Global Prepared Meals Market - 2023-2030

Global Prepared Meals Market - 2023-2030

Market Overview

The global prepared meals market was valued at USD YY million in 2022. It is forecasted to reach USD YY million by 2030, growing at a CAGR of 6.5% during the forecast period (2023-2030).

Prepared meals are packaged fresh and frozen. They require a little preparation besides heating up. Buyers' inclination for packaged ""ready meals"" with fewer preservatives and a longer shelf life has augmented the demand for high-pressure processing (HPP) technology. This technology uses pressure spread by water to eradicate pathogens and other spoilage microorganisms. This advanced technology can enhance shelf life by two to threefold without depending on preservatives.

Moreover, the industry has found that high production costs and health consciousness, which leads to low-fat consumption, are hurdles. Further growth potential in this market is likely to include innovative product development with low trans-fat and organic cream products. Increased product launches with creative ideas such as flavored, low-calorie, and low-fat cream are likely to propel the industry forward. Furthermore, cream's vast range of applications, from bread to confectionary, drives the market growth.

Market Dynamics Growing prepared meals market with the impact of changes in lifestyle and eating patterns of consumers

In the fast-paced, on-the-go world, half of the population prefers convenience foods, which aid consumers in saving time and effort in meal preparation. Owing to the fast and busy lifestyle, the consumption pattern of consumers shifted from raw food to prepared food. Also, rapid urbanization and changing lifestyles are increasing the demand for prepared meals. Due to the constant evolution in the consumption patterns of consumers, the demand for prepared meals has grown substantially globally because of expanding consumer health consciousness and urban lifestyles. Along with that, consumers are moving towards a fast-moving corporate setup that diversifies their eating patterns due to less time availability and more workload. Prepared meals are easy to cook, readily available, affordable, and accessible, making them a smart solution to cater to the daily nutritional needs of consumers. Growing consumer health and wellness awareness is hastening the adoption of a healthy lifestyle, increasing acceptance of positive lifestyles, and consuming healthy prepared meals, which have preserved nutrients, is moving the prepared meals market forward.

In addition, increasing disposable income is also influencing the demand for prepared meals in households. Globally, the number of quick-service restaurants is rapidly increasing, raising the demand for prepared meals. Consequently, the growing consumption of prepared meals increases the demand for prepared food products. As a result, it improves the growth of prepared food and drives the prepared meal market. For instance, on April 5, 2022, Prasuma launched a new brand of products in the frozen food portfolio. The brand is set to launch frozen Chicken Nuggets, Frozen Veg and Chicken Spring Rolls, Veg and Chicken Mini Samosas, Mutton and Chicken Shammi Kababs, and Mutton and Chicken Seekh Kababs as well as Bacon to its frozen portfolio.

However, fresh foods are the most superior substitute for ready meals. Recent developments in fresh foods due to the COVID-19 pandemic indicate the rising popularity of fresh foods worldwide. The rising prevalence of health consciousness and predominance of lifestyle disorders, and the increasing expenditure capacity of consumers are the major factors surging the demand for fresh food. Regardless of the convenience of ready meals, the nutritional value associated with the food could be much higher. Moreover, keeping several preservatives and additives in food fresh and having a longer shelf life is expected to hamper the prepared meals market's growth shortly.

Market Segmentation

The frozen meals segment had the highest share in the prepared meals market

The frozen meals sector accounted for the highest market proportion and is one of the most popular product categories internationally. The product has a longer shelf life than chilled items, which helps maintain the food's nutritional quality and freshness. As a result, frozen ready meals are a more convenient option for chilled products, driving up demand for frozen prepared meals. During the COVID-19 epidemic, consumers' demand for frozen meals increased. According to the British Federal Association, the frozen category increased retail channel sales by 11.5% in April 2021 and is ahead of the chilled and fresh categories.

Moreover, retailers are developing varieties of frozen-ready meals and snacks that demand heating without additional preparation before consumption. With supermarkets and hypermarkets stocking an ever-increasing variety of these meals, such as risotto, lasagna, curries, and gourmet soups, it's simpler than ever to avoid fast food and consume healthy food during their busy days. Several frozen meals have a longer shelf life, are more economical, and are nutritionally balanced. They make life easier for the consumer. For instance, in April 2022, Nomad Foods launched an open innovation portal that invites partners to share innovative solutions. The new portal launch helped the company increase the scalability of frozen mussels and other bivalve products. Therefore, such factors are attributed to the market's growth over the forecast period.

Geographical Penetration: Europe is the dominant region during the forecast period

Europe emerged as the largest market in 2021. The market is expected to grow significantly due to the introduction of more exotic products, the push toward premiumization, and the influence of private labels. Moreover, the U.K. leads the way in consuming these meals in Europe. Germany, the U.K., and France account for half of the European region's sales of ready meals. Furthermore, consumers' increased demand for convenience food products due to their hectic lifestyles boosts the market growth. For instance, in July 2020, Tyson Foods introduced a new line of chicken products under the Tyson brand in the European food service industry, which includes restaurants, cafeterias, and caterers. It helped the company increase its revenue from the food service industry. Furthermore, the development of ready meals has significantly been sustained by the upsurge of women in France's workforce, creating substantial demand for saving time and effort in cooking breakfast and dinner. Additionally, the market in the U.K., the world's second-largest economy, has been primarily driven by caterers.

The market in North American countries, such as the United States and Canada, is expected to witness substantial gains owing to increased demand for processed food and increased income levels among inhabitants. In addition, increasing demand for ready meals in the region has also impacted the business models of leading grocery retailers such as Target, Aldi, and Walmart. All the grocers have combined their cloud kitchens and added packaged breakfast and dinner meals to their grocery lists.

Competitive Landscape

The prepared meals market share is highly fragmented in nature owing to the presence of a large number of domestic and global companies. A high focus on innovations, collaboration, and new product lines enables key market players to address new market developments and gain a competitive edge to penetrate new markets. Several retailers have expanded their plant-based ready meals product range. Some players are General Mills, Nestle S.A., Tyson Foods, ConAgra Brands, Dr. Oetker, Green Mill Foods, Unilever, J.M. Smucker Co., McCain Foods, and Kellogg Company. Moreover, manufacturers heavily invest in the prepared meal market due to increased demand. For instance, in February 2022, Beak & Johnston, an Australian ready meals manufacturer, projected to complete the construction of a new USD 90 million kitchen facility in Western Sydney after the sector has rapidly grown over the last few years. The growth in ready meals has been attributed to multiple factors, including increasing demand for products rich in nutrients and sustaining a healthy lifestyle, such as ingredients for detoxing or a cleanse.

On August 27, 2022, Seara launched its complete halal portfolio comprising 120 frozen food products, including frozen whole chicken, chicken parts, breaded chicken, chicken and beef burgers, minced meats, sausages, meatballs, frozen vegetables, frozen seafood, and frozen fruits, among others.

On February 21, 2021, Vive Foods launched ready-to-eat chilled food products. The manufacturer conveyed that the food products will come perfectly packed to give homemade taste and nutrition to consumers. Vive Food guarantees 100% safety with its products.

COVID-19 Impact: Positive impact on the global prepared meals market

The COVID-19 epidemic forced many customers to stay at home, forcing the purchase of ready-meal goods, resulting in current demand outstripping available supplies. The epidemic hastened this rise by reducing consumption at cafés and restaurants and encouraging consumers to shop at online food stores. Demand was seen in restaurant delivery and ready-made meals purchased online. Consumer desire for on-the-go food products and convenience led to increased online meal services and competition. The persistence of COVID-19 for a longer period has affected the supply chain as it got disrupted, and it became difficult to supply food products to consumers, initially increasing the demand for products.

However, post-COVID, the demand for prepared meals has increased significantly owing to their longer shelf life, increasing the demand for convenience food products. According to the USDA, amidst government warnings to stay home, food service players moved their businesses off-premises with the help of food delivery companies, making it easier for consumers to purchase meals. Retailers also report brisk sales in ready meals, growing 12 percent in 2020 to $81 million. Industry contacts forecast that sales of meals from the overall food service and retail channels will increase five percent in 2021 to $6.6 billion as companies introduce higher-quality products and improve e-commerce and delivery services. U.S. suppliers can grab a share of this market by introducing shelf-stable and frozen-ready meals. With changing consumer habits, Post sees 5 to 8 percent annual growth over the next five years, even after lockdown restrictions have eased, and more people dine in restaurants.

The global prepared meals market report would provide access to approximately 61 market data tables, 54 figures and 170 pages