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Aiding time-pressed consumers in getting healthier foods
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Monday, 16 July, 2018, 08 : 00 AM [IST]
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Sonal Shekhar
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The past few decades have been seeing all kinds of foods becoming increasingly convenient, which now constitute one of the most popular trends in the food industry.
Convenient foods predominantly aim to aid time-pressed consumers in getting healthier foods on the table, quickly. Evolving lifestyle leading to varying purchase intentions of consumers, especially among the urban population, often prefers a variety of convenience foods to fit in their work and meal routines.
More recently, ready-to-eat (RTE) foods have been capturing the limelight, forming a huge, multibillion dollar market, globally. The US$113 billion RTE foods market is expected to be approaching US$195 billion by the end of 2026, registering a CAGR of 7.2% over the forecast period. Growing inclusion of RTE products in routine life by consumers will continue to push the sales in near future.
Concerns among Consumers Act as Roadblocks
As the female workforce expands worldwide, and the millennial population chooses to grab RTE foods to consume while on-the-go, the market for ready-to-eat foods will continue to thrive at a promising pace over the upcoming years.
Recent research has also spotted organised retail as a significant factor influencing the sales of ready-to-eat foods, especially within developed regional markets such as North America and Western Europe. These markets have been presenting a strong, wide distribution network for retail chains, which is eventually supporting RTE food sales.
However, a sizeable consumer population perceives ready-to-eat products as poor quality, unhealthy foods. Moreover, altered taste of RTE foods is also a prominent factor restricting a major chunk of consumers from purchasing these products.
Non-acceptance among health-conscious consumers and reducing consumption by those who are gradually preferring fresh, healthy foods, are expected to remain the key long-standing challenges for RTE food manufacturers. A majority of ready-to-eat food manufacturers are prioritising production capacity expansion and product innovation in terms of ingredients, taste, and nutrition.
Research and development plays a vital role in manufacturing of RTE products that remain fresh for longer. Packaging innovation has also been identified to be impacting the quality and sales of ready-to-eat foods.
Meat & Poultry on Retail RTE Shelves
High demand for meat and poultry products has been positively impacting the growth of the global ready-to-eat food products market, over the years. In particular, spiced chicken wings, and marinated meat products such as beef and chicken burger will continue to gain high traction due to sustained consumer choice and added convenience. Brands are focussing more in innovating their existing product lines in the meat and poultry segment.
Frozen & Chilled RTE Foods
Frozen or chilled packaging, owing to its ability to improve shelf life and retain the original nutritional and texture quality of packaged food, is expected to witness higher adoption, propelling the sales of RTE foods. In addition to non-meat, natural, organic, gluten-free, and other trending varieties, brands are increasing their focus on chilled and frozen RTE breakfast items as well as heat-and-eat meals or instant meal products.
The Share of Online Stores
Increasing sales of ready-to-eat foods through organised retail channel is already driving the RTE foods market, stimulating the introduction of a growing number of ready-to-eat food products. Global sales of RTE food products through the hypermarket/supermarket channel are expected to reach a value of around US$67 billion by 2026 end.
Nutritional Concerns to Follow Suit
Beyond health and wellness, consumers value natural, organic, and minimally altered foods more, over their conventional counterparts available in market. They are increasingly considering taste and ingredients as the vital criteria for purchasing products, besides emotional factors such as indulgent feeling, nostalgia, and the entire eating experience. UN’s Food & Agricultural Organization (FAO) says that consumers prefer ready-to-eat food products with low artificial preservatives, flavours, and ingredients, low sodium, and low calorie.
Tech Creates Opportunities in RTE Meals
MicVac pasteurisation is an advanced microwave technology, which has been introduced recently by the Swedish packaging leader - Micvac AB. This technology offers a packaging solution that comprises a thermoformed tray with all the raw food ingredients such as meat, poultry, and vegetables, along with certain partially pre-cooked ingredients such as potatoes. All the ingredients can be heated in a microwave oven to be quickly served as ready-to-eat meal.
Lucrative Opportunities in Developing Economies
As the ready-to-eat foods market becomes significantly competitive within developed regions, primary food brands are expected to shift towards less penetrated emerging economies, where the demand for RTE food products is visibly on the consistent rise, including India, China, and Japan.
On the contrary, ready-to-eat foods market in North American and European regions represents a mature stage. Indian and Chinese markets are likely to present excellent entry and expansion opportunities to major players. McCain has been a leader in RTE meals, vegetables, and snack items, and is rapidly expanding its footprint in Indian and other developing markets.
Innovative Product Development
Nomad’s line of great tasting, nutrition-packed on-the-go meals has already extended with another innovative product – lightweight backpacking meals. Although Europe has been contributing a lion’s share in the brand’s total revenue, the company has also kickstarted its expansion in the US a couple of years ago. Orkla launched its MTR Seed Fund the past year, investing in around 20 food-tech start-ups developing innovative RTE food products. This programme by Orkla is expected to reach its completion by this year’s end.
Rediscover the Whole Retail Game
Although industry experts are predicting the disruption of brick and mortar retail sector with exploding penetration of Ecommerce, research findings also depict that the Ecommerce penetration in retail food and foodservice sections is far lower than that in other industries. While on premise foodservice, and brick and mortar retail grocery will definitely be here for years to come, the entire retail landscape is being dramatically reshaped with promising entry and growing popularity of new age products such as RTE foods.
Manufacturers of ready-to-eat foods, restaurant operators, and retailers must jump in the digital commerce race so as to gain an edge, within an increasingly challenging and competitive scenario. Moreover, brick and mortar retailers are expected to reinvent the entire retail experience, which will eventually encourage sales of RTE foods and other convenience products.
Bacterial Growth in RTE Foods
On the backdrop of a recent case of the occurrence of Listeria monocytogenes in some of RTE foods, the US FDA has provided a set of recommendations to food manufacturers, processors, holders, and packers in order to control the proliferation of Listeria in ready-to-eat products.
The FDA’s draft guidance is presumed to be beneficial to RTE food businesses, through thorough understanding of the key recommendations and effective strategies. It also sheds light on identification of associated risks in using a range of ingredients and raw materials in manufacturing of ready-to-eat products.
Furthermore, the recommendations discuss the key concerns related to the Listericidal process control and product testing. They also offer valuable information about using an Environmental Monitoring Program (EMP).
Research-based insights on the global ready-to-eat foods market that have been included in this article are sourced from a market research intelligence outlook released by Future Market Insights
(The author is consultant, food & beverages, Future Market Insights. She can be reached at sonal.s@futuremarketinsights.com)
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