Product innovation took a step back in 2020 as food manufacturers focused on keeping their business afloat during the health crisis. This is not the case anymore, as companies bring out more and more products, especially in the convenience, ready-meals segment. And while general trends are followed, catering to every taste is still paramount to those aiming to strive in a fiercely competitive market.
Even though innovating is once again in focus, the performance of the convenience frozen food market is under that of the overall frozen food market. Richard Harrow, CEO of the British Frozen Food Federation (BFFF) says the segment has been relatively flat since 2019. Quoting Kantar’s figures, he points out that the 1-1.5% increase is partly because consumers had more time to spend at home, and as such had the option of cooking meals themselves. Harrow does not expect the market to grow at a much higher rate in 2022 and says that frozen ready meals will most likely showcase trends such as plant-based and free-from. At the food industry level, sales of products promoting benefits related to allergens and/or intolerances have grown by 13%, and sales of foods positioned as clean label/non-GMO each increased by 12%, per IRI figures quoted by the Institute of Food Technologists (IFT). IFT goes on the add that four in 10 consumers try to avoid GMOs, one-quarter avoid bioengineered foods, six in 10 consumers look for minimally processed foods, and only 9% of adults are looking forward to seeing more lab-grown proteins in 2021, according to Datassential.
A Marketsandmarkets report states that the increasing focus of vendors to get organic certifications and vegan labeling will further contribute to the rising popularity of vegan, gluten-free, and organic frozen ready meals. In 2019, vegetables were part of innovative efforts among various brands, such as Birds Eye (Conagra Brands, Inc., (US)) and Green Giant. For instance, Birds Eye single-serve bowls were launched in 2019: these products were made with riced cauliflower. The meals were offered in sesame chicken, chicken fried rice, and beef & broccoli varieties. It can be concluded therefore that frozen ready meals vendors are adopting fair practices, producing high-quality products with naturally sourced ingredients, and launching new products frequently, to gain a competitive edge in the market. Considering the consumption trend of frozen meals, the cold chain plays a vital role in the market, as it is a combination of temperature-controlled surface transport and supply chain. It is pivotal to maintain the quality and shelf-life of products, Marketsandmarkets analysts add.
The rising demand for frozen ready meals and fast delivery requirements, associated with e-commerce based delivery, has had a positive impact on cold chain operations. Overall, taking into account the COVID-19 crisis, the global market for convenience and ready meals is projected to reach a size of USD163.4bn by 2026, growing at a CAGR of 9.2% over the analysis period. The canned/Preserved Ready Meals segment is projected to record a 7.8% CAGR and reach USD25.5bn by the end of the analysis period. The US market is estimated at USD28.3bn in 2021, while the Chinese market is forecast to reach USD33.2bn by 2026. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 6.2% and 7.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.3% CAGR. In the global chilled ready meals segment, the US, Canada, Japan, China, and Europe will be the drive behind the 6.1% CAGR estimated for this segment.
To read the entire article, please access your complimentary e-copy of Frozen Food Europe November-December, 2021 issue here.