Convenience Food Market Report by Type (Ready-to-eat, Frozen Food), Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, Online Retail, Others), Countries and Company Analysis 2024- 2032

Evolving lifestyles characterized by busy schedules and time constraints: Convenience food appeals are based on the flexibility of consumer’s time, which is evident in today’s fast-paced and dynamic society. People have to combine work, family, and social obligations; thus, there is constant pressure for quick and easy meal preparation. Therefore, convenience foods respond to this need by offering choices of rapidly prepared foods, reducing cooking time, and excluding the requirement to prepare unique Food materials and dishes. The targeted products make it easier and quicker for consumers to spend time on meals without compromising quality and nutrition. Therefore, the convenience food sector continues to grow by accommodating the population’s need and desire for convenient and easy meals by utilizing different society groups.

Urbanization trends contribute significantly to the growth: Urbanization can be seen influencing the convenience food market. With the increase in the movement of people from rural to urban areas, they are exposed to an active social life accompanied by several eating options, which may take a lot of time. Urban dwellers' hectic daily lifestyles mean they seek convenient meals, thus gravitating towards RTC foods. Processed foods address this consideration through convenience foods readily available in the market and for preparation and consumption. These are convenience meals suitable for use at home, at the workplace, or anytime one is too busy to prepare a healthy meal at home or anywhere in the urban setting. Therefore, the convenience food sector remains highly developed as it caters to the need for effective and easily accessible eating options in the rapidly growing global cities.

Continuous innovation in convenience food offerings: New product development is moving as the convenience food market broadens its types for consumers to choose and buy. Food producers are creating various convenience food items that can match multiple consumer preferences, such as texture, taste, and nutritional type. This entails gluten-free products from organic production, vegan products, and products that help specific conditions and ailments. By importance and variety, frozen convenience food can be described as being small snacks, microwavable meals, prepackaged salads, and any food that comes in portion sizes and using varieties of single-serve packaging systems that offer flexibility, suggest health and convenience but do not skimp on quality. The focus on product differentiation and nutritional content results from the current trend toward increased health consciousness and concern with proper diet, coupled with modern people’s problem with time scarcity and the need for high-quality food that can be easily consumed. Therefore, the convenience food sector remains dynamic and is developing further to fulfill consumers’ requirements and preferences globally.

Increasingly leveraging e-commerce and digital platforms to reach consumers: The consumption of CONVENIENCE FOOD products is taking a new twist as the market shifts towards e-commerce and digital platforms to get closer to consumers. Online food ordering, including delivery and online groceries, significantly contributes to the reach of convenience food brands. Current and potential consumers globally can now search and purchase a wide variety of convenience foods in the comfort of their mobile phones or computers, making the process easier. This digitization helps customize it according to the client’s requirements and suggest relevant products, making the clients’ shopping experience much more accessible. Thus, the strategic positioning of convenience food brands has led to the opportunities to increase market share trading through digital technologies to provide better solutions for the new generation of consumers who do not prioritize time, focusing on the most diverse traits of the food shopping boom worldwide.

Convenience Food Consumption Survey

• As per NCBI, Snacks are a staple of the American diet, accounting for nearly 22% of total energy intake among adults. The report states over 90% of U.S. adults consume one or more daily snacks. The average frequency of snacking is 1.2 to 3.0 times per day in 2023.
• According to Canada’s Food Price Report in 2024, Food prices will likely rise by 2.5% to 4.5% (compared to 5% to 7% in 2023). The average family of four is expected to spend US$ 16,297.20 on food in 2024, an increase of up to US$ 701.79 from last year (compared to an increase of US$ 1,065 in 2023).
• According to Mintel, the number of UK consumers who ate in fast food outlets increased to 45% in June 2023. Convenience meals account for 15.3% of evening meals and 5.9% of lunch occasions.
• In France, more than half of the households regularly enjoy fast food.
• China's fast food consumption is remarkably high, with 97% of the population partaking and 41% eating fast food at least once a week.
• April 2024, FnB reveals a 28% increase in the consumption of indulgent snacks among Indians over the past year, with 39% expressing a preference for tasty and nutritious snacks.
• March 2022, one-fifth of revenue is generated in the Convenience food business landscape. This segment spans corporates and businesses that provide their employees with ready-meal food during working hours, as per Glasgow Consulting Group.

The Challenge in the Convenience Food Market

Health and Nutrition Concerns

A major issue associated with the convenience food market is that the products are often processed and unhealthy for consumption. Since the perception of consumers towards convenience foods is changing drastically and people are gaining consciousness on their health, there is always a question raised on the health of the convenience foods. Several food items have been condemned for having ingredients such as sodium, sugars and unhealthy fats with people questioning the effects of these products on their health in the future. Due to this new trend in the market’s consumer preferences, the manufacturers are now restricted and encouraged to alter their products to healthier standards as they are not allowed to reduce the convenience of using the products. But making it healthily and convenient might cost some time since removing such ingredients might hinder the taste or the period of the food being preserved. Furthermore, aspect of labeling and relating between the ingredients and source of production are becoming important, increasing the challenges of product development and marketing.

Supply Chain and Sustainability Issues

The other concern aroused in the convenience food market is related to the supply chain and sustainability matters. Most convenience foods have intricate supply chains meaning that their supply can be easily disrupted for example by geopolitical issues, natural disasters, or logistical issues among others. This is one of the challenges associated with food delivery and that is how to make sure you source for the ingredients continually without compromising on the quality of the products. Furthermore, there are more and more requirements that companies must adhere to, for instance, limited use of packaging materials and responsible sourcing of materials. In the context of the firm’s sustainability vision, the overall optimization of its operations for efficiency and speed poses another major difficulty. Businesses have to focus on these emerging challenges and at the same time, address the needs of the consumers in terms of convenience as well as environmentally sustainability.

Europe Convenience Food Market

The European market could offer much growth potential in convenience foods; this growth is most apparent in Germany and Italy due to such factors as lifestyle changes. In Germany convenience foods market has grown in large part because of the resultant of the modern and fast-paced life, where people are in need of foods that can be prepared and served quickly. They only prefer changing consumption of food products in order to cheap, easy convenient healthy and nutritious ones. It has led to the higher consumption of convenience food that is low in calorie, organic or functional foods. German manufacturers are rising to the challenge and providing inventive and thoughtful items that reflect the increased consumer trend toward healthier food options reflected through such features of the products as natural ingredients and clear labeling.

The Italian convenience food market is influenced by consumers’ solid culinary culture that focuses on the quality and taste of the food products. Italian consumers are in general very responsive to convenience though they are equally conscious of the originality of the food they consume. These have put a positive pressure on up market Convenience Foods which are a blend of authentic Italian recipes readymades. Examples of such products include pasta dishes that are ready to be heated, frozen pizza, and ‘instant’ meals to mention but a few, factors which are a result of Italian gastronomic culture whilst at the same time acknowledging the fact that people are increasingly becoming busy. The Italian firms also emphasize on convenience in terms of the impacts on the environment and incorporate environmentally sustainable packaging and procurement of local raw materials to cater for the increasing environmentally conscious customers.

China Convenience Food Market

In recent decades in China, there have been several changes in food consumption patterns, including an increasing interest in Western-style convenience and snack foods. This trend could provide some great export opportunities for snack food producers. When targeting Chinese markets with these products, it's essential to recognize that Chinese tastes are different from ours in the West, and it may be necessary to adapt products to suit Chinese palates. 

As per the National Bureau of Statistics of China, the per-capita national average workweek at the end of August 2022 was 48 hours, up about 2 hours from 45.8 hours in 2017. Working consumers, especially in large cities, are likely to buy prepared foods to reduce their time on household chores. As the number of people per household declines, there are fewer opportunities to prepare meals for large groups of people as in the past, and meals are moving in the direction of “convenience, quickness, and no cleanup.” This trend is said to be even more pronounced among single-person households. The second most common reason for not wanting to cook meals is “lack of time,” followed by “preparation is a hassle, " according to a Chinese media platform report. Many of the prepared foods are single-serving portions or individually packaged, which serves the needs of these households well.

 Middle East Convenience Food Market

The market for convenience food in Middle East is expanding at a fast pace because of the shift in the lifestyle of the people and their increasing penchant for convenience foods. With the rate at which people are moving to urban areas and the increasing number of Working people this is a clear indication that the demand for convenience food which is readily available is on the rise all over the region. People are taking convenience foods such as convenience or ready-to-eat meals, frozen foods and snacks because they reduce the amount of time one has to spend preparing food and are available in a large variety.

The market is growing because of the economies in such nations as Saudi Arabia and the UAE, together with population growth in the form of expatriates. Growth in disposable income levels and popularisation of international foods has led the consumption of convenience foods that bring close to home cuisines as well as the international ones. In response, the manufacturers have been finding ways to introduce new products that will try to meet the traditional market on one hand but also that are healthier and more nutritious on the other hand.

Global Convenience Food Company Analysis

The critical global convenience food market companies are General Mills Inc., Conagra Brands, Nestlé S.A., Hormel Foods, Unilever PLC, The Kraft Heinz Company, Nomad Foods Ltd, and B&G Foods, Inc.

Convenience Food Company News

• In February 2024 - Sukhi's Gourmet Indian Foods will launch three new refrigerated entrees: Tamarind Pulled Chicken, Chicken Chili, and Butter Chicken.
• In February 2024 - Catalina Crunch introduced a new flavor to their Dark Chocolate Cookie Bars line called Peanut Butter.
• In March 2024 - BigBasket, the grocery e-tailer, collaborates with chef Sanjeev Kapoor to launch a new frozen food brand called Precia. Precia offers three product categories: frozen veggies, nibbles, and sweets.
• In October 2023 - Amy’s Kitchen unveiled "Family Size Entrées" in response to shifting consumer preferences, especially among busy families, and in line with trends in the frozen food industry. This launch highlights the meals and focuses on packaging design and convenience. Given hectic schedules, families are searching for convenient, wholesome meal options, a need Amy's Kitchen meets with its range of frozen meals tailored for the entire family.
• In July 2023 - Conagra Brands Inc. unveiled a summer lineup of diverse frozen products, catering to various consumer tastes and lifestyles with multiple brands, entrees, flavors, and price points.
• In June 2023 - The Nestlé-PAI Partners joint venture plans to reinvigorate and develop Nestlé's frozen pizza business in Europe, emphasizing flexibility in response to evolving customer preferences and industry trends.
• In April 2022 - Prasuma expanded its frozen food portfolio by introducing new products, which are now accessible in all 70 cities through partner retail outlets such as Meatigo.com, Walmart, Nature’s Basket, and Swiggy Instamart.

Type – Market breakup in 2 viewpoints:

1.    Ready-to-eat
2.    Frozen food

Distribution Channel – Market breakup in 4 viewpoints:

1.    Supermarkets & Hypermarkets
2.    Convenience Stores
3.    Online Retail
4.    Others

Country – Market breakup of 25 Countries:

1.    North America

1.1    United States
1.2    Canada

2.    Europe

2.1    France
2.2    Germany
2.3    Italy
2.4    Spain
2.5    United Kingdom
2.6    Belgium
2.7    Netherland
2.8    Turkey

3.    Asia Pacific

3.1    China
3.2    Japan
3.3    India
3.4    South Korea
3.5    Thailand
3.6    Malaysia
3.7    Indonesia
3.8    Australia
3.9    New Zealand

4.    Latin America

4.1    Brazil
4.2    Mexico
4.3    Argentina

5.    Middle East & Africa

5.1    Saudi Arabia
5.2    UAE
5.3    South Africa

All the Key players have been covered from 3 Viewpoints:

•    Overview
•    Recent Development
•    Revenue Analysis

Company Analysis:

1.    General Mills Inc.
2.    Conagra Brands
3.    Nestlé S.A.
4.    Hormel Foods
5.    Unilever PLC
6.    The Kraft Heinz Company
7.    Nomad Foods Ltd
8.    B&G Foods, Inc.

Report Details: