Convenience Food Market

SKU: DMFB2599 | Last Updated On: Oct 12 2022 | Available Formats

>Convenience Food Market is Expected to reach a high CAGR 4.2% By 2029:

Convenience Food Market is segmented By Product Type (Meat/Poultry Products, Cereal Based Products, Vegetables Based Products, Others), By Packaging (Frozen Foods, Canned Foods, Chilled Foods, Ready-to-Eat Foods, Others), By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, Online Stores, Others), By Region (North America, South America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029.

Convenience Food Market is expected to grow at a CAGR of 4.2% during the forecasting period (2022-2029).

Convenience Food Market - Strategic Insights

Metrics

 Details

Market CAGR

 4.2%

Segments Covered

 By Product Type, By Packaging, By Distributional Channels, By End-User, and By Region

Report Insights Covered

 Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies,   Revenue Analysis, and Other key insights.

Fastest Growing Region

 Asia Pacific

Largest Market Share 

 North America

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Convenience food is usually a full meal that is prepared commercially for ease of consumption. Due to a lack of cooking ability and long working hours, people are drawn toward processed foods. Changing customer trends have also led to the growth of the convenience food retail industry as people migrate to urban areas. Innovative products in natural ingredients, convenience, and organic foods and advances in packaging development areas are expected to provide the sector with a potential growth opportunity. The factors that play a major role in the growth of the convenience food market are increasing demand for ready-to-eat snacks, high demand from developing regions, growing disposable income, sedentary lifestyle, and growth in the working population.

Market Dynamics

Changes in consumer lifestyle and rapid urbanization

The rapid urbanization, improving consumer lifestyle, and high disposable income, are increasing the demand for on-the-go convenience foods. In addition, factors such as the growing millennial population, increasing population of working women, busy work schedules, and on-the-go consumption habits are expected to fuel revenue growth of the global convenience food products.  The global packaged and processed food industry is estimated to witness significant growth in the next few years as these foods are easy and quick to make. The quality and variety of convenience foods are also getting better. The rapidly growing urban population is set to impact the industry significantly. The increase in the number of convenience food sales outlets on driveways, fuel stations, and commercial locations is fueling the growth of the convenience food market as it has facilitated the availability of convenience foods to the target consumers. Also, consumer preferences for nutritious and convenient food and an increase in disposable income coupled with the rising demand for snacks and fried food products are expected to further boost the demand for the convenience food market.

One of the major challenges faced by the market is the lack of proper storage, processing, and precise packaging, which is a threat to frozen and chilled foods. The rising number of stringent regulations is also a constraint to the convenience food market. The regulations are getting stricter and companies are finding it difficult to cope with the changing scenario. As people are becoming more aware of the side effects of preservatives, they are becoming more conservative in consuming these convenience food products. This might eventually lead to the decline of the convenience food market.

Convenience Food Market Segmentation

Ready-to-eat convenience food is expected to dominate the global convenience food market in the near future

Ready-to-eat foods are known to be the best alternative to traditional foods that can be eaten at any time (such as breakfast, lunch, or dinner). Young consumers spend the bulk of their earnings on convenient ready-to-eat food. Young consumers are the best targets for giants that manufacture ready-to-eat food. The level of convenience of those products helps to increase overall consumer demand worldwide.

Ready-to-eat food products turned into one of the few industries that witnessed a surge in immense demand during the coronavirus pandemic. With countries on lockdown and most people working from home, ready-to-cook food products were flying off the shelves over the last few months. One of the India-based online grocery stores named Grofers even reported a sales surge of 170% in the ready-to-eat category, 31% in the ready-made meals and mixes category, and 41% in the frozen food category, indicating a sudden consumer shift from home-cooked food to ready-to-eat products. It is speculated that this change in consumer behavior is likely to uplift the market studied significantly in 2021 when compared with 2019.

Convenience Food Market Geographical Penetration

North America is the largest market for the convenience food market

North America is the largest market for convenience food market with a share of nearly XX% in global sales value in 2020. The primary factor behind this region’s dominance is attributed to the wide concentration of convenience food manufacturers in North America including Nomad Foods Ltd., Mondelez International and Tyson Foods, Inc. among others. The market for convenience food in the region is mainly driven by the increasing demand for ready-to-eat food such as frozen pizza and handheld breakfast. These are positioned as low-cost products with quality and freshness. Moreover, these meals have gained equal popularity as the foods found in restaurants as well as foods found in other food outlets. ​Furthermore, chilled ready meals and frozen ready meals are one of the most consumed categories of ready-to-eat food in the United States.

Convenience Food Market Competitive Landscape

The global convenience food market is fragmented and highly competitive. Some of the key players operating in the market include Tyson Foods Inc, Mondelez International Inc, General Mills, Kraft Food Group Inc, and WH Group. These companies have used various strategies such as expansions, new product launches, agreements, partnerships, joint ventures, acquisitions, and others to increase their footprints in this market. For instance, on May 20, 2020, Healthy Choice, a brand of Conagra Brands Inc. launched a healthy choice line of salad dressings that includes flavors including Creamy Ranch, Creamy Italian, Garden French, and Greener Goddess, perfect for dressing up BBQ favorites from salads and veggies to dips and marinades. In 2018, Conagra Brands Inc. acquired Pinnacle Foods to grab a major share of the fast-growing snack and frozen food markets. The two companies are investing to become the two fastest-growing frozen meal companies with brands, which include Birds Eye, Power Bowls, and Hungry-Man.​ Nomad Foods acquired Aunt Bessie Limited (U.K.) from William Jackson & Son Limited (U.K.). This acquisition helped the company further develop its portfolio in the UK with strong brand positioning and market leadership in frozen roast potatoes and frozen Yorkshire puddings.

COVID-19 Impact: Pandemic had a positive impact on the global convenience food market

COVID-19 has created a panic situation among consumers with temporary closures of retail stores in an attempt to limit the impact of the virus. This has led to panic purchasing among the consumers and the stockpiling of food products with a long shelf life, such as convenience food. The corona-virus pandemic is the driving force changing the lifestyle of consumers towards consuming convenience foods because most nations are forced to restrict movement and lockdown their borders. The need for pre-prepared meals is paramount within this period. In the current scenario, the demand for convenience foods is gaining a significant boost from governments giving the order that only supermarkets and formally registered markets should remain open so that consumers' daily necessities can be easily accessed. A lot of people believe that the spike will be short-lived as preventive measures are put in place to stop the spread of the coronavirus so that life can be back to normal.  But experts believe that humans are always striving toward living a convenient lifestyle, and this is what the pandemic has caused, so the effect of this on the convenience food market will be long-lasting.

Frequently Asked Questions

What is the Projected CAGR value of the Convenience Food Market?

Convenience Food Market is expected to grow at a CAGR of 4.2% during the forecasting period 2022-2029.

Which region controlled the global market during 2022-2029?

North America region Controls the Convenience Food Market during 2022-2029

Which is the fastest growing region in the Convenience Food Market?

Among all regions, Asia Pacific is the fastest growing market share during the forecast period 

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