Regional Analysis

North America is the largest market for processed food due to increased snacking trend. Furthermore, busy lifestyle, packaging innovation and expanded lifestyle plays a major role in increasing demand of processed food.

Europe has high demand for high quality and nutritious food. The strict government regulations is the major challenge in this market. The basic food hygiene and food law requirements are in Regulation (EC) No 178/2002 and in Regulation (EC) No 825/2004 which plays a dominant role in European processed food industry.

Processed food market is fast growing in Asia pacific region due to increase in population and increase in consumer buying power. The consumer spending in India on processed food is expected to grow to US$ 3.6 trillion by 2020. Cost competitiveness along with availability of raw materials are the growth drivers for the processed food industry in India and China.

In Latin America, urbanization and modernization is creating a demand for processed food. However, regulations such as, special 8% tax on high calorie food in Mexico from January 2014 will have a considerable effect on the processed food market. Also, it will increase the demand for nutritious processed food in these regions.

In Middle East, the limited agricultural production because of the nature of climate, terrain and water scarcity has led to a significant increase in the processed food market.

United Nations estimated that the population of Africa will be doubled by 2020 which will be a market driver in this region. Low market penetration is the major restraint in Africa.