by The global Canned Tomato Market is estimated to be valued at US$11.7 Billion In 2020 and is expected to reach US$ Mn by 2022, growing at a CAGR of 5.3% over the forecast period 2021-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Canned tomato products are widely used in various cuisines as they offer convenience and have a long shelf life. Canned tomatoes are extensively used in the food industry for making sauces, soups, and other food products. The advantages of canned tomato products include easy availability, longer shelf life, and retaining the nutrients of fresh tomatoes. With the increasing demand for convenience foods, there is a growing need for canned tomato products in the market.
Market Key Trends:
A key trend observed in the Canned Tomato Market is the rising demand for organic canned tomato products. As consumers are becoming more health-conscious and are seeking natural and organic food options, the demand for organic canned tomatoes is witnessing significant growth. Organic canned tomato products are free from synthetic pesticides, genetically modified organisms (GMOs), and other harmful chemicals. This trend is expected to drive the growth of the organic canned tomato segment in the market.
Porter’s Analysis
Threat of New Entrants:
The threat of new entrants in the canned tomato market is relatively low due to the high barriers to entry. Established players in the market have well-established distribution networks and strong brand recognition. Additionally, large-scale production facilities and economies of scale pose significant challenges for new entrants to compete effectively.
Bargaining Power of Buyers:
Buyers in the Canned Tomato Market have moderate bargaining power. While there are many competitors in the market, switching costs for buyers are relatively low. However, brand loyalty and product differentiation play a vital role in influencing buyer behavior. Buyers can exert some pressure on pricing and quality standards, but they are limited by the availability of substitute products.
Bargaining Power of Suppliers:
Suppliers in the canned tomato market hold a considerable level of bargaining power. High-quality tomatoes suitable for canned production are limited in supply. This scarcity enables suppliers to negotiate favorable pricing and contract terms with manufacturers. Moreover, backward integration by suppliers can further strengthen their position in the market.
Threat of New Substitutes:
The threat of new substitutes in the canned tomato market is relatively low. Canned tomatoes are a staple ingredient in various cuisines and can be used in a wide range of recipes. While fresh tomatoes can be used as a substitute, they are highly perishable and often not as readily available year-round. Therefore, canned tomatoes offer convenience and extended shelf life, making them difficult to replace.
Competitive Rivalry:
The competitive rivalry in the canned tomato market is high. Numerous players compete for market share, and the industry is characterized by intense pricing competition. Brand recognition, quality, and variety of product offerings are critical factors influencing competitiveness. Innovation and product diversification play a crucial role in gaining a competitive edge in the market.
Key Takeaways
The global canned tomato market is expected to witness significant growth, exhibiting a CAGR of 5.3% over the forecast period of 2021 to 2030. This growth can be attributed to increasing consumer demand for convenience foods and the widespread use of canned tomatoes in various culinary applications. Additionally, the extended shelf life of canned tomatoes and their ease of storage make them desirable for consumers.
In terms of regional analysis, North America is the fastest-growing and dominating region in the canned tomato market. The region is witnessing a rise in the popularity of ready-to-eat meals and a growing preference for processed food products. Additionally, the presence of key players and strong distribution networks further contribute to the market’s growth in this region.
Key players operating in the 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 players have a significant market share and engage in strategies such as product innovation, mergers, and acquisitions to maintain their competitive position. Their strong brand presence and extensive distribution networks create barriers for new entrants and contribute to market dominance.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
