Ready to Eat Food Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[221+ Pages Report] According to Facts & Factors, the global ready to eat food market size was around USD 180 billion in 2023 and is predicted to grow to around USD 375.09 billion by 2032, with a compound annual growth rate (CAGR) of roughly 8.5% between 2024 and 2032.

Market Overview

RTE or ready-to-eat food refers to snacks or meals that are packaged and pre-packed for immediate consumption without preparation or proper cooking. They are time-saving and convenient and usually comprise snacks, canned foods, packaged salads, or frozen meals. The global ready to eat food market has been witnessing remarkable growth owing to busy lifestyles, rising demand for convenience, and changing consumer preferences.

With more individuals leading hectic lifestyles, ready-to-eat foods offer convenient and quick meal solutions. Consumers opt for RTE meals since they save effort and time, making them the right choice for busy people.

Moreover, with the growing urbanization, individuals are shifting towards cities where smaller kitchens and less cooking time are trending. This ultimately encourages the demand for RTE foods.

Furthermore, the growth in sole-person households has fueled the demand for RTE and small-portioned foods that fulfill an individual’s demands without wastage.

Nevertheless, the rising prices of raw materials and lack of awareness among consumers are hampering factors in the market. Variations in the price of raw materials may significantly impact the production price of RTE foods, resulting in high prices. This may constrain their affordability for specific consumer groups.

Also, consumers may be partially unaware of the ingredients used in the RTE foods. This is mainly for certain preservatives or additives that may adversely affect consumer trust in the food product.

Yet, the market is opportune to factors like developing healthy RTE products and introducing fresh flavors and varieties. There is a rising demand for gluten-free, low-calorie, and vegan-ready meals. Producers have the opportunity to satisfy the needs of health-conscious individuals by offering functional and nutritious foods that meet dietary choices.

Moreover, offering flavors and regional varieties to specific groups or cultures may attract more consumers who may otherwise avoid generic and standardized products. This trend may cater to niche preferences and markets.

Key Insights:

• As per the analysis shared by our research analyst, the global ready to eat food market is estimated to grow annually at a CAGR of around 8.5% over the forecast period (2024-2032)
• In terms of revenue, the global ready to eat food market size was valued at around USD 180 billion in 2023 and is projected to reach USD 375.09 billion by 2032.
• The ready to eat food market is projected to grow significantly, owing to improved storage convenience and shelf-life, rising availability of healthier choices, and growth of online delivery services and e-commerce.
• Based on product type, the ready meals segment is expected to lead the market, while the instant soups and snacks segment is expected to grow considerably.
• Based on packaging, the frozen or chilled segment is the dominating segment, while the canned segment is projected to witness sizeable revenue over the forecast period.
• Based on distribution channel, the supermarkets/hypermarkets segment is expected to lead the market compared to the online stores segment.
• Based on region, North America is projected to dominate the global market during the estimated period, followed by Europe.

Growth Drivers

• Changing dietary habits and growing urbanization boost the ready to eat food market growth

Urbanization is increasing in most parts of the world, with individuals shifting to cities, less cooking time, busier lifestyles, and small living spaces. This has ultimately fueled the demand for RTE meals that are ideal for on-the-go and fast-paced lifestyles.

The ready to eat food market in Western countries is anticipated to reach $ 422.8 billion by 2025, progressing at a 4.94% CAGR by 2030.

In Australia, a prominent meal delivery service, Lite n' Easy, offers frozen foods projects to surpass AUD 500 million by the financial year 2025. This growth is attributed to the company's potential to meet the demands of urbanized and busy households with easy-to-prepare and health-focused meal solutions. This denotes the rising demand for convenient foods that serve time-crunched individuals in urban regions.

• Improved storage convenience and shelf life propel the industry growth

The ability to preserve ready-to-eat meals for longer periods without refrigeration is a primary factor in the ready to eat food industry's growth. With easy storage and longer shelf life, these foods can be transported and preserved in homes over long distances, thus increasing their convenience and accessibility.

Improvements in food preservation methods like pasteurization and high-pressure processing have contributed to a nearly 10% rise in the date of durability for several RTE foods.

A key shift has been witnessed in the ready to eat sector towards ecological packaging solutions that comply with environmental issues. Producers are emphasizing environmentally-friendly packaging to attract the growing nature-minded consumers.

Restraints

• Concerns regarding nutritional quality adversely impact the growth of the ready to eat food market

Despite the growing convenience of ready-to-eat foods, several consumers are worried about their nutritional value. Several ready-to-eat options are supposed to be high in preservatives, salt, and unhealthy fats, which may constrain health-conscious groups from opting for these foods.

A survey by Mintel discovered that around 60% of global consumers are worried about the nutritional value of RTE foods, mainly concerning preservatives and sodium. Researchers recommend that 30% of customers avoid ready-to-eat foods because they do not contain enough essential nutrients or comprise additional unhealthy ingredients like artificial additives and preservatives.

Opportunities

• Growth of online delivery services and e-commerce positively impact the ready to eat food market growth

The growth of online food delivery services and e-commerce platforms denotes a remarkable opportunity for the ready to eat food industry. With customers largely depending on delivery services, including DoorDash, Uber Eats, Grubhub, and more, businesses can grow their reach by delivering ready-to-eat food directly to doorsteps.

Uber Eats and Grubhub stated a 20% rise in ready-to-eat food orders during the holiday season in 2023, impacted by the demand for home delivery and convenience. Ready-to-eat meal companies prefer not to join these food delivery platforms to strengthen their market presence. This trend denotes an outstanding opportunity for RTE meal companies to control delivery services and e-commerce to lift sales.

Challenges

• Sustainability concerns and environmental impact limit the growth of the ready to eat food market

The environmental effect of ready-to-eat meal packaging and making procedures is now under rising scrutiny. Customers demand more ecological practices, mainly concerning carbon footprints and single-use plastics related to RTE foods. Resolving these issues without increasing prices denotes a key challenge for the market.

In 2023, PepsiCo declared that it would emphasize decreasing plastic waste by converting its ready-to-eat meals to ecological packaging. The company aims to lower its carbon footprint by 40% by 2025. Nonetheless, market experts highlighted that obtaining these ecological objectives will need significant investment and modernization in the supply chain.

Report Scope

Segmentation Analysis

The global ready to eat food market is segmented based on product type, packaging, distribution channel, and region.

Based on product type, the global ready to eat food industry is divided into instant breakfast/cereals, instant soups and snacks, ready meals, baked goods, and meat products. The ready meals segment registered a significant portion of the market in 2023 and will continue to lead over the estimated period. These meals are prominent because of their variety, convenience, and ability to satisfy consumers' diverse needs, including dietary preferences, ethnic cuisines, and nutritional needs. These meals encompass a wider range of products like canned meals, chilled meals, and frozen meals, and they are famous among the working population and the urbanized regions.

Conversely, the snacks segment will also hold a notable market share in the coming years owing to changing consumer lifestyles, rising snacking trends, and growing preference for portable foods.

Based on packaging, the global ready to eat food industry is segmented as canned, retort, frozen or chilled, and others. The frozen or chilled segment held a majority market share in 2023 and will continue to lead. The key reasons for the segmental growth comprise its increasing preference for several RTE products like snacks, ready meals, and desserts since it preserves the food's flavor, freshness, and nutritional quality while enhancing its shelf life. The convenience of reheating and storing frozen meals increases its popularity among customers.

On the other hand, the canned segment will hold a notable market share in the coming year due to its ease of storage, longer shelf life, and convenience.

Based on distribution channel, the global market is segmented as online stores, departmental/convenience stores, supermarkets/hypermarkets, specialty stores, and others. The supermarkets and hypermarkets segment has led the global market in the past few years and will continue to dominate. These outlets provide a broader range of ready-to-eat foods, snacking options, and other packaged meals. Its comprehensive reach, ability to offer food products in large quantities, and convenience increase its prominence among the RTE meal sales. The online stores segment will also hold a considerable market share, owing to the rising adoption of online shopping, mainly during the pandemic and post-pandemic period.

Regional Analysis

• North America to witness significant growth over the forecast period

North America dominates the global ready to eat food market due to the surging demand for convenience, growing urbanization, and improved distribution channels. North Americans prefer convenience over other factors, which fuels the demand for RTE meals, mainly among working professionals, students, and working parents. These foods offer easy and quick solutions to regular meal preparation.

In addition, the demand for on-the-go and convenient meals is increasing with key populations living in the metro cities. The region has established a prominent culture of takeout and fast food, balancing the market.

Also, the area benefits from a sophisticated retail network comprising hypermarkets, supermarkets, and online shops, thus increasing accessibility for RTE foods. E-commerce platforms also play a vital role in the delivery of food products.

Europe is projected to progress as the second-leading region owing to factors like the rising consumer demand for convenience, changing preferences, and improvements in distribution and packaging. European consumers also highly prefer time-saving and convenience options, like North American individuals, fueled by hectic urban lifestyles. The region's diverse cultural outlook results in various meal offerings, catering to different dietary and taste requirements.

The European market also leverages the modernization of the developed supply chain packaging to improve the convenience and shelf life of RTE products. The rise of e-commerce platforms also adds to the amplified availability.

Competitive Analysis

The global ready to eat food market is led by players like:

• Nestlé
• General Mills
• Unilever
• PepsiCo
• Conagra Brands
• Tyson Foods
• Kraft Heinz
• McCain Foods
• Archer Daniels Midland Company (ADM)
• Campbell Soup Company
• Hormel Foods
• Nomad Foods
• Greencore Group
• Sodexo
• Mars Inc.

Key Market Trends

• Eco-friendly and sustainable packaging:

Sustainability is a growing consideration with the leading brands inclining towards environmentally friendly packaging, such as biodegradable, compostable, and recyclable materials to decrease environmental effects. Companies like PepsiCo and Nestlé are committing to sustainable packaging for their RTE food products.

• Ethnic and universal flavors:

There is a rising demand for RTE foods with international and ethnic flavors since individuals prefer adventurous and diverse options like Mexican, Mediterranean, or Indian cuisines. For instance, brands launch fresh product lines with worldwide-inspired meals like RTE Mexican tacos or Indian curries.

The global ready to eat food market is segmented as follows:

By Product Type Segment Analysis

• Instant Breakfast/Cereals
• Instant Soups and Snacks
• Ready Meals
• Baked Goods
• Meat Products

By Packaging Segment Analysis

• Canned
• Retort
• Frozen or Chilled
• Others

By Distribution Channel Segment Analysis

• Online Stores
• Departmental/Convenience Stores
• Supermarkets/Hypermarkets
• Specialty Stores
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America