Ready to eat foods are pre-cooked or partially cooked foods that can be easily prepared and consumed within minutes. They include products such as frozen pizza, ready meals, canned foods, packaged snacks, cereals etc. These foods save time spent on cooking and preparation which has become increasingly important owing to changing lifestyle and work patterns globally. The market has witnessed rising demand over the years owing to factors such as urbanization, dual income households, hectic schedules and increasing disposable incomes which drive the need for convenient meals and snacks.
The global ready to eat food market is estimated to be valued at US$ 182.45 Billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the ready to eat food market are Biogen Inc., AstraZeneca PLC, Pfizer Inc., Novartis International AG, Merck & Co., Inc., Sanofi S.A., F. Hoffmann-La Roche Ltd., Medtronic plc, Boston Scientific Corporation, Abbott Laboratories, Ceregene Inc., BioTime Inc., Stemedica Cell Technologies, Inc., Neuralstem, Inc., and StemCells Inc. The key players dominating the market are focusing on introducing new product innovations catering to diverse taste preferences and nutritional requirements of customers to further drive the market growth.
The growing demand for convenience food is being driven by rapid urbanization and changing lifestyles. Rising number of women joining the workforce and increasing working professional population has fueled the demand for easy to prepare meals and snacks.
The market is witnessing strong growth in the Asia Pacific region owing to rising disposable incomes, growing awareness about nutrition and health, and expanding retail chains in developing countries such as India and China. Key players are focusing on strengthening their distribution channels and penetrating untapped markets to leverage opportunities in high growth regions.
Market Key Trends
The Ready To Eat Food Market Share is being driven by the major trend of increasing health consciousness. Manufacturers are responding to this key trend by introducing healthier product offerings lower in fat, salt and sugar. They are focusing on clean label products made with recognizable ingredients and adding superfoods and functional ingredients to deliver added nutrition. Some other notable trends include expanding vegan and plant-based ready meal lines, customized offerings catering to particular dietary preferences, and improved packaging solutions for longer shelf life and microwaveable options. Sustainable and eco-friendly packaging is also gaining prominence in the market.
Porter's Analysis
Threat of new entrants: Ready to eat food manufacturing requires substantial investment and resources. Established brands have significant capital for R&D and marketing.
Bargaining power of buyers: Large retail chains have significant influence over pricing and product offerings due to their buying power and market share.
Bargaining power of suppliers: Key raw materials like cereals, packaging are commoditized and supplied by a few large multinationals globally with significant pricing power.
Threat of new substitutes: Products from other ready meals, staples and snacks present alternatives to buyers. Innovation is critical to differentiate offerings.
Competitive rivalry: The market is dominated by a few very large multinational corporations with established brands and scale. Pricing pressure exists due to marketing spends and competition.
Geographical Regions
North America accounts for the largest share of the global ready-to-eat food market, both in terms of value and volume. This is attributed to factors such as busy lifestyles, growing demand for convenience foods, and presence of major manufacturers in the region. The United States holds the major share of the North American as well as global ready-to-eat food market.
Asia Pacific region is expected to witness the highest growth over the forecast period. This is mainly attributed to rising disposable incomes, growing middle-class population, and increasing awareness about convenience foods in countries such as China, India. Rapid urbanization accompanied with increasing dual-income households and nuclear families also supports the demand for ready-to-eat food products in Asia Pacific region.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
