Global B2B Food Market Overview
B2B Food Market Size was estimated at 1,773.43 (USD Billion) in 2022.The B2B Food Industry is expected to grow from 1,835.33(USD Billion) in 2023 to 2,500.0 (USD Billion) by 2032. The B2B Food Market CAGR (growth rate) is expected to be around 3.49% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key B2B Food Market Trends Highlighted
From the year 2023 onwards, the newly created B2B food space in Bali and its regions seems to be witnessing interesting transformations. The increased interest for the healthy and organic food products available in the market has been the blooming trend. Proponents of processed food devoid of conventional ideas of filth are now actively looking for suppliers who will give them the desired ethnic, chemical free, minimally processed and plant-based foods.
Online purchase and application of commercial services is yet another trend. Business to business patrons has turned to online malls or applications in the quest for desire of speed, volume, and market versatility. This trend is likely to persist as more technological developments are made in buying facilities that allow buyers to purchase, locate, and manage their supply chain in a more efficient way.
Also, the market is expected to continue experiencing an uptrend in the demand of products that require variety and individualization. Their target market demands their products like the private label and packaging design crossovers with the business house’s requirements. This is driven by the growing trend of desiring products which serve specific target market and usiveness of various none standard features to the different types of users.
B2B Food Market Drivers
Rising Demand for Convenience and Time-Saving Solutions
The rise of today’s consumers’ fast-paced lifestyles has increased the demand for more convenient and time-saving food solutions. B2B foods suppliers are responding to this market demand by offering a wide range of more convenient food products including ready-to-eat meals, meal kits, and other options. These products are developed to cater to the lifestyle needs of busy professionals, families, or individuals looking for more swift and simple meal solutions.The demand for convenient food options is also boosted by the increasingly emerging online grocery shopping and meal delivery services which provide the product’s final consumers with more reliable shipment alternatives. However, other than convenience, the final consumers’ demand for healthier and more nutritious food solutions is increasing as well. Long-term perspectives indicate that B2B food supplies will experience the most significant share in this market because these suppliers are currently trying to satisfy the need of their restaurant, café, hotel and other customers for a wider range of healthier and more organically produced food products.In fact, these products are made of natural, fresh ingredients and are thus free from any artificial or other disgusting preservatives. The reason of this increased demand for healthy foods is the growing health consciousness. Additionally, the desire to eat healthier food is also to a great extent driven by the rising disposable income level as well as the recent increased popularization of healthy eating habits and trends. Consequently, the two most significant current and ongoing drivers in the B2B Food Market Industry are the consumers’ growing demand for more convenient and time-saving food solutions and the growing need for more healthy and organic food products.
Increasing Adoption of E-commerce and Online Ordering
The rapid growth of e-commerce and online ordering is having a major impact on the B2B food market. Food suppliers are increasingly investing in their e-commerce platforms and online ordering systems in order to meet the growing demand from customers. Online ordering offers a number of benefits to customers, including convenience, speed, and a wider selection of products. Customers can also track their orders online and receive real-time updates on the status of their delivery. The growth of e-commerce and online ordering is being driven by a number of factors, including the increasing popularity of smartphones and tablets, the growing availability of high-speed internet, and the increasing convenience of online shopping. The growth of e-commerce and online ordering is expected to continue in the coming years, as more and more consumers become comfortable with shopping for food online.
Growing Demand for Sustainable and Environmentally Friendly Food Products
Sustainable and environmentally friendly food products are becoming more and more demanded among customers. This tendency is the result of a number of factors among which there is rising environmental awareness, increasing disposable income of people, and the growth of interest towards healthy eating trends. To put it simple, customer demand is forced by an increasing level of education and a higher quality of life, as well as the level of greed for life and the corresponding natural products that has grown as well.Due to the increasing demand, B2B food suppliers started to offer a larger range of food products that are made in a sustainable and environmentally friendly way. In most cases, these products are made of organic ingredients, they are produced with a help of sustainable farming, and are packed in environmentally friendly materials. The demand is expected to grow in the future, as more and more people get to know more and more about the prospective problems that their current eating habits can cause.
B2B Food Market Segment Insights
B2B Food Market Business Type Insights
Dear Assistant, The B2B Food Market is segmented by business type on different levels, such as wholesaler, distributor, manufacturer, and foodservice provider. Each of the segments has a different role in the supply chain and influences the growth of the market. Wholesaler. Companies purchase large amounts of food products directly from manufacturers. Then, they supply the distributors or retailers with products. Wholesalers’ responsibility is to manage distribution, so the goods are available. The activity of the wholesaler is a vital link of the supply chain since he creates a bridge between the manufacturer and the next actors.
Distributor. Middlemen work with wholesalers on the one hand and with retailers, restaurants and all of the other foodservice establishments on the other. The task of a distributor is to provide for the delivery of food on time and to a broad range of customers. Manufacturer. The purpose of the manufacturer’s segment is to produce food products. Different ingredients, technologies, equipment are used to make a large variety of food. Foodservice provider. Megxing and Koispauriene define a food service provider as a company preparing and serving food for customers in different surroundings such as restaurants, cafes, and even inns.Their role in the B2B market is that they buy food from wholesalers and distributors and offer dining. Some of the leading companies are Cargill’s, Tyson food’s, JBS food.
Source Primary Research, Secondary Research, MRFR Database and Analyst Revie
B2B Food Market Product Type Insights
The B2B Food Market segmentation includes the division of the market into different product types, which are Fresh Produce, Dairy Products, Meat and Poultry, Seafood, Packaged Foods, and Beverages. Each product type holds its own importance and contributes to the overall growth of the market. In 2023, the Fresh Produce segment held the largest market share of 30%, and it is projected to continue its dominance throughout the forecast period. Growing consumer awareness towards health and wellness is propelling the demand for fresh fruits and vegetables.
The Dairy Products segment is another major contributor to the market, accounting for 25% of the revenue in 2023. Increasing consumption of dairy products, attributed to their nutritional value and versatility, is driving the growth of this segment. The Meat and Poultry segment also holds a significant share in the market, primarily driven by rising demand for protein-rich food products. The Seafood segment is expected to witness steady growth, owing to the increasing popularity of seafood as a healthy and sustainable food source. Packaged Foods and Beverages are other important product types in the B2B Food Market, contributing to its overall growth and revenue generation.
B2B Food Market Distribution Channel Insights
The B2B Food Market is segmented by distribution channel into Direct to Business (B2B), Brick and Mortar Stores, Online Marketplaces, and Foodservice Distributors. Among these, the Direct to Business (B2B) segment held the largest market share in 2023, accounting for over 40% of the B2B Food Market revenue. This is attributed to the increasing adoption of e-commerce platforms by businesses to streamline their procurement processes and reduce costs. The Online Marketplaces segment is expected to witness the highest growth during the forecast period, owing to the growing popularity of online grocery shopping and the convenience it offers to consumers.
B2B Food Market Vertical Industry Insights
The B2B Food Market is segmented into various verticals, including Restaurants and Food Service, Grocery Stores, Convenience Stores, Healthcare Facilities, and Educational Institutions. Among these, the Restaurants and Food Service segment held the largest market share in 2023, accounting for approximately 32.5% of the revenue. The Healthcare Facilities segment is projected to witness the highest CAGR of 4.2% during the forecast period, owing to the growing demand for healthy and nutritious food options in hospitals and other healthcare settings.The Grocery Stores segment is expected to contribute significantly to the overall market growth, driven by the increasing popularity of online grocery shopping and the expansion of retail chains. Convenience Stores and Educational Institutions are also expected to exhibit steady growth in the coming years, supported by the rising demand for convenient and affordable food options.
B2B Food Market Regional Insights
Regionally, North America held the largest market share in 2023, accounting for nearly 38.2% of the B2B Food Market revenue. The region's well-established food processing industry, rising demand for processed and packaged foods, and growing consumer preference for convenience foods contribute to its dominant position. Europe is another significant region in the B2B Food Market, with a market share of approximately 30.4% in 2023. The region's large population base, urbanization, and increasing disposable income are key drivers of market growth.APAC, with its rapidly expanding economies and growing middle class, is expected to witness significant market growth over the forecast period. The region is projected to exhibit a CAGR of 4.1% during 2024-2032, reaching a valuation of 750.0 Billion USD by 2032. South America and MEA are also expected to contribute to the B2B Food Market growth, albeit at a slower pace compared to other regions.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
B2B Food Market Key Players And Competitive Insights
A B2B Food Market highly relies on expanding its product portfolio and geographical presence to meet the needs of the ever-growing market’s demand for processed food and beverages. The other vital aspect of industry development is the shift towards establishing more strategic alliances and associations to capitalize on broader markets and new technologies. The market for B2B Food Market is characterized by a high degree of fragmentation with numerous small and medium-sized establishments playing in the sector. However, still, the leading B2B Food Market enterprises are increasingly expanding their market share by acquiring smaller counterparts and broadening their product lines. It can be identified that the development of the B2B Food Market is rather driven by innovation and product development than any other factor as they can adapt more appropriately to conform to the changes in customer demand. All in all, the competitive environment and rivalry between market participants are to remain rather volatile in the years to come as various types of players will compete for their share.
Mondelez International is one of the leading undertakings within the market. It has a vast line of food and beverage products ranging from snacks and biscuits to confectionery and, indeed, cheese. Moreover, the company has quite a presence across more than 150 countries. It can be said that Mondelez is a rather innovative company in terms of both new products and presence expansion as it has opened a number of new market opportunities through mergers and acquisitions, as well as through joint ventures. One of Mondelez’s key rivals PepsiCo is also active on the acquisition front. The given company is engaged in the production of the same types of food and beverage products and is also active across the globe. However, PepsiCo has undergone a similar experience with the divestment from the major. Its concentration seems to be stronger on the creation of healthier food and drink as it is trying to be adjusted to the new market trends in the best way possible. Additionally, the company has made such acquisitions as Tropicana, Naked, and Smartfood.
Key Companies in the B2B Food Market Include
- Mars, Incorporated
- Sysco
- Mondelez International
- Kraft Heinz
- Nestlé
- JBS
- Danone
- Archer Daniels Midland Company
- Unilever
- Tyson Foods
- PepsiCo
- Mclane Company
- US Foods
- Cargill
B2B Food Market Industry Developments
The B2B Food Market is expected to reach USD 2500.0 billion by 2032, exhibiting a CAGR of 3.49% during 2024-2032. Key factors driving the market growth include increasing demand for convenience food, rising adoption of e-commerce platforms, and growing consumer preference for healthy and organic food products. The market is also witnessing significant investments in food processing and packaging technologies, as well as strategic partnerships and acquisitions among industry players. Recent news developments include the launch of innovative food products tailored to specific dietary needs, such as plant-based meat alternatives and personalized nutrition solutions. E-commerce giants are also expanding their reach in the B2B food market, offering a wider selection of products and enhanced delivery services.
B2B Food Market Segmentation Insights
B2B Food Market Business Type Outlook
- Wholesalers
- Distributors
- Manufacturers
- Food Service Providers
B2B Food Market Product Type Outlook
- Fresh Produce
- Dairy Products
- Meat and Poultry
- Seafood
- Packaged Foods
- Beverages
B2B Food Market Distribution Channel Outlook
- Direct to Business (B2B)
- Brick and Mortar Stores
- Online Marketplaces
- Foodservice Distributors
B2B Food Market Vertical Industry Outlook
- Restaurants and Food Service
- Grocery Stores
- Convenience Stores
- Healthcare Facilities
- Educational Institutions
B2B Food Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
B2B Food Market Report Scope
| Report Attribute/Metric |
Details |
| Market Size 2022 |
1773.43(USD Billion) |
| Market Size 2023 |
1835.33(USD Billion) |
| Market Size 2032 |
2500.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
3.49% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Mars, Incorporated ,Sysco ,Mondelez International ,Kraft Heinz ,Nestlé ,JBS ,Danone ,Archer Daniels Midland Company ,Unilever ,Tyson Foods ,PepsiCo ,Mclane Company ,US Foods ,Cargill |
| Segments Covered |
Business Type ,Product Type ,Distribution Channel ,Vertical Industry ,Regional |
| Key Market Opportunities |
Expanding digital ordering channels Increasing adoption of ecommerce platforms Growing preference for sustainable packaging Demand for tailored and personalized food offerings Focus on health and nutrition |
| Key Market Dynamics |
Rising demand for convenience Growing popularity of ecommerce Increasing focus on sustainability Technological advancements Entry of new players |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The B2B Food Market is projected to reach a valuation of approximately USD 1,835.33 billion in 2023.
The B2B Food Market is anticipated to exhibit a CAGR of around 3.49% during the forecast period from 2024 to 2032.
North America is anticipated to dominate the B2B Food Market throughout the forecast period, owing to the presence of well-established food processing and distribution networks, as well as increasing demand from the hospitality and foodservice sectors.
The growth of the B2B Food Market is primarily attributed to factors such as rising urbanization, increasing disposable income, evolving consumer preferences towards convenience and healthy eating, and expanding retail and foodservice sectors.
The food processing segment is expected to account for the largest market share in the B2B Food Market, driven by the increasing demand for processed and packaged food products from various end-use industries, such as foodservice, retail, and manufacturing.
Some key trends shaping the B2B Food Market include the adoption of e-commerce platforms for food procurement, the growing popularity of plant-based and organic food products, and the increasing focus on sustainability and ethical sourcing practices.
Some of the prominent players operating in the B2B Food Market include Sysco Corporation, US Foods Holding Corp., Archer Daniels Midland Company, Cargill, Incorporated, and Unilever PLC.
By the end of 2032, the B2B Food Market is projected to reach an estimated valuation of USD 2,500.0 billion.
Emerging economies such as China, India, and Brazil are anticipated to contribute significantly to the growth of the B2B Food Market, driven by their growing populations, rising disposable incomes, and expanding food and beverage industries.
The COVID-19 pandemic has had a profound impact on the B2B Food Market, leading to disruptions in supply chains, changes in consumer demand, and increased adoption of e-commerce platforms. However, the market is expected to recover and continue its growth trajectory in the post-pandemic era.
