The ready meals market

Tuesday 10 June 2003

The ready meals market has grown considerably in recent years. Total sales in the UK were valued at £1.78 billion in 2001, up 46% on 1997. Ready meals include: chilled (53% of the value of retail sales); frozen (40%); and room temperature (7%) – including instant hot snacks.

The market has been driven by several factors including consumer demand for convenience foods, a rise in freezer and microwave oven ownership, the demise of families sitting down to eat together and a rise in one and two-person households.

• The UK chilled ready meals sector is the most highly developed in Europe in terms of the range of products available and total sales.
• Sales are dominated by the major supermarket chains, which accounted for two-thirds of sales by value in 2001.
• As many as half of all new ready meal launches use international or ethnic recipes.
• Low-fat and low-calorie only account for a small percentage of new product developments. Most of these types are within existing well-known brands such as Weight Watchers from Heinz.
• New product developments are likely to focus on healthiness, although not necessarily low-fat/low-calorie. The emphasis is more on wholesome fresh ingredients.

Who eats ready meals?

• Ready meals are used in 77% of households.
• Of those that use ready meals, 28% use them more than once a week, 26% once a week and 44% three times a month or less frequently.
• 32% of households with children use ready meals more than once a week; compared to 26% of households without children.
• Ready meals are eaten most by 15-19 years olds; and least by the over-64s.
• Use does not vary greatly between income bands so price does not seem to be a very significant barrier to purchase. However, ready meals are used slightly more often by people who are better off.

Chilled meals

• The chilled ready meals market has grown considerably in recent years. In 2001, this was 90% higher by value than 1997.
• Chilled meats are perceived as fresher than frozen and room temperature meals.
• The market is dominated by own-label products: Marks and Spencer 28%, Tesco 22%, Sainsbury’s 20%; Asda 11%, Safeway 6%, Waitrose 4%, other own-label 8%, brands 2%.

Breakdown in types of chilled ready meals sold:

• Indian 24%
• Italian 23%
• Traditional British 22%
• Chinese/Asian (including Thai) 17%
• Other international (such as Spanish, Cajun, Caribbean) 9%
• Tex-Mex 4.4%

Frozen meals

• The frozen ready meals market was fairly stable for many years, but has been growing since 1999. In 2001, the market was 14% higher by value than in 1997.
• Frozen meals are perceived to be of lower quality and less healthy than chilled meals.
• Frozen meals are commonly served to children.

Breakdown in types of frozen ready meals sold:

• International 50%
• Traditional 28%
• Fish-based 12%
• Healthy recipe 10%

Complete ready meals dominate the frozen ready meals sector (80%) with part meals that need other cooked items to be added (such as vegetables) making up the remaining 20%.

Source: ‘Ready Meals in the UK’, Mintel Report, August 2002.