The western European market for chilled prepared foods is expected to reach a value worth more than EUR18.15bn, up by almost a quarter (24%) from present levels, by 2010.
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In 2006, the market is expected to have exceeded a value of EUR15.15bn, according to a report by industry analyst Leatherhead Food International.
However, the report warns that growth may slow over coming years as a result of consumers turning away from convenience and processed foods, and making more use of fresh ingredients.
In value terms, the total western European market for chilled prepared foods
was worth over EUR14.62bn in 2005.
Leatherhead said the UK represents Europe’s largest market for chilled prepared
foods, with value sales worth over EUR7.95bn in 2005.
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By GlobalData“There are many reasons for this, such as the high household penetration of both microwave ovens and refrigerators, along with the trend towards convenience foods and the decline of formal mealtimes. The high value of the UK market in comparison with its European neighbours is also a reflection of the success of major retail groups such as Tesco, Marks & Spencer and Sainsbury, all of which place a high degree of emphasis on their chilled ranges. As a result, the majority of chilled prepared foods sold in the UK is own-label,” the report said.
Leatherhead also believes the UK should continue to offer the best prospects for manufacturers of chilled prepared foods, ahead of France.
“However, growth levels in certain sectors have started to slow in recent years, due in part to the maturing of the category and concerns over the healthiness of some convenience foods. Many varieties of chilled foods are unlikely to make much of an impact in Germany in the near future, due to the longstanding preference for frozen or ambient lines in many product sectors,” Leatherhead said.
Higher growth rates are expected in the smaller Spanish and Irish markets, largely as a result of the wider availability of chilled foods and rising demand amongst younger, busier consumers, the report said.
For more information on this report, click here.
