Packaged Salad Market Size, Share & Trends Analysis Report By Product (Vegetarian, Non-vegetarian), By Processing (Organic, Conventional), By Type, By Distribution Channel, By Region, And Segment Forecasts, 2023 - 2030

Packaged Salad Market Size & Trends

The global packaged salad market size was estimated at USD 12.03 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 6.7% from 2023 to 2030. The growth of the market can be attributed to the rising popularity of salads and the ease of consumption provided by packaged salad products. The availability of packaged salads in a combination of various kinds of vegetables and fruits, dressed in various condiments and dressings, and accompanied by different meats and seafood has driven their popularity globally. Purchasing the various ingredients for the salad, cleaning and chopping the fruits, vegetables, and meats, and preparing them with all the necessary dressings can be a tedious and time-consuming task. Hence, the demand for packaged and ready-to-eat salads is increasing among consumers.

Over the past few years, consumers’ food preferences have been gradually shifting toward healthy plant-based foods. These salads containing numerous leafy vegetables are full of nutritional properties and are an excellent source of fiber, minerals, vitamins, and proteins. Moreover, these salads are also rich in antioxidants, vitamins A, K, C, E, iron, calcium, and potassium. Apart from the high nutritional content, packaged salads are more easily digestible and help improve the digestion system when compared to any processed or fortified food.

The growing prevalence of social media has created mass momentum toward achieving a fit body. A majority of consumers consider healthy eating habits a major contributor to physical wellness. The demand for a fiber-rich diet with low-fat and protein-enriched content has made salads one of the most popular dishes to achieve their goal. Thus, the demand for packaged salad is expected to witness consistent growth over the coming years.

According to a study conducted in 2021 by psychologists from the College of Health and Life Sciences at Aston University, individuals who viewed popular mock Instagram posts featuring fruits and vegetables consumed a notably greater portion of grapes in comparison to cookies. Their grape consumption increased by 14 percent resulting in more calories when contrasted with those who viewed highly liked posts featuring high-calorie foods. The study found that people were more likely to choose healthier foods instead of less nutritious foods when exposed to healthy food images on social media.

The growing inclination towards convenience foods is a significant driver of the market growth for packaged salad products. Convenience has become paramount in consumers' food choices due to evolving lifestyles and busy schedules. The increasing working population, especially working women, is also anticipated to drive the market growth. The young and working-class population does not want to compromise on health, flavor, or taste despite their busy schedules. This shift in consumer behavior has led to an increasing demand for easily accessible and ready-to-eat options, and packaged salads perfectly fit this criterion.

Product Insights

The vegetarian packaged salads segment held a share of 67.4% of the global market in 2022. Factors such as a rise in the number of vegan and vegetarian population is fueling the demand for vegetarian packaged salads. The increasing emphasis on health and wellness has led many consumers to seek healthier food options. Packaged salads are seen as a nutritious choice as they typically consist of fresh vegetables and greens, which are rich in essential vitamins, minerals, and fiber. These salads can be a convenient way to incorporate more vegetables into one's diet, making them an attractive choice for health-conscious individuals.

Non-vegetarian packaged salad industry is anticipated to grow at a CAGR of 6.0% from 2023 to 2030. The shifting consumer focus towards protein-enriched diets to achieve their desired body figure or shape has been contributing to the worldwide demand for non-vegetarian packaged salads. Brands offering non-vegetarian packaged salads typically market their products as a wholesome choice for today's active lifestyle.

Processing Insights

Conventional packaged salads segment held a share of 67.8% of the global market in 2022. Packaged salads processed through conventional farming methods differ from organic salads. The National Organic Program, a federal regulatory framework in the U.S., places limitations on the use of genetically modified organisms (GMOs), while conventionally processed packaged salads may include GMOs. Generally, conventionally produced salads are more affordable than their organic counterparts because conventional farming tends to be less costly than organic farming.

Organic packaged salad industry is anticipated to witness the fastest CAGR of 7.8% from 2023 to 2030. Organic processing systems adhere to precise production standards to attain sustainable agroecosystems that are economically, ecologically, and socially viable. Organically processed packaged salads receive proper certification from an authorized regulatory body. The criteria for organic processing of packaged salads differ from conventionally processed items in their reduced reliance on external inputs for preservation and their avoidance of synthetic ingredients or chemicals.

Type Insights

Packaged green salads segment held the largest share of 62.9% of the global market in 2022. Packaged greens have been gaining popularity owing to their raw taste without the addition of any type of seasonings, dressings, or condiments. Growing consumer preference for raw packaged salads has encouraged key players as well as new entrants to launch a number of products in the global market.

Packaged kits salad industry is anticipated to grow at a CAGR of 7.2% from 2023 to 2030. As the number of single-person households continues to rise, many individuals living alone encounter challenges in maintaining a healthy diet. Busy lifestyles often lead them to rely on fast food and restaurant meals, which are typically considered detrimental to long-term health. Consequently, individuals who live alone or those with limited time for meal preparation have been exploring healthier alternatives, such as packaged salad kits, which offer a nutritious and tasty option.

Distribution Channel Insights

The sales of packaged salads through offline channels held a 80.6% share in 2022.Supermarkets and hypermarkets are prominent distribution channels for packaged salads worldwide. Target and Walmart continue to dominate this space. Unlike grocery stores, orders placed through supermarkets and hypermarkets are typically larger. While grocery stores help packaged salad brands stay customer-focused, supermarkets and hypermarkets allow brands to increase sales by providing access to a considerably larger customer base. Furthermore, supermarkets and hypermarkets often have dedicated aisles for packaged foods, making it easy for customers to find specific brands' products.

The online segment is anticipated to grow at the fastest CAGR of 9.4% from 2023 to 2030. The packaged salad industry is yet to adopt e-commerce widely compared to other sectors like household products and consumer electronics. The perishable nature of packaged salads with unique logistic and storage requirements is a key factor slowing down the distribution of these products through online/e-commerce channels. However, recent consumption patterns and shifting shopper sentiments indicate that the online category is poised for robust growth.

Regional Insights

North America held a major share of over 40.1% of the global packaged salad industry in 2022. The growing awareness among North Americans regarding the importance of a healthy diet has led to an increase in the consumption of more fruits and vegetables. Salads are considered a convenient way to incorporate fresh vegetables into daily meals, contributing to the increased demand for packaged salads in the region. According to data from the Simmons National Consumer Survey and the U.S. Census Bureau published in 2020, 242.86 million consumers in the U.S. consumed bagged or packaged salads in 2020. The study further estimated that 251.7 million consumers in the U.S. will consume bagged or packaged salads by 2024.

The Europe packaged salad industry is anticipated to grow with a CAGR of 6.9% over the forecast period. Growing demand for healthy and convenient food products and a rising emphasis on sustainably sourced products are key factors boosting the regional market.  The fast-paced lifestyles of many Europeans have led to a surge in demand for convenient, ready-to-eat food options. Packaged salads are a convenient choice for individuals with busy schedules, as they offer a healthy meal solution that requires minimal preparation. This has led to several companies launching salad kits in the region. A UK-based provider of salads PDM offers a wide variety of prepared salads.

The Asia Pacific packaged salad industry is anticipated to grow at the fastest CAGR of 7.6% over the forecast period. Increasing awareness about the importance of green leafy vegetables in the diet and the rising consumer preference for on-the-go food products are expected to drive the demand for packaged salad in this region. Furthermore, the increasing adoption of Western-style food habits, especially among the youth in countries such as India, is driving the market in the region.

Key Companies & Market Share Insights

The market players face intense competition, especially from the top companies in the market as they have a large consumer base, strong brand recognition, and vast distribution networks. Companies have been implementing various expansion strategies, such as mergers & acquisitions, new product launches, and production capacity expansion, to gain a competitive advantage. Some of the initiatives include:

• In September 2022, Gotham Greens, a pioneer in urban agriculture, marked a significant milestone by securing funding of USD 310 million. In addition to this financial achievement, the company made its maiden acquisition by purchasing FresH2O Growers Inc., a producer of leafy green salad products based in Virginia, U.S. The acquisition deal encompasses a vast 540,000-square-foot hydroponic greenhouse located in Stevensburg, Virginia. This facility plays a pivotal role in supplying a range of grocery stores across the Mid-Atlantic region. This move by Gotham Greens signifies its strategic expansion and commitment to strengthening its presence in the sustainable agriculture sector.

• In December 2021, Taylor Farms confirmed its acquisition of Curation Foods' enterprise encompassing fresh packaged salads, green beans, and fresh-cut vegetables, previously under Landec Corporation. This acquisition includes the Eat Smart brand and production facilities situated in Guadalupe, California, and Bowling Green, Ohio. The Taylor Farms Retail Division aims to address the increasing consumer preference for chopped salads and fresh-cut vegetables by incorporating Curation Foods' packaged salad and fresh-cut vegetable business into its operations.

Packaged Salad Market Report Scope

Global Packaged Salad Market Report Segmentation

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segment from 2017 to 2030. For this study, Grand View Research has segmented the global packaged salad market report based on product, processing, type, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Vegetarian

  • Non-Vegetarian

• Processing Outlook (Revenue, USD Million, 2017 - 2030)

  • Organic

  • Conventional

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Packaged Greens

  • Packaged Kits

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Offline

  • Online

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • France

  • Asia Pacific

    • China

    • Australia

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa