U.S. Packaged Food and Beverages Market Size & Share Analysis - Key Trends, Future Opportunities, Growth Strategies, and Forecasts (2025 - 2032)

Name: U.S. Packaged Food and Beverages Market Size, and Growth Report, 2032
Creator: P&S Intelligence
License: https://www.psmarketresearch.com/privacy-policy

This Report Provides In-Depth Analysis of the U.S. Packaged Food and Beverages Market Report Prepared by P&S Intelligence, Segmented by Product Type (Packaged Food, Packaged Beverages), Material (Paper & Paper-based, Plastic, Metal, Glass), Distribution Channel (E-commerce/Online stores, Supermarket/Hypermarket, Conventional, Retail stores, Foodservice), and Geographical Outlook for the Period of 2019 to 2032

Report Code: 13599
Pages: 165

Key Highlights

Study Period	2019 - 2032
Market Size in 2024	USD 980.8 Billion
Market Size in 2025	USD 1015.1 Billion
Market Size by 2032	USD 1378.7 Billion
Projected CAGR	4.5%
Largest Region	South
Fastest Growing Region	West
Market Structure	Fragmented

Market Size

U.S. Packaged Food and Beverages Market Growth Forecast

Major Companies

U.S. Packaged Food and Beverages Market Companies

Important Takeaways

Market Size and Forecast
Industry Trend
Regulatory Landscape
Demand Trend Analysis
Companies Recent Strategical Developments
Key Stakeholders
Voice of Industry Experts/KOLs
Future Opportunity

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U.S. Packaged Food and Beverages Market Analysis

The size of the U.S. packaged food & beverage market in 2024 was USD 980.8 billion, and it will reach USD 1378.7 billion by 2032 at a CAGR of 4.5% during 2025–2032.

The major drivers for the market include the growth in population, a rise in its disposable income, changes in its lifestyle, and increase in its preference for convenience, all because of its constant move to cities. People who work long hours do not get enough time to cook a healthy meal from fresh ingredients. Hence, they either resort to semi-cooked meals that require light cooking or merely reheating in a microwave or packaged snacks, such as nutrition bars, chips, cakes & other baked products, and energy drinks.

This is credited to the changing consumer behavior and constant innovation by companies to expand health-related and sustainable brands. The evolving cultural patterns with the changing work timetables have triggered consumers to consume packaged food, including ready-to-eat meals, snacks, canned fruits & vegetables, processed meats (such as Spam), spices & condiments, and sauces.

The rise of health consciousness has caused organic, plant-based, and functional food & beverage products to become popular among customers. Businesses are investing considerably to preserve the environment by decreasing plastic waste and providing green packaging options. PepsiCo Inc. has announced a USD-216 million investment in regenerative agriculture programs, targeting 7 million acres in the U.S. by 2030.

U.S. Packaged Food and Beverages Market Emerging Trends & Growth Drivers

Plant-Based and Organic Products Are Major Trend

People who care about their health and the environment now prefer food items that support are plant-based yet nutritious.
Conventional processed food & beverage products contain significant amounts of chemical preservatives, coloring agents, flavoring substances, and stabilizers, along with excessive sugar and salt, which can be harmful to the body.
These agents pose severe risks of obesity, type 2 diabetes, heart diseases, and even certain kinds of cancers.
According to the National Institutes of Health (NIH), almost 40 million people in the U.S. suffer from diabetes and more than 30% from obesity.
Nationwide awareness programs making people knowledgeable of these risks are now driving a shift to clean-label products that contain minimal amounts of chemicals, are sourced from organically grown plants, and packaged in sustainable materials.
Despite the fact that organic and plant-based food products can be twice as expensive as conventional ones, people’s rising health awareness and spending power drive their sales.
Further, concerns over animal cruelty are leading to a rapid shit toward veganism, with around 5% of the country’s population currently identifying itself as vegan.
Several celebrities endorse clean-label, cruelty-free, plant-based, and organic food & beverage products, which goes a long way in influencing the general public.
Therefore, people are choosing products with a low calorie content, low-fat profiles, and gluten-free, sugar-free, and organic labels.
There is a growing preference for packaged products with transparent ingredient lists that highlight the non-existence of artificial additives and preservatives.
Since 2018, the FDA has been rigorously enforcing regulations to mandate chain restaurants to prominently display calorie information on their menus.

Urbanization and Changing Lifestyles Are Major Drivers for Market

Over 80% of the population of the U.S. presently lives in cities, and this percentage continues to climb every year.
With urbanization comes a rise in people’s income and the cost of a more-hectic life with less time to cook a proper meal from scratch.
The Bureau of Labor Statistics pegs the overall employment rate in the U.S. at 60%.
As per studies, less than 50% of the country’s population always cooks at home.
Over half the calories for the U.S. population are provided by ultra-processed food because of the lack of time to cook, convenience of packaged food, and people’s desire for new flavors and culinary experiences.
Moreover, more than 50% of the households in the U.S. are dual-income households, which cook even less at home than single-income households.
From simple spice mixes to complete TV dinners, virtually every kind of packaged food and beverage is available at the local deli, supermarket, and online.
Even quick-serve restaurants use a lot of packaged ingredients to speed up cooking, as it can get quite manic during the lunch and dinner service.
The rich trend of on-the-go snacking is another major driver for the packaged food & beverage market of the country.

U.S. Packaged Food and Beverages Market Segmentation Analysis

Insights by Product Type

Within packaged food, the snacks category leads the market with a share of 15% because consumers prefer convenient and nutritious bites for a casual meal or when on the go. The growing number of people leading busy lives and, thus, choosing quick eating drives the popularity of snacks, such as protein bars, nuts, chips, cookies, and popcorn. Plant-based, organic, and high-protein packaged food satisfies health-sensitive consumers’ needs. Consumers are spending more on functional snacks that contain proteins and fibers.

The product types analyzed here are:

Packaged Food
- Bakery & Confectionery
- Dairy Products
- Frozen & Ready-to-Eat Meals
- Snacks (Largest Category)
- Breakfast Cereals & Granola Bars
- Sauces, Dressings & Condiments
- Canned & Preserved Food
- Baby Food & Infant Formula
- Plant-Based & Alternative Proteins (Fastest-Growing Category)
Packaged Beverages
- Carbonated Soft Drinks
- Bottled Water
- Coffee & Tea
- Juices & Juice Drinks
- Sports & Energy Drinks
- Functional & Nutritional Beverages
- Alcoholic Beverages

Insights by Material

Within plastics, PET dominates the market with a share of 25% because of its strong performance, low weight, and affordability. PET meets widespread usage requirements in water bottles for carbonated beverages and prepared meal packaging, blocking contaminants, maintaining freshness, and enhancing shelf life. Plastic containers make up about 40% of the total food packaging consumed in the U.S., as per the EPA. There is also an increase in the use of eco-friendly packaging solutions and biodegradable materials.

Coca-Cola and Nestlé have developed eco-friendly plastics that comply with the government’s regulations. General Mills has invested over USD 100 million in eco-packaging and clean-label innovation across its snack and cereal segments. PET is 100% recyclable, which is why its usage is backed by the strong government support for the circular economy and the consumer demand for environment-friendly packaging.

The materials analyzed here are:

Paper & Paper-based (Fastest-Growing Category)
Plastic
- PE
- PP
- PET (Largest Category)
- Others
Metal
Glass
Others

Insights by Distribution Channel

Retail stores dominate the market with a share of 70% because they provide a broad product selection, economical value, and accessible locations. These places allow customers to complete their entire weekly shopping list in one visit, including groceries, snacks, beverages, and frozen meals. Every neighborhood at tens of these small retail stores that offer a large selection of food and are well-known among the public.

U.S. Packaged Food and Beverages Market Segmentation Analysis

The distribution channels analyzed here are:

E-commerce/Online stores (Fastest-Growing Category)
Supermarket/Hypermarket
Conventional
Retail stores (Largest Category)
Foodservice
- Quick-Service Restaurants
- Cafés & Coffee Shops
- Hotels & Catering Services
- Institutional Sales

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U.S. Packaged Food and Beverages Market Regional Market Performance

The South dominates the market with a share of 40% because of its big population, fast-paced urban development, and robust retail establishment. The states of Texas, Florida, and Georgia are experiencing the rapid expansion of supermarket chains, convenience stores, and e-commerce platforms. The U.S. Census Bureau indicates that the South is home to 40% of the nation’s population, which creates a massive demand for packaged goods. The population diversity of the region drives sales of ethnic food, frozen and prepared meals, and ready-to-drink beverages. With the increasing rate of urbanization and employment, people here also now have more to spend on packaged food & beverage products.

The regions analyzed here are:

Northeast
Midwest
West (Fastest-growing region)
South (Largest Region)

U.S. Packaged Food and Beverages Market Share Analysis

The market is highly fragmented due to the presence of numerous multinational companies, regional brands, and startups. No category of packaged food and beverages has any dominant company. Small companies are effectively competing by leveraging technological innovations, making strategic acquisitions, and developing specialized food products. Most of these businesses are focused on organic, plant-based, and functional food products. Moreover, the variety of packaged food and beverages is so vast that no company can ever offer everything. Hence, the smaller companies especially dominate the ethnic food segments, as multinational corporations often do not have expertise in specific food cultures.

Key U.S. Packaged Food and Beverages Companies:

Nestl
PepsiCo, Inc.
The Coca-Cola Company
General Mills, Inc.
The Kraft Heinz Company
Mondelez International, Inc.
Mars, Incorporated
Unilever United States, Inc.
Tyson Foods, Inc.

U.S. Packaged Food and Beverages Market Developments

In January 2025, PepsiCo Inc. purchased Garza Food Ventures LLC, doing business as Siete Foods, for USD 1.2 billion.
In August 2024, Mars Incorporated declared its plans to buy Kellanova for USD 35.9 billion, including USD 83.50 per share. Mars Incorporated expects its purchase of Kellanova to finalize within the first half of 2025.