Overproduction Of Crops Creates Profit Opportunities For Food And Beverage Companies: Critical Driver Shaping the Food And Beverages Market in 2025

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How Large Will the Food And Beverages Market Size By 2025?
The market size of food and beverages has seen remarkable growth in the past few years. It is poised to increase from $6962.47 billion in 2024 to $7400.31 billion in 2025, reflecting a compound annual growth rate (CAGR) of 6.3%. The noteworthy growth during the historic period can be credited to the powerful economic surge in burgeoning markets, incredibly higher internet accessibility, and an upswing in disposable income.

How Big Is the Food And Beverages Market Size Expected to Grow by 2029?
The market size of food and beverages is projected to experience robust growth in the upcoming years, anticipated to reach $9423.34 billion by 2029, growing at a compound annual growth rate (CAGR) of 6.2%. The expansion during the forecast period can be linked to the surge in smartphone usage, quick-paced urbanization, and the introduction of innovative payment methods. Key trends expected during this period include an increase in subscription-based products, advancements in mobile grocery shopping, technological evolution, strategic partnerships, collaborations and the emergence of the buy now, pay later (bnpl) system.

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Which Key Market Drivers Powering Food And Beverages Market Expansion and Growth?
Due to overcapacity, declining crop prices are a trend observed in numerous countries worldwide, resulting in decreased raw material costs for food and drink businesses. The Indian agricultural magazine Frontline reported in November 2022 that the Cabinet Committee on Economic Affairs announced a bailout package of Rs 7000 crore for farmers in the sugar production sectors. The support was to set the minimum sales price for refined sugar at Rs 29 per kg as prices had recently fallen to Rs 23-24 due to overproduction, and to establish a one year buffer stock of 3 million tons of sugar. Therefore, this crop overproduction could potentially lead to increased profit margins for food and drink businesses. These heightened profits could then allow these companies to elevate their productivity and contribute positively to the market's future growth.

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Which Fast-Growing Trends Are Poised to Disrupt the Food And Beverages Market?
Manufacturers in the frozen food industry are leveraging techniques like individual quick freezing (IQF) to enhance the yield and quality of their products. The IQF technique involves moving individual food items onto a conveyor belt which transports them into a rapid freezing unit, freezing each item separately rather than in large volumes or blocks. This efficiency allows for an increase in yield from 1.5-3% and leads to high-quality products with better nutritional value and less waste. IQF foods examples include fruits like blueberries, strawberries, peaches, and vegetables like corn, peas, and green beans. It's projected that the IQF vegetable market worldwide will hit $2 billion by 2026, signaling the potential for a significant rise in demand for IQF food items in the years to come.

What Are the Emerging Segments in the Food And Beverages Market?
The food and beverages market covered in this report is segmented -

1) By Type: Alcoholic - Beverages, Non-Alcoholic - Beverages, Grain Products, Bakery And Confectionery, Frozen, Other Foods Products
2) By Nature: Organic, Conventional
3) By Distribution Channel: Supermarkets Or Hypermarkets, Convenience Stores, E-Commerce, Other Channels

Subsegments:
1) By Alcoholic Beverages: Beer, Wine, Spirits, Ciders, Ready-To-Drink Cocktails
2) By Non-Alcoholic Beverages: Soft Drinks, Juices, Bottled Water, Coffee And Tea, Energy Drinks
3) By Grain Products: Rice, Wheat, Oats, Barley, Corn-Based Products
4) By Bakery And Confectionery: Bread, Cakes And Pastries, Biscuits And Cookies, Chocolates And Candies, Doughnuts
5) By Frozen Foods: Frozen Vegetables, Frozen Meat And Seafood, Frozen Ready Meals, Frozen Desserts, Frozen Pizzas
6) By Other Food Products: Dairy Products, Sauces And Condiments, Snack Foods, Spices And Seasonings, Packaged Meals

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Who Are the Global Leaders in the Food And Beverages Market?
Major companies operating in the food and beverages market include Nestle S.A, PepsiCo, Inc, JBS S.A, Anheuser-Busch InBev, Tyson Foods Inc, Archer-Daniels-Midland Company (ADM), Mars, Incorporated, Imperial brands plc, The Coca-Cola Company, Cargill, Dabur, Amul, Asahi Soft Drinks Co Ltd, Red Bull, Del Monte fresh produce Ltd, Fonterra Meiji Co Ltd, Dali Foods Group Co Ltd, Hangzhou Wahaha Group Co, Ltd, Nongfu Spring, China Haisheng Juice Holdings Co Ltd, Britannia Industries Ltd, Otsuka Holdings Co Ltd, Suntory Beverage & Food Ltd, Glanbia, Plc, Royal Frieslandcampina N. V, Raisio PLC, Associated British Foods, Boparan Holdings, Arla Foods, Greencore Convenience Foods, Südzucker AG, Tonnies Group, Dr. August Oetker Nahrungsmittel KG, KHS Group, Sicuro Food, Valagro, Gastronomic SPAIN, Mondelez UK, Refresco Tate & Lyle, Diageo, Roust Corporation, Cherkizovo Group, GoodMills Group GmbH, European Drinks S. A, Penam, Vitana, Metarom Group, Košík, Rudolf Jelinek, General Mills, The Hain Celestial Group, Campbell Soup Company, Maple Leaf, Olymel, Elmira Pet Products Ltd, Adams & Brooks Inc, The Kraft Heinz Company, Dr. Pepper Snapple Group, Hearthside Food Solutions LLC, Grupo Petrópolis, Monster Energy Co, Rockstar Inc, Unilever, Arcor, Starbucks, Agrosuper, Ambev, Almarai Company, Arab Company for Livestock Development (ACOLID), Al-Watania Company, Agthia Group PJSC, AWJ, South Beach Beverage Co Inc, Abu Auf Group, Lifeway Foods, Arizona Beverages Company, Twiga Foods, Cadbury Nigeria, FrieslandCampina WAMCO Nigeria PLC, CHI Limited, Nigerian Breweries Plc, SABMiller

Which are the Top Profitable Regional Markets for the Food And Beverages Industry?
Asia-Pacific was the largest region in the food and beverages market in 2024. Western Europe was the second-largest region of the food and beverages market. The regions covered in the food and beverages market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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