Amid increasing competition from other segments and markets, notably food to go, FDM sales of side dishes for 2004 showed minimal gains with sales of $3.6 billion and a 1.7% increase over 2003. Competition from meal solutions and meal kits, frozen foods, refrigerated prepared foods and restaurant meals to go have continued to stymie the growth of traditional side dishes. Six-year analysis of sales illustrate this clearly—after adjusting for inflation, sales declined 8% from 1999-2004.

The impact of low carb diets in 2003, though not small, only worsened a market in decline by the aging of Baby Boomers, a decrease in the number of households with children, and the overall decline in cooking skills. Except for low carb, which Mintel estimates is already fading in influence, these other factors will continue to provide long term challenges for manufacturers seeking growth.

There were two success stories in an otherwise steadily declining market. Food technologists made further strides towards convenience with ready-to-serve rice, while the growth of refrigerated sides grew stronger. Both these successes, however, are casting shadows on the prospects of more traditional shelf-stable counterparts. Their recipe for success was simple—increased convenience; the lesson to be learned is not as easy. Unless Kraft or General Mills start selling products with coupons for time management courses or cooking classes, the strategy for growth is to produce more and more convenience in products in a market that consumers will not be too bothered to prepare.

Side dishes are defined for the purposes of this report as rice, potato, pasta, noodle and baked bean products intended to be used alongside an entrée or meal center. Segments include:

Rice, including plain rice, rice mixes (i.e., Rice-A-Roni, Near East and Zatarain’s rice mixes), and ready-to-serve rice

Shelf-stable macaroni and cheese

Baked beans

Pasta mixes (i.e., Lipton’s Side Kicks, Pasta Roni, Unilever’s Ragu Pasta Express pasta and couscous)

Potatoes (i.e., instant mashed potato products and fast-cooking products such as Betty Crocker’s line of mashed potatoes, au gratin and scalloped potato mixes). Does not include potato pancake mixes.

Prepared salads (i.e., refrigerated coleslaw, potato salad, and shelf stable potato salad and three bean salads)

Stuffing mixes

Refrigerated side dishes such as mashed potatoes and macaroni and cheese that are sold in meat and deli cases and only require microwaving

Not included are shelf-stable items used as meal centers, such as canned pastas, chili, or meal kits. Canned vegetables are not included (see Mintel’s Canned Fruit and Vegetables — U.S., August 2003).

Product categories that have been added to the report that were not included in the 2003 report on the market are the following:

Macaroni and cheese

Stuffing mixes

Refrigerated salads

Refrigerated side dishes like mashed potatoes and macaroni and cheese

In addition, note that canned/ready-to-eat (RTE) pasta products, with the exception of Unilever’s Ragu Pasta Express pasta product, are also not included in this report (see Mintel’s Pasta and Pasta Based Meals—U.S., May 2002).