DTC Food Market to Be Worth $195.39 Billion by 2031 – Exclusive Report by Meticulous Research®

REDDING, Calif., May 9, 2024 /PRNewswire/ — According to a new market research report titled ‘DTC Food Market by Type (Food {Bakery & Confectionery, Meat, Poultry, & Seafood, Dairy, Snacks}, Beverages {Carbonated Soft Drinks & Juices, RTD Tea & Coffee, Alcoholic Beverages}), by Distribution Channel (Online, Offline) — Global Forecast to 2031′ by Meticulous Research®, the DTC food market is projected to reach $195.39 billion by 2031, at a CAGR of 18.7% from 2024 to 2031.

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DTC or Direct-to-consumer refers to a business model where a food company sells its products directly to consumers without relying on any third-party retailers, wholesalers, or other intermediaries (E-commerce websites). In the context of the food market, DTC food refers to food products that are sold directly to consumers by the manufacturers/producers themselves, typically through online platforms and physical stores owned by the food producers. This market encompasses various food and beverage products, including snacks, bakery products, dairy, fresh produce, meat, specialty items, and beverages, all of which are offered directly to consumers through their own websites and physical stores. Thus, they can communicate directly with consumers, gather feedback, build brand loyalty, and develop products according to their preferences.

The rising adoption of convenience foods, growing online purchases of food products, and the increasing number of DTC food brands are some of the factors driving the growth of this market. However, the lack of brand awareness & limited product offerings of DTC food providers, and product quality concerns & delivery delays hamper the market’s growth to some extent. Moreover, the growing demand for premium & personalized food products is expected to generate market growth opportunities for the stakeholders operating in this market. However, high competition from other distribution channels is a major 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.

Key Players:

The key players operating in the global DTC food market are Anheuser–Busch InBev NV/SA (Belgium), AriZona Beverages USA, LLC (U.S.), JBS S.A. (Brazil), Mondelēz International, Inc. (U.S.), Nestlé S.A. (Switzerland), OLIPOP, Inc (U.S.), PepsiCo, Inc. (U.S.), The Coca-Cola Company (U.S.), The Kraft Heinz Company (U.S.), The Naked Market (U.S.), and Unilever PLC (U.K.).

The DTC food market is segmented by type (food {bakery & confectionery products, meat, poultry, and seafood products, snacks, dairy products, sauces, dressings, and condiments, breakfast cereals, infant food, and other food products} and beverages {non-alcoholic beverages [carbonated soft drinks & juices, dairy & dairy alternative beverages, sports & energy drinks, RTD tea & coffee, and flavored & fortified water]}, and alcoholic beverages), by distribution channel (online distribution channel and offline distribution channel), and geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa). The study also evaluates industry competitors and analyzes the market at the regional and country levels.

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Key Findings in the DTC Food Market Study:

Among all the type segments covered in this report, in 2024, the food segment is expected to account for a larger share of 51% of the DTC food market. The large market share of this segment is attributed to the growing demand for convenience foods, changes in lifestyle and food habits, growing demand for nutritional and fortifying food products, rising innovative food products, rising spending on healthy and nutritious diets, and increasing consumer inclination towards online shopping. However, the beverages segment is expected to register a higher CAGR of 20% during the forecast period of 2024–2031. The growth of this segment is mainly attributed to the rising consumer demand for healthier and more premium beverage products, changing consumer preferences, increasing demand for low-calorie beverages, and growing popularity for plant-based and functional beverages among consumers.

Among all the distribution channels studied in this report, the online distribution channel segment is expected to account for a larger share of 88% of the DTC food market in 2024. The segment’s large share is mainly attributed 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. Moreover, 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 further increasing the popularity of the online distribution of the food and beverage products.

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Geographically, in 2024, North America is expected to account for the largest share of 45% of the DTC food market. North America DTC food market is projected to reach USD 93.7 billion by 2031, growing with the highest CAGR during the forecast period. The rapid growth of this regional market is mainly due to 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.

The US dominates the North America DTC food market. The US DTC food market is witnessing a surge in DTC food brands, with rapid expansion, specialized offerings, and a significant impact from the COVID-19 pandemic. The COVID-19 pandemic has accelerated the DTC food market in the country, as consumers increasingly turn toward the online shopping of food & beverage products, boosting grocery e-commerce. Moreover, there are several small and large food & beverage brands that have launched their DTC channels in recent years.

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Scope of the Report:

DTC Food Market Assessment—by Type

  • Food
    • Bakery & Confectionery Products
    • Meat, Poultry, and Seafood Products
    • Snacks
    • Dairy Products
    • Sauces, Dressings, and Condiments
    • Breakfast Cereals
    • Infant Food
    • Other Food Products
  • Beverages
    • Non-alcoholic Beverages
      • Carbonated Soft Drinks & Juices
      • Dairy & Dairy Alternative Beverages
      • Sports & Energy Drinks
      • RTD Tea & Coffee
      • Flavored & Fortified Water
    • Alcoholic Beverages

DTC Food Market Assessment—by Distribution Channel

  • Online Distribution Channel
  • Offline Distribution Channel

DTC Food Market Assessment—by Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • Australia
    • Rest of Asia-Pacific
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • Middle East & Africa

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Related Blogs

Top 10 Companies in DTC Food Market

Growing Demand for Premium & Personalized Food Products Generating Market Growth Opportunities for the Stakeholders Operating in the Global DTC Food Market

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