Ready to Cook Foods - UK

Published by: Mintel International Group Ltd.

Published: Jun. 1, 2008 - 57 Pages

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

Abstract

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?

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