Table of Contents
Overview
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- What you need to know
- Key issues covered in this report
- Products covered in this Report
- COVID-19: Market context
- Economic and other assumptions
Executive Summary
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- Impact of COVID-19 on ready meals and ready-to-cook foods
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on ready meals and ready-to-cook foods, 4 July 2020
- The market
- More cooking from scratch during COVID-19 reducing demand
- Return to growth expected in 2021 with volumes falling to 2025
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- Figure 2: Forecast of UK retail value sales of ready meals and ready-to-cook foods, 2015-25
- Rate of growth of total value sales stalls between 2015-19
- Steep decline in sales of ready-to-cook foods
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- Figure 3: UK retail value sales of ready meals and ready-to-cook foods, by segment, 2018-20
- Strong interest in healthy eating
- More shared meals during lockdown
- Plant-based trend important influence on ready meals
- Income squeeze will hit discretionary spend
- Companies and brands
- Own-label dominates chilled ready meals
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- Figure 4: UK retail sales of leading brands in chilled ready meals, by value, 2019/20*
- Sales of own-label frozen ready meals grow strongly
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- Figure 5: UK retail sales of leading brands in frozen ready meals, by value, 2019/20
- Premium launches continue to feature strongly in own-label NPD
- Plant-based ranges a big focus of product development
- Increase in advertising across most media in 2019
- The consumer
- 86% of adults eat ready meals/ready-to-cook foods, three in 10 eat chilled ready meals at least weekly
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- Figure 6: Frequency of eating ready meals and ready-to-cook foods, May 2020
- Taste and price most important purchase drivers
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- Figure 7: Purchase drivers when choosing ready meals and ready-to-cook foods, May 2020
- Ready meals are an emergency meal solution, but also serve for trying new cuisines
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- Figure 8: Behaviours related to buying and eating ready meals and ready-to-cook foods, May 2020
- Opportunities for more fish and chunks of vegetables in main dishes
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- Figure 9: Interest in different features for ready meals or ready-to-cook foods, May 2020
- Saving time the major driver of purchasing but ready meals also appeal as a nice treat
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- Figure 10: Attitudes towards ready meals and ready-to-cook foods, May 2020
- What we think
Impact of COVID-19 on Ready Meals and Ready-to-Cook Foods
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- The market
- More cooking from scratch reducing demand
- Return to workplaces and recession will boost sales
- Success of remote working may result in longer-term changes
- The consumer
- Pandemic and aftermath will increase focus on health
- Functional claims will be more important
- COVID-19 expected to further boost flexitarian and plant-based trends
- COVID-19 puts spotlight on hygiene over plastic concerns
- Companies and brands
- Taste and price most important purchase drivers
- Replicating restaurant experience at home holds potential
- ‘Dine in’ meals in good position to do well again
Issues and Insights
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- Elevating the appeal of ready meals as a nice treat important
- The facts
- The implications
- Opportunity for healthier ranges to increase usage frequency
- The facts
- The implications
- Focus on different main ingredients and cuisines will support sales
- The facts
- The implications
The Market – What You Need to Know
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- Rate of growth of total value sales stalls
- More cooking from scratch during COVID-19 reducing demand
- Return to growth expected in 2021 with volumes falling to 2025
- Steep decline in sales of ready-to-cook foods
- Strong interest in healthy eating
- Plant-based trend important influence on ready meals
- World cuisines are an ingrained part of UK cuisine
- Ready meals compete with meals out and takeaways
- Income squeeze will hit discretionary spend
Market Size and Forecast
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- Rate of growth of total value sales stalls
- More cooking from scratch during COVID-19 reducing demand
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- Figure 11: UK retail value and volume sales of ready meals and ready-to-cook foods, 2015-25
- Return to workplaces and post-COVID recession will boost sales
- Success of remote working may result in longer-term changes
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- Figure 12: Forecast of UK retail value sales of ready meals and ready-to-cook foods, 2015-25
- Figure 13: Forecast of UK retail volume sales of ready meals and ready-to-cook foods, 2015-25
- Short-, medium- and long-term impact on the industry
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- Figure 14: Short-, medium- and long-term impact of COVID-19 on ready meals and ready-to-cook foods, 4 July 2020
Market Segmentation
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- Steep decline in sales of ready-to-cook foods
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- Figure 15: UK retail value and volume sales and shares of ready meals and ready-to-cook foods, by segment, 2018-20
Market Drivers
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- Strong interest in healthy eating
- Being healthy an important driver of choice
- Strong demand for speedy meal solutions
- Ready meals cater well for busy lifestyles …
- … but more scratch cooking a barrier to sales growth
- Plant-based trend important influence on ready meals
- Four in 10 limiting meat/poultry consumption
- Headlines link human activity to pandemics
- Concerns about packaging waste
- World cuisines make up a big part of ready meals
- Ready meals compete with meals out and takeaways
- Decline projected in some core younger user groups
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- Figure 16: Trends in the age structure of the UK population, 2014-24
- Income squeeze will hit discretionary spend
Companies and Brands – What You Need to Know
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- Own-label dominates chilled ready meals
- Sales of own-label frozen ready meals grow strongly
- Premium launches continue to feature strongly in own-label NPD
- Plant-based ranges a big focus of product development
- Meals with less than 400 calories feature prominently in new launches
- Ready meals also focus on balanced nutrition
- Small proportion of launches make functional claims
- Gino’s at Iceland puts emphasis on real Italian food
- Advertisers of branded products dominate spending
Market Share
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- Own-label dominates chilled ready meals
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- Figure 17: UK retail sales of leading brands in chilled ready meals, by value and volume, 2018/19-2019/20
- Sales of own-label frozen ready meals grow strongly
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- Figure 18: UK retail sales of leading brands in frozen ready meals, by value and volume, 2018/19-2019/20
- Big drop in own-label sales of ready-to-cook foods
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- Figure 19: UK retail sales of leading brands in ready-to-cook foods, by value and volume, 2018/19-2019/20
- Shopping patterns favour familiar favourites
Launch Activity and Innovation
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- Premium launches a big feature of own-label NPD
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- Figure 20: New product launches in the UK ready meals and ready-to-cook foods market making premium claims, 2015-20
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- Figure 21: Examples of premium launches in the UK ready meals and ready-to-cook foods market, 2020
- Plant-based ranges a big focus of product development
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- Figure 22: New product launches in the UK ready meals and ready-to-cook foods market making vegetarian and vegan claims, 2015-20
- Growing choice of own-label plant-based meals …
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- Figure 23: Examples of own-label launches in the UK ready meals and ready-to-cook foods market under own-label plant-based ranges, 2020
- … with continued activity also from brands
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- Figure 24: Examples of exclusive and branded vegan/plant-based launches in the UK ready meals and ready-to-cook foods market, 2020
- Plant-based meat substitutes featuring in ready meals
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- Figure 25: Examples of launches in the UK ready meals and ready-to-cook foods market containing meat substitutes, 2020
- Meals with less than 400 calories feature prominently in new launches
- Slimming World range expands, WW relaunch continues
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- Figure 26: Examples of diet launches in the UK ready meals and ready-to-cook foods market, 2020
- Mainstream ranges deliver under 400 calories
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- Figure 27: Examples of launches in the UK ready meals and ready-to-cook foods market with less than 400 calories that do not make diet/light claims, 2020
- Ready meals also focusing on balanced nutrition
- Leading grocers expand ‘Balanced’ ranges
- Scratch highlights experts, The Gym Kitchen calls out ‘macrobalanced’
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- Figure 28: Examples of launches in the UK ready meals and ready-to-cook foods market focused on balanced nutrition, 2020
- Figure 29: New product launches in the UK ready meals and ready-to-cook foods market making high/added protein claims, 2015-20
- Small proportion of launches making functional claims
- COVID-19 boosts interest in immune healthy, suggesting opportunities
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- Figure 30: New product launches in the UK ready meals and ready-to-cook foods market making functional claims, 2015-20
- Gino’s at Iceland puts emphasis on real Italian food, Côte goes DTC
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- Figure 31: Examples of launches in the UK frozen ready meals market under the Gino D’Acampo range at Iceland, 2019
- Supermarkets making big moves away from black plastic trays
Advertising and Marketing Activity
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- Increase in advertising across most media in 2019
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- Figure 32: Total above-the-line, online display and direct mail advertising expenditure on ready meals**, by media type, 2016-20
- Advertisers of branded products dominate spending
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- Figure 33: Total above-the-line, online display and direct mail advertising expenditure on ready meals, by advertiser, 2019 and 2020
- Top two advertisers are home delivery companies
- Wiltshire Farm Foods and Parsley Box target older population
- Bigham’s promotes ‘Only Delicious Will Do’ message
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- 86% of UK adults eat ready meals/ready-to-cook foods
- Three in 10 people eat chilled ready meals at least once a week
- Taste and price most important purchase drivers
- Strong demand for healthy readymade meal solutions
- Three quarters buy ready meals as an emergency meal solution
- Ready meals seen as a good way of trying of new cuisines
- Opportunities for more fish and chunks of vegetables in main dishes
- Saving time the major driver of purchasing
- Ready meals need to maximise appeal as a treat, replicate popular foodservice meals
Impact of COVID-19 on the Ready Meals Consumer
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- Move cooking from scratch a barrier to sales growth
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- Figure 34: Changes to cooking from scratch (ie using/preparing meals with raw ingredients) since the start of the COVID-19 outbreak, by age, 23 April-7 May 2020
- More meals shared with friends/family during COVID-19
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- Figure 35: Incidence of eating with family/other members of your household, by age, 23 April-7 May 2020
- COVID-19 expected to further boost flexitarian and plant-based trends
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- Figure 36: ‘The COVID-19/coronavirus outbreak has made a vegan diet more appealing’, by age, 23 April-7 May 2020
- Pandemic and aftermath will increase focus on health
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- Figure 37: Concerns about health and fitness as a result of the COVID-19/coronavirus outbreak, 23 April-7 May 2020
- Consumers reticent about returning to restaurants
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- Figure 38: Concerns about going to restaurants/bars, 9 July-15 July 2020
- COVID-19 pandemic expected to heighten focus on sustainability
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- Figure 39: Changes in the environment being seen as a priority since the COVID-19 outbreak, by gender and age, 7-14 May 2020
Usage of Ready Meals and Ready-to-Cook Foods
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- 86% of UK adults eat ready meals/ready-to-cook foods
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- Figure 40: Types of ready meals and ready-to-cook foods eaten, May 2020
- Three in 10 people eat chilled ready meals at least once a week
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- Figure 41: Frequency of eating ready meals and ready-to-cook foods, May 2020
- 16-34s are core users of all meal types
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- Figure 42: Types of ready meals and ready-to-cook foods eaten, by age and frequency, May 2020
- Core 16-34s users will be starkly affected by the recession
Purchase Drivers
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- Taste and price most important purchase drivers
- Income squeeze will cement price focus but ‘dine in’ deals hold potential
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- Figure 43: Purchase drivers when choosing ready meals and ready-to-cook foods, May 2020
- Strong demand for healthy readymade meal solutions
- Opportunity for healthier ranges to increase usage frequency
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- Figure 44: Examples of launches in the UK ready meals and ready-to-cook foods calling out 5-a-day or protein content, 2019-20
- Nutritionally well balanced meals need communicating clearly
Behaviours Related to Buying and Eating Ready Meals and Ready-to-Cook Foods
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- Ready meals seen as a convenient meal option
- Three quarters buy ready meals as an emergency meal solution
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- Figure 45: Behaviours related to buying and eating ready meals and ready-to-cook foods, May 2020
- Meal kits appeal more to younger people
- Ready meals seen as a good way of trying new cuisines
- More environmentally-friendly packaging would help sales
- Too much packaging puts consumers off
- COVID-19 puts spotlight on hygiene
- Recyclability checked by a third of shoppers
Different Features of Interest for Ready Meals or Ready-to-Cook Foods
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- Opportunities for more fish and chunks of vegetables in main dishes
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- Figure 46: Interest in different features for ready meals or ready-to-cook foods, May 2020
- Nearly one in four would like more on provenance of ingredients
- Opportunities for more prepared meals for families to share
- Demand for family-size ready meals not being catered for
Attitudes towards Ready Meals and Ready-to-Cook Foods
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- Saving time the major driver of purchasing
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- Figure 47: Attitudes towards ready meals and ready-to-cook foods, May 2020
- Ready meals need to maximise appeal as a nice treat
- Ready meals continue to face close competition from foodservice
- Treat credentials can help them win
- Replicating most popular meals in foodservice important to NPD
- But few examples of restaurant brands in ready meals
- ‘Grocerants’ take off
- Moving from foodservice to direct to consumer to retail outlets
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Share
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- Figure 48: UK retail sales of leading manufacturers in chilled ready meals, by value and volume, 2018/19-2019/20
- Figure 49: UK retail sales of leading manufacturers in frozen ready meals, by value and volume, 2018/19-2019/20
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- Figure 50: UK retail sales of leading manufacturers in ready-to-cook foods, by value and volume, 2018/19-2019/20
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Appendix – Launch Activity and Innovation
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- Figure 51: New launches in the UK retail ready meals and ready-to-cook foods market, by private label vs branded, 2015-20
- Figure 52: New launches in the UK retail ready meals and ready-to-cook foods market, by storage type, 2015-20
- Figure 53: New launches in the UK retail ready meals and ready-to-cook foods market, by company, 2015-20
- Figure 54: New launches in the UK retail ready meals and ready-to-cook foods market, by claim, 2015-20
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- Figure 55: New launches in the UK retail ready meals and ready-to-cook foods market, by launch type, 2015-20
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