Can food consumption is on the decline
- Del Monte’s bankruptcy brought to focus the declining status of canned foods
- Globally, canned food consumption is declining.
- In order to maintain their health, consumers are turning away from canned foods and processed food.
- Many consumer behaviors are driven by the health and wellness movement, including food consumption.
Del Monte, a US-based company filed Chapter 11 bankruptcy earlier this month. Del Monte, one of the biggest producers of canned foods in the world was unable repay its debts.
It is not surprising that many have speculated about the problems with this almost 140 year old manufacturer. This company was one of the trusted ones in the US.
According to a popular theory, consumers are no longer interested in canned and shelf-stable food because they are more concerned with healthy foods.
Globally, canned foods are less popular.
Tom Rees is the global insight manager at Euromonitor International for staple food. He believes that Del Monte’s problems are the result of a shift away from canned foods and toward fresher products.
He explains that consumers are increasingly sceptical about all canned and processed food. This includes fruit and vegetables.
Read also Del Monte declares bankruptcy in US but what about Europe?
Globally, the decline of canned foods has been observed. This trend can be seen in Europe and the UK.
According to Euromonitor the global sales of canned fruit and vegetables declined between 2019 and 2024. However, they increased a bit in Eastern Europe.
In both Western Europe and Eastern Europe the sales of canned meat and fish have declined, but they are still growing in other parts of the world.
In many aspects, the canned food industry as a sector is experiencing negative growth. When growth does occur, it’s very small.
Consumers in the UK are also turning away from canned foods. Nielsen IQ spokesperson explains that the biggest concern of shoppers is limiting their intake of processed food. This may lead them to choose fresh foods over canned or processed products.
Cans (in ambient groceries) have declined in unit sales for the past two years.
In contrast, scratch cooking has exploded in the UK, where 52% of consumers cook more using basic ingredients. It is not surprising that this will have an adverse impact on canned food sales.
Tariffs and their impact
Tom Rees of Euromonitor believes that the US tariffs on imports of steel and aluminum have hurt Del Monte’s margins. The US has placed tariffs of 50% on both steel and aluminum (and 25% for UK origin products).
The Guardian reports that these tariffs could also increase the cost of canned foods, making them an even less attractive option to consumers.
Customers want to stay healthy
The desire of consumers to eat healthy is the primary reason for the decrease in canned foods.
According to NIQ’s research, consumers see wellness as “a holistic and all-encompassing journey”. This affects many consumer behaviors. Of course, food is a big part of it.
This desire for health is driving the scepticism of many consumers towards processing.
Technically, canned food is a processed product. People who care about their health, and avoid eating processed food are increasingly choosing not to buy it.