North America Ready Meals Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

North America Ready Meals Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The North America Ready Meals Market size is estimated at USD 54.38 billion in 2023, and is expected to reach USD 66.70 billion by 2028, growing at a CAGR of 4.17% during the forecast period (2023-2028).

In 2020, the demand for ready meal products has surged in markets such as the United States and remained nominal in Mexico and the rest of North America. This may be attributed to consumers stockpiling during the initial stages of the pandemic, however, the average sales of ready meals remained significantly above their pracademic levels as consumers are consuming far more meals at home. Online retailing of these products happens to be one of the reasons for sales growth of these products in countries like the United States and Canada. Consumers in the market are adopting online retailing for weekly grocery shopping which has doubled since the COVID-19 pandemic-resultant lockdown, in a trend that is now irreversible.

Over the period, changing lifestyles of consumers, which involves consuming smaller meals and healthier meals, are leading to the increased consumption of ready-to-eat food or instant products, such as rice, pulses, soups, and others. As these food products are healthier, they are witnessing an increasing demand. Currently, the demand for ready meal kits is increasing in both developed and developing countries, like the North America and Canada respectively, owing to the factor of convenience, which is a deciding factor for consumption of ready meals in lives of consumers with hectic lifestyle.

Additionally, the rise in the number of nuclear families and longer working hours in the region are the primary factors responsible for the increase in consumption of ready-to-eat food products. Working population are the major consumer of ready-to-eat meals, along with the millennial population residing in the market studied.

North America Ready Meals Market Trends

Growing Affinity toward Ethnic Ready Meals

Over the past decade, more immigrants have come to North America from Asia than any other region globally, making Asians the fastest-growing immigrant population in American countries. Although, before the Asian immigrants, many immigrants, particularly from Europe, had also settled in various parts globally. Therefore, these immigrants bring their diverse cultures, different economic and demographic traits, and various food and beverage consumption patterns from various countries, thus driving the sales of ethnic ready meals across the region. According to the world migration report 2022, there were nearly 59 million international migrants in 2020 in North America, resulting in 21% of the global migrant stock. In 2019, the number of foreign-born people accounted for close to 51 million in the United States. According to the United States Census Bureau, 14.1 million Asian immigrants were residing in the United States in 2019. Therefore, the rising number of Asian immigrants demanding authentic cuisines is driving the sales of ethnic-ready meals in the region. The penetration of Korean, Japanese, Chinese, and Indian cuisine-ready meals has been strong over the last decade. During the forecast period, the ethnic ready meals industry is more likely to rely upon the fusion of ethnic blends. This phenomenon has been compelling major food retailers to increase the inclusion of aromatic and intricate ethnic cuisine ready meals into their product portfolio to satiate the consumers’ demand for ethnic ready meals. For instance, in 2021, CJ Foods launched a new range of frozen Asian ready meals, including Bibigo Korean-Style Crunchy Chicken, available in Soy Garlic and Sweet & Spicy, and Bibigo Korean-Style Fried Rice, available in Shrimp with Soy Garlic Flavor, Chicken with Korean BBQ Flavor and Vegetables with Kimchi under its brand “Bibigo”.​

United States Hold the Prominent Share in the Market

Due to shifting social and economic patterns, higher food and beverage spending, increased consumer awareness of healthy foods, changes in meal patterns and eating habits, an expanding ex-pat population settling in the country, and the desire to try new products, the demand for quick, easy food, especially ready meals, is increasing more quickly in United States. Owing to rising disposable income around the world, and the rise in the number of working women, people favor prepared meals over traditional ones. Also, college students have very little time to eat during their breaks, so they need their meals to be convenient and easy to acquire. Several items have been prepared by market players in accordance with consumer desires.

The increasing participation in outdoor recreational activities like camping, trekking, hiking, etc., is driving the market for ready meals. In 2022, according to TurfMutt Foundation, the 'backyard" trend may stay in America and may continue to expand. According to the Outdoor Foundation, in 2020, the number of participants in camping accounted for approximately 47.94 million, as compared to 41.76 million in 2019. Additionally, according to Census Bureau's monthly Current Population Survey (CPS), the total ex-pat population (legal and illegal) in the United States hit 47 million in April 2022. This data has increased by two million since January 2021. With technological innovations in the food industry, convenience food includes ready meals in chilled, frozen, portion-controlled, shelf-stable, microwaveable, and prepared-mixes formats.

Furthermore, transparency is a powerful purchasing driver for consumers, with many consumers actively seeking out products that promote sustainability, contain organic and natural ingredients, and have clean and more precise labels. According to a survey conducted by International Food Information Council (IFIC) in 2021, 64% of United States consumers choose food products made with clean ingredients. Therefore, retailers increasingly seek brands with certifications, labels, or claims that consumers value, like non-GMO, organic, or women-or minority-owned.

North America Ready Meals Industry Overview

North America's ready meals market is a highly fragmented market with the presence of numerous players competing for the leading market position. Nestle SA, Hello Fresh Group, General Mills Inc., ConAgra Brands, and The Kraft Heinz Company are a few of the major players operating in the market. The players are diversifying their product portfolio to include more ready meals in their product offerings. The players are also focusing on expansion, mergers, acquisitions, and partnerships to meet the demand of consumers. For instance, in February 2022, Hello fresh announced its partnership with the National Hockey League's Nashville Predators, New York Islanders, and Los Angeles Kings to become the first meal kit partner of each team.

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