Packaged Salad Market Size, Share & Trends Analysis Report By Product (Vegetarian, Non-vegetarian), By Processing (Organic, Conventional), By Type, By Distribution Channel, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global packaged salad market size was valued at USD 10.78 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.2% from 2021 to 2028. The growth of the market can be attributed to the rising popularity of salads and the ease of consumption provided by packaged food. The availability of pre-packed salads containing a variety of vegetables and fruits, dressed in condiments and dressings, and supplemented by a variety of meats and seafood has fueled the market growth. The COVID-19 pandemic has offered some respite to the market for packaged salad as people around the world have taken an unprecedented interest in cooking at home. With restaurants shut in most parts of the world, consumers have been preparing their own meals, which has driven the demand for various basic food items and ingredients, including packaged salads. This scenario is likely to keep the market prospects upbeat.

Over the past few years, consumers’ food preferences have been gradually shifting toward healthy plant-based foods. These salads containing numerous leafy vegetables are full of nutritional properties and are an excellent source of fibers, minerals, vitamins, and proteins. Moreover, these salads are rich in antioxidants, vitamins A, K, C, and E, iron, calcium, and potassium.

Apart from the high nutritional content, these salads are more easily digestible and help improve the digestion system, compared to any processed or fortified food. The growing trend of organic food and beverages is expected to offer numerous opportunities for the market in the upcoming years. This trend is attributed to the increasing consumer awareness about the harmful effects of pesticides, chemicals, and additives and the high per-capita income of the consumers.

Furthermore, the rise of social media has created mass momentum toward achieving a fitter body. A majority of consumers consider healthy eating habits a major contributor to achieving physical wellness. The demand for a fiber-rich diet with low-fat and protein-enriched content has made salads the most appropriate dish to achieving their goal, and thus the demand for packaged salad is expected to witness consistent growth over the coming years.

Product Insights

The vegetarian segment held the largest share of 67.4% in 2020 and is expected to maintain its lead over the forecast period. The rising number of health-conscious consumers around the world is driving the demand for vegetarian products. Individuals shopping for organic produce/products continue to generate significant demand for vegetarian packaged salads in this regard. At a macro-level, the rising popularity of vegetarian and vegan food, most notably in European and North American countries, continues to boost demand for vegetarian salads.

The non-vegetarian segment is projected to register a significant CAGR of 8.2% from 2021 to 2028. Shifting consumer focus toward protein-enriched diets to achieve the desired body figure or shape has been contributing to the demand for non-vegetarian packaged salads worldwide. Brands offering such products typically market their products as a wholesome choice for the present-day active lifestyle. White chicken meat is one of the most common ingredients used in non-vegetarian packaged salads.

Type Insights

The packaged greens type segment accounted for the largest share of more than 63.0% in 2020.Packaged greens have been gaining popularity owing to their raw taste without the addition of any type of seasonings, dressings, and condiments. Increasing customer demand for raw packaged salads has resulted in a slew of new products being launched in the global market by both established players and newcomers.

People across the globe are increasingly adopting packaged greens in order to cut down their intake of extra calories, sugar, and fat. Other forms of the product contain a number of condiments, sauces, and dressings, which contain added calories. Such types of consumer preferences are driving the market demand globally.

The packaged kits type segment is expected to register the fastest CAGR of 8.4% from 2021 to 2028. With the increasing number of one-person households, most people living alone find it difficult to adopt a healthy diet. Thus, most people who live alone or cannot find the time to prepare their own meals have been trying to find healthier alternatives, such as packaged salad kits, which are healthier as well as tasty.

Distribution Channel Insights

The offline distribution channel accounted for the largest share of more than 80.0% in 2020.Supermarkets and hypermarkets are prominent distribution channels for the product worldwide. Unlike grocery stores, orders across supermarkets are larger. While grocery stores help brands to stay customer-focused, supermarkets allow brands to increase sales by allowing them access to a considerably large customer base.

The online distribution channel is expected to register the fastest CAGR of 9.0% from 2021 to 2028. The perishable nature of the product, coupled with the unique logistic and storage requirements, is a key factor slowing down the distribution of these products through online channels. However, the recent consumption patterns and shifting shopper sentiments indicate that the category is poised for robust growth.

Processing Insights

The conventional segment held the largest share of more than 65.0% in 2020.Conventionally processed packaged salads are those produced through conventional farming methods, as opposed to organic techniques/methods. Conventionally processed packaged salads are typically cheaper than their organic counterparts as conventional farming is generally cheaper than organic farming.

Furthermore, the lack of consumer awareness regarding organic products, most notably in Asian countries, is expected to favor the growth of the conventional segment over the forecast period. The Asian packaged industry is still a fledgling industry owing to a considerable lack of consumer awareness regarding the benefits of organically processed products. This lack of consumer knowledge, particularly in countries such as India and Sri Lanka, has benefitted the demand for conventional salads.

The organic segment is expected to register the fastest CAGR of 8.6% from 2021 to 2028. Heightened food safety concerns among consumers continue to build interest in the segment. According to numerous industry experts, greenhouse-grown products are likely to gain traction in the foreseeable future and help boost segment growth.

Regional Insights

North America held the largest share of over 41.0% in 2020.The growing health-related concerns, such as obesity, among consumers are propelling the demand for nutritional products in the region. According to the data published by the Government of Canada, in 2018, Mexicans have one of the highest obesity rates of approximately 72.5% in the world.

Asia Pacific is expected to expand at the fastest CAGR of 9.2% from 2021 to 2028. The increasing awareness about the importance of green leafy vegetables in the diet and the rising consumer preference for on-the-go food products are expected to drive the demand in this region. Furthermore, the increasing adoption of western-style food habits, especially among the youth, in countries like India is driving the product demand in the region.

Key Companies & Market Share Insights

The market is characterized by the presence of a few well-established players and several small and medium players. Industry participants face intense competition, especially from top players, as they have a large consumer base, strong brand recognition, and vast distribution networks.

Companies have been implementing various expansion strategies, such as mergers & acquisitions, new product launches, and production capacity expansion, to gain a competitive advantage over other players. Mergers and acquisitions are one of the key strategic initiatives in the industry. For instance, in June 2019, Bonduelle acquired LLC SHOCK frozen vegetable company’s production plant in the Belgorod region, Russia. This new plant acquisition will increase the production capacity of Bonduelle and help it in coping with the growing frozen market demand in Russia. Some prominent players in the global packaged salad market include: -

• BrightFarms

• Dole Food Company Inc.

• Earthbound Farm

• Eat Smart

• Fresh Express Incorporated

• Misionero

• Gotham Greens

• Mann Packing Co., Inc.

• Bonduelle

• Organicgirl

Packaged Salad Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global packaged salad market report on the basis of product, processing, type, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2028)

  • Vegetarian

  • Non-vegetarian

• Processing Outlook (Revenue, USD Million, 2016 - 2028)

  • Organic

  • Conventional

• Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Packaged Greens

  • Packaged Kits

• Distribution Channel Outlook (Revenue, USD Million, 2016 - 2028)

  • Online

  • Offline

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa