Great growth prospects for the global frozen ready meals market forecast

Monday, 25 January, 2016

The global frozen ready meals market is expected to reach close to US$64 billion in 2020 according to Technavio’s latest food and beverage industry report. In 2015 frozen meals held over 52% of the ready meal market share and the segment was valued at US$50 billion.

Frozen meals comprise a large portfolio, including frozen pizza, chicken meals, beef meals and various types of frozen vegetarian meals, providing consumers a variety of options to choose from. They are convenient alternatives to cooking and are increasingly being preferred by the working population worldwide.

“A rise in the adult population between those aged 25 to 49 is also driving the market for frozen ready meals as this population segment increasingly feels the pressure of parenthood and a busy lifestyle, which pushes them towards convenience to achieve a work–life balance,” Technavio Lead Food Industry Analyst Vijay Sirathi said. Frozen meals are free from microbial attacks and therefore considered healthier compared to other ready meals.”

Some of the top brands for frozen ready meals are Ristorante, DiGiorno, Stouffer’s, McCain, Healthy Choice, Weight Watchers and Banquet.

Ready meals in Europe

Europe is the largest market for ready meals, accounting for over 40% of the global market in 2015.

Europe dominated the global ready meals market in 2015 and was valued at nearly US$39 billion. The European market is expected to surpass US$48 billion by 2020, growing at a CAGR of 4.5%.

An increase in awareness about health and wellness among consumers in Europe is driving the ready meals market in this region. Vendors are introducing several healthy ready meals such as frozen vegetables, salads and gluten-free meat to meet consumer requirements. Germany, the UK, France, Spain and Russia are among the largest markets for ready meals in Europe.

Despite the region’s current dominance, the European market is slow compared to the Americas and APAC. The 2013 horsemeat scandal in European countries, such as the UK, breached the trust of many ready meals consumers. This scandal had a very negative impact on the sales of ready meals in the region. Rising economic uncertainties will also likely lead to slow market growth in Europe from 2018 onwards.

APAC is the fastest growing region

APAC is the fastest growing region for the global ready meals market with an expected CAGR of over 5% through 2020. In 2015, Japan was the leading ready meals-consuming country in the region, followed by China and Taiwan. Vendors are localising their ready meals in order to adopt to the taste and preferences of the consumers of this region.

Vendors are also launching new product lines that cater to consumers belonging to all echelons of society, including upper, middle and lower middle class. In 2014, China Xiamen Yinlu Food launched a brand named Hou Zhou Dao — ready meals targeted at the upper-middle-class consumers. The product is a nutritious ready meal made of several nutrients such as oats, black rice, red beans and corns. The core products of Yinlu focus on the middle- and lower-middle-class population.

High demand for premium ready meals

With growing concerns over health and wellness among consumers, the demand for premium meals is increasing. Premium ready meals promise extravagance in product quality, packaging, taste, colour, freshness, vitamin content, texture, taste and shelf life.

Consumers are seeking products that contain natural and organic ingredients that are procured locally since they go through fewer processing cycles than other ready meals. This trend is expected to become an important factor in the future of ready meals innovation.

In November 2015, a company named Nom Noms Word Food introduced a new line of chilled meals packed with ingredients that are authentic and healthy. The company manufactures chilled ready meals using a unique balanced blend of spices, herbs and flowers to give each meal a unique and authentic flavour.

Top vendors covered in this report include:

The Technavio report covers the present scenario and growth prospects of the global ready meals market for the period 2016–2020 and is available for purchase.