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The Reduced Fat Packaged Food Market size is projected to increase by USD 18.24 billion, at a CAGR of 4.39% between 2023 and 2028. The market is experiencing growth driven by increasing health consciousness among consumers. With rising instances of obesity and related diseases, individuals are becoming more aware of their dietary choices, leading to a surge in demand for food and beverage options low in fat and calories. Consequently, new players are entering the market with innovative offerings catering to this trend, further fueling the popularity of a health and wellness lifestyle. Moreover, there is a global increase in the number of consumers engaging in fitness activities, contributing to the growing demand for reduced-fat packaged food. This trend is expected to continue driving market growth in the forecast period, as consumers prioritize healthier dietary options. As a result, the market for reduced-fat food and beverage options is anticipated to witness significant expansion in the coming years, reflecting the evolving preferences of health-conscious consumers worldwide.
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The market share growth by the bakery segment will be significant during the forecast period. Due to the consumer's demand for healthy snacking options, reduced-fat bakery products are expected to increase during the forecast period. Formulated or modified to contain reduced levels of fat compared to the regular one to make in the bakery segment. These offerings are often targeted toward health-conscious consumers who are seeking healthier options without compromising on taste. The changes in consumer lifestyles, rising disposable incomes, and increased demand for convenience foods will also influence the growth during the forecast period.
The market share growth by the supermarkets and hypermarkets segment will be significant during the forecast period. Supermarkets and hypermarkets are large retail stores that offer a wide range of products reduced-fat packaged foods to consumers. This segment serves as a key distribution channel for reduced-fat products. To attract customers and drive sales in supermarkets and hypermarkets frequently drive promotional activities, such as discounts, special offers, and product bundling.
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The supermarkets and hypermarkets segment was valued at USD 39.81 billion in 2018. Supermarkets and hypermarkets serve as vital channels for distribution and promotion globally. Such factors are expected to drive the growth of the supermarkets and hypermarkets segments of the global market.
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Europe is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market growth and trends that shape the market during the forecast period. The market encompasses various food categories, including food, beverages, nutraceuticals, and infant formulations, packaged in metallic containers and stand-up pouches. This market caters to diverse retailing formats, such as supermarkets, specialty stores, and other retailing formats. The increasing health awareness among consumers has fueled the demand for reduced fat packaged foods, particularly in the organized dairy market. Yogurt drinks and kefir are popular functional dairy products in this category. Food processing industries are innovating to meet the rising demand for organic and natural options, with brands like Organic Valley leading the way. Improving living standards and changing consumer preferences are key drivers for the growth of this market. The market includes food and beverage segments, with the former dominating due to the wide range of applications and the latter gaining traction due to the convenience factor. The increasing awareness among consumers about health and wellness is expected to drive the growth of the regional market during the forecast period.
The market is expanding with innovative products like those from ReGrained and Dean Foods, offering options such as whole milk with reduced fat content and enhanced with real fruit. These products often use sugar allulose as a sweetener, catering to consumer preferences for healthier choices without compromising on taste or product satisfaction. The market is characterized by its competitive nature, driving companies to employ advanced processes like the centrifugal process for production. Packaging solutions vary from traditional bottles and metallic containers to modern stand-up pouches, ensuring freshness and convenience. Reduced fat packaged foods are available in various retail formats, including nutraceuticals, infant formulations, groceries, specialty stores, and other retailing formats, meeting diverse consumer demands for healthier eating options.
Increasing health consciousness among consumers is notably driving market growth. The increasing health consciousness among consumers, particularly in response to rising obesity and related health risks, is driving demand for reduced fat packaged food. Companies such as ReGrained, Dean Foods, and PepsiCo are meeting this demand by introducing new products with lower fat and calorie content. These offerings include whole milk alternatives with real fruit, zero-calorie sorbet in flavors like strawberry lemonade and blueberry acai, and sugar allulose-sweetened popsicle bars. Whole-grain popcorn and reduced fat yogurt are also popular choices. The competitive nature of the market ensures that taste is not compromised in the centrifugal process used to remove fat and the necessary infrastructure is in place to maintain product satisfaction.
However, the use of chemical preservatives and packaging types like bottles remains a concern for some health-conscious individuals. Medical experts recommend limiting total fat intake, particularly saturated fat, and reducing consumption of high-caloric dairy products. With disposable income on the rise, adults are making informed choices to meet their public health goals. Thus, such factors are driving the growth of the market during the forecast period.
The increasing demand for organic reduced-fat food products is the primary trend in the reduced-fat packaged food market. Organic options are free from fertilizers and pesticides and are considered healthier than inorganic products. The increasing number of consumers who are having health consciousness is leading to an increasing preference for organic-certified food and beverage products varieties among consumers.
Furthermore, many old and new players in the market are coming up with organic reduced-fat foods to fulfill the consumers' demand. The manufacturers must have to follow certain standards and regulations implied by various organizations to be able to meet the requirements for organic certification. For instance, In the US, organic certification is provided by the USDA. The rise in the demand for organic food and beverages is expected to drive the growth of the global market during the forecast period.
Stringent government regulations and guidelines is the main challenge for the market. stringent rules and guidelines issued by various government agencies in different countries are impacting the sales, marketing, and labeling of reduced-fat packaged foods. These regulations can also affect the entry of new players, residual management issues, and expiry dates. The FDA has placed strict regulations on various types of the number of ingredients that can be used in the products, and the type of ingredients that should be mentioned on the labels of packaged foods.
Moreover, obeying these regulations is a challenging task for companies as they hinder the growth of new products and innovations in the market. These regulations can also hinder the entry of new players in this market. For instance, In Europe, the European Food Safety Authority (EFSA) has set several regulations on the manufacturing, labeling, and marketing of health and wellness food products with various claims such as reduced fat, low fat, and others. The EFSA verifies all the health claims made by the companies over various media, such as on-pack labels, hard copy ads, and websites. Such factors are expected to hinder the global market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product launches, to enhance their presence in the market.
Key offering - Dairy Farmers of America Inc. - The company offers small low-fat cottage cheese, low-fat buttermilk, fat-free milk, 1 per cent low-fat milk, and 2 per cent reduced-fat milk at different size packaging.
Key offering - Danone SA - The company offers Activia dairy products, Danonino dairy products designed for kids, and Two Good low-fat yoghurt products with less sugar.
The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is witnessing a surge in innovation with products like ZolCal zero-calorie sorbet and popsicle bars, catering to health-conscious consumers in California and beyond. Varieties such as strawberry lemonade, blueberry acai, and orange creamsicle offer flavorful options without compromising on taste. The market also includes whole-grain popcorn and reduced fat yogurt drinks, reflecting consumer preference for healthier snacks and beverages. As public health goals emphasize reducing total fat and saturated fat intake, companies are investing in research and development activities to enhance these products' nutritional profiles. With growing health awareness and disposable incomes, the market for flavored reduced fat beverages and yogurt drinks is poised for significant growth, supported by necessary infrastructure and stringent quality standards in the organized dairy market.
In addition, the market is witnessing robust growth, driven by evolving consumer preferences and health consciousness among adults. Products like flavored reduced fat yogurt drinks and high-fat milk alternatives cater to health-conscious individuals managing their total fat intake. Medical experts endorse these functional dairy products due to their original properties and reduced health risks. Brands like Organic Valley are innovating with low-caloric dairy products, appealing to consumers with disposable income and high standards of living. This market segment also includes specialty store offering diverse options such as kefir and infant formulation, emphasizing chemical preservatives-free options and eco-friendly packaging types. The sector's growth prospects are promising, fueled by increasing living standards and demand for nutritious, convenient foods in the food processing industries.
Market Scope |
|
Report Coverage |
Details |
Page number |
192 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.39% |
Market growth 2024-2028 |
USD 18.24 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.13 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 32% |
Key countries |
US, China, Germany, UK, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arla Foods amba, Bunge Ltd., Campbell Soup Co., Cargill Inc., Conagra Brands Inc., Danone SA, General Mills Inc., Kellogg Co., Kerry Group Plc, Land O Lakes Inc., Mondelez International Inc., Nestle SA, PepsiCo Inc., Rockview Farms, Tesco Plc, The Hain Celestial Group Inc., The Hershey Co., The Kraft Heinz Co., and Tyson Foods Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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