The suppliers will continue to invest in new and improved soup formulations and marketing to support sales
US demand for soups and stews is projected to decline at an average annual rate of 2.3 per cent in nominal terms through 2025, according to Soups & Stews: United States, a report recently released by Freedonia Focus Reports.
The COVID-19 pandemic bolstered sales of soups and stews in 2020, particularly canned, as consumers ate out less and stocked up on shelf-stable foods. However, this high base is expected to weigh on demand going forward.
A variety of factors will further prevent advances, including:
- Competition from homemade soup (although homemade soup is often made with packaged broth), as consumers are preferring fresher options, soup provided by grocery stores, and soup offered by foodservice establishments
- Shifting consumer preferences and some shoppers’ negative perception of canned food leading to experimentation with a wide variety of meal options perceived as healthier, fresher, or trendier
- Increased competition from suppliers of frozen foods and meal kits
- Consumer concerns about high salt content
Nevertheless, suppliers will continue to invest in new and improved soup formulations and marketing to support sales. Ongoing income growth and desire for convenient meals will cause some consumers to purchase premium soups, supporting demand in value terms. Higher prices may also boost nominal sales early in the forecast period as producers grapple with inflation in the costs of inputs.
Suppliers are also experimenting with alternatives to cans for packaging to improve consumer perception of product quality, including aseptic containers and glass jars.