Soup in the US

PROSPECTS

Natural and healthy components remain key to soup’s success

As consumers continue to pay closer attention to nutrition labels, within a wider concern for healthy eating, packaged food companies are more aware of the benefit of incorporating healthier ingredients into their products. Traditional shelf stable soup has seen a serious decline in sales, in part due to its negative perception of being laden with preservatives and providing poor nutritional value.

Chilled and frozen formats increasingly popular

Both chilled and frozen soup are seeing the most tremendous growth within the category. This trend is likely influenced by consumers’ increasing concerns with health and wellness, prompting a shift to healthier eating habits.

Organic opportunity here to stay

While the growth of organic soup has softened slightly since reaching a peak in 2016, its growth remains strong and the subcategory is predicted to continue doing well. As consumers continue to choose foods made with organic ingredients over traditional formulations, due to their belief that organic is both healthier and more environmentally friendly, soup manufacturers continue to respond by providing additional organic soup options.

COMPETITIVE LANDSCAPE

Campbell Soup Co plans to refocus to maintain its leadership

For many years, Campbell Soup Co has been the top player in the category, but in recent years has consistently lost share to smaller competitors. In particular, competitors’ sales of chilled and frozen soups, which have been favourably received by consumers, have negatively affected Campbell’s performance.

Private label expansion, a continued threat to category leaders

Across the food and beverage industry at large, private label’s presence has expanded. Many grocer retailers have even begun providing designated in-store space for their private label products.

Innovations to fit trending consumer preferences

Other trends, beyond growing demands for healthier packaged food options, have driven soup manufacturers to launch innovative products to satisfy new consumer preferences. These trends include preferences for plant-based and ethnic, and digestive-friendly meal options.

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