Chilled and Frozen Ready Meals - UK

Published by: Mintel International Group Ltd.

Published: May. 1, 2008 - 63 Pages

Table of Contents

Issues in the Market

Main issues

Definition

Abbreviations

Market in Brief

A market on the defensive

Ready-to-cook is main competitor

Perceptions of ready meals are improving

Chilled market more resilient

Core convenience market among those disinterested in cooking

Ready meals need added attributes

The future

Internal Market Environment

Key points

Home cooking harms convenience food

Figure 1: Agreement with selected lifestyle statements, 2003-07

Health damages ready meal prospects

Figure 2: Agreement with selected lifestyle statements, 2003-07

Frozen appeals across both foodies and convenience buyers

Figure 3: Agreement with selected lifestyle statements, 2003-07

Figure 4: Agreement with selected lifestyle statements, all adults and those who agree with the statements ‘I prefer to prepare my meals from scratch’ and ‘I don’t have time to spend preparing and cooking food’, 2007

Ready meals move to less frequent use

Figure 5: Usage of ready meals in the last 12 months, 2003-07

Figure 6: Types of ready meals used, 2004-07

Broader Market Environment

Key points

Continued decline of the traditional household

Smaller households drive growth

Figure 7: UK household sizes, 2003-13

Demographic change favours ready meals

Figure 8: Trends in the age structure of the UK population, by gender, 2003-13

Competitive Context

Key points

UK convenience market is mature

Pizzas maintain growth

Figure 9: The retail market for ready meals and pizzas, 2003-08

Ready-to-cook outstrips ready meals

Figure 10: Sales of ready meals, ready-to-cook meals and cooking sauces, 2003-08

Strengths and Weaknesses in the Market

Strengths

Consistent with modern lifestyles

NPD tuning into consumer trends

Offer extending to new cuisine

Salt and fat content reduced

Weaknesses

Under-promoted

Hangover of bad publicity

Frequently price-discounted

Not consistent with scratch cooking

Market Size and Forecast

Key points

Market set for recovery

Figure 13: Forecast of retail sales of chilled and frozen ready meals, 2003-13

Repositioning of ready meals to turn the tide

The future

Segment Performance

Key points

Healthy growth predicted for chilled ready meals

Figure 14: Forecast of retail sales of chilled ready meals, 2003-13

Frozen ready meals suffer

Figure 15: Forecast of retail sales of frozen ready meals, 2003-13

Newer cuisine makes most growth

Figure 16: Market segments in the chilled and frozen ready meals market, by cuisine, 2003-08

Premium is a growth point

Figure 17: Market segments in the chilled and frozen ready meals market, by price positioning, 2003-08

Factors used in the forecast

Market Share

Key points

Premium retailers increase share

Figure 18: UK retail share of chilled ready meals, by retailer, 2003-07

Brands reducing in frozen ready meals

Figure 19: Manufacturers’ share of the UK frozen ready meal market, 2003-07

Brand Communication and Promotion

Key points

Category needs support

Figure 20: Advertising expenditure on chilled and frozen ready meals, 2003-07

Findus Novelli range is the main brand campaign

Figure 21: Advertising expenditure on selected ready meal brands, January-December 2007

Companies and Products

Key points

Own-label dominates chilled ready meals

Tesco

Sainsbury’s

ASDA

Morrisons

Marks & Spencer

Waitrose

Chilled ready meal manufacturers

Bakkavör (Geest)

Greencore

Kerry Foods

Northern Foods

Premier Foods

S&A Foods

Champneys

Annabel Karmel Group Holdings Ltd

Frozen ready meal manufacturers

Birds Eye Igloo Group Ltd

HJ Heinz

Foodvest (Findus/Young’s)

Niche companies

Use and Purchasing Behaviour

Key points

Italian meals lead chilled segment

Figure 39: Types of chilled ready meals purchased in the last six months, February 2008

ABC1 consumers favour Italian and Indian

Healthy options appeal to women

Super-premium segment needed

Frozen ready meals

Figure 40: Types of frozen ready meals purchased in the last six months, February 2008

Younger consumers like frozen ready meals

Appendix: Brand Communication and Promotion

Advertising expenditure on ready meal/convenience food categories

Figure 47: Advertising expenditure on ready meal/convenience food categories, January-December 2007

Advertising expenditure on selected ready meal brands

Figure 48: Advertising expenditure on selected ready meal brands, January-December 2007

Appendix: Use and Purchasing Behaviour

Most popular types of chilled ready meals, by detailed demographics

Figure 49: Most popular types of chilled ready meals purchased in the last six months, by detailed demographics, February 2008

Next most popular types of chilled ready meals, by detailed demographics

Figure 50: Next most popular types of chilled ready meals purchased in the last six months, by detailed demographics, February 2008

Most popular types of frozen ready meals, by detailed demographics

Figure 51: Most popular types of frozen ready meals purchased in the last six months, by detailed demographics, February 2008

Next most popular types of frozen ready meals, by detailed demographics

Figure 52: Next most popular types of frozen ready meals purchased in the last six months, by detailed demographics, February 2008

Abstract

The ready meals market has stalled following a period of strong and sustained growth. The category has been hit by a barrage of criticism over the fat, salt and additive content of ready meals. Consumers have been showing growing interest in scratch cooking and the provenance of ingredients and the ready meals category has inevitably suffered.

The key issue in the market is whether suppliers of ready meals have done enough to stimulate renewed market growth. Recipes have been revamped and new ranges launched targeted at consumers looking for a premium ready meal, a healthy meal or a new eating experience. Despite the NPD, the category faces intense competition, especially from strongly growing ready-to-cook products. Cookery writers are also endorsing shortcuts in scratch cooking.

A change in the perception of ready meals is hampered by the dominance of own-brands in the category, which tends to limit promotional spending on brands. There is evidence that perceptions of ready meals, especially of frozen ready meals, are changing. The hypothesis considered in the report is: ‘innovation is rekindling interest in ready meals and the market is set to resume its earlier growth pattern.’

Main themes of the report:

• Whether recent NPD in ready meals has done enough to counteract perceptions that they are inconsistent with healthy eating.
• Is there enough resurgence of interest in frozen food products to counteract the long term downward trend in this segment of the market?
• Can ready meals appeal to a broader range of consumers than the solitary consumer with neither the time nor the inclination to take care over meal preparation.

This report contains US IRI InfoScan data.

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