Convenience Food Market Overview
According to projections, the packaged food and processed food industries will expand significantly over the coming years as a result of shifting consumer lifestyles and increasing demand from developing nations. Convenience food store business expansion has also been aided by shifting consumer demographics as more people relocate to cities.
Convenience Food Market Size Growth Rate
According to the DataM market research report, the global convenience food market share was valued at US$ 0.6 billion in 2022 and is projected to reach US$ XX billion by 2030, exhibiting a CAGR of 7.5% over the forecast period (2023-2030).
The ability to provide a whole dinner that has been prearranged and takes almost no additional preparation on the part of consumers before it tends to be consumed suggests that the convenience food industry has made life easier for man over the long term. Due to their fatigue and lack of cooking skills, many are drawn to this type of dinner. According to the purchasing habits of consumers, the global packaged and ready-to-eat food business is predicted to experience significant growth over the forecast period.
Convenience Food Market Drivers
Due to the fundamental shift in customer behavior in meal usage, modern shoppers’ interest in supper-time arrangements is growing swiftly. For instance, on September 29, 2022, Delfrez omnichannel fresh meat brand, launched a range of ready-to-eat & ready-to-cook meat products. The Ready-to-Eat category offers Chicken Breakfast, Chicken Nuggets, Sausage, Chicken Cocktail Sausage, Chicken Popcorn, and Chicken Salami Sliced. Although people have the time or ability to prepare food at home, many consumers are willing to spend money in the prepared-to-eat sector.
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Additionally, this aspect has increased demand in the retail sector for convenience foods in 2022. This aspect is expanding the market for convenience foods while also rebuilding the human lifestyle. Since demand for their products is continually increasing, the food and beverage businesses are also using this as an influence to build their creation currently. As preventative steps are put in place to stop the increase, many people realize that it will only last a short time.
Convenience Food Market Restraints
However, poor nations continue to lack the cold chain infrastructure necessary to provide their residents with safely frozen food supplies. Although frozen food has a long shelf life, because of a lack of infrastructure, the product is readily discarded, costing frozen food producers money. One factor causing the cold chain logistics industry to sluggish down has been a lack of investment caused by the financial crisis in developing economies.
The market for frozen foods has been affected as a result. The import and export of frozen food goods have been negatively impacted by a lack of cold chain logistics infrastructure in developing nations including Bangladesh, South Africa, and Myanmar in 2022.
Convenience Food Market Opportunities
Online purchase of groceries and the launch of new apps that make it simple for customers to choose their favorite products are two of the most recent trends driving the sector. Due to its convenience and variety, consumers are more likely to shop online. Nearly 35% of people made food and grocery purchases in 2022 through online retail channels, according to Eurostat. Retail grocery shopping is starting to take off as a platform for businesses to advertise and sell their food goods due to the increasing Internet and smartphone prevalence.
COVID-19 Impact On Convenience Food Market
The COVID-19 pandemic affected the global economy in many terms, such as directly affecting production and demand, supply chain disruption, and financial impact. COVID-19 has directly impacted the manufacturers’ supply chain across the globe and shut down production facilities to minimize the risk of virus spread.
Also, the lockdown policies have strengthened the demand for handcrafted wine and different wine flavors across the globe. Therefore, the manufacturers have started investing to increase their production capabilities to meet the global market’s updated demand.
Recent Developments in the Industry
- On March 09, 2023, Nestlé Cereals, a UK-based company, launched new KitKat cereal. The crispy cereal squares combine wafer with a milk chocolate-flavored coating, just like the KitKat bar, and are a good source of calcium and iron in addition to the five vitamins.
- On December 08, 2022, Kellogg’s Special K launched three new cereal products. Kellogg’s Special K Oat Crunch Honey combines multigrain honey-flavored flakes with crispy vanilla-oat clusters.
- On April 14, 2021, Kellogg India, a major player in the breakfast cereal market, plans to diversify its product line with more Indian-made items.
Convenience Food Market Segmentation Analysis
As per the research analysis, the global convenience food market is segmented by product type, packaging, and distribution channel.
Based on the distribution channel, the convenience food market has been classified into supermarkets/hypermarkets, specialty stores, convenience stores, online stores, and others.
Online platforms represent many options to choose from considering large brands to smaller brands. Many local brands are also present on these e-commerce sites for convenience food. They provide detailed knowledge about every product and customer review. Thus, varied options along with prices available on the online platform, growing internet penetration, and vigorous growth of the e-commerce platform post-pandemic situation will drive the growth of the online sales segment over the forecast period.
Moreover, the increase in penetration of various online portals in developing regions and the rise in the number of offers or discounts, attract consumers to purchase convenience foods through the online channel. Additionally, an increase in e-commerce sales, improvements in logistics services, ease in payment options, and the facility to enter new international markets for major brands further boost the growth of the segment.
Online sales channel has increased consumer reach, owing to which it has evolved as a key source of revenue for many companies. According to the US Census Bureau, total e-commerce sales for 2022 were estimated at US$ 1,034.1 billion, an increase of 7.7 percent from 2021.
Convenience Food Market Geographical Classification
The global convenience food market is segmented into North America, Europe, South America, Asia Pacific, and Middle East & Africa.
North America Convenience Food Market
With a projected 30% share of global sales value in 2022, North America will continue to lead the convenience food industry. The dominance of this region is primarily attributable to the high concentration of convenience food producers in North America, including Nomad Foods Ltd., Mondelez International, and Tyson Foods, Inc. The rising demand for ready-to-eat foods like frozen pizza and portable breakfasts is the main factor driving the market for convenience food in the area.
These are advertised as affordable goods with high quality and freshness. Moreover, these meals are just as popular as foods bought from restaurants and other food establishments. These meals have become just as popular as foods sold in restaurants and other food establishments. Additionally, one of the most popular types of ready-to-eat food in the United States is chilled and frozen ready meals.
South America Convenience Food Market
The popularity of convenience food among working-class populations is increased by the notable increase in women’s employment. These food items are convenient because they are quick and simple to obtain, store, serve, and consume. Moreover, changing eating patterns are a result of an increase in the number of working women.
Women’s participation in the labor force in Asia ranges from 16% in Afghanistan to 83% in Nepal, and it is rising in many other nations in the region. In many of the region’s countries, the proportion of women in the labor force has grown drastically. The growth in participation started at different points in time and progressed at different rates.
Europe Convenience Food Market
France is one of the major European nations that is particularly active in the convenience food market, according to the Specialty Coffee Association (SCA). There are many active cafes that offer ready-to-eat food. The amount of time required to prepare home-cooked meals is decreasing as consumers work towards a better lifestyle through various types of work. This is one of the main factors influencing people to buy convenience foods.
Moreover, the demand for organic food, free-from food, and other ready-to-eat food products has grown along with the veganism trend over the past few years, as has the product development of RTE food in this area. For instance, the biggest supermarket chain in the nation, Tesco, launched three new plant-based ready meals on September 18, 2022 from THIS, a United Kingdom alternative meat brand. Among the meals available are This Isn’t Pork Sausages & Mash, This Isn’t Chicken Thai Green Curry, and This Isn’t Pork Meatballs & Spaghetti. The meals have a high protein content and little fat, and they can be heated up in just four minutes.
Convenience Food Market Competitive Players
There are numerous international, regional, and local suppliers in the global convenience food industry. The competition in the local market is fierce. The vendors compete based on price, product quality, dependability, and aftermarket services. As a result, to prosper and survive in a competitive market, suppliers must provide cost-efficient and effective products.
Major Companies
The major global players in the market include Amy’s Kitchen, Inc., Cargill, Incorporated, Conagra Brands, Inc., General Mills, Inc., Tyson Foods, Inc., Mondelz International, Inc., Kraft Foods Group Inc., WH Group, Unilever, and Kellogg’s Company.
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