Growing demand from emerging economies is expected to increase the global market for packaged foods to $3.03 trillion by 2020.
The forecast represents a compound annual growth rate of 4.5 percent between 2015 and 2020, according to a report from Allied Market Research.
North America, which currently comprises the largest portion of the market, is expected to again generate the most revenue over that span, but the Asia-Pacific region is projected to grow the fastest at a CAGR of 5.4 percent.
China and India — the two largest countries in the world — are expected to exhibit particularly strong growth, according to the report.
READ MORE: Effectively improve operational efficiency for food and beverage manufacturers.
Non-alcoholic drinks and baked goods account for nearly three-quarters of the packaged food market by value. Ready-to-drink beverages, in particular, gained wide acceptance in Asia, while bottled water grew strongly amid increasing health awareness in developing nations.
Baby food, yogurt and nuts are expected to be the fastest-growing packaged food segments. Yogurt drinks should generate the bulk of that segment's performance, while increasing nutritional concerns should help the performance of both baby food and nuts.
Other packaged food segments include ready-to-eat meals, breakfast cereals, soups, potato chips, instant noodles, pasta, biscuits, chocolate confections, cheese, ice cream and sauces and condiments.