CAGR: 5.7%Current Market Size: USD 148.90 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2022-2029Base Year: 2021
The Global Prepared Food market is expected to grow from USD 148.90 billion in 2021 to USD 227.64 billion by 2029, at a CAGR of 5.7% during the Projection period 2022-2029. The growth of this market is mainly driven by rising in demand for convenient ready-to-eat food products owing to the changing lifestyle of individuals.
Prepared Food mainly represents food that is ready for immediate consumption. It is prepared on the vendor’s premises. It may include food items such as pizza, popcorn, hot dogs, hot chocolate/coffee, or nachos. The vendor involved in the processes such as preparing, packaging, or serving food needs to be authorized as a retail food establishment by government bodies. The huge presence of teenagers in household around the globe is significantly associated with expenditures on prepared food.
Moreover, the rise of smartphones and third-party delivery ordering has allowed prepared food producers to theoretically reach every consumer without needing to build their own delivery capacity. For instance, according to the 2020 Euromonitor International’s Voice of the Consumer: Lifestyles survey, 46% of customers aged between 30-44 years ordered food via delivery or takeaway in 2020, which increased from 34% in 2019. In addition, the survey also indicated that prepared foods had become a new focus among the global food industry players for profit, branding, and differentiation.
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Market Dynamics:
Drivers:
Changes in the lifestyle of consumers have been one of the major factors that have contributed to the growing popularity of prepared foods in developed and developing economies. For instance, in the Asia-Pacific region, a surge in per capita income has led to changing food habits of customers. The rise in aspiration and penchant for luxury lifestyle has led to a manifold increase in market size and overall demand. Moreover, in Latin America and the Middle East, per capita income has increased considerably over a decade, which is expected to boost the demand for prepared foods in upcoming years rapidly.
Also, consumer spending on luxury items is growing rapidly, and fast foods, bakery products, ice creams, and other lifestyle food products are witnessing increased popularity. Such factors have driven the growth of the global market.
The consistent increase in the female working population in developing economies has fueled the demand for ready-to-eat meals and fast food products. Moreover, frozen non-baked products such as meat, pork, and beef are increasingly being used by retail customers in households, as they can be stored and used over a long period of time. Furthermore, the rise in a number of working women has led to a lack of time for cooking food, and thus they have shifted their preference toward prepared foods that have prolonged shelf life, thereby boosting the growth of the market.
Restraints:
Growing health problems have increased health and fitness awareness among consumers. Sales of ready-to-eat frozen meals witnessed a decline, owing to an increase in the prevalence of obesity among the young population in North America. This has shifted the preference of health-conscious consumers toward fresh non-veg products instead of frozen food, which is a key factor restraining the market's growth. However, the demand for frozen healthy food, including healthy snacks, yogurt, low-cholesterol desserts, fruits, vegetables, and organic high-fiber bakery products, is expected to grow in developed markets, including North America, which will reduce the impact of this restraint during the Projection period.
Opportunities:
Small retail stores, including departmental stores, grocery, and convenience stores around the globe, are actively focusing on improving of storage and refrigeration facilities to compete with the large retail formats. Hence, sales of frozen desserts and ready food items through small retail format have witnessed a consistent increase over the past few years.
Moreover, prepared food requires adequate refrigeration and storage facilities. The rapidly increasing number of large retail stores, including supermarkets and hypermarkets across the globe, has enabled easier availability of frozen food, as these stores are equipped with deep refrigeration and improved storage facilities. Supermarkets and high-end bakery shops have served as better distribution points for various ready-to-eat frozen food products. Frozen cooked and semi-cooked offerings of large retail include veg and non-veg meals, breakfast cereals, soups, and desserts.
Challenges
Stringent government norms have been implemented concerning the storage conditions and the environment of prepared foods in every country. These are to be strictly followed concerning storage to prevent any kind of food-borne disease. Moreover, round-the-clock quality checks by food inspectors are conducted to ensure that set rules and regulations are being followed. For instance, huge markets, including China, impose substantial excise duties on imported frozen meat and other seafood products.
Such factors affect the prepared food market, thus, posing a significant challenge to the market players.
Segmentation Analysis:
The global Prepared Food market has been segmented based on product, type, distribution channel, and regions.
By Product
The product segment includes frozen, chilled, canned, and shelf-stable. The frozen segment led the Prepared Food market with a market share of around 40.3% in 2021. Frozen ready food comprises packaged, ready-to-eat foods, bakery, snacks, and desserts. Among the various categories of frozen ready foods, frozen bakery products are witnessing huge global demand. The industry is lucrative from an investment point of view due to the high return on investment. In addition, the usage of frozen pizza crusts, bread, and frozen bakery products is increasing rapidly in the food service industry, which acts as a key factor propelling the growth of the global market.
By Type
The type segment includes vegetarian, non-vegetarian, and vegan. The non-vegetarian segment led the Prepared Food market with a market share of around 43.08% in 2021. A significant rise in demand for protein-rich food items, including chicken nuggets, salami, and sausages among end users, is mainly fueling the growth of this segment. Moreover, the emergence of new non-vegetarian prepared food products in the market creates lucrative growth opportunities for this segment. For instance, in January 2021, The Taste Company, an Instant Food Brand that cooked with home-style recipes, introduced non-vegetarian pre-packed meals to extend its product portfolio.
By Distribution Channel
The distribution channel segment includes supermarkets & hypermarkets, convenience stores, online, and others. The supermarkets & hypermarkets segment witnessed a considerable market share in the Prepared Food market of around 35.2% in 2021. The ability of supermarkets & hypermarkets to have a wide-ranging option for prepared food products in terms of type and ingredients has mainly driven the growth of this segment. In addition, most consumer prefers supermarkets as they can examine the product before making a purchase decision. Moreover, supermarkets & hypermarkets display various prepared food products of different brands. In North America and Europe, supermarkets are the most preferred retail outlets for the purchase of consumer goods.
On the other hand, a rise in urbanization, an increase in working-class population, and competitive pricing propels the popularity of hypermarkets in developed and developing regions.
By Regional Analysis:
The regions analyzed for the Prepared Food market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North American region dominated the Prepared Food market and held the 42.1% share of the market revenue in 2021.
Global Prepared Food Market- Country Analysis:
Germany's Prepared Food market size was valued at USD 16.38 billion in 2021 and is expected to reach USD 24.29 billion by 2029, at a CAGR of 5.3% from 2022 to 2029.
Germany has one of the leading Prepared Food industries in Europe. In addition, the country is seeing huge demand for prepared food, including pasta dishes, frozen pizza, and dishes based on fish, meat, and vegetables. This trend has contributed to the growth of German prepared food market.
In addition, according to the USDA’s Office of Agricultural Affairs (OAA) in Berlin, the Germany is the largest market for food & beverages in the European Union. Also, the food and beverages industry manufacturers in this country are responsible for the creation of some of the most widely known bakery products. Moreover, increased consumer awareness about prepared food and mounting consumption among teenage population in this country has driven market growth.
China Prepared Food market size was valued at USD 29.78 billion in 2021 and is expected to reach USD 43.50 billion by 2029, at a CAGR of 5.1% from 2022 to 2029. The rising population, along with the increased disposable income in China, has favored the demand for Prepared Food. In addition, this country is one of the leading consumers of frozen products. This has significantly boosted the growth of the Prepared Food sector in the country.
Moreover, China is one of the biggest importers and retail markets for frozen ready-to-eat and frozen meat products. It is expected to experience double-digit growth in the frozen meat and ready-to-eat food business segment in upcoming years. The Chinese frozen meat industry comprises beef, pork, poultry products, and seafood. The frozen fruits & vegetables market of China consists of frozen potatoes, capsicum, cucumber, tomato, and cabbage radish. This significance of frozen products in the country is opportunistic for the growth of the market
India's Prepared Food market size was valued at USD 5.96 billion in 2021 and is expected to reach USD 9.32 billion by 2029, at a CAGR of 6.0% from 2022 to 2029. India is one of the strongest growing economies in Asia. The factors, including increasing population, increasing disposable income, and changing lifestyle, have driven the growth of the India Prepared Food market.
In addition, India is one of the major suppliers of frozen meat and poultry products in some major parts of the world. Also, various packaged frozen food is sold through the growing number of supermarket and retail chains in the country. On the other hand, the country is seeing a significant rise in western food trends. Such factors are expected to create lucrative growth opportunities for the market.
Key Industry Players Analysis:
To increase their market position in the global Prepared Food business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metric
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
5.7% |
Market Size |
148.90 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
Product, Type, Distribution Channel, and Regions |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Nestlé, General Mills, Inc., Kellogg Company, Conagra Brands, Inc., Tyson Foods, Inc., Dr. Oetker, Nomad Foods, Green Mill Foods, Unilever, 2 Sisters Food Group among others |
By Product |
|
By Type |
|
By Distribution Channel |
|
Regional scope |
|
Scope of the Report
Global Prepared Food Market by Product:
Global Prepared Food Market by Type:
Global Prepared Food Market by Distribution Channel:
Global Prepared Food Market by Region:
Global Prepared Food market was valued to USD 148.90 billion in 2021
North American region dominated the Prepared Food market and held the 42.1% share of the market revenue in 2021
Leading market players active in the global Prepared Food market are Nestlé, General Mills, Inc., Kellogg Company, Conagra Brands, Inc., Tyson Foods, Inc., Dr. Oetker, Nomad Foods, Green Mill Foods, Unilever, 2 Sisters Food Group among others.
Supermarkets & hypermarkets segment witnessed a significant share in the Prepared Food market with a market share of around 35.1% in 2021
Rise in demand for convenient ready-to-eat food products owing to the changing lifestyle of individuals is primarily driving the growth of the Prepared Food market.
Political Factors- Stringent government norms have been implemented concerning the storage conditions and the environment of prepared foods in every country. These are to be strictly followed concerning storage to prevent any kind of food-borne disease. Moreover, round-the-clock quality checks by food inspectors are conducted to ensure that set rules and regulations are being followed. For instance, huge markets, including China, impose substantial excise duties on imported frozen meat and other seafood products.
Economical Factors- Changes in the lifestyle of consumers have been one of the major factors that have contributed to the growing popularity of prepared foods in developed and developing economies. For instance, in the Asia-Pacific region, a surge in per capita income has led to changing food habits of customers. The rise in aspiration and penchant for luxury lifestyle has led to a manifold increase in market size and overall demand. Moreover, in Latin America and the Middle East, per capita income has increased considerably over a decade, which is expected to boost the demand for prepared foods in upcoming years rapidly.
Social Factor- The busy lifestyle of consumers in North America and the rise in the female working population are the major factors that fuel the market growth. Other major factors include the high purchasing power of consumers and the inclination toward a luxurious lifestyles that boosts the market growth. An upsurge in the number of retail outlets, hotels, and restaurants bolsters the demand for frozen meat, seafood, fruits & vegetables, confectionery, and other frozen food products. The surge in purchasing power and changes in lifestyle & eating habits have been the major factors contributing to the growth of the prepared food market in Asia-Pacific. In addition, India and China are major suppliers of frozen meat and poultry products in some major parts of the world. Various packaged frozen food is sold through a growing number of supermarket and retail chains across the region.
Technological Factors- When it comes to food, tech isn’t always the first thing that comes to mind. However, technology over the years has changed how we produce and find our food through applications, robotics, data and processing techniques. Technology helps food manufacturers produce more efficiently for a growing world population. There are 7.5 billion people in the world right now and that means a higher demand for food each year. By using tech to improve processing and packaging, it can improve the shelf life and safety of food. The use of machines in the food industry also ensures quality and affordability. By using machines, it drives down the costs of keeping the food fresh and increases productivity.
Environmental Factors- Food processing (converting produce from the farm into final products), transport, packaging and retail all require energy and resource inputs. Many assume that eating local is key to a low-carbon diet, however, transport emissions are often a very small percentage of food’s total emissions – only 6% globally. Whilst supply chain emissions may seem high, at 18%, it’s essential for reducing emissions by preventing food waste. Food waste emissions are large: one-quarter of emissions (3.3 billion tonnes of CO2eq) from food production ends up as wastage either from supply chain losses or consumers. Durable packaging, refrigeration and food processing can all help to prevent food waste. For example, wastage of processed fruit and vegetables is ~14% lower than fresh, and 8% lower for seafood.
Legal Factors- Conagra Brands, Inc., a food company in North America, introduced a wide range of new products that are designed for solving mealtime dilemmas as well as satisfying cravings. These new products feature on-trend ingredients, contemporary flavors, and convenient prep methods. General Mills, Inc., an American multinational manufacturer & marketer of branded consumer foods, acquired TNT Crust, a manufacturer of high-quality frozen pizza crusts. This acquisition has significantly strengthened the prepared food portfolio of General Mills.
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