Global Convenience Food Market Research Report: Forecast (2024-2030)

Market Definition

Convenience foods are pre-packaged and readily available for consumption, providing a quick and easy alternative to cooking. The appeal of convenience food lies in the fact that it caters to individuals lacking culinary abilities or who face time constraints due to busy work schedules.

Market Insights & Analysis: Global Convenience Food Market (2024-30):

The Global Convenience Food Market size was valued at around USD 528 billion in 2023 and is expected to reach around USD 852.6 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 7.45% during the forecast period, i.e. 2024-2030. The market has been developing fairly due to shifts in lifestyles, stressful schedules, expedited urbanization, an on-the-move mentality, and expanded ranges of disposable earnings. In addition, the convenience food industry has been boosted via technological improvements in food preservation and packaging. These advancements enhance the product quality and shelf life of convenience foods, making them more appealing to customers. Hence, as the lifestyle of consumers changes in developing regions, there is anticipated to be significant growth in the demand for packaged and processed food in the coming years.

Moreover, the advent of online delivery apps has sparked a revolution in the convenience food sector. Due to their ability to provide easy accessibility to consumers for buying food products, online delivery apps have played a catalyst in expanding the Global Convenience Food Market. To entice health-conscious consumers, convenience food manufacturers are now tailoring their offerings to dietary and nutritional preferences and are majorly advertising them through online platforms. The abundance of options available online attracts consumer interest, leading to an increase in demand, which has been propelling the convenience food market size. Also, companies are improving the quality and diversity of convenient meal options through inspiration from popular cuisines, which would create profitable opportunities for market expansion.

As digitalization continues its reach, sedentary lifestyles have become more prevalent as people rely heavily on mobile devices. These habits among consumers have led to a surge in demand for convenient cuisine. One of the most prominent market trends is the rise of online grocery shopping, facilitated by the launch of innovative apps that simplify the product selection process for customers. This shift is driven by the convenience, variety, and accessibility that online shopping offers. Thus, the digitalization of the retail industry would foster market growth in the forecast years.

Furthermore, there has been an increase in demand for products made with natural ingredients and organic foods. Further, the rising number of consumers inclined towards vegan food products has encouraged companies to introduce new products to cater to the newly generated demand. Also, the ongoing expansion of the retail industry, particularly for organic foods, worldwide, with notable growth in Europe and the Asia-Pacific regions, is further fueling market growth. By providing healthier and organic convenience food choices, the future outlook for the convenience food market appears to be positive. Also, plant-based processed foods offer potential opportunities among ever-changing customer preferences, and this market trend is anticipated to drive market expansion in the coming years. Recognizing the potential of growing demand for organic conveniences, major players like Nestlé, Unilever, and Kraft Heinz, along with fast-food chains, are diversifying their offerings to include natural convenience products. This strategic move is expected to bolster market growth even further as consumer preferences continue to evolve toward healthier and more sustainable options during the forecast period.

Global Convenience Food Market Driver:

Rapidly Changing Consumer Lifestyles Driving Inclination Toward Frozen Food & Beverages – There has been a rapid growth in the demand for frozen food and beverages, which is significantly fueling the expansion of the convenience food industry. This synergy has been attributed to numerous key factors. The frozen food and beverage sector is experiencing higher demand due to changing buyers' preferences & lifestyles. They provide the dual benefits of ease of instruction and prolonged shelf existence, catering to the demands of time-strapped consumers. Additionally, frozen foods align seamlessly with these trends, providing convenient, ready-to-eat, or easy-to-prepare meal options. They offer a practical solution for individuals and families seeking quick, hassle-free dining choices in the packaged food segment, which has further boosted their demand.

Further, several health-conscious consumers are also contributing to this market growth, seeking out packaged options that provide nutritional value rather than fast food choices. This increasing preference for frozen & packaged foods and beverages is driving substantial growth in the market, encouraging companies to innovate and expand their product offerings to meet diverse consumer needs. For instance,

• In 2024, Nestle announced its plans to launch a new frozen food range, i.e., Vital Pursuit, which would be designed specifically for consumers relying on GLP-1 medications like Wegovy, Ozempic, etc.

Furthermore, the packaged food industry's robust distribution networks and marketing strategies make it easier for frozen food products to reach a broader consumer base. These efforts have been driving the market growth of frozen convenience food items, which is anticipated to improve in the upcoming years as well.

Global Convenience Food Market Opportunity:

Modern Microwaveable Packaging Technology to Revolutionize the Convenience Food Sector – Cutting-edge microwaveable packaging technology has the potential to revolutionize the modern convenience food sector. With busier consumer lifestyles, there's a growing demand for quick and nutritious meal options that can be prepared easily. This advanced packaging technology offers an attractive market opportunity by significantly improving ready-to-eat meals' quality, safety, and convenience. Microwaveable packaging ensures even heating of meals while preserving their texture and flavor to increase shelf life. Hence, several companies have launched their products across countries like the USA, the UK, Germany, Japan, and Australia, among others. For instance,

• In 2023, Kraft Heinz launched grilled cheese sandwiches under their Lunchable brand, which come in microwavable packaging.

The demand for these products, which come in microwavable packaging, is projected to amplify in the coming years, primarily due to the ease provided by them for meal preparation. Hence, for consumers with busy lifestyles, these products would become a preference for their meal options. Additionally, manufacturers are now coming up with smart packaging features incorporating heat indicators to section out different components for consumers who seek personalized gourmet meal options. These innovations create brand differentiation across fiercely competitive markets and offer a lucrative opportunity for market growth in the coming years.

Global Convenience Food Market Challenge:

Requirement to Store Convenience Food at a Constant Temperature Impeding Market Expansion – The necessity to store convenience foods at a consistent temperature presents significant market challenges that have been hampering product demand and revenue growth. Many of these products are perishable and require refrigeration or freezing for safety, necessitating a uniform temperature along the entire supply chain, from production to storage. Meeting this requirement demands substantial investments in specialized infrastructure and equipment, which elevates operational costs for the companies.

In addition to this, several countries across the globe also lack cold supply chain infrastructure, which has been affecting the distribution of convenience food items that require low storage. Hence, despite having a prominent demand in the market, companies have been unable to supply these food items, creating a supply-demand gap. Consequently, these challenges have been hindering the broader adoption of convenience foods, thereby slowing down market expansion and limiting overall revenue growth.

Global Convenience Food Market (2024-30): Segmentation Analysis

The Global Convenience Food Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024-2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Type:

• Ready-to-Eat Food
• Chilled Food
• Canned Food
• Frozen Food
• Others (Beverages, Ready-to-Cook Food, etc.)

The frozen food segment accounts for the majority of the market share in the Global Convenience Food Market, offering a variety of products like fruits and veggies, pizzas, and desserts. Frozen convenience foods with extended shelf life and minimal waste advantages are gaining popularity among both households and businesses, such as hotels and restaurants, seeking hassle-free preparation and time-saving solutions with pre-prepared ingredients. Ice cream has played a key role in the growth of the frozen food market across the globe. Further, rising health concerns such as obesity, diabetes, etc., across the countries have highlighted the need for organic and gluten-free ice creams. Hence, with the growing demand for innovative food products from health-conscious consumers, the demand for sugar-free and organic ice creams is projected to increase in the years to come, thereby positively contributing to the growth of the frozen food segment.

Based on Product:

• Meat/Poultry Products
• Cereal-based Products
• Vegetable/Fruit-based Products
• Others (Dairy-based, Fish and Seafood, etc.)

The meat and poultry products segment holds a significant market share in the Global Convenience Food Market. The convenience food segment of this category offers a variety of options to satisfy consumer desires for carnivorous cuisine. These quick-cook items range from frozen burgers and chicken nuggets to ready-to-eat deli meats, all boasting rich flavors that are sure to please any palate. One major factor contributing to their demand is their high protein content, an essential nutrient increasingly sought after by health-conscious consumers around the world. Hence, the rising disposable income across the countries, coupled with the changing preference of consumers towards healthy diets, has boosted the consumption of meat products.

Furthermore, the growth of the tourism industry has resulted in a rise in air travel, which has further increased the demand for meat products from in-flight catering. Hence, the convenience of meat products and their adaptability to various dishes enhance their appeal to both consumers and food service businesses. This broad applicability not only sustains their demand but also reinforces their position as staple ingredients in the market, ensuring continued revenue growth and market stability.

Global Convenience Food Market (2024-30): Regional Projections

Geographically, the Global Convenience Food Market expands across:

• North America
• South America
• Europe
• The Middle East and Africa
• Asia-Pacific

Europe leads the Global Convenience Food Market capturing a significant market share. The convenience food market in Europe is characterized by diversity in consumer preferences, which vary across countries. Well-established Western European nations like Germany, France, and the UK have a wide range of premium and healthy brands present, as well as a significant demand for them. In contrast, Eastern Europe has seen progress due to an increase in disposable incomes, which led consumers to seek convenient options that suit their busy lives better. This results from busier schedules overall, causing reliance on convenience foods over regular, fresh meals. Consumers throughout the continent are showing interest in health-conscious choices, leading to organic foods being more preferred. This trend of adopting organics has been directly attributed to lifestyle concerns among this region’s population segment.

Moreover, significant growth is predicted for the convenience food market in Europe due to changing economic and social trends. In addition, the increasing number of two-income households spending more on these foods is also fueling expansion in this region. Furthermore, the expansion of supermarkets, hypermarkets, and convenience stores across the region is also pushing the sales of convenience food products.  For instance,

• In 2024, Żabka, which is one of the largest convenience store chains in Central and Eastern Europe, announced the launch of its store in Romania.

Global Convenience Food Industry Recent Development:

• 2024: Nestlé launches a separate brand, i.e., Vital Pursuit, for GLP-1 weight loss medication users and consumers who are focused on weight management in the US. The brand will provide various frozen products, such as protein pasta, bowls with whole grains, sandwich melts, and pizza.
• 2023: Amy’s Kitchen announced the introduction of ‘Family Size Entrées’ in California. This new product launch aligns with the current frozen food industry trends and caters to busy families' evolving preferences. It is a strategic move that not only focuses on the meal but also takes into consideration packaging design and convenience, offering consumers a holistic approach.

Gain a Competitive Edge with Our Global Convenience Food Market Report

1. Global Convenience Food Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global Convenience Food Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.