Food - Sri Lanka

Sri Lanka

Revenue in the Food market amounts to US$36.43bn in 2024. The market is expected to grow annually by 9.50% (CAGR 2024-2029).
The market's largest segment is the segment Meat with a market volume of US$10.73bn in 2024.
In global comparison, most revenue is generated in China (US$1,601bn in 2024).
In relation to total population figures, per person revenues of US$1,660.00 are generated in 2024.
In the Food market, 1.6% of total revenue will be generated through online sales by 2024.
In the Food market, volume is expected to amount to 10,230.00m kg by 2029. The Food market is expected to show a volume growth of 4.4% in 2025.
The average volume per person in the Food market is expected to amount to 395.50kg in 2024.

Key regions: United States, Canada, China, India, South Korea

Definition:

The food market covers all edible products that are bought and consumed for nutrient-based purposes. The market includes both fresh and processed foods.

Structure:

The market consists of 13 different markets:

The Dairy products & Eggs market covers animal products, such as milk, eggs and products made from mammal’s milk and non-animal products, such as milk substitutes. This market is divided into six subsegments that include milk, milk substitutes, yogurt, cheese, eggs and other dairy products and eggs.
The Meat market covers animal products, such as pork, poultry, and free-from meat products, such as meat substitutes. This market is divided into three submarkets: fresh meat, processed meat, and meat substitutes.
The Fish & Seafood market covers products made from fish and seafood. This market is divided into three submarkets: fresh fish, fresh seafood, and processed fish & seafood.
Fruits & Nuts cover edible fruits and nuts. This market is divided into three submarkets: fresh fruits, processed & frozen fruits, and nuts.
The Vegetables market covers edible plants. This market is divided into two submarkets: fresh vegetables, processed & frozen vegetables.
The Bread & Cereal products market covers baked goods made from dough. Dough is made using flour, water, a leavening agent, and other optional ingredients. This market also covers products made from cereals that are usually used as part of a main meal. This market is divided into five submarkets: bread, pasta, rice, breakfast cereals and other cereal products.
The Oils and Fats market covers both edible oils and fats made from animals and plants. This market is divided into four submarkets: butter, margarine, edible oils, and other oils & fats.
The Sauces and Spices market covers additional ingredients used during the food preparation process and is divided into three submarkets: tomato ketchup, other sauces, and spices & culinary herbs.
The Convenience food market covers prepared food and meals that require little effort to prepare. This market is divided into two subsegments, soups and ready-to-eat meals.
The Spreads and Sweeteners market covers spreads and ingredients added to food or beverages to give it a sweet flavor. This market is divided into two subsegments, spreads and sweeteners.
The Confectionery & Snacks market covers sweet, savory, and salty food. This market is divided into two subsegments, confectionery and snacks.
The Baby food market covers food that is only meant to be consumed by babies and small children.
The Pet food market covers food that is intended for pet use only.

Additional Information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per unit (unit refers to kilogram), and sales channels. The market encompasses retail sales through both online and offline sales channels to private end customers (B2C). The market only covers at-home consumption; out-of-home consumption is not included. The out-of-home revenue data is only shown as a separate box at the market level.

For more information on the displayed data, click the info button on the right side of each box.

Market

Region

Region comparison

Currency

Analyst Opinion

The Food market in Sri Lanka is experiencing slow growth, impacted by factors such as limited access to technology, low health awareness, and challenges in the supply chain. While the sub-markets of dairy products, meat, and fruits have shown promising growth, others like convenience food and confectionery face challenges due to changing consumer preferences and economic constraints. The market's subdued growth rate is also influenced by the country's dependence on imports and fluctuating commodity prices.

Customer preferences: Consumers in Sri Lanka are increasingly embracing convenience and health-consciousness in their food choices, leading to a rise in demand for ready-to-eat and healthy food options. This trend is influenced by the growing prevalence of busy lifestyles and health concerns, as well as the influence of Western and Asian cuisines. As a result, food delivery services and health-focused restaurants are gaining popularity. Additionally, there is a shift towards locally sourced, organic and sustainable food products, reflecting a growing interest in ethical and eco-friendly consumption.

Trends in the market: In Sri Lanka, The Food market is seeing a rise in e-commerce platforms, with more retailers and restaurants offering online ordering and delivery services. This trend is driven by the increasing demand for convenience and safety, especially during the COVID-19 pandemic. Additionally, there is a growing trend of using digital marketing strategies, such as social media and influencer collaborations, to promote food products and services. These trends indicate a shift towards a more digital and tech-savvy food market in Sri Lanka, highlighting the need for industry stakeholders to adapt and invest in online platforms to remain competitive.

Local special circumstances: In Sri Lanka, The Food market is heavily influenced by the country's unique cultural and geographical factors. The island's rich and diverse culinary heritage, consisting of influences from Indian, Portuguese, Dutch, and British cuisines, plays a significant role in shaping the market. Additionally, the country's strict regulations and religious beliefs, such as a ban on alcohol and pork products, greatly impact the types of food products available in the market. This creates a niche market for local and traditional food products, as well as vegetarian and halal options. These factors contribute to the dynamic and vibrant nature of Sri Lanka's Food Market, setting it apart from other markets around the world.

Underlying macroeconomic factors: The Food market in Sri Lanka is heavily influenced by macroeconomic factors such as the country's economic growth, government policies, and global market trends. Sri Lanka's growing economy and increasing consumer spending power have led to a rise in demand for food products. In addition, the country's favorable business climate and investment-friendly policies have attracted foreign investors, leading to the development of The Food market. Furthermore, the rising trend of healthy eating and increasing awareness of food safety and quality have also contributed to the growth of the market. However, challenges such as high inflation rates and fluctuating exchange rates may impact the market's performance in the future.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.