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May 2025
The U.S. processed food market size was valued at USD 190.00 billion in 2024 and is expected to grow steadily from USD 204.44 billion in 2025 to reach nearly USD 395.25 billion by 2034, with a CAGR of 7.60% during the forecast period from 2025 to 2034. Rising demand for convenience and ready-to-consume foods along with increasing health awareness significantly boosting the market.
Convenience food options such as pre-packaged, simple-to-prepare meals and ready-to-eat items are becoming more popular as consumer lifestyles become faster. Due to hectic schedules, long work hours, and active family engagements, people are looking for time-saving solutions and requesting convenient food options. The U.S. processed food market is expanding because of this shift, adjusting to fulfill consumer demands for convenience while preserving taste and quality. With shifting household dynamics and busy lifestyles, today’s consumers seek to acquire almost all their daily nutrition in an instant. Individuals are eating prepackaged and ready-made meals, leading to a rise in demand as numerous people in developing areas relocate to cities, earning higher incomes and having the capacity to purchase processed foods. International trade systems enable food producers to reach a larger variety of markets, allowing them to offer a more extensive array of products.
Food processing technologies are essential for guaranteeing the safety, quality, and sustainability of the worldwide food supply. Embracing innovations in food processing technologies can enhance consumer trust, minimize waste, and establish a sustainable food supply chain. The incorporation of advanced technologies like high-pressure processing, pulsed electric fields, microwave heating, nanotechnology, ultrasonication, and smart packaging systems has transformed the food processing industry. There is an increasing shift toward automation and technology integration in food processing, where producer’s proficiency in crafting tailored lines for various products such as chips, frozen french fries, and diverse fruit processing applications can significantly enhance value.
Since processed foods have become essential in American diets, they’ve permanently altered physical well-being. Processed foods play a role in the obesity crisis and long-term health issues like type 2 diabetes, increasing awareness of synthetic preservatives and additives. Shoppers are increasingly aware of health issues and are on the lookout for substitutes to heavily processed items. Consumers are opting for the minimally processed or unprocessed food because of rising health concerns.
U.S. exports of processed food items and the sales from foreign branches of U.S. firms in the sector have been increasing swiftly. Canada and Mexico are the two primary trading partners of the United States in the Western Hemisphere, while limited amounts of processed food items are sent to various other countries in the region. U.S. Foreign Direct Investment (FDI), like exports, is primarily focused on Canada and Mexico, though noteworthy FDI also exists in South American nations like Brazil and Argentina's processed food sector. U.S. foreign direct investment, indicated by sales from overseas affiliates, is considerably higher than U.S. processed food exports. (Source: Ag Econ search)
The food processing industry in the United States consists of 1.95K firms, which includes 602 funded entities that have together secured $10.9B in venture capital and private equity investments. Among these, 436 have received Series A+ funding, and 1 has attained unicorn status. By April 2025, there were 8 acquisitions in the food processing industry in the United States. In 2024, a total of 44 acquisitions occurred in the Food Processing industry in the United States last year. As of February 2025, food processing firms in the United States have secured $32.5M in equity financing through 7 rounds. Most food processing startups in the United States have been established by graduates from Harvard University, Stanford University, and the Massachusetts Institute of Technology. (Source: Tracxn)
Secondary processed foods segment dominated the U.S. processed food market with the largest share in 2024.
The secondary processed demand is experiencing prominent increase in recent years due to the rising demand for convenience foods, risen consumer interest in processed food, and the surge of various health-conscious trends. Secondary processing is widely utilized for variety of products such as snack foods, bakery products, beers and porridges, each having fascinating texture, flavour and colour. Increasing demand for the snack foods, bakery and convenience foods increasing the demand for secondary processed food.
Ultra-processed foods segment is observed to grow at the fastest rate in the U.S. processed food market during the forecast period.
Swift urban growth and increasing net income are fueling the need for easy and ready-to-eat food. Intense promotion and marketing of ultra-processed food items are fueling market expansion, accompanied by a trend toward increasing interest in plant-based and clean eating. The rapidly increasing population has resulted in a rise in ultra processed food consumption, as these products are less expensive to manufacture and can yield more food than conventional food production methods. An additional factor in the increase of UPFs is industrialization, as it facilitated the development of food processing technology and significantly influences the types of foods accessible to consumers. The United States ranks as the top nation in the consumption of ultra-processed foods, as UPFs make up roughly 60% of the overall daily calorie intake.
The freezing segment held the largest share of the U.S. processed food market in 2024.
Rising income and busy lifestyle increasing the demand for the frozen ready-to-cook food and product life is also extended because of freezing. Surge in the demand of the frozen food advancing the freezing technology. Technological innovation in freezing techniques keep revolutionizing the food sector, as these developments help to reduce producing times and rise energy efficiency but also improve the quality of frozen goods.
The extrusion segment is seen to grow at a notable rate in the U.S. processed food market during the predicted timeframe.
Extrusion technology exceeding in adaptability, quickly responding to consumer demand by adjusting ingredients and conditions. It offers variety of items with distinctive attributes, meeting varied market preferences. Extrusion technology is largely applicable food processing sector for the formulation of variety of snacks, supplementary foods, breakfast cereals, pasta, pet foods, and other textured foods. It is an efficient technology for integrating food processing by-products and residue back into the food stream.
The grains & cereals segment led the U.S. processed food market in 2024.
Rising health awareness among individuals has surged demand for whole grains and healthy cereals, as they are considered as nutritious food choices. Furthermore, the increasing population and dietary shift in consumer’s habits are contributing to an enhancement in cereal consumption. The increasing trend of plant-based food creates an opportunity for industries to invest in alternative grains that are rich in proteins and other nutrients. Rise in the demand of convenience foods is promoting producers to formulate ready-to-eat cereal items, which can capture a wide consumer base looking quick meal solutions.
The meat & poultry segment is expected to grow at the fastest rate in the U.S. processed food market during the forecast period.
Increasing demand for the protein diets among consumers boosting the meat and poultry products demand. There is extended business of products in the presentation of cured, smoked, canned meat and frozen products with rising consumption and utilization by household individuals, foodservice firms and retail establishments present in the industry.
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