Report: Ready Meals - US

Scope and Themes
What you need to know
Definition
Data sources
Consumer survey data
Advertising creative
Abbreviations
Executive Summary
Market size and forecast
Competitive context
Segment performance
Frozen dinners/entrées
Dry packaged dinners
Shelf-stable dinners
Refrigerated entrées
Refrigerated lunches
Pot pies
Channel analysis
Market drivers
Leading companies
Selected brand analysis
Frozen dinners and entrées
Dry packaged dinners
Shelf-stable dinners
Refrigerated entrées
Refrigerated lunches
Pot pies
Consumer trends
Household consumption of ready meals
Incidence of buying ready meals
Frequency of buying ready meals
Where people buy ready meals
Reason for buying ready meals
Why people don' t buy ready meals
Impact of race and Hispanic origin
Market Size and Forecast
Key points
Recession and saturation drive sales declines; wellness spurs some growth
Channel shift, and the impact of changing consumer behavior
Ready meals sales and forecast
- Figure 1: FDMx sales and forecast of ready meals, at current prices, 2003-13
- Figure 2: FDMx sales and forecast of ready meals, at inflation-adjusted prices, 2003-13
Walmart sales
Competitive Context
Key points
Cooking at home on the rise
- Figure 3: Influence of the economy and cooking and healthy eating patterns, by household income, April 2009
QSRs pose competitive threat and sales continue to grow, despite recession
Segment Performance
Key points
Frozen meals and entrées dominate the category
Ready meals segment sales and forecast
- Figure 4: FDMx sales and forecast of ready meals, at current prices, by segment, 2003-13
- Figure 5: Indexed FDMx sales and forecast of ready meals, at current prices, by segment, 2003-13
- Figure 6: FDMx sales of ready meals, segmented by type, 2006 and 2008
Segment Performance--Frozen Dinners/Entrées
Key point
Better-for-you and premium offerings drive most segment growth
Sales and forecast--frozen dinners/entrées
- Figure 7: FDMx sales and forecast of frozen dinners/entrées, at current prices, 2003-13
Segment Performance--Dry Packaged Dinners
Key points
Macaroni and cheese still an American favorite, but many other SKUs have limited appeal
Sales and forecast--dry packaged dinners
- Figure 8: FDMx sales and forecast of dry packaged dinners, at current prices, 2003-13
Segment Performance--Shelf-stable Dinners
Key points
Shelf-stable dinner segment fairly resistant to recession
Sales and forecast--shelf-stable dinners
- Figure 9: FDMx sales and forecast of shelf-stable dinners, at current prices, 2003-13
Segment Performance--Refrigerated Entrées
Key point
Packaged, heavily processed refrigerated entrées becoming less popular
Sales and forecast--refrigerated entrées
- Figure 10: FDMx sales and forecast of refrigerated entrées, at current prices, 2003-13
Segment Performance--Refrigerated Lunches
Key points
Highly processed refrigerated lunch products show little growth, limited future sales potential
Sales and forecast--refrigerated lunches
- Figure 11: FDMx sales and forecast of refrigerated lunches, at current prices, 2003-13
Segment Performance--Pot Pies
Key points
Pot pies represent the weakest segment of the ready meals market
Sales and forecast--frozen pot pies
- Figure 12: FDMx sales and forecast of frozen pot pies, at current prices, 2003-13
Retail Channels
Key points
FDMx sales outside supermarkets climb as retailers use food to drive traffic
- Figure 13: FDMx sales of ready meals, by retail channel, 2007 and 2008
Retail Channels--Supermarket/Food Stores
Key points
Sales at supermarkets show a slight increase as a result of recession
- Figure 14: U.S. retail sales of ready meals at supermarkets/food stores, 2003-08
Retail Channels--Other FDMx
Key points
Drug and mass merchandisers use food to drive traffic and sales during recession
- Figure 15: U.S. retail sales of ready meals in drug and other FDMx stores, 2003-08
Market Drivers
Key points
Young adults are more likely to use ready meals; population growth will drive market growth
- Figure 16: Population aged 18 or older, byage, 2003-13
Slow decline in households with children could serve to stymie sales growth
- Figure 17: Households, by presence of children, 1998-2008
Blacks more likely to use ready meals, and the segment is growing faster than the overall population
- Figure 18: Population, by race and Hispanic origin, 2003-13
Health and nutrition concerns likely to fuel growth of better-for-you options and discourage use of "junk food"
- Figure 19: Incidence of overweight and obesity (states, DC, and territories), 1995-2007
- Figure 20: Average daily per capita calories consumed*, by food group, 1970-2004
Interest in healthier eating is increasing, especially among affluents
- Figure 21: Trying to eat healthier this year, by household income, April 2009
Leading Companies
Key points
Most manufacturers struggle during recession, as private-label sales soar
Nestlé takes steps to capitalize on lifestyle trends
Kraft wins with its beloved Macaroni and Cheese, and innovation
ConAgra loses some ground but maintains a dominant position in the shelf-stable segment
- Figure 22: FDMx sales of ready meals, by leading companies, 2008 and 2009
Selected Brand Analysis--Frozen Dinners and Entrées
Key points
Portability, price, health and ethnic appeal drive growth in frozen meals segment
Nestlé resists recessionary pressures with convenient comfort food, popular taste profiles and better-for-you offerings
Better-for-you foods and partnership with restaurants help ConAgra to mitigate the impact of recession
Heinz achieves slight growth with better-for-you product and co-branded comfort foods
- Figure 23: Selected FDMx brand sales of frozen dinners and entrées in the U.S., 2008 and 2009
Selected Brand Analysis--Dry Packaged Dinners
Key points
Kraft continues to dominate the category with winning Mac and Cheese extensions
General Mills and Unilever capitalize on demand for customizable side dishes and veggie products
- Figure 24: FDMx brand sales of dry packaged dinners in the U.S., 2008 and 2009
Selected Brand Analysis--Shelf-stable Dinners
Key points
Hearty canned products and microwaveable bowls drive growth in the shelf-stable dinner segment
- Figure 25: FDMx brand sales of shelf-stable dinners in the U.S., 2008 and 2009
Selected Brand Analysis--Refrigerated Entrées
Key points
Hormel leverages microwaveable bowls
- Figure 26: FDMx brand sales of refrigerated entrées in the U.S., 2008 and 2009
Selected Brand Analysis--Refrigerated Lunches
Key point
Packaged artisanal-like and quick lunches drive growth at Kraft
- Figure 27: FDMx brand sales of refrigerated lunches in the U.S., 2008 and 2009
Selected Brand Analysis--Pot Pies
Key points
Banquet and private-label products become more popular
- Figure 28: FDMx brand sales of frozen pot pies in the U.S., 2008 and 2009
Sales of refrigerated pot pies remain below $20 million
- Figure 29: FDMx brand sales of refrigerated pot pies in the U.S., 2008 and 2009
Brand Qualities
Kraft maintains dominant position in the dry prepared meals segment
Lean Cuisine wins by appealing to those seeking to lose weight/stay thin
On leveraging restaurant partnerships: ConAgra' s Marie Callender' s brand
Innovation and Innovators
Kellogg' s Kashi brand frozen meals playing the right keys
Salad meals could drive future growth in the refrigerated segment
Chilled meal trend in the UK reflects current innovation in the U.S.
Advertising and Promotion
Bertolli and Healthy Choice deliver restaurant-quality ready meals
- Figure 30: Bertolli Mediterranean Style Dinners, TV ad, 2009
- Figure 31: Bertolli Oven Bake Meals, TV ad, 2008
- Figure 32: Healthy Choice Fresh Mixers, TV ad, 2008
Stouffer' s shows that eating together at home can benefit children
- Figure 33: Stouffer' s (Multi-Products), TV ad, 2009
- Figure 34: Stouffer' s Easy Express, TV ad, 2009
CPG firms increase spending on image-based online ads
Household Consumption of Ready Meals
Key points
Consistent with sales figures, frozen is the dominant category
- Figure 35: Household consumption of ready meals, by type, October 2007-December 2008
Kraft Macaroni and Cheese a dominant player in the dry packaged segment
- Figure 36: Household consumption of complete packaged dinner mixes, by brand, October 2007-December 2008
BFY relatively popular, but classics still dominant
- Figure 37: Household consumption of frozen complete (TV) dinners, by brand, October 2007-December 2008
Incidence of Buying Ready Meals
Key points
Frozen meals, especially those made with American, Italian, and Mexican cuisines, are in high demand
- Figure 38: Incidence of buying ready meals, by origin and type of meal, by frozen, refrigerated and shelf-stable, April 2009
Incidence of buying refrigerated ready meals
- Figure 39: Incidence of buying refrigerated ready meals, by origin and type of meal, by age, April 2009
- Figure 40: Incidence of buying refrigerated ready meals, by origin and type of meal, by presence of children, April 2009
Incidence of buying frozen ready meals
- Figure 41: Incidence of buying frozen ready meals, by origin and type of meal, by household income, April 2009
Incidence of buying shelf-stable ready meals
- Figure 42: Incidence of buying shelf-stable ready meals, by origin and type of meal, by age, April 2009
- Figure 43: Incidence of buying shelf-stable ready meals, by origin and type of meal, by presence of children, April 2009
Frequency of Buying Ready Meals
Key point
Users of refrigerated meals more likely to consume once per week or more
- Figure 44: Frequency of buying ready meals, by frozen, refrigerated and shelf-stable, April 2009
Refrigerated ready meals
- Figure 45: Frequency of buying ready meals--refrigerated meals, by age, April 2009
Frozen ready meals
- Figure 46: Frequency of buying ready meals--frozen meals, by household income, April 2009
- Figure 47: Frequency of buying ready meals--frozen meals, by number and presence of children in household, April 2009
Shelf-stable ready meals
- Figure 48: Frequency of buying ready meals--shelf-stable ready meals, by age, April 2009
Where People Buy Ready Meals
Key points
Grocery, Walmart, discount and club are key channels
- Figure 49: Source of ready meals, by refrigerated, frozen and shelf-stable, April 2009
Refrigerated
- Figure 50: Source of ready meals--refrigerated ready meals, by household income, April 2009
Frozen
- Figure 51: Source of ready meals--frozen ready meals, by age, April 2009
- Figure 52: Source of ready meals--frozen ready meals, by household income, April 2009
Shelf-stable
- Figure 53: Source of ready meals--shelf-stable ready meals, by age, April 2009
Reason for Buying Ready Meals
Key point
Convenience, taste, cost and the desire to try new ethnic foods are key usage drivers
- Figure 54: Reason for buying ready meals, by refrigerated, frozen and shelf-stable, April 2009
Frozen
- Figure 55: Reason for buying ready meals--frozen ready meals, by household income, April 2009
Shelf-stable
- Figure 56: Reason for buying ready meals--shelf-stable ready meals, by household income, April 2009
Why People Don' t Buy Ready Meals
Key point
Cost and health concerns are the most frequently cited adoption barriers
- Figure 57: Reason for not buying ready meals, by refrigerated, frozen and shelf-stable, April 2009
Shelf-stable
- Figure 58: Reason for not buying ready meals--shelf-stable ready meals, by number of people in household, April 2009
Impact of Race and Hispanic origin
Key points
Household consumption of ready meals
English-speaking Hispanics more likely to use ready meals than Spanish speakers
- Figure 59: Household consumption of ready meals--Hispanics, by language spoken at home, October 2007-December 2008
Incidence of buying ready meals
Refrigerated
- Figure 60: Incidence of buying refrigerated ready meals, by meal origin and type, by race/Hispanic origin, April 2009
Frozen
- Figure 61: Incidence of buying frozen ready meals, by meal origin and type, by race/Hispanic origin, April 2009
Frequency of buying ready meals
- Figure 62: Frequency of buying ready meals--refrigerated meals, by race/Hispanic origin, April 2009
Reason for buying ready meals
Refrigerated
- Figure 63: Reason for buying ready meals--refrigerated ready meals, by race/Hispanic origin, April 2009
Shelf-stable
- Figure 64: Reason for buying ready meals--shelf-stable ready meals, by race/Hispanic origin, April 2009
Frozen
- Figure 65: Reason for buying ready meals--frozen ready meals, by race/Hispanic origin, April 2009
Why people don' t buy ready meals
Refrigerated
- Figure 66: Reason for not buying ready meals--refrigerated ready meals, by race/Hispanic origin, April 2009
Frozen
- Figure 67: Reason for not buying ready meals--frozen ready meals, by race/Hispanic origin, April 2009
Shelf-stable
- Figure 68: Reason for not buying ready meals--shelf-stable ready meals, by race/Hispanic origin, April 2009
Appendix: Other Useful Consumer Tables
- Figure 99: Household consumption of shelf-to-microwave dinners, by brand, October 2007-December 2008
- Figure 100: Household consumption of frozen main courses, by brand, October 2007-December 2008
- Figure 101: Incidence of buying frozen ready meals, by meal type, by number of people in household and presence of children, April 2009
- Figure 102: Frequency of buying ready meals--frozen meals, by number of people in household, April 2009
- Figure 103: Source of ready meals--refrigerated ready meals, by presence of children, April 2009
- Figure 104: Source of ready meals--frozen ready meals, by number of people in household, April 2009
- Figure 105: Reason for buying ready meals--frozen ready meals, by age, April 2009
- Figure 106: Reason for buying ready meals--shelf-stable ready meals, by gender, April 2009
- igure 107: Purchase of Chinese or Japanese frozen ready meals in the last six months, by key custom consumer groups, April 2009
Appendix: Trade Associations

Ready Meals - US - July 2009

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