Processed Food Market Size, Share and Demand

Processed Food Market Size, Share and Growth Rate Forecast 2034

The global processed food market size reached at USD 2.09 trillion in 2024 and is anticipated to increase from USD 2.18 trillion in 2025 to an estimated USD 3.23 trillion by 2034, witnessing a CAGR of 4.48% during the forecast period from 2025 to 2034. The market is attributed to the increasing demand for convenience food products.

Key Highlights

• By region, North America dominated the global processed food market in 2024, due to the increasing consumption of packaged foods. 
• By region, Asia Pacific is expected to grow at a notable rate during the forecast period, which is driven by the increasing demand for ready-to-cook food products. 
• By type, the secondary processed food segment held a major market share in 2024, driven by the growing urban areas.
• By type, the ultra-processed foods segment is projected to grow at a significant CAGR between 2025 and 2034, driven by growing urbanization. 
• By technology, the freezing segment contributed the biggest market share in 2024, due to the increasing demand for frozen foods. 
• By technology, the extrusion segment is expanding at a significant CAGR between 2025 and 2034, due to the increasing demand for innovative snacks. 
• By product, the grains & cereals segment held a major market share in 2024, driven by the increasing rapid consumption of staple products.
• By product, the meat & poultry segment is projected to grow at a CAGR between 2025 and 2034, driven by increasing demand for protein-rich foods.

Industry Coverage

How did Processed Food Accelerate Consumer Demand in the Market in 2025?

The processed food market deals with food that is modified from its natural state via methods including canning, freezing, cooking, and the addition of preservatives to improve the convenience, flavor, and shelf life of the food. Processed foods generally can contribute to heart-related issues and provide lower nutritional value. The market growth for processed foods is witnessing rapid growth due to the increasing demand for convenience food products and increasing consumer preference towards changing lifestyles. Leading to rapid consumption of ready-to-cook and ready-to-eat foods, urbanization has played an important role in changing dietary patterns, which is further expected to drive market growth.

Some of the significant factors driving the market are the increasing popularity of freezing and canning methods. By consuming high-quality foods rich in minerals and vitamins, many consumers are becoming aware of leading healthy lifestyles. To adopt convenient and easy food options, this trend is enhancing urban populations. In addition, increased spending power is also accelerating the demand for canning techniques and driving the popularity of canned foods in food processing. Furthermore, the demand for convenience has increased due to busy lifestyles. Innovations in packaging, advancements in food processing technology, and urbanization are also expected to increase processed foods that are more accessible and affordable, which further drives the market.

Processed Food Market Trends

• Increasing growth in clean-label and organic processed foods: Consumers are rapidly moving towards clean-label foods which enhances purchasing decisions and improves brand trust, which has contributed to accelerating the demand for processed foods.
• Increasing number of working women: The increasing number of women in the workforce, may cause insufficient time to prepare food every day, which may increase the demand for the market. 
• Increasing demand for functional and plant-based ingredients: Consumers are rapidly shifting towards plant-based foods due to factors such as cultural practice, sustainability, and health awareness, which are expected to increase the demand for processed foods.

Market Opportunity

Advanced Processing Techniques

The food industry is also keeping pace with innovation, with advancing technology across all industries. The food processing industry is transforming rapidly due to the integration of technological advancements. To sterilize food products while retaining their natural nutritional value, taste, and aroma, various experts leverage state-of-the-art techniques and aseptic processing. In addition, processed food products are packed in a sterile environment, and make sure that products don't need any artificial additives and preservatives for longer shelf life, which increases the demand for processed foods. In addition, to meet the requirements of modern-day consumers, processed foods offer innovative solutions and reduce wastage, which is further expected to revolutionize the growth of the processed food market in the coming years.

Market Challenge

Increasing Consumer Shift Towards Natural Additives

The increasing awareness of artificial additives and preservatives is a major challenge that may hinder market growth. Consumers are rapidly looking for alternatives to highly processed foods and are becoming more health-conscious toward natural alternatives. Due to this, clean-label, natural, and organic food products are gradually improving on retail shelves across the globe. In addition, this preference has led to slow growth in various applications, such as unhealthy ingredients and excessive preservatives, which are further expected to restrain the growth of the market during the forecast period.

Regional Insights

North America processed food market trends

North America dominated the market share in 2024. The growth of the market is owing to the focus on new product advancements and development, rising innovation in processed food, increasing demand for ready-to-eat products, snacks, frozen meals, and others, and increasing consumption of convenience and packaged foods. In the region, with over 50% of daily calories eaten being sourced, the consumption of processed foods is high. The consumers' preference towards processed foods is very high, due to industrialization, urbanization, and the growing population.

How U.S. dominated the processed food market in 2024?

The U.S. dominated the market share due to the increasing changing lifestyles, increasing demand for snacks and packaged foods, rising demand for frozen food, and increasing working women's workforce. In the U.S. 73% of the food is currently the top-ranked country and highly dominated by ultra-processed foods. On a daily basis, the population in the U.S. consumes over half of its calories from ultra-processed food sources. Most of the people eating at least one pre-made or packaged food with every meal in the U.S.

• In February 2025, with the launch of Simply Pop, Coca-Cola entered the fast-growing prebiotic soda market. This launch focuses on gut health and remains just 2% of the 42.4 billion soft drink market in the U.S. (Source: Fortune)

Asia Pacific processed food market trends

Asia Pacific is expected to grow fastest during the forecast period. The market growth in the region is driven by factors such as increasing consumer preference towards convenient processed food options, increasing busy lifestyles, growing middle class population, and increasing demand for ultra-processed food products, snacks, and ready-to-cook foods. China, India, Japan, and South Korea are the fastest growing countries in the region.

India is expected to grow fastest during the forecast period. The market is experiencing rapid growth in the country due to factors such as increasing growth of modern retail formats, increasing disposable incomes, and rapid urbanization. The Indian food processing market plays an important role in the economic growth of India. The market for processed foods is further influenced by an increasing number of restaurants, e-commerce retailers, and brand-oriented importers.

• In May 2025, a digital campaign, Meri Thali Sehatwali was launched by UNICEF India to promote healthy food choices and healthy eating for the whole family. (Source: Unicef) 

Segmental Insights

Type Insights

How did the secondary processed food segment dominated the processed food market in 2024?

The secondary processed food segment dominated the market share in 2024. The segment growth in the market is driven by increasing consumption of processed foods in both developing and developed countries, increasing busy lifestyles, growing urbanization, and increasing affordability and convenience of processed foods. The secondary processed food deals with ready-to-eat foods, canned vegetables, and baked products

The ultra-processed foods segment is expected to grow fastest during the forecast period.

The segment growth in the market is driven by increasing consumer preference towards quick and instant food options, the rise of retail chains and supermarkets, and growing urbanization. The ultra-processed foods include instant noodles, snacks, and other foods.

Technology Insights

Why did the freezing segment dominated the processed food market share in 2024?

The freezing segment dominated the processed food market in 2024. The segment growth in the market is attributed to the increasing demand for healthy and convenient options, increasing demand for nutritious and long-lasting options, and increasing consumption of ready-to-cook meals, vegetables, and frozen fruits. In addition, segment growth is also experiencing rapid growth due to various benefits such as availability & freshness, time-saving convenience, economic choice, sealed freshness, longer frozen food storage life, less food waste, optimal nutrition, consistent high-quality, unbeatable value, and more.

The extrusion segment is expected to grow fastest during the forecast period.

The segment growth in the market is propelled by increasing consumer preference towards convenient and novel food choices, increasing consumption of extruded breakfast and snack cereals, increasing demand for innovative snacks, and increasing snack production to produce puffed snacks, pasta, and cereals.

• In March 2025, to promote sustainable practices for farmer empowerment and support women's entrepreneurship in food science, Pondicherry University launched an extrusion hub that is used to produce processed cheese, textured vegetable protein, pasta, pet food, cereals, snacks and more. (Source: The Hindu)

Product Insights

What factors helped to dominate the grains & cereals segment in the processed food market in 2024?

The grains & cereals segment dominated the processed food market in 2024. The segment growth in the market is driven by the increasing consumption of staple foods such as pasta, rice, and bread. The grains and cereals have various health benefits such as high in nutrients and fiber, reducing the risk of heart disease, reduced risk of stroke, reduced risk of obesity, lower risk of type 2 diabetes, supporting healthy digestion, reducing chronic inflammation, and reducing the risk of premature death, which further drives the segment growth.

The meat and poultry segment is expected to grow fastest during the forecast period.

The segment growth in the market is attributed to the increasing consumer preference towards protein-rich and convenient food options, increasing consumption of processed meats, including pre-cooked poultry, nuggets, and sausages, and increasing disposable incomes. 

Recent Developments in the Processed Food Market

• Launch: In March 2024, Manipur Chief Minister N. Biren Singh launched a diverse array of processed food products, in a resounding display of commitment to development amidst challenges under the brand Manifresh on 5th February 2024. The aim behind this launch was to modernize agricultural practices in the state. (Source: my GOV)

Al Islami Foods 

• Announcement: In November 2024, a UAE pioneer in the wholesome food products sector, Al Islami Foods announced the launch of its extensive processed food range in Qatar. This range includes an irresistible selection of items including Mince, Zing, Kebab, Franks, Nuggets, Burgers, and much more. (Source: Zawya)

Processed Food Market Leading Companies

• Tata Consumer Products Limited (India)
• Nestle (Switzerland)
• General Mills (U.S.)
• PepsiCo, Incorporation (U.S.)
• Fonterra Co-operative Group (N.Z.)
• Danone (France)
• Tyson Foods, Incorporation (U.S.)
• Unilever (U.K.)
• Kraft Heinz Company (U.S.)

Segments Covered in the Report

By Type

• Secondary Processed Food
• Ultra-Processed Food

By Technology

• Drying
• Extrusion
• Freezing
• Grinding
• Others

By Product

• Fruits & Vegetables
• Grains & Cereals
• Dairy
• Meat & Poultry
• Others

By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa (MEA)
• Latin America