Study: Consumer spending on value-added products drives gains
Rising demand from foodservice establishments will also support growth.
U.S. demand for processed food is forecast to grow 1.8% annually in nominal terms through 2022, according to “Processed Food: United States,” a report released by Freedonia Focus Reports, Cleveland, Ohio.
Increasing levels of disposable personal income will support consumer spending on value-added products that offer high-quality food in a convenient format. Rising demand from foodservice establishments will also support growth. However, low commodity prices for key ingredients in processed food (e.g., beef, chicken, grain) will restrain faster demand gains.
Demand in the meat, poultry and seafood product segment is forecast to stagnate through 2022, and the increasing availability of vegetable-based, meat-like alternatives will stall advances.