Reduced Fat Packaged Food Market Analysis North America,Europe,APAC,Middle East and Africa,South America - US,Canada,China,Germany,UK - Size and Forecast 2023-2027

Reduced Fat Packaged Food Market Forecast 2023-2027

The Reduced Fat Packaged Food Market size is projected to increase by USD 18.01 billion at a CAGR of 4.5% between 2022 and 2027. The increasing health consciousness among consumers is notably driving the growth of the market. The rising instances of obesity and related diseases among people are making them more health conscious, and due to this, demand for food and beverage options that are low in fat and calories is increasing. As a result, new players are coming up with new offerings that have less fat and calories. This trend of a health and wellness lifestyle is gaining popularity among consumers. The number of consumers participating in fitness activities is increasing globally. This factor will help the demand for reduced-fat packaged food to grow during the forecast period. The rising demand for reduced-fat food and beverage options among consumers is expected to drive the growth of the market during the forecast period.

Reduced Fat Packaged Food Market: Overview

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The global reduced fat packaged food market is experiencing a surge in demand driven by shifting consumer preferences and health-conscious trends. With an increasing focus on health benefits and wellness, consumers, particularly millennials and the working population, are seeking low-fat, low-calorie food options. This trend comes in response to rising concerns about cardiovascular diseases, related diseases or disorders to high blood pressure, and obesity. Organic food products are gaining popularity due to their perceived health benefits, prompting a shift towards healthier packaged food choices. In response to changing eating habits and the quickening pace of life, there's a growing trend towards ready-to-eat food products and low-calorie snacks and meals.

Market Dynamics and Customer Landscape 

The market is witnessing significant growth, spurred by evolving consumer preferences and health-conscious trends. Dean Foods, a notable player in the industry, offers reduced-fat dairy products alongside conventional options. ZolCal, based in California, is pioneering zero-calorie sorbet and popsicle bars made from real fruit and sugar allulose. This innovative product lineup caters to health-conscious adults seeking tasty yet guilt-free indulgences. Market analysis reveals a competitive landscape with a focus on product satisfaction and market share. Manufacturers employ centrifugal processes and bacteria to develop high-quality, reduced-fat options while meeting public health goals. With the rise in health awareness and demand for functional dairy products, the reduced fat packaged food market shows promising growth prospects. The Reduced Fat Packaged Food Market is witnessing significant growth, spurred by evolving consumer preferences and health-conscious trends. Dean Foods, a notable player in the industry, offers reduced-fat dairy products alongside conventional options. ZolCal, based in California, is pioneering zero-calorie sorbet and popsicle bars made from real fruit and sugar allulose. This innovative product lineup caters to health-conscious adults seeking tasty yet guilt-free indulgences. Market analysis reveals a competitive landscape with a focus on product satisfaction and market share. Manufacturers employ centrifugal processes and bacteria to develop high-quality, reduced-fat options while meeting public health goals. With the rise in health awareness and demand for functional dairy products, the reduced fat packaged food market shows promising growth prospects. This shift is accompanied by a growing awareness of the negative impacts of saturated and trans fats, further driving the preference for reduced fat options. As fitness activities and health-conscious people continue to rise globally, the market for reduced fat packaged food is expected to witness sustained growth. To cater to evolving consumer preferences, manufacturers are focusing on product innovation and offering a diverse range of healthier alternatives. Our researchers analyzed the data with 2022 as the base year, along with the key trends and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.

Significant Market Trends 

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.

Major Market Challenge 

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.

Customer Landscape

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

Reduced Fat Packaged Food Market Company Overview

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 - Arla Foods amba - The company offers products of yoghurt, cheeses, desserts, and ice creams which are mixed with proteins to simulate fat globules.

• 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:

• Bunge Ltd.
• Campbell Soup Co.
• Cargill Inc.
• Conagra Brands Inc.
• 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.
• Tyson Foods Inc.

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.

Market Segmentation

The market for low-fat, low-calorie food products is witnessing growth amid health and wellness trends. Innovations like ReGrained Puffs, derived from spent brewers? grain, cater to health-conscious consumers seeking nutritious snacks. Ready-to-eat food products are trending, reflecting changing consumer preferences and lifestyles. High-calorie food faces scrutiny due to rising concerns about obesity and related diseases. Despite challenges like the high cost of packaged food and short shelf life, organic-certified options are gaining traction. Trade regulations and technological innovations impact market dynamics, driving strategic growth analysis and value chain optimization. Emphasis on low-calorie meals and consumer spending habits shapes the overall demand, with emerging revenue pockets and application niches driving product approvals and category market growths. Whole milk remains a staple in many households, but consumers are increasingly seeking healthier alternatives, such as reduced fat yogurt drinks and kefir. The market is driven by market share analysis and the competitive nature of the industry. Medical experts highlight the health risks associated with high-fat milk and high-caloric dairy product, prompting a shift towards reduced-fat options. With a focus on total fat intake and saturated fat, manufacturers invest in research and development to innovate products like reduced-fat yogurt and flavoured reduced-fat beverage. Groceries and other retailing formats, including Organic Valley, cater to evolving consumer preferences, emphasizing healthier choices and original properties. As the industry evolves to meet high standards of living, there's a notable emphasis on health-conscious products and sustainable practices.

By Product

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 dairy segment of the global market refers to foods that contain dairy ingredients and are specifically marketed as reduced fat or low-fat options. The market has been growing steadily in response to increasing consumer demand for healthier choices. They are often marketed as healthier alternatives, appealing to health-conscious consumers who want to enjoy dairy products while managing their fat intake. For example, Nestle is offering reduced-fat yogurt and milk-based products under its brand Nestle. Fitness. Manufacturers are continually developing new reduced-fat dairy products to cater to evolving consumer tastes and preferences. Such factors are expected to drive the growth of the dairy segment of the market during the forecast period.

 By Distribution Channel

The market share growth by the supermarkets and hypermarket 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 38.87 billion in 2017 and continued to grow until 2021. 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.

The convenience stores segment plays a significant role in the global market. Convenience stores are retail outlets that offer a wide range of products to fulfill the immediate needs of consumers. Reduced fat packaged products are available to customers, which allows the consumers to make healthier choices. Convenience stores often engage in promoting activities such as discounts, loyalty programs, or bundling options can incentivize customers to choose reduced fat options over high-fat alternatives. Such factors are expected to drive the growth of the convenience stores segment of the global market during the forecast period.

Key Regions for the Market 

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North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, especially in the US, from 2021, the demand for reduced fat packaged products such as reduced-fat bakery products, reduced fat dairy products, and other products is increasing from consumers. Moreover, rising awareness about health and wellness among consumers is increasing the demand for confectionery products in North America. Due to the increase in the of new product launches, the entry of new companies and product innovations is happening. The increasing awareness among consumers about health and wellness is expected to drive the growth of the regional market during the forecast period.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Deployment Outlook
  • Supermarkets and hypermarkets
  • Convenience stores
  • Specialty stores
  • Online

• Application Outlook
  • Bakery
  • Dairy
  • Cereals
  • Meat products
  • Others

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • South America
    • Chile 
    • Argentina
    • Brazil
• • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The Market is experiencing steady growth driven by the increasing demand for healthy packaged food products amidst changing eating habits and a quickening pace of life. Consumers are seeking low-calorie snacks and meals to align with their preferences for healthier options. With a focus on reducing saturated and trans fats, the market offers a variety of ready-to-eat food options, including organic and preferences of fresh food products. Dairy and meat alternatives such as tofu, whole milk, skimmed milk, low-fat yogurt, and lean smoked ham are gaining popularity among health-conscious consumers. Additionally, water-packed tuna provides a convenient and nutritious option for those seeking reduced-fat protein sources. As the trend towards healthier eating continues, the market for these products is expected to expand further.

Strawberry lemonade, blueberry acai, and orange creamsicle are just a few examples of the diverse flavors found in the flavored reduced-fat beverage market. Manufacturers invest in research and development activities to create innovative products like reduced-fat yogurt drinks, meeting the evolving demands of the food industry. The emphasis on healthier options requires the development of necessary infrastructure and the reduction of chemical preservatives in products. With a focus on packaging type and food processing industries, the market adapts to changing living standards by providing options that align with organized dairy markets and cater to consumer preferences for healthier and more nutritious choices.

The market is a dynamic landscape shaped by various factors, including consumer preferences and industry competition. Leading players like Dean Foods and ZolCal in California offer innovative options, incorporating real fruit and sugar alternatives like sugar allulose. Market analysis emphasizes product satisfaction and market share, with a focus on diverse packaging formats such as bottles, metallic containers, and stand-up pouches. These products cater to a broad customer base, available in supermarkets, hypermarkets, and specialty stores. Additionally, manufacturers explore avenues like nutraceuticals and infant formulations to expand their offerings. With a competitive landscape and a growing demand for healthier options, the market for reduced-fat packaged foods continues to evolve.

Reduced Fat Packaged Food Market Scope
Report Coverage	Details
Page number	188
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.5%
Market growth 2023-2027	USD 18.01 billion
Market structure	USD Fragmented
YoY growth 2022-2023(%)	4.02
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 32%
Key countries	US, Canada, China, Germany, and UK
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, DFM Foods Ltd., 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 growth and trends, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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