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UK – Growth opportunities in convenience foods
The total UK food market is valued at £88 billion according to RTS Resource and growing at less than 1% per year in value. Faced with this static market, the convenience food sector offers manufacturers and retailers the opportunity of higher growth rates and higher margins.
However, for those in the industry not represented within this £12 billion sector prospects are poor. The likelihood is that many other organisations will face a future of (mainly) declining markets with margins squeezed even further.
Healthy balance and taste key to new product development
The convenience sector should develop into a wide range of products offering but consumer benefits such as “health” and “healthy balance” need to be balanced with taste and convenience.
Table 1:UK market for convenience foods (as defined)
| £m | 2005p |
| Ready meals (frozen, chilled, canned, dry) | £2,751 |
| Pizzas | £854 |
| Cook in sauces (including dry mixes) | £715 |
| Bagged snacks and pot snacks | £3,129 |
| Ready made sandwiches | £4,571 |
| Cereal bars | £241 |
| Other savoury convenience/food on-the-go | £395 |
| Total Convenience Foods | £12,656 |
Notes: Includes sales of industrial foods to foodservice. p = provisional figure. f = RTS forecasts. Source: RTS Resource Ltd from RTS research.
