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Global DTC food market projected to see CAGR of 18.7% during the period 2024-2031

By Retail4Growth Bureau | March 14, 2024

A new report by Research and Market says the global DTC food market is projected to reach $195.39 billion by 2031, during the forecast period of 2024-2031 and the growth of the market is driven by the rising adoption of convenience foods, growing online purchases of food products, and the increasing number of DTC food brands.

A new report by Research and Market says the global DTC food market is projected to reach $195.39 billion by 2031, at a CAGR of 18.7% during the forecast period of 2024-2031

Research & markets

The report provides an in-depth analysis of the global DTC food market in five major geographies and emphasizes the current market trends, sizes, shares, recent developments, and forecasts till 2031. The report conducts the impact analysis of the key industry drivers, restraints, opportunities, challenges, and trends.

The growth of the DTC food market is driven by the rising adoption of convenience foods, growing online purchases of food products, and the increasing number of DTC food brands. However, the lack of brand awareness & limited product offerings of DTC food providers, and product quality concerns & delivery delays are some of the factors limiting the growth of this market to some extent, says the report.

Moreover, the growing demand for premium & personalized food products is expected to generate market growth opportunities for stakeholders operating in this market. However, high competition from other distribution channels is a prominent challenge for the players operating in this market. Furthermore, consumers' increasing focus on health and wellness is a major trend in the DTC food market.

North America is slated to register the highest CAGR during the forecast period of 2024-2031. The growth of this regional market is driven by the rising technological advancements in online food distribution and high consumer preference for convenience and personalized shopping experiences. Moreover, factors such as busy lifestyles, increasing disposable income, and a growing demand for healthy and sustainable food options are also expected to support the high growth of the DTC food market in North America.

In 2024, the food segment is expected to account for the larger share of the global DTC food market. The large market share of this segment is attributed to the increasing demand for convenience foods, changes in lifestyle and food habits, growing consumer inclination towards online shopping, rising demand for nutritional and fortifying food products, increasing innovative food products, and rising spending on healthy and nutritious diets.

In 2024, the online distribution channel segment is expected to account for the larger share of the global DTC food market owing to the increasing preference for online shopping among consumers, the convenience offered by online platforms, the growing penetration of the internet, and the high popularity among food and beverage manufacturers of creating websites to display and sell their products directly to consumers.

Also, the growing preference for personalization, contactless shopping, consumer convenience, easy price comparisons between brands, the advantage of greater discounts compared to offline stores, and a greater product selection experience are some of the factors increasing the popularity of the online distribution of food and beverage products.

Market Insights

Factors Affecting Market Growth

  • Rising Adoption of Convenience Foods Driving the Demand for DTC Food & Beverage Products
  • Growing Online Purchases of Food Products Supporting Market Growth
  • Increasing Number of DTC Food Brands Accelerating Market Expansion
  • Lack of Brand Awareness & Limited Product Offerings of DTC Food Providers Limiting Market Growth
  • Quality Concerns & Delivery Delays Impacting the Adoption of DTC Food Products
  • Growing Demand for Premium & Personalized Food Products Generating Market Growth Opportunities
  • High Competition from Other Distribution Channels to Remain a Major Challenge for Market Players
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