Dried processed foods market is anticipated to grow at a CAGR of 4.9% during the forecast period (2024-2031). The expansion of the dried processed foods market is supported by pivotal factors such as increasing demand for convenient & on-the-go food servings, the growing utility of dried foods in adventure, & tracking activities, and shifting consumer preferences towards healthy & nutritional foods sustaining long shelf life. Further, the growing innovations in drying technologies, the rising popularity of RTE/RTC meals, and the expansion of e-commerce-based dried processed food sales are also contributing to the growth of the market.

Market Dynamics

Rising Popularity of On-the-Go & Processed Food Consumption

The growth in the dried processed food market is significantly driven by the increasing acceptance of consumers towards the consumption of on-the-go & processed food offerings in daily diets. The shift in eating patterns is supported by factors such as a busier lifestyle, consumer inclination towards convenient food options, a growing number of travel & outdoor activities, and extensive development of single households & urban areas. These changes are in line with consumer preferences for healthy & nutritional products that are actively resolved by dried processed food products with the potential to provide longer shelf life, nutritional value, and freshness to perishable products such as dairy products, fruits, and vegetables, among others. For instance, the study of Household Consumption Expenditure between 2022-23 and 2011-12 in India revealed a sharp increase in the consumption of served and packaged processed foods by households in all regions and classes of income, more sharply in urban areas as well as in the richest 20% of households in terms of income. The share of spending on packaged processed food has increased from 2.3% in 2011-12 to 3.2% in 2022-23 and reflects convenience-oriented eating trends. This would require further expansion in dried processed foods in all regional markets.

Expansion of Health-Conscious Consumers

The increase in the health-conscious consumer population is another pivotal factor driving the market growth of dried processed food. This increase is stimulated by factors such as growing consumer knowledge concerning healthy diets, social media-based food consumption trends, and the increasing popularity of maintaining a healthy lifestyle. These consumable requirements are very well catered to by dried processed foods, which encompass offerings that include functional ingredients, low calories, natural benefits, and plant-based or organic features. Further, dried processed foods have developed as a great dietary alternative to incorporate into the current busy lifestyle for nourishing daily body requirements without the possibility of product perishing or nutritional benefit loss. 

The 2023 Food and Health Survey by the International Food Information Council (IFIC) shows an increasing consumer trend toward healthy food choices that are influenced both by social media and by price. Six in ten Americans (60%) say that social media content about food and nutrition is a reason they make healthier choices. Millennials (65%) and Gen Z (62%) are leading the way in this trend. Further, 74% of respondents cited cost as an important consideration in making a purchase. While prices are rising, more than half (55%) are willing to pay more for healthy products, and 40% are willing to pay up to $1 more. Also, 52% of respondents followed a specific diet, and "clean eating" and "mindful eating" were at the top of the list. Key drivers are weight management and long-term health protection -43 % and 33% respectively, which indicate the trend is toward health-conscious consumption with price sensitivity.

Market Segmentation

• Based on the product type, the market is segmented into dried snacks, dried beverages, dried ready-to-eat/ready-to-cook meals, dried dairy products, dried grains & cereals, and others (baby food).

• Based on the distribution channel, the market is segmented into online, and offline.

Dried Snacks Segment is Projected to Hold a Considerable Market Share

The dried snacks segment dominates as the preferred choice owing to the product's longer shelf life, better portability & convenience features, and consumer inclination towards consuming several types of dried snacks. Further, the consumption of dried snacks is expected to gain more popularity with increasing disposable income, expansion in product offerings, and changing food consumption trends.

Online Distribution Channel Segment is Projected to Exponentially Gain Market Share

Online channels are projected to lead the segment owing to the expanding e-commerce market & dried food manufacturer presence, the growing popularity of D2C channels in the FMCG sector, and increasing consumer buying preference towards online channels. Further, advancements in digital platforms & infrastructure and the widespread reach of online channels are also contributing to the growth of the segment.

Regional Outlook

The global dried processed foods market is further segmented based on region including Asia-Pacific (India, China, Japan, South Korea, and the Rest of Asia-Pacific), North America (the US, and Canada), Europe (Germany, France, the UK, Italy, Spain, and the Rest of Europe), and the Rest of the World (the Middle East & Africa, and Latin America). 

North America Holds the Highest Share in the Global Dried Processed Foods Market  

North America is leading the dried processed foods market, attributed to various factors, such as health-conscious consumers being spread widely, lifestyle ecosystems that encourage the consumption of on-the-go food alternatives, increasing disposable income, increasing dietary trends & consumer preference for processed foods, a strongly spread network for the distribution of dried processed food, among others. In November 2023, Oatme Superfood introduced a range of freeze-dried fruits which, as healthy options are good alternatives to old favorites and festive stocking fillers. The varieties of which include strawberry, fig, and mango, 100 percent real fruit containing no added sugars or preservatives. The products hail from British Columbia, Canada; there they are made, and packaged, and are thereby retaining all nutritional factors, that may include vitamin levels, fiber, and antioxidant elements, as found in fresh fruits.

Global Dried Processed Foods Market Growth by Region 2024-2031

Asia-Pacific is the Fastest Growing Region in the Global Dried Processed Foods Market  

Asia-Pacific is the fastest-growing region in the global market for dried processed foods supported by investments to expand the dried processed food market in the region. Also, there is an increased number of processed food-consuming populations, a growing proportion of the middle-class population, and a surging popularity of health-driven dietary consumption trends. For instance, Food Empire Holdings is investing $80 million to set up a new freeze-dried coffee plant in Binh Dinh province in Vietnam, to open by early 2028. This facility will be bigger than its existing one in India and will serve the Asian market. This investment follows plans for a coffee-mix plant in Kazakhstan by late 2025 and a strategic partnership with Ikhlas Capital to expand in Southeast and South Asia.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order*.

The major companies serving the dried processed foods market include B&G Foods, Inc., Cargill, Inc., Campbell Soup Co., Unilever PLC, and ITC Ltd., among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market. 

Recent Development

• In June 2023, RIND Snacks expanded its product line with the launch of RIND REMIX, an innovative twist on the trial mix. Packed with fiber, protein, and heart-healthy fats, REMIX combines RIND's signature dried fruit with roasted nuts and unique fruit seasonings for a balanced, nutrient-dense snack. The first flavor, Piña Colada, features diced pineapple, organic coconut crisps, and sweet-salted cashews. It is in Costco and gives busy consumers a refreshing, tasty, and convenient snack option.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global dried processed foods market. Based on the availability of data, information related to new products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.