PACKAGED FOODS In the United States
EXECUTIVE SUMMARY
In 2008, the packaged food market in the United States (U.S.) experienced above average growth relative to the 2003-2008 review period. At first glance, this appears to be a promising upturn, however, a closer look shows that much of the growth was due to increases in prices. Manufacturers were forced to raise prices to cover rising commodity costs.
In an effort to maximize value, many consumers have turned to private label products. In 2007, private label products gained a significant market share of U.S. packaged food sales. Forecasts show that this growth trend is expected to continue through 2013, as retailers focus on private label goods to expand profit margins and gain consumer loyalty.
Supermarkets/hypermarkets continued gaining market share in 2008. Much of this positive movement was due to the success of Wal-Mart supercenters, a hypermarket that offers a full selection of groceries, in addition to Wal-Mart discount stores' traditional mass merchandiser offerings.
