Soup Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The soup market is projected to witness a CAGR of 2.9% during the forecast period (2022 - 2027).

Due to stringent lockdowns and social distancing, sales of soups, especially ready-to-eat soups, experienced a significant decline in the first quarter of the pandemic. Nevertheless, sales increased in the second half of 2020, with consumers buying more simple and healthier food alternatives. For instance, Campbell Soup Company's revenue increased by around 7% in 2020 than the previous year.

Over the medium term, increasing product varieties, consumption of health and wellness products, and active promotions by market players are expected to contribute to the growth of the soup market. Moreover, the growing demand for healthier food products is expected to boost the demand for soups. Instant, dehydrated, and UHT soups are expected to dominate the soup market during the forecast period due to their ease of preparation and the increasing consumer demand for such products, driven by busier lifestyles.

The high market dominance of the key players is due to their high expenditure on promotional and other marketing activities. In addition, companies also gain a competitive advantage by increasing their focus on brand recognition strategies and improving product taste and quality.

Key Market Trends

Increasing Demand for Convenience Food

The changing lifestyle caters to the increasing demand for convenience food. The convenience of soups, which are healthier and tastier food alternatives, supports the fast-paced lifestyle of consumers. Moreover, with the increased demand for convenience food, companies are increasingly coming up with packaging formats that are convenient to consume and dispose of. For example, Campbell offers soup in microwavable cups, making it a more suitable packaging format than powdered soup in regular packets. Additionally, various companies operating in the segment are coming up with product launches and increasing their product offerings. In 2020, Clarity Food Ventures LLC launched a new line of refrigerated soupy kits. These soups can be conveniently prepared in less than three minutes and are available in several flavors.

North America Holds Prominent Share

The changing perception about soups as a healthier food choice and preference toward soup as a quick meal, supported by the launch of premium, clean-label, and novel flavors, are expected to propel the market's growth in the North American region.​ The major factor driving the growth of the North American soup market is the increasingly busy lifestyle of people in countries like the United States and Canada, where people opt for ready-to-go meals. Additionally, innovation in soup products by manufacturers, in line with the current snacking trends, and stocking the right soup variety for their customers are driving the sales in these countries. For instance, in 2020, Gardein launched five new varieties of soups prepared from plant-based meat alternatives, made with 100% vegan ingredients.

Competitive Landscape

The soup market is highly competitive due to the presence of numerous international and regional players. The market has prominent players, such as Campbell Soup Company, Unilever, General Mills, Nestle SA, and The Kraft Heinz Company, who hold a major share of the market, making it a consolidated market. Companies are competing based on price, quality, ingredients, and promotions. Therefore, they are focused on strategic initiatives to achieve prominent market shares.​ Additionally, these companies are increasing their investments in research and development (R&D) to develop products with innovative flavors and ingredients in line with consumer needs in order to expand their presence and maintain their position in the market.​

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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