Ready to Cook Foods - UK
Report description
The ready-to-cook food category has been one of the rising stars of the food industry. Since the inception of the category, it has shown strong growth outstripping its nearest competitor, the ready meal. Ready-to-cook foods are consistent with modern consumer trends towards greater involvement in cooking and the desire to use natural, unprocessed ingredients.
The market has continued to grow although the rate of growth is slowing. In 2008, the market is expected to grow by nearly 8% to £543 million. Household penetration of ready-to-cook foods has steadily increased. However, consumer attitudes towards ready-to-cook foods are deteriorating with increasing numbers questioning their role.
This report reviews recent developments in the ready-to-cook food market with a special emphasis on interpreting the impact of changing consumer attitudes on future sales. It also aims to test the following hypothesis: “Is the ready-to-cook market due for a fall in popularity as consumers question the time saving and quality of the products being offered?”
Key themes of the report:
*Ready-to-cook sales are mainly driven by a combination of convenience combined with a healthy image? Is this still the right image to drive future sales in this market?
*How is this category expanding? As a comparatively small category, growth can be achieved either through increased household penetration or through increased frequency of use. Which of these strategies is most likely to be effective in future?
*Are ready-to-cook foods seen as a good ‘cheat’ or an expensive way to cook using ‘real’ ingredients? To what extent are changing consumer attitudes going to impact the future market for ready-to-cook foods?
*Are ready-to-cook foods being squeezed by a reinvigorated ready meals sector on the one hand and a more diverse and interesting offer of raw ingredients on the other? Can ready-to-cook foods occupy a distinctive position within the market?
Table of contents
Issues in the Market
Key issues
Definition
Abbreviations
Market in Brief
Consumer trends spur market growth
More competition to come from ready meals
Consumer attitudes to ready-to-cook foods are deteriorating
Broader appeal the key to future market growth
Internal Market Environment
Key points
Home cooking favours ready-to-cook
Figure 1: Agreement with selected cooking lifestyle statements, 2003-07
Health interests favour ready-to-cook
Figure 2: Agreement with selected diet and health statements, 2003-07
Frozen appeals across both foodies and convenience buyers
Figure 3: Agreement with frozen and fresh food lifestyle statement, 2003-07
Barbecues
Broader Market Environment
Key points
PDI changes eating out habits
Figure 4: Trends in personal disposable income and consumer expenditure, 2003-13
More emphasis on third age consumers
Figure 5: Trends in the age structure of the UK population, by gender, 2003-13
Figure 6: Forecast adult population trends, by lifestage, 2001-13
Competitive Context
Key points
Ready-to-cook outstrips ready meals
Figure 7: UK retail sales of ready-to-cook foods and ready meals, 2003-08
Cooking sauces also compete
Figure 8: UK retail sales of ready-to-cook foods and cooking sauces, 2003-08
Strengths and Weaknesses in the Market
Strengths
Consistent with consumer interest in cooking
Consistent with perceptions of a healthy diet
Scope for improved penetration
Convenient and flexible in use
Position in store
Weaknesses
Better aware and skilled cooks don’t need
Quality perceptions not changed with consumer expectations
Facing stiffer competition from improved ready meals
Range available is too limited for modern tastes
No strong champion with absence of brands
Market Size and Forecast
Key points
Market still cooking
Figure 9: UK retail sales of ready-to-cook foods, by value, 2003-13
Healthy and natural
The future
Demographic changes to promote growth
Slower growth predicted
Factors used in the forecast
Segment Performance
Key points
Meat cuts and joints dominate ready-to-cook
Figure 10: UK Retail sales of ready to cook foods, by segment, 2003-06
Accompaniments and “others” continue to grow
Companies and Products
Key points
Bernard Matthews Ltd
Bigham’s Ltd
Birds Eye Iglo Group Ltd
Grampian Country Food Group Ltd
Greencore
Gressingham Foods
Kerry Foods
Moy Park
Tulip Ltd
2 Sisters Food Group
Distribution
Key points
No room for brands
Figure 11: Sales of ready-to-cook foods, by type of outlet, 2003-07
Figure 12: Market share of ready-to-cook market, by multiple grocer, 2007
Tesco
ASDA
M&S
Sainsbury’s
Morrisons
Waitrose
Who’s Buying Ready-to-Cook Foods
Key points
More consumers buying ready to cook foods
Figure 13: Ready to cook foods purchased in the last six months, February-March 2008
Meat cuts have younger profile than joints
Young children encourage ready-to-cook food use
Figure 14: Ready to cook foods purchased in the last six months, February-March 2008
Other convenience meals purchased
Figure 15: Convenience meals purchased in the last 12 months, February-March 2008
Appendix: Who’s Buying Ready to Cook Foods
Ready to cook foods purchased in the last six months, by detailed demographics
Figure 18: Ready to cook foods purchased in the last six months, by detailed demographics, February-March 2008
Most popular convenience meals purchased in the last 12 months, by detailed demographics
Figure 19: Most popular convenience meals purchased in the last 12 months, by detailed demographics, February-March 2008
Next most popular convenience meals purchased in the last 12 months, by detailed demographics
Figure 20: Next most popular convenience meals purchased in the last 12 months, by detailed demographics, February-March 2008
Ready to cook foods used, by convenience meals purchased in the last 12 months
Figure 21: Ready to cook foods used, by convenience meals purchased in the last 12 months, February-March 2008
Related research categories
By market: United Kingdom
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