The Australian ready meals market will continue to grow at around 3.6 per cent to reach almost $900 million this year, according to IBISWorld.
The researcher believes production of healthy prepared meals has grown due to “a rising health consciousness”, and the needs of time-poor consumers – especially those living alone.
Likewise, Euromonitor's findings show that sociodemographic factors, such as the continued growth of single-person households and a strong labour force, have contributed to robust sales growth.
The company said McCain Foods (Australia) remained the leading branded player in ready meals, with an estimated 18 per cent share of retail value sales in 2014, followed by Patties Foods (9%) and Simplot Australia (7%).
The McCain Red Box and Healthy Choice brands and a dominant position in frozen pizza have contributed to McCain's success in the past, but the company’s performance has been hampered by slower retail value sales growth in frozen ready meals and frozen pizza.
Reinventing the space
Ready meals are essentially reheatable meals sold in a pre-cooked form, and the category has expanded to include more and more online options in recent years. Lite n Easy has been a help to dieters since 1986, but new startups such as Dish'd are challenging the space with premium, frozen meal home delivery that gives consumers gourmet, chef-prepared food at their doorstep.
Meal kits are it
Traditionally, the ready meals category has included everything from the supermarket-sold Emily's Kitchen range of refrigerated meals to Weight Watchers' frozen selections. But home cooking and home delivery has converged, resulting a rise of startups offering healthy home delivered meals and make-at-home meal kits. Key players include Hello Fresh, My Food Bag, Marley Spoon, Eat Fit Food, and Gourmet Dinner Service.
Premium meals needed
Market research firm Canadean says ready meal manufacturers must innovate with new ingredients and premium products if they hope to take market share.
The company says parents, those with busy jobs, and young, urban males without traditional cooking skills are most likely to look for fast and convenient food preparation options.
Canadean's findings showed that the search for convenience was one of the key factors in the microwavable food trend – with healthy eating a growing value for consumers.
