Ultra-Processed Food Market to Grow by USD 856.6 Billion (2025-2029), Driven by Strong Advertising and Marketing, with AI Driving Market Transformation - Technavio

NEW YORK, Feb. 11, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The global ultra processed food market size is estimated to grow by USD 856.6 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  9%  during the forecast period. Strong advertising and marketing of ultra processed food products is driving market growth, with a trend towards growing shift towards plant-based and clean eating. However, health risks associated with consumption of ultra processed food products  poses a challenge. Key market players include Archer Daniels Midland Co., Atkins Nutritionals Inc., Campbell Soup Co., Corporativo Bimbo SA de CV, Danone SA, Dr. August Oetker KG, General Mills Inc., Hansen Foods LLC, Hormel Foods Corp., International Flavors and Fragrances Inc., McCain Foods Ltd., Mondelez International Inc., Nestle SA, One Planet Pizza, Otsuka Holdings Co. Ltd., Sudzucker AG, Sysco Corp., The Kraft Heinz Co., Tyson Foods Inc., and Unilever PLC.

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Market Driver

The ultra-processed food market is witnessing significant trends and disruptions. Consumers are increasingly demanding clean-label food ingredients and natural food products. Additives like preservatives, stabilizers, and texturizers are under scrutiny due to health risks linked to cancer, cardiovascular disease, and diabetes. Food manufacturing is evolving with advanced processing methods such as extrusion, fermentation, and induction heating. Electric heating and electromagnetic elements ensure consistent cooking results and energy savings. Emerging opportunities include dairy-free products, plant fiber, and nutrient-dense food. Rapid urbanization and changing lifestyles are driving the demand for convenient, directly consumable food. Ultra-processed foods offer quick preparation and long shelf life. However, existing restraints like health concerns and seasonal availability persist. Industry influencers are innovating with new products, such as organic food and unique textures, to cater to growing consumer preferences. Precise temperature control and preservation systems ensure food quality and freshness. Studies link ultra-processed foods to health risks, but they offer essential nutrients and minerals and vitamins. The market faces disruptions due to shifting consumer preferences and scientific discoveries. Supply chain systems must adapt to meet the demand for fresh food and natural ingredients. Overall, the ultra-processed food market presents both challenges and opportunities for food manufacturers and suppliers. The industry must balance convenience, health, and sustainability to meet evolving consumer demands. 

The ultra processed food market is witnessing a transformation due to the rising consumer preference for healthier and more sustainable food options. Brands are responding to this trend by introducing plant-based products and reducing animal-derived ingredients. For instance, Beyond Meat launched new plant-based chicken nuggets, strips, and steak pieces made from pea and bean protein in 2023. Consumers are also demanding transparency in their food choices, leading to the popularity of clean-label products with minimal and easily understandable ingredients. These trends are shaping the future of the ultra processed food market. 

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 Market Challenges

• The Ultra-Processed Food market is experiencing significant challenges and disruptions. Additives and preservatives are under scrutiny due to health risks associated with cancer and cardiovascular disease. Changing lifestyles and growing awareness of healthy diets have led to a demand for clean-label food ingredients and natural food products. Consumers seek convenience and consistent cooking results, driving innovation in food manufacturing and processing methods. Existing restraints include the use of agricultural goods and produces in ultra-processed foods, which can lead to high calorie counts and lack of essential nutrients. Rapid urbanization and rising disposable income have created opportunities for dairy-free, vegan, and nutrient-dense food offerings. Food processing systems, including extrusion, fermentation, and freezing, play a crucial role in maintaining food quality and preservation. Industry influencers are pushing for energy savings through methods like electric heating and induction heating, while minimizing the use of electromagnetic elements. New product development focuses on innovative food products with unique textures, plant fiber, minerals and vitamins, and precise temperature control. Scientists are studying the impact of ultra-processed foods on digestive health and diabetes. The supply chain systems must adapt to seasonal availability and sensory experiences to meet consumer demands. Overall, the Ultra-Processed Food market faces challenges in addressing health concerns, providing essential nutrients, and catering to changing consumer preferences while maintaining convenience and affordability.
• Ultra processed foods, which make up a large portion of many diets, have been linked to numerous health issues. Studies suggest a correlation between increased consumption of these foods and conditions such as overweight, obesity, type 2 diabetes, depression, cardiovascular and cerebrovascular diseases, hypertension, breast cancer, overall cancer, declining kidney function, and frailty in older adults. Consumption of ultra processed foods often results in higher caloric intake, contributing to weight gain. Individuals with the highest consumption of these foods face a significantly increased risk of premature death, with a 25-28% higher risk of all-cause mortality and a 50-68% increased risk of death from cardiovascular and heart diseases.

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Segment Overview 

This ultra processed food market report extensively covers market segmentation by  

• Product Type
• Confectionery
• Beverages
• Ready-made And Convenience Food
• Salty Snacks
• Others
• Distribution Channel
• Offline
• Online
• Geography
• Europe
• APAC
• North America
• South America
• Middle East And Africa
• Type
• Secondary Processed Food
• Ultra Processed Food
• Technology
• Drying
• Extrusion
• Freezing
• Grinding
• Other Technology

1.1 Confectionery-  The confectionery segment of the ultra processed food market is driven by the consistent demand for indulgent and convenient treats. Nestle, a major player, offers iconic chocolate bars like Kit Kat, known for their distinctive wafer layers and milk chocolate coating. The Kraft Heinz Company contributes with creamy chocolate bars, providing a signature chocolate flavor and appealing to a broad consumer base. General Mills adds to the sugar confectionery segment with fun and shareable dunkaroos chocolate cookies. These products, with their playful packaging and various flavors, cater to consumers seeking indulgence and enjoyment. Overall, the confectionery segment is expected to grow significantly during the forecast period due to its ability to satisfy consumer cravings for sweet treats.

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Research Analysis

Ultra-processed foods have gained significant popularity in today's fast-paced world due to changing lifestyle and rapid urbanization. However, these convenient food options come with health risks, including increased risk of cardiovascular disease, diabetes, and cancer. Ultra-processed foods are typically high in added sugars, saturated and trans fats, and sodium. Innovative food products are emerging in response to consumer demand for healthier options, including organic food and raw food. Industry influencers are pushing for transparency in food processing methods and the use of raw materials from agricultural goods. New products are being developed using natural ingredients and directly consumable food to cater to health-conscious consumers. Food processing methods continue to evolve, with a focus on minimally processed and additive-free options. The future of the ultra-processed food market lies in balancing convenience and health.

Market Research Overview

Ultra-processed foods have gained significant popularity in today's fast-paced world due to their convenience and long shelf life. These foods are made from agricultural produces and goods that undergo various processing methods such as extrusion, fermentation, and heating using electromagnetic elements like microwaves and induction heating. The use of additives, preservatives, stabilizers, and texturizers ensures consistent cooking results and unique textures. Despite their convenience, ultra-processed foods have been linked to health risks such as obesity, diabetes, cardiovascular disease, and even cancer. The growing concern for healthier options has led to the emergence of clean-label food ingredients, natural food products, and nutrient-dense food. The changing lifestyle, rising urbanization, and increasing disposable income have disrupted traditional food manufacturing systems, leading to new opportunities for innovative food products. Fresh food and organic food are gaining popularity as consumers demand more transparency and natural ingredients. Precise temperature control and preservation methods are essential to maintain the quality of food and extend its shelf life. The food processing industry continues to evolve, with scientists developing new methods to enhance food flavor and provide energy savings. The future of the food processing industry lies in balancing the need for convenience and health while ensuring the availability of essential nutrients and minerals and vitamins.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product Type
• Confectionery
• Beverages
• Ready-made And Convenience Food
• Salty Snacks
• Others
• Distribution Channel
• Offline
• Online
• Geography
• Europe
• APAC
• North America
• South America
• Middle East And Africa
• Type
• Secondary Processed Food
• Ultra Processed Food
• Technology
• Drying
• Extrusion
• Freezing
• Grinding
• Other Technology

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio