A) Market Overview:
The global Canned Tomato Market is estimated to be valued at US$11.7 billion in 2022 and is expected to exhibit a CAGR of 5.3% over the forecast period 2021-2030, as highlighted in a new report published by Coherent Market Insights. Canned tomatoes offer numerous advantages including convenience, extended shelf life, and year-round availability of tomatoes. With the increasing consumer demand for convenient and ready-to-use ingredients, the market for canned tomatoes is witnessing significant growth.
B) Market Key Trends:
One of the key trends driving the canned tomato market is the rising demand for processed and convenience foods worldwide. Consumers are increasingly opting for ready-to-cook and ready-to-eat products, including canned tomatoes, to save time and effort in meal preparation. Additionally, the growing popularity of ethnic cuisines, where tomatoes play a crucial role, is fueling the demand for canned tomatoes. For instance, the increased consumption of Italian and Mediterranean dishes is driving the sales of canned tomatoes globally.
C) Porter’s Analysis:
– Threat of New Entrants: The canned tomato market has a moderate threat of new entrants due to the established market players and their brand loyalty. However, potential new entrants may capitalize on niche segments or introduce innovative packaging solutions to gain a competitive edge.
– Bargaining Power of Buyers: With a wide range of canned tomato products available both online and offline, buyers have significant bargaining power. They can compare prices, quality, and brands before making a purchase, putting pressure on manufacturers to offer competitive pricing and high-quality products.
– Bargaining Power of Suppliers: Tomato suppliers may have a more substantial bargaining power due to the dependence of canned tomato manufacturers on a steady supply of high-quality tomatoes. However, manufacturers can establish long-term partnerships or contracts with suppliers to ensure a consistent supply.
– Threat of New Substitutes: The threat of new substitutes in the canned tomato market is relatively low, as tomatoes are a staple ingredient in many cuisines. While fresh tomatoes can be an alternative, canned tomatoes offer convenience, longer shelf life, and consistent quality throughout the year.
– Competitive Rivalry: The canned tomato market is highly competitive with the presence of key players such as Kronos Incorporated, Campbell, Libby’s Brand Holding, Del Monte, B&G Foods North America, Inc., Conagra Brands, KYKNOS, and Kraft Heinz Co. These companies compete on factors such as product range, quality, pricing, and marketing strategies.
D) Key Takeaways:
– The global Canned Tomato Market is expected to witness high growth, exhibiting a CAGR of 5.3% over the forecast period, driven by the increasing demand for processed and convenience foods.
– The Asia-Pacific region is anticipated to be the fastest-growing and dominating region, attributed to the expanding population, rising disposable incomes, and changing dietary preferences.
– Key players operating in the global canned tomato market include Kronos Incorporated, Campbell, Libby’s Brand Holding, Del Monte, B&G Foods North America, Inc., Conagra Brands, KYKNOS, and Kraft Heinz Co. These companies focus on product innovation, expansion into new markets, and strategic partnerships to maintain their market position.
The canned tomato market is witnessing significant growth due to the rising demand for convenience foods and the popularity of ethnic cuisines. With consumers seeking ready-to-use and long-lasting tomato products, the market is poised for further expansion. However, intense competition and changing consumer preferences pose challenges for market players. To stay competitive, companies need to focus on product innovation, regional expansion, and strategic collaborations.
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