The ready to eat food market mainly comprises food items that only require minimum preparation such as heating in microwave or oven before consumption. This includes products such as frozen pizzas, canned meals, packaged sandwiches, wraps, snacks among others. Ready to eat foods offer numerous advantages such as convenience, shelf stability, ease of preparation and consumption for on-the-go lifestyles. With increasing number of working professionals and nuclear families, demand for convenient food options has significantly increased. The availability of ready to eat foods help save time for both cooking and washing dishes, allowing people to utilize their time more efficiently.
The Global Ready To Eat Food Market is estimated to be valued at US$ 182.45 Bn in 2024 and is expected to exhibit a CAGR of 12.% over the forecast period 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 demand for ready to eat foods is growing significantly across both developed and developing regions owing to changing lifestyles and increasing per capita incomes. Rapid urbanization has led to more working women pulling them away from cooking traditional meals at home, boosting the sales of convenient ready-to-cook food products.
Major companies in the market are focused on expanding their global footprint by establishing production and distribution facilities in high growth emerging economies. Several mergers and acquisitions have further consolidated the industry. For instance, in 2019, Tyson Foods acquired Keystone Foods to expand its RTE food portfolio and capabilities in serving customers worldwide.
Market drivers
One of the key drivers for the ready to eat food market is the rising number of working professionals with busy lifestyles who don't have time for elaborate home cooked meals. Greater female participation in workforce has also increased nuclear families where both adults work full-time jobs. This has augmented the demand for easy to prepare meals significantly. Moreover, growing disposable incomes allow people to spend more on convenient food items for their health and nutrition requirements.
Impact of geopolitical situation on Ready To Eat Food market growth
The current geopolitical uncertainties including the ongoing Russia-Ukraine conflict and rising tensions between China and other western nations are negatively impacting the growth of the global ready to eat food market. The disruption in supply chains due to sanctions on Russia and Belarus as well as closure of Black Sea ports is affecting wheat and edible oil exports from the region. This is resulting in inflation of agricultural commodity prices globally. The rise in input costs is forcing ready to eat food manufacturers to hike product prices. The reduction in consumer spending power due to high inflation may dampen demand growth in the coming years.
Geographical regions where market in terms of value is concentrated
Currently, North America accounts for the largest share in the global ready to eat food market in terms of value. The region contributes over 35% to the total market revenue. The busy lifestyles and preference for convenience among consumers drives the demand for RTE foods in the US and Canada. However, Asia Pacific is expected to witness the fastest growth during the forecast period. Countries like China, India and Indonesia are emerging as major consumers of ready meals, pasta dishes and other convenience food products due to improving economic conditions, westernization of diets and increasing number of working women.
Fastest growing region for Ready To Eat Food market
Asia Pacific region is poised to be the fastest growing market for ready to eat foods during 2024-2031. The rapid urbanization, rising disposable incomes and changing consumption patterns are fueling the demand in Asia Pacific countries. The region accounts for around 30% of the global population hence offers tremendous growth potential. Countries like India and China are witnessing increased adoption of convenience food items among young consumers. Leading global players are focusing on tapping opportunities in Asia by launching tailored product offerings, innovative packaging and attractive marketing campaigns. The growing health-consciousness is also driving the demand for nutritious ready meals in Asia Pacific region.
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