Rabobank: chilled convenience foods call for a local approach

Demand for chilled convenience foods is growing in Europe. But what succeeds in one country does not automatically determine the approach elsewhere. For food manufacturers, the focus is therefore on what local consumers need. A successful growth strategy starts with these differences, says RaboResearch analyst Yanyee Siu. Her October 6 publication describes how European markets are each developing in their own way.

Chilled convenience foods continue to outperform the broader retail food market. This category includes ready meals, prepared salads, soups, sandwiches, and other fresh prepared meal solutions. Smaller households, busier lifestyles, and a growing need for convenience support this trend. Food culture, retail structure, and foodservice developments help shape which products are seeing growth.

From British meals to German salads

The United Kingdom remains an important reference market for chilled convenience foods, according to Rabobank. The country has a large ready-meal market and an extensive range of food-to-go options. There is also considerable overlap between retail and foodservice.

In Germany, growth is concentrated in prepared salads and fresh convenience foods. In Spain, prepared meals and retailer-led developments are driving market growth. The Netherlands already has a strong base in ready meals. Rabobank also sees growth in related product categories and informal eating occasions.

Choices for profitable growth

Rabobank identifies three strategic questions for companies seeking growth in this category. Which markets and activities should they focus on? How can they succeed in those markets? And which players are best positioned to deliver profitable growth?

Understanding how each market is growing is becoming increasingly important. Adopting product concepts from leading markets plays a less decisive role, according to Rabobank.

Rabobank.com