.
Lack of Proper Supply Chain Management to Hamper Market’s Growth
While the North America soups market is forecast to grow steadily, the lack of proper supply chain management is anticipated to act as a restraint to the market’s growth in the near future. For example, an efficient cold chain supply and timely delivery are required for chilled soups, which escalate the cost of the product and consequently, affect the demand.
Apart from this, the increasing reports of adverse effects on consumers’ health caused by the high amount of preservatives used in canned soups are also expected limit their demand over the next few years, notes the study.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Soups Market (Product - Canned, Dried, Chilled, UHT, and Frozen Soups) - North America Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014-2020.”
The North America soups market is segmented into:
- Canned Soup
- Dried Soup
- Chilled Soup
- UHT Soup
- Frozen Soup
Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.