Contents:

Issues in the Market Definition Consumer research Abbreviations Market in Brief Continued growth despite greater health awareness Chilled, ‘healthier’ products behind good performance Penetration of ready meals increases, but many others fall Own-label dominance Who uses? Further potential Internal Market Environment Key points A nation hooked on convenience? Many economic and social factors drive growth Health trend creates criticism Eating out is consistently popular – potential for restaurant-quality meals Figure 1: Trends in eating out, 2003-06 Ownership of household appliances affects demand for convenience foods Figure 2: Ownership of microwave ovens, freezers and combined fridge/freezers, by country, 2006 Figure 3: Trends in ownership of microwave ovens, freezers and combined fridge/freezers in GB, 2001-06 Figure 4: Ownership of microwave ovens, freezers and combined fridge/freezers, by demographic sub-group, 2006 More time at work means less time for cooking Figure 5: Trends in average hours spent on working day on professional occupation (main job or other paid activities), 2002-06 Figure 6: Trends in average hours spent on working day on professional occupation (main job or other paid activities), by country, 2006 Figure 7: Trends in average hours dedicated to daily amusemements, recreation, personal relationships (hobbies and sports, not television), 2002-06 Is eating in the new eating out? Impact of celebrity chefs on cooking habits Home cooking not just for older adults Shrinking share of household budget spent on food Figure 8: UK household expenditure, at current prices, 2001-06 Figure 9: UK household expenditure on food and non-alcoholic drink, at current and constant prices, 2001-06 Snacking on-the-go more common Figure 10: Estimated number of adult on-the-go snacking occasions, 2006 Broader Market Environment Key points Ageing population poses a challenge to convenience suppliers Figure 11: Trends in UK population, by age, 2001-11 More affluent consumers tend to choose healthier options Figure 12: UK adult population, by socio-economic group, 2001-11 Growing female employment and consumer wealth are good news Figure 13: UK workforce, by gender and employment status, 2001-11 Figure 14: Trends in UK PDI, consumer expenditure and GDP, at current prices, 2001-11 Family households still most likely to use convenience foods Figure 15: Trends in number of UK households, 2000-10 Who’s Innovating? Key points Healthier ready meals Going premium Restaurant-quality pizza at home Create your own – introducing cooking skills to children Demand for naturalness in cooking sauces Gourmet offering Low-fat and low-calorie feature strongly in soup launches France and the UK have the biggest number of new launches Figure 16: New product launches, by country, April 2006-March 2007 Ready meals see the most NPD activity Figure 17: UK new product launches, by sector, 2002-06* Microwaveable is the principal convenience benefit, quality and health also being addressed Figure 18: Principal product claims in UK convenience food launches, April-2006-March 2007 Market Size and Forecast – Convenience Foods Key points Continued growth, and room for further rises Figure 19: UK retail value sales of selected convenience foods, in sterling terms, 2002-06 Figure 20: UK retail value sales of selected convenience foods, in euro terms, 2002-06 Consumers no longer prepared to pay more just to save time Suppliers help consumers eat more healthily Forecast Figure 21: Forecast of UK retail value sales of selected convenience foods, at current prices in sterling terms, 2006-11 Figure 22: Forecast of UK retail value sales of selected convenience foods, at 2006 prices in sterling terms, 2006-11 Forecast in €uros Figure 23: Forecast of UK retail value sales of selected convenience foods, at current prices in euro terms, 2006-11 Figure 24: Forecast of UK retail value sales of selected convenience foods, at 2006 prices in euro terms, 2006-11 Factors used in the forecast Prospects Segment Performance Key points Figure 25: Growth/decline in retail value sales, by sector, 2004-06 Ready meals Chilled products still increasing share Figure 26: UK retail value sales of ready meals, by type, 2004-06 Pizza Frozen sector fast losing sales to chilled Figure 27: UK retail value sales of pizza, by type, 2004-06 Cooking sauces Figure 28: UK retail value sales of cooking sauces, by type, 2004-06 Soup Figure 29: UK retail value sales of soup, by type, 2004-06 Market Share Key points Retailers’ own-labels dominate Figure 30: UK retail value sales of selected convenience foods, own-labels vs brands, 2006 Ready meals Figure 31: Manufacturers’ retail value shares of frozen ready meals, 2004-06 Figure 32: Manufacturers’ retail value shares of chilled ready meals, 2004-06 Pizza Figure 33: Manufacturers’ retail value shares of pizza, 2004-06 Cooking sauces Figure 34: Manufacturers’ retail value shares of ambient wet cooking sauces, 2004-06 Soup Figure 35: Manufacturers’ retail value shares of soup, 2004-06 Companies and Products HJ Heinz Premier Foods Unilever Bestfoods Marks & Spencer Sainsbury’s Tesco Channels to Market Key points Dominance of large multiple grocery chains The Consumer – Pan-European Overview Key points Soup is the most widely used convenience food Figure 36: Use of selected convenience foods, by country, 2006 Figure 37: Household expenditure on selected primary foods, by country, 2006 Frozen vegetables are most frequently used; pasta is used just as often as ready meals Figure 38: Household use of selected convenience food products, by frequency, by country, 2006 Figure 39: Level of spend on selected primary foods, by country, 2006 More potential for frozen poultry products? What is in the European shopping basket? Figure 40: The top three most frequently purchased convenience foods*, by country, 2006 Figure 41: The top three food products, by expenditure*, by country, 2006 The Consumer – Use of Convenience Foods in GB Key points Trends in frequency of using convenience foods – soups, sauces and instant desserts fare worst Figure 42: Trends in penetration and frequency of using selected convenience foods, 2002-06 Figure 43: Growth/decline in consumer base, convenience foods by product, 2002-06 Fresh fish strongly gains new users Figure 44: Trends in expenditure on selected food products, 2002-06 Figure 45: Growth/decline in consumer base, fresh and frozen foods by product, 2002-06 The Consumer – Attitudes Towards Convenience and Quality Key points Britons are good targets for convenience foods that leave room for some recipe input Figure 46: Attitudes towards cooking and meal occasions, by country, 2006 Premium ranges offer guilt-free convenience Figure 47: Attitudes towards food quality, by country, 2006 Challenging the perception that frozen foods are poor quality Lower appreciation of gourmet foods in GB Figure 48: Food attitude index, by country, 2006 Trends in attitudes in GB are favourable for home cooking Figure 49: Trends in attitudes towards cooking and meal occasions, 2002-06 Figure 50: Trends in attitudes towards food quality, 2002-06

Companies Mentioned

-HJ Heinz -Premier Foods -Unilever Bestfoods -Marks & Spencer -Sainsbury’s -Tesco