International Markets Bureau
MARKET INDICATOR REPORT | FEBRUARY 2010

PACKAGED FOODS In the United States

Packaged Food Sales in the United States

EXECUTIVE SUMMARY
In 2008, the packaged food market in the United States (U.S.) experienced above average growth relative to the 2003-2008 review period. At first glance, this appears to be a promising upturn, however, a closer look shows that much of the growth was due to increases in prices. Manufacturers were forced to raise prices to cover rising commodity costs. In an effort to maximize value, many consumers have turned to private label products. In 2007, private label products gained a significant market share of U.S. packaged food sales. Forecasts show that this growth trend is expected to continue through 2013, as retailers focus on private label goods to expand profit margins and gain consumer loyalty. Supermarkets/hypermarkets continued gaining market share in 2008. Much of this positive movement was due to the success of Wal-Mart supercenters, a hypermarket that offers a full selection of groceries, in addition to Wal-Mart discount stores’ traditional mass merchandiser offerings.

INSIDE THIS ISSUE

Economic Trends

3

Packaged Foods in the U.S.

3

Key Market Segments

4-7

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The U.S. packaged food market is ex-

CONSUMER TRENDS
Retail sales of packaged foods in the U.S. are projected to grow by over 6% between 2008 and 2013 to reach US$352 billion by 2008. In response to the growing health and wellness trend, the packaged foods industry is expected to focus more of its new product development and marketing funds on foods that offer health benefits. Consumer interest in disease prevention and food as medicine should benefit a number of products, including many functional foods, organic foods and fresh produce. In the coming years, companies are expected to be more attuned to the aging population and will increase new product development and marketing that targets this