Ready Meals and Convenience Foods - Ireland - December 2008

ISSUES IN THE MARKET
Key themes
Definitions
Abbreviations
INSIGHTS AND OPPORTUNITIES
A higher degree of participation for Irish families
Sympathetic packaging
That’s (home) entertainment
MARKET IN BRIEF
Ready-meal nation?
Impact of social and economic conditions
The informed consumer
Greater transparency
The consumer’s choice
Who are the target audience?
Jamie Oliver vs Delia Smith
Innovation helps keep ready meals sector vibrant
FAST FORWARD TRENDS
 TREND 1: A PLAY ON BRANDS
What’s it about?
What we’ve seen
What next?
 TREND 2: SUPERLUXE
What’s it about?
What we’ve seen
What next?
INTERNAL MARKET ENVIRONMENT
Key points
You are what you eat
Figure 1: Consumer agreement with statement, ‘I don’t pay sufficient attention to what I eat’, NI and RoI, 2007-08*
Stripping down – no ‘nasties’ approach
Figure 2: Top ten product claims in prepared meals category, UK and Ireland, 2004-08*
How does health play a role in the market?
Premium plus value
Figure 3: Food and drink purchasing/nutrition: consumers’ preference towards premium, budget and health food, NI and RoI, 2008
Adding the celebrity sparkle
It says so on the label
Evolving food labelling culture in UK and RoI
Building trust
The chef within
Are we really time poor?
Cheating to get the job done faster but with the same quality
Is a revival of fortunes imminent in canned and frozen produce?
Consumers make room for frozen alternatives
Stretching the pennies
Figure 4: Consumer agreement with a range of shopping statements, NI and RoI, 2002-08
Consumer preference for own-label
Changing shopping behaviour
BROADER MARKET ENVIRONMENT
Key points
 NO ROOM FOR PREMIUM AS ECONOMY TAKES A NOSE DIVE
Figure 5: Economic outlook, NI and RoI, 2007-09
Own-brand a boon to troubled consumers
Slaving in the kitchen after working all day
Not working, more fresh ingredients
Irish consumers are working fewer hours per week
Figure 6: NI & RoI average hours worked per week, 2004-08
Working mums
Feeding frenzy
Childcare costs may see more consumers become homemakers
Domestic gods and goddesses
More lonely meal times
Figure 7: Number of households, by size, NI and RoI, 2000-05
Women more inclined to be healthy
Men worry more about health
Figure 8: Agreement with statement “I always think of the calories in what I eat”, by gender, NI & RoI, 2007-08
Meet the gastrosexual
A taste of abroad
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
COMPETITIVE CONTEXT
Key points
Growing interest in cooking impacts ready meals
Ready meals as an percentage of food retail
Figure 9: Ready meals as a proportion of total food retail sales, all-Ireland, 2003-08
Meaty goodness
Figure 10: Estimated value of the meat, fish and poultry market, all-Ireland, 2003-08
Competition within the ready meals market
Figure 11: Sub-category comparison of new products, UK & RoI, 2004-08*
Prepared meals show year-on-year market dominance
Attracting the lunch-time trade
MARKET VALUE AND FORECAST
Key points
Social and economic factors impact Ireland’s ready meal sector
Figure 12: Market value and forecast of retail sales of ready meals, Ireland, NI and RoI, 2003-13
Importance of own-label
Regional trends
Going forward
NEW PRODUCT TRENDS IN READY MEALS
Key points
Biggest claims
Figure 13: New product launches in prepared meals, by claims, UK & RoI, 2004-08
Figure 14: New product launches with premium claims vs no additives/preservatives UK & RoI, 2004-08
Future product trends driving ready meals and convenience foods
Quick and easy meal solutions
Less is more
Figure 15: Consumer agreement with environmental statements, NI and RoI, 2008
Sourcing and provenance
Continued investment in improving convenience food’s image
WHO’S INNOVATING IN CONVENIENCE?
Key points
The convenience concept flourishes
Figure 16: New product launch types in convenience food, by top ten categories, UK & RoI, 2004-08
Storage trends
Figure 17: New product launch types in convenience food, by storage type, UK & RoI, 2004-08
Figure 18: Popular claims, active brands and launch types, by sub-category 2004-08
Prepared meals
Marks & Spencer Gourmet To Go – Crumbled Tuscan Style Sausage with Penne
Denny – Cottage Pie
Simply Organic – prepared meals
Wet soups
New Covent Garden Food Co
Somerfield Best Ever... – Parsnip Soup
Atkins and Potts – Apple & Butternut Squash Soup
Asda Extra Special – Roasted Red Pepper & Sun-Dried Tomato Soup
Table sauces
Heinz
Marks & Spencer
Meal kits
Waitrose – Irish Stew Mix
COMPANIES AND BRANDS
 READY MEAL MANUFACTURERS
Birds Eye Iglo Group
Dawn Fresh Foods
Findus/Youngs
Green Isle Foods
Goldstar Meats
Recent developments
HJ Heinz
Kerry Foods
Masterfoods Ireland
Premier Foods
McColgan Quality Foods
Nestlé
Unilever Bestfoods
 READY MEAL RETAILERS
Asda
Dunnes
Lidl
Marks & Spencer
Sainsbury’s
Tesco
READY MEAL CONSUMPTION TRENDS
Key points
Ready meals more popular among NI consumers
Figure 19: Percentage of consumers who state that they have used ready meals chilled or frozen (excluding pizzas) in the last 12 months, NI and RoI, 2002-08
Social factors will benefit the market
Women drive demand for healthy ready meals but consumer cutbacks may have negative impact on the market
Figure 20: Ready meals, chilled or frozen (excluding pizzas): used in the last 12 months, by gender and age, NI and RoI, 2007 and 2008
Men make the best cooks?
Does working and socio-economic status play a part in ready meals’ popularity?
Figure 21: Ready meals, chilled or frozen (excluding pizzas): used in the last 12 months, by working and socio-economic status, NI and RoI, 2008
Consumers don’t want to cook after a hard day’s work
Changing meal times
Chilled vs Frozen
Why do Irish consumer favour chilled alternatives?
Will frozen ready meals make a comeback?
Irish consumers defined as light users of ready meals in 2008
Figure 22: Ready meals, used in the last 12 months: chilled and frozen frequency total, by type of user, NI and RoI, 2008
Does consumers’ age play a factor in the ready meal sector?
Cultural changes in Ireland arouse ethnic taste buds
Irish consumer favour traditional dishes
Figure 23: Ready meals – chilled or frozen (excluding pizzas): Types of food, NI and RoI, 2007 and 2008
Becoming more ethnically diverse
ATTITUDES TOWARDS CONVENIENCE FOODS
Key points
Post-boom premiums
Opportunities to maintain premiums
Food scares drive demand for quality items
Figure 24: Consumers’ agreement to a range of luxury and shopping statements, NI and RoI, 2003-08
Taking heed of health concerns
Focusing attention on HSSF (high salt, sugar and/or fat) products
Figure 25: Percentage of consumers who claimed to pay no attention to the ingredient content of their food and drink purchases, NI and RoI, 2008
Greater relationship for food amongst RoI consumers
Figure 26: Consumer agreement to a range of food/shopping and lifestyle statements, NI, 2002-08
Familiarity is best?
Convenience more important for RoI consumers
Figure 27: Consumer agreement with statement, ‘Convenience often plays a part in my purchase decisions’, NI and RoI, 2006-08
Opportunities to targeting both the young and old
Increasing eating occasions
CONSUMER TYPOLOGIES
Key points
RoI target groups
Figure 28: RoI target group, according to attitudes towards food, diet/health and shopping statements, 2008
Convenience Advocates (24% of respondents)
Characteristics
Demographic pattern
Understanding Convenience Advocates
Delia’s Advocates (22% of respondents)
Characteristics
Demographic pattern
Understanding Delia’s Advocates
Traditional Consumers (18% of respondents)
Characteristics
Demographic pattern
Understanding Traditional Consumers
On-the-go Consumers (18% of respondents)
Characteristics
Demographic pattern
Understanding On-the-go Consumers
Undecided Consumers (18% of respondents)
Characteristics
Demographic pattern
Understanding Undecided Consumers
 NI TARGET GROUPS
Figure 29: NI target group, according to attitudes towards food, diet/health and shopping statements, 2008
Reluctant Chefs (24% of respondents)
Characteristics
Demographic pattern
Understanding Reluctant Chefs
Cooking Cheats (21% of respondents)
Characteristics
Demographic pattern
Understanding Cooking Cheats
Life’s Schedulers (20% of respondents)
Characteristics
Demographic pattern
Understanding Life’s Schedulers
Life’s Jugglers (18% of respondents)
Characteristics
Demographic pattern
Understanding Life’s Jugglers
Health Advocates (17% of respondents)
Characteristics
Demographic pattern
Understanding Health Advocates
APPENDIX
Conversion rates
Figure 30: Exchange rates, 2003-13
Figure 31: NI population, by gender, 2006-20
Figure 32: RoI population, by gender, 2006-20
Who’s innovating?
Figure 33: New product launch types in prepared meals, by launch type, UK & RoI, 2004-08
Figure 34: New product launch types by category, UK & RoI, 2004-08
Figure 35: New product launch types in wet soup, by launch type, UK & RoI, 2004-08
Figure 36: New product launch types in wet soup, by launch type, UK & RoI, 2004-08
Figure 37: New product launch types in wet soup, by brand, UK & RoI, 2004-08
Figure 38: New product launch types in table sauces, UK & RoI, 2004-08
Figure 39: New product launch types in table sauces, by claim, UK & RoI, 2004-08
Figure 40: New product launch types in table sauces, by brand, UK & RoI, 2004-08
Figure 41: New product launch types in meal kits, by launch type, UK & RoI, 2004-08
Figure 42: New product launch types in meal kits, by claims, UK & RoI, 2004-08
Figure 43: New product launch types in meal kits, by brand, UK & RoI, 2004-08
NI consumer tables
Figure 44: Consumer agreement to a range of lifestyle, food and shopping statements, by demographics, NI, 2008
Figure 45: Consumer agreement to a range of lifestyle, food and shopping statements, by demographics, NI, 2008
Figure 46: Consumer agreement to range of lifestyle and food statements, by demographics, NI, 2008
NI main shopper consumer statements
Figure 47: Consumer usage of ready meals, by demographics, NI, 2008
Figure 48: Consumer usage of chilled ready meals, by demographics, NI, 2008
Figure 49: Consumer usage of frozen ready meals, by demographics, NI, 2008
RoI consumer statements
Figure 50: Consumer agreement to a range of lifestyle, food and shopping statements, by demographics, RoI, 2008
Figure 51: Consumer agreement to a range of lifestyle, food and shopping statements, by demographics, RoI, 2008
Figure 52: Consumer agreement to a range of lifestyle and food statements, by demographics, RoI, 2008
RoI main shopper consumer statements
Figure 53: Consumer usage of ready meals, by demographics, RoI, 2008
Figure 54: Consumer usage frequency for chilled ready meals, by demographics, RoI, 2008
Figure 55: Consumers usage of frozen ready meals, by demographics, RoI, 2008
 CONSUMER TARGET GROUPS
NI
Figure 56: NI consumer target groups, by demographics, 2008
RoI
Figure 57: RoI consumer target groups, by demographics, 2008