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Global sales of extruded products in 2023 are estimated to reach a value of US$207 Bn and the market is projected to experience a steady growth rate of 5% from 2023 to 2030. As a result, the extruded products industry is expected to generate revenue of approximately US$303 Bn by the conclusion of 2030. This growth can be attributed to the increasing worldwide demand for noodles, pasta, and extruded baked goods.
Market Analysis in Brief
The extruded products market is experiencing robust growth, fueled by the rising demand for pasta, noodles, and extruded baked goods across the globe. Extruded products refer to food items processed through the extrusion technique, which involves forcing the mixture of ingredients through a die to obtain a desired shape. These products offer convenience, versatility, and extended shelf life, making them popular choices among consumers. Key players in the market utilize advanced extrusion technologies to meet the increasing demand for diverse extruded products. These technologies enable manufacturers to achieve consistent product quality, enhance production efficiency, and introduce innovative product variants.
Key Findings Report
Market Drivers
Increasing Consumer Demand
The growing preference for convenient and ready-to-eat food products is a significant driver for the extruded products market. Consumers seek quick and easy meal solutions, leading to a surge in demand for extruded snacks, instant noodles, and pre-cooked pasta.
Technological Advancements
Continuous advancements in extrusion technology contribute to market growth. Manufacturers are adopting state-of-the-art extrusion equipment and processes to enhance production efficiency, reduce costs, and maintain product quality.
Health and Wellness Trends
The shift towards healthier eating habits and the demand for nutritious food options have prompted manufacturers to develop extruded products with enhanced nutritional profiles. This includes incorporating whole grains, fibre-rich ingredients, and reducing artificial additives, aligning with evolving consumer preferences.
Market Expansion Strategies
Key players in the extruded products market are actively expanding their presence in emerging markets and exploring untapped regions. This includes strategic partnerships, acquisitions, and distribution agreements to gain a competitive edge and cater to the growing demand.
Market Challenges
Quality and Safety Concerns
Maintaining consistent product quality and ensuring food safety throughout the extrusion process poses a challenge. Manufacturers need to adhere to stringent quality control measures, implement effective hygiene practices, and comply with food safety regulations to mitigate these concerns.
Raw Material Price Volatility
The fluctuations in the prices of raw materials, such as grains, oils, and additives, can impact the profitability of extruded product manufacturers. To mitigate this challenge, companies need to closely monitor market trends, establish strategic supplier relationships, and explore alternative sourcing options.
Intense Market Competition
The extruded products market is highly competitive, with numerous players vying for market share. Manufacturers must differentiate their offerings through product innovation, branding, and effective marketing strategies to stay ahead in the competitive landscape.
Market Opportunities
Product Innovation and Diversification
The extruded products market allows manufacturers to introduce new and innovative product offerings. This includes developing plant-based and gluten-free alternatives, incorporating unique flavours, and exploring novel extrusion techniques to expand the product portfolio and cater to evolving consumer preferences.
Sustainability and Eco-friendly Packaging
With increasing environmental concerns, there is a growing demand for sustainable packaging solutions in the extruded products market. Manufacturers can capitalise on this trend by adopting eco-friendly packaging materials and promoting recyclable and biodegradable options.
Global Market Expansion
The rising popularity of extruded products in emerging economies provides significant growth prospects. Expanding into untapped regions, especially in Asia Pacific, and Latin America, offers opportunities for market players to tap into a large consumer base and establish a strong market presence.
Regional Coverage
Europe Held a Lion’s Share – 45% of the Market in 2021
The extruded products market demonstrates a global presence, with significant growth observed across various regions. Each region presents unique market dynamics influenced by factors such as consumer preferences, dietary habits, cultural influences, and the presence of key market players. Market growth in these regions is driven by the increasing demand for extruded products and the adoption of advanced extrusion technologies.
While the developed western markets of North America, and Europe have been the prime markets for extruded products, the snacking trend in these regions has been seeing a shift toward healthier over the past decade. In the light of these trends, brands have been focusing on innovations around the base ingredients with wheat and other popular cereals that offer a rich nutrition profile. With greater brand concentration across the major American, and European markets, the extruded products industry is likely to remain prominence in these regions. The market will continue to receive tailwinds from the soaring on-the-go snacking trend in addition to the relatively cheap price points compared to most other retail products.
On the other hand, the market for extruded products across the key Asian countries, i.e., China, and India are projected to exhibit a notably high growth potential, attributing to the rapidly evolving dietary habits and lifestyles of consumers.
Company Recent Development
Nestlé: Nestlé launched a new range of extruded plant-based meat alternatives under its Garden Gourmet brand, catering to the growing demand for vegetarian and vegan options. The company invested in advanced extrusion technology to improve the texture and taste of its extruded meat substitutes.
Barilla: Barilla, a leading pasta manufacturer, introduced a line of innovative extruded pasta shapes, combining traditional craftsmanship with modern extrusion techniques. In collaboration with research institutions, Barilla conducted studies to optimize the extrusion process, resulting in improved cooking properties and texture of their pasta products.
General Mills: General Mills expanded its portfolio of extruded snacks by introducing new flavors and variations to cater to changing consumer preferences. The company implemented sustainable packaging initiatives, incorporating recyclable materials, and reducing its environmental footprint in the extruded products segment.
PepsiCo: PepsiCo's subsidiary, Frito-Lay, continuously innovates its extruded snack offerings, launching new flavors, textures, and product formats to meet evolving consumer tastes. The company invested in advanced extrusion technologies to enhance the production efficiency of its extruded snacks and improve overall product quality.
Kellogg Company: Kellogg Company introduced new extruded cereal products with added nutritional benefits, such as fortified grains and increased fiber content, to meet consumer demands for healthier breakfast options. The company focused on sustainable sourcing of raw materials for its extruded products, collaborating with suppliers to ensure responsible and environment-friendly practices.
These companies actively invest in research and development to introduce innovative extruded product offerings and expand their market presence. Recent developments in the industry include product launches, strategic acquisitions, partnerships, and investments in advanced extrusion technologies. These initiatives aim to cater to evolving consumer demands, enhance production capabilities, and gain a competitive edge in the market.
The extruded products market is witnessing significant growth driven by increasing consumer demand, technological advancements, and health-conscious preferences. Opportunities exist for product innovation, sustainability initiatives, and market expansion into untapped regions. However, challenges related to quality control, raw material price volatility, and intense market competition need to be addressed to sustain growth and profitability in the industry.
Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.
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