UK Ready Meals: Market Analysis Case Study

Introduction

One of the UK food industry's fastest-growing areas is ready meals and ready-to-cook food, which is being driven by customers' increased need for convenience, variety, and quality. An overview of the size, value, and growth of the ready-to-cook and ready-meal food market in the UK, together with a list of the leading companies and their market shares, will be given in this section. Additionally, it will use STP theory to analyze customer data and do a pestel analysis in addition to identifying and analyzing the major market-influencing aspects. The purpose of this project is to offer a situational analysis of the UK market's ready meals and ready-to-cook food industry from the viewpoint of a client business that is looking to join or grow in this segment of the market.

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Discussion

Section 1: Background and context

Value of the ready meal and ready to cook market in the UK

In the UK, the ready-to-cook and ready-meal markets were valued at GBP 5.4 billion in 2021. From 2021 to 2026, the market is anticipated to expand at a compound annual growth rate (CAGR) of over 2% (Aceves-Martins et al. 2023). The increased customer desire for convenience, variety, and quality is fueling one of the fastest-growing divisions of the UK food business, which is the ready meal market.

Major players and market shares of players

The industry is propelled by customers' growing need for convenience, diversity, and quality as well as their shifting tastes and lifestyles as a result of the COVID-19 pandemic.

Table 1: Market share of the major players in the UK ready to eat food market

The ready meal and ready to cook industries have chances for innovation and differentiation due to the growing customer preferences for a variety of cuisines, flavors, and forms.

Key factors affecting the market

Table 2: PESTLE analysis

Political influences, economic growth in the ready-to-cook industry, social changes in lifestyle, operational impacts of laws, and customer knowledge of the environment all influence the market.

Marketing conducted in ready-to-cook company

Some essential marketing activities of the ready meat market are product development, branding, promotion and distribution. These 4 activities should induce various plans to reach the consumer. As marketing of the food market is influenced by competition, regulations and technology (Rahal et al. 2022), it should be monitored and should adapt to the change of the market and the expectation of the customers.

Competitor reaction to the factors

Competitors are focusing on growing customer demand for a specific product. A strong brand image is a core point which should resonate with consumers' needs. Various online platforms are used as marketing channels to promote their products to the maximum people the platform can reach (Saputra, 2020). Reshaping the distribution channels such as online marketplace and to have direct to consumer sales to have more customers.

Section 2: Customer analysis

Summarizing Views and perception

Figure 2: Percentage of types of ready meals and ready-to-cook meals consumed

From the above figure it is indicated that 88% of people like any ready meal they don't have any prejudiced view about having particular things (Ahmed et al., 2020). 79% of respondent’s answer they prefer any chilled ready meals indicating they are lacking in consuming foods. 12% of people indicated they don't consume ready meals or ready to cook meals.

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Figure 3: Percentage of types of ready meals and ready-to-cook meals consumed

From the above figure it is clear that in spite of different age group respondents having any ready to cook meals and ready meals. It is an indication that chilled ready meals are mainly consumed by the age group of 16 to 24 years (Anthonj et al., 2020). Old age people hailing from 65 years don't consume any of the frozen or ready meals they prefer warm foods.

Figure 4: Ready meals and ready-to-cook meals consumed by Regions

It is indicated from figures that in Scotland and in Wales the market for any ready meals and any ready to cook food is higher than any of the other sections of the country. Chilled food and frozen food is mostly consumed in part of the country also indicating 77% and 79% respectively. The vulnerable UK market is slowly copped with the trends according to the Mintel data.

Figure 5: Ready meals and ready-to-cook meals consumed by Area

The chart indicates that the ready to cook and ready meals are mostly consumed in the city 89% and least consumed in the village 84%. This can be observed as the availability of frozen, chilled, or ready meals in the village side of the country.

Figure 6: Ready meals and ready-to-cook meals consumed as basis of Household income

All income levels have high rates of consumption for ready meals and items that are ready to cook; in the previous three months, 87% to 88% of consumers had bought any of these goods (Banerjee, 2021). This suggests that ready meals and ready-to-cook foods are well-liked and practical solutions for time-pressed and discriminating customers who want a variety of meal options that are affordable, efficient, and save time.

Interpreting the choice and opinions towards ready meals

Figure 7: Choice of factors in Ready meals and ready-to-cook meals consumed

The table lists a number of variables that affect consumers' decisions on ready-to-cook goods and prepared meals. According to 30% of respondents, ease is preferred above time and effort when preparing a dish from scratch. These tend to be the top concerns for customers (Choudhry et al., 2019). The significance of having nutritious components readily apparent (29%) and the meal's nutritional completeness (27%), in that order, are closely behind this. Significantly, 25% of respondents favor budget-friendly choices over costly ones that would need extensive preparation from beginning. At 20%, low-calorie alternatives and see-through packaging both have some influence, indicating that consumers appreciate transparency and health concerns (Clarke, 2021). About 12% said that none of these elements had an impact.

Analyzing the attitudes towards the ready to eat meals.

Figure 8: Attitudes toward Ready meals and ready-to-cook meals consumed

Of those surveyed, two out of every five (39%) would like to have greater control over the cooking process while preparing a ready-to-cook or read-to-cook dish. Of them, 65% said they would be interested in ready-to-cook and ready-to-eat meals that could be reheated in a pan (Hossain et al., 2022). 40% of respondents think that ready meals and ready-to-cook dishes seem too heavy to eat for lunch, making them less competitive for the lunch occasion.

Figure 9: Attitudes towards Ready meals and ready-to-cook meals consumed

Customers' perceptions of ready-to-cook goods and prepared meals differ in the UK market. Of those who think that more information would boost confidence, 50% believe that transparency in manufacturing processes is vital. Furthermore, 49% think that using these items is an affordable method to try out different foods (Kovacova et al., 2022). Building trust also requires being able to prepare the same meal from scratch (46%). Meal packages with raw sides are favored by consumers (45%), and 43% consider restaurant-branded alternatives to be unique treats. Regarding how healthy certain foods are for kids, there is some disagreement (42%). Finally, 36% of respondents disagree that cooking frozen meals takes too long, showing a readiness to sacrifice perceived quality in exchange for time.

Behavior related to ready to eat and ready to cook meals

Figure 10: Behaviors towards Ready meals and ready-to-cook meals consumed

In 2023, the UK market for ready-to-eat meals is projected to have an average volume per person of 16.8 kg. In the UK in 2021, those who eat ready meals (frozen or chilled, except pizzas) two to three times a month (5.99 million) will be the most regular consumers, followed by people who eat them once a week (4.52 million) and more than once a week (5.46 million).

Figure 11: Behaviors towards Ready meals and ready-to-cook meals consumed

When compared to takeout, a sizable majority (63%) buys ready meals, emphasizing their value in offering affordable and practical dining alternatives. 57% of respondents said they would purchase these goods more if they were available at convenience shops, demonstrating the need for convenient access to prepared meals (Leger, 2023). Even while 39% of respondents thought about frozen dinners, a sizable part (54%) still does not think to search the frozen aisle for these goods, indicating a need for more visibility and advertising (Shyam, 2019).

In Depth analysis using STP theory for UK fast food Market

It may use the Segmentation, Targeting, and Positioning (STP) framework to identify and describe consumer categories in the ready meal industry, particularly those most appropriate for UK fast food Market’s goods, services and goals.

Segment 1: Convenience-Seekers

Demographics: Parents, working professionals, a wide age range.

Actions: Purchase prepared meals rather than takeout or eating out.

UK ready to eat market’s potential: Go after these easy-to-get-together customers and help them prepare restaurant-caliber dinners at home. Present yourself as a high-end, healthier choice.

Segment 2: On-the-Go Shoppers

Demographics: Students, young adults, and city inhabitants.

Attitudes: Enhanced accessibility in convenience shops will promote this.

UK ready to eat market’s Potential: Provide more portable, smaller packaging that fits the lifestyle of this market.

Segment 3: Health-Conscious population

Demographics: All ages, with a preference for middle-aged and older people.

Actions: Seek out calorie information; choose smaller servings of healthier alternatives.

UK ready to eat market’s potential: Offer a selection of portion-controlled, healthier dishes with prominent calorie information.

Segment 4: Plant based food

Behaviors: Mostly young individuals who care about the environment make up the demographic.

Actions: Accept plant-based substitutes when they are offered next to meat or fish alternatives.

UK ready to eat market’s potential: Grow the plant-based menu and advocate for it as a morally and environmentally responsible option.

Section 3: Recommendations

Based on a thorough examination of the UK market for ready-to-cook and ready-meal foods as well as the STP framework, it can be determined that UK fast food Market can strategically target a number of different customer categories.

UK fast food Market should align the following components of their marketing mix in order to effectively target these segments:

Product: Provide a selection of goods that meet the varying tastes of your customers, such as plant-based, healthier, and smaller servings.

Price: Showcase the items' superior quality and ease while positioning them in accordance with their perceived worth.

Place: To guarantee accessibility, items should be made available online and at convenience shops.

Promotion: Through a variety of marketing channels, highlight UK fast food Market products' quality, convenience, and health advantages.

Conclusion

In the UK, the primary determinants of ready-to-cook foods and meals are cost, flavor, variety, convenience, health, and affordability. A poll conducted in the UK found that 4% of respondents never prepare meals using raw materials and 9% of respondents barely ever do so, preferring to use frozen or pre-prepared foods. Convenience, quality, and variety are driving growth in the UK quick meal and ready-to-cook food sector. As a possible market entry or grower, UK ready to eat/cook market may target certain customer categories with its distinctive brand, dedication to value, and ethical ideals.

References

Journals

Aceves-Martins, M., Denton, P. and de Roos, B., 2023. Ready meals, especially those that are animal-based and cooked in an oven, have lower nutritional quality and higher greenhouse gas emissions and are more expensive than equivalent home-cooked meals. Public Health Nutrition, 26(3), pp.531-539.

Ahmed, I., Pirzado, A.A., Khan, A., Laghari, A.R., Chandio, R.A., Zardari, S. and Aarain, K., 2020. Effects of demographic variables on consumer buying behaviour toward frozen foods. Palarch's Journal of Archaeology of Egypt/Egyptology, 17(7), pp.16389-16398.

Anthonj, C., Setty, K.E., Ezbakhe, F., Manga, M. and Hoeser, C., 2020. A systematic review of water, sanitation and hygiene among Roma communities in Europe: Situation analysis, cultural context, and obstacles to improvement. International Journal of Hygiene and Environmental Health, 226, p.113506.

Banerjee, S., 2021. A Comprehensive Review on the Economic Status of the Global Convenience Food Industry. International Journal of Business, Management and Economics, 2(1), pp.43-52.

Choudhry, A.N., Abdul Mutalib, R. and Ismail, N.S.A., 2019. Socio-cultural factors affecting women economic empowerment in Pakistan: A situation analysis. International Journal of Academic Research in Business and Social Sciences, 9(5), pp.90-102.

Clarke, A.E., 2021. From grounded theory to situational analysis. Developing grounded theory: The second generation revisited.

Hossain, M.A., Akter, S. and Yanamandram, V., 2022. Customer analytics capabilities in the big data spectrum: a systematic approach to achieve sustainable firm performance. In Research Anthology on Big Data Analytics, Architectures, and Applications (pp. 888-901). IGI Global.

Kovacova, M., Machova, V. and Bennett, D., 2022. Immersive extended reality technologies, data visualization tools, and customer behavior analytics in the metaverse commerce. Journal of Self-Governance and Management Economics, 10(2), pp.7-21.

Leger, M., 2023, May. The same but different. On the possibilities of combining practice theory and situational analysis. In Forum Qualitative Sozialforschung/Forum: Qualitative Social Research (Vol. 24, No. 2).

Munjal, N. and Noida, G., 2019. Consumers’ Expectations towards ready-to-cook food-an empirical study of Delhi/NCR. Recent Trends in Decision Sciences and their Implications for Business, pp.99-110.

Rehal, J.K., Aggarwal, P., Dhaliwal, I., Sharma, M. and Kaushik, P., 2022. A Tomato Pomace Enriched Gluten-Free Ready-to-Cook Snack’s Nutritional Profile, Quality, and Shelf Life Evaluation. Horticulturae, 8(5), p.403.

Saputra, I.F., 2020. Analysis segmentation, targeting, and positioning (STP) toward the development of halal hanwoo beef in South Korea (Doctoral dissertation, Universitas Muhammadiyah Surakarta).

Shyam, R., 2019. Exploring uncontested markets with blue ocean strategy in convenience food business-a case of id fresh food. Journal of the International Academy for Case Studies, 25(1), pp.1-7.