Year: 2019 and 2027
Market size: $4.69 billion and $10.23 billion, respectively
“Salad can get a bad rap. People think of bland and watery iceberg lettuce, but in fact, salads are an art form, from the simplest rendition to a colorful kitchen-sink approach.” — Marcus Samuelsson
After a long weekend of eating turkey, mashed potatoes and gravy, stuffing, green bean casserole, pumpkin pie, and assorted other goodies, are you craving something lighter and healthier? A salad perhaps?
Today’s market size shows global revenues for packaged salad in 2019 and projected for 2027. Packaged salads were first introduced in 1986. At first, they mostly contained bite-sized pieces of iceberg lettuce and perhaps some shredded carrots, onions, and cheese. These products didn’t catch on with consumers until the mid-2000s when companies began adding a variety of greens such as arugula, baby spinach, and baby kale to their product offerings. More recently, companies have been including ingredients such as broccoli, cauliflower, peapods, avocado, almonds, pecans, and cranberries. Vegetarian packaged salad claimed 65% of revenues in 2019, but non-vegetarian revenues are expected to grow the fastest, at a compound annual growth rate (CAGR) of 10.5%, between 2020 and 2027 as companies add a variety of meats and seafood to their salad kits to appeal to a wide audience, from chicken, ham, and bacon to shrimp, salmon, and squid.
As with other sectors of the food and beverage industry, the growing number of health-conscious consumers are contributing to growth in this segment also. In addition, packaged salads offer time-saving convenience for those who have little time to prepare healthy meals at home. Those shopping for organic produce have created a sizeable market for these products too. While the conventional segment constituted more than 70% of revenues in 2019, the organic segment is expected to grow the fastest through 2027 as demand for organic packaged food in general at both the consumer and commercial levels has increased, especially in Europe and North America. In the United States in 2019 organic produce revenues at retail set a record high of $5.8 billion, with almost 20% of organic produce sales coming from packaged salads. Millennials, especially, prefer packaged to pick-your-own produce. According to the Food Industry Association, “shoppers have the highest interest in nutrition and origin information, and preparation/storage instructions.”
More than 80% of packaged salads are bought offline at supermarkets and warehouse clubs, but online sales are expected to grow the fastest through 2027 as e-commerce and grocery delivery become more popular. Sales from traditional online retailers such as Amazon, along with e-commerce sales from supermarkets, grocery delivery firms, and direct sales from packaged salad firms are expected to grow at a CAGR of 11% over this time period. The North American region claimed 35% of revenues in 2019. The growing demand in the region has spurred companies to introduce new gourmet, restaurant-inspired products to the market. New product launches appealing to a variety of tastes has increased global sales over the past few years. The Asia-Pacific region is expected to experience the fastest growth in the next several years as more Millennial and Generation Z consumers seek out healthier food choices. Some prominent companies in the packaged salad market include BrightFarms, Dole Food Company Inc., Earthbound Farm, Eat Smart, Fresh Express, Garden Life, Gotham Greens, Mann’s, Misionero, and Bonduelle.
Sources: “Packaged Salad Market Size, Share & Trends Analysis Report by Product (Vegetarian, Non-vegetarian), by Processing (Organic, Conventional), by Distribution Channel, by Region, and Segment Forecasts, 2020 – 2027,” Grand View Research Report Overview, July 2020 available online here; “Packaged Salad Market Size Worth $10.23 Billion by 2027 | CAGR: 10.2%: Grand View Research, Inc.,” CISION PR Newswire, November 12, 2020 available online here; Keith Loria, “Produce Profits are in the Bag,” Supermarket News, March 21, 2019 available online here; Mary Ellen Shoup, “Organic Produce Sees Record Sales in 2019: ‘Packaged Salads are the Single Largest Driver of Organic Dollars’,” Food Navigator-USA.com, January 21, 2020 available online here; “Salad Quotes,” BrainyQuote available online here.Image source: Michael Moriarty, “salad-food-dish-plate-meal-2150548,” Pixabay, March 21, 2017 available online here.