Although home cooking is experiencing a resurgence, there remains a demand for ready meals in the UK, especially during the week. Moreover, a growing number of working professionals are eating at their desk, which has also boosted ready meals sales, while consumers living on their own are also likely to eat these products.
The industry is benefitting from this trend as the total number of single-person households in the UK is on the rise. Nevertheless, ready meals are also being consumed by families and couples, often as part of a wider supermarket deal that includes a bottle of wine, a starter and/or a dessert.
The UK has one of the most advanced ready meals industries in the world. It is made up of two principal sectors: chilled and frozen. Chilled ready meals account for more than half the market. Moreover, the sector grew at more than twice the rate as frozen ready meals in 2012. Nevertheless, its growth rate slowed in 2012, while that of frozen ready meals accelerated.
Chilled ready meals have traditionally been perceived to be of better quality than their frozen counterparts. However, efforts by manufacturers are gradually changing this trend. In addition, the lower cost of frozen ready meals appeals to cash-strapped consumers who are prioritising value.
Own labels dominate in the market, while branded goods are more prevalent in the frozen ready meals category. Flavour is playing a major role in maintaining market dynamism. New recipes and dishes inspired by various ethnic cuisines are being launched into the market.
Consumers are eager to try the latest ready meals and manufacturers want their products to stand out on saturated retail shelves. Moreover, there is a niche in the market for children’s ready meals. Small premium companies are particularly benefiting from this trend as parents may not have the time to cook meals for their children, but they want to ensure that their offspring are getting the right nutrition and a quality meal.
There is also a demand for healthier ready meals as part of a balanced diet. Vegetarian options, ‘free from’ variants and ready meals made with natural ingredients have all been introduced in recent times.
In January 2013, the ready meals industry was rocked by the horse meat scandal. Consumers were concerned about having eaten products that contain equine, but more importantly, they lost faith in manufacturers and are now less likely to trust food packaging.
Nevertheless, Key Note expects that the ready meals market is set to make a full recovery. Although it is forecast to decline in value in 2013, it is expected to return to growth in 2014 and is likely to supersede its pre-horse-meat scandal value by 2015. Overall, between 2013 and 2017, the ready meals industry is forecast to rise by 20.2%.
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