The global ready meals market is expected to grow at a CAGR of around 4.5% from 2020 to 2027 and expected to reach the market value of around US$ 233,382 Mn by 2027.
Ready meals also known as convenience meals are gaining high popularity globally. Ready meals are generally complete meals that may require few or no extra ingredients. Majority of the population prefer fresh home-made meals. Factors such as growing working population worldwide, high influx of western culture among each region, surge in per capita disposable income are major growth drivers of ready meals market. Further, demographic advantage of youth present in widespread population across regions and surge in working women population contributes for growth and acceptance of ready meals worldwide. In addition, products offered in the market offers high quality ingredient for working population, increasing tend to adopt ready meals to avoid cooking at homes, less understanding of the recipes further bolster the demand for ready meals market.
Regulations Acted “Decisively “on Ready Meals Market
In May 2016, the Food Safety Systems Recognition Arrangement between Canada and US came into force. Both parties created the legislative device that intends to permit businesses subjected to Safe Food and Canadian Legislations (SFC) or US Food Safety Modernization Act (FSMA) that comply with food safety laws of respective countries. Moreover, food companies operate and engage employees coupled with customers respectively which are FSMA of 2011 that came into picture in May 2017 and the EU General Data Protection Regulation (GDPR) that came into effect in May 2018. A regulatory monitoring process is a strong base for staying on top for dynamic changes in regulations.
Why 2021 could be a Turning Point for Ready Meals Market?
Preferences for ready meals are becoming attraction over the years. Rising customer preference for consuming higher quality foods without having to prepare it from the scratch has contributed to raise demand for ready meals markets. Pre-COVID this trend was more prevalent in cities with business centers and densely populated countries. But due to restrictive measures related to pandemic people opt for home prepared food but keeping macro trend remain in place. Rather than physically preparation of meal, majority of the population prefer to purchase ready meals through online food delivery. Consumer switch towards online platform during the pandemic have accelerated growth of ready meals market worldwide. Retailers are entering the delivery market through partnerships with food aggregators. This trend has gained a significant attention particularly in Europe and US.
In 2018, Asda the large British retailer announced collaboration with JustEat, a pizza and grocery delivery service provider. Due to collaboration British supermarket retailer has recorded significant growth in sales coupled with broad product offering in the respective market.
Further, with ready-meal delivery service from store counter are gaining a lot of attention in the global markets it is expected that it will have widespread market expansion in other geographies that will hold a strong promise. The growing trend for less cooking and more ordering will continue to strengthen and in COVID-19 pandemic online ready meals market will gain a significant pace with high market equilibrium. Such unique strategies will help differentiate the retailers from the competition and enable them to engage with customer with a better value proposition.
COVID-19 pandemic reinforced the sustainability of this trend. During the lockdown period, US e-commerce market for ready meals witnessed rise in sales by almost 14% in sales volume as per data released by Forter Global Merchant Network. Similarly, e-grocery has stupendous growth during lockdowns phase.
Ready meals market is segmented by product type and distribution channel. By product type, the market is segmented as frozen ready meals, chilled ready meals, canned ready meals, and dried ready meals. By distribution channel, the market is segregated supermarket/hypermarket, convenience stores, online stores, other distribution channels.
Based on segmentation, frozen ready meals are dominating the overall market of ready meals. Busy lifestyles of population have increased the consumption of frozen foods worldwide. As frozen foods are easy to prepare and require less time preparation without any loss of essential nutrients has gained high popularity over the years in the global market. Frozen food export business has witnessed surge in sales owing to high acceptance ratio among the consumer base and brand awareness among developed countries.
The frozen foods market in India was valued at INR 84.28 billion in 2019 with a CAGR of 16.73%. The food processing accounted 25% of agricultural exports that grow around 7.9% per annum. Total export of processed food and other value added products stood almost US$ 12 billion during April-November 2018-2019. This is attributed to seeking high potential in supply chain, best loading practices, trained and qualified professionals, and management software.
Based on regions, the market for ready meals covers North America, Asia Pacific, the Middle East & Africa, Latin America, and Europe.
Based on regions, Europe stands as a major market for ready meals. On the other hand, Asia Pacific is anticipated to be fastest growing regional market in the coming years. Europe ready meal is predicted to grow at a CAGR of 5.65% in the forecast period. Consumers of this region are backed by busy and hectic lifestyle that has reduced their time for preparation of food from scratch. This intend to rising preference for canned ready meal, dried, and frozen food. As ready meal is available in different forms such as pot noodles, microwave meals, takeaway meals, and others has increased both availability and variety of foods.
France is the fastest growing country in European markets for ready meals. As per the United States Department of Agriculture (USDA), in 2018, France had registered 17,650 food processing companies with sales of US$ 212 billion. The processed food import increased by 0.8% in 2017. Exports in food industry sector in France takes a lead in the market and has achieved achieve top three position in the global market. In 2019, French food processing industry represented 1.8% of its gross domestic product (GDP).
Rigorous working hours and rising number of single households are driving the demand for ready-to-eat meals or frozen foods. Ethnic foods, health and super foods, and free from gluten or lactose are attracting more and more French consumers.
Key companies profiled in this report involve Bakkavor Foods Ltd., ConAgra, Greencore Group Plc., JH Heinz Company Ltd., Nestle, Northern Food Ltd., Kerry Foods Ltd., and Premier Foods Group Ltd., and others.
Market By Product Type
Frozen Ready Meals
Chilled Ready Meals
Canned Ready Meals
Dried Ready Meals
Market By Distribution Channel
Other Distribution Channels
Market By Geography
Middle East & Africa
The market for ready meals market is expected to reach a market value of around US$ 233,382 Mn by 2027.
The ready meals market is expected to grow at a CAGR of around 4.5% from 2020 to 2027.
Based on product type, frozen ready meals is the leading segment in the overall market.
High adoption of processed foods, busy lifestyle among the population, high disposable income boosts the demand for ready meals market.
Bakkavor Foods Ltd., ConAgra, Greencore Group Plc., JH Heinz Company Ltd., Nestle, Northern Food Ltd., Kerry Foods Ltd., Premier Foods Group Ltd., and others.
Europe is anticipated to grab the highest market share in the regional market
Asia Pacific is expected to be the fastest growing market in the forthcoming years