The value of the UK retail market for chilled and frozen ready meals rose by 11.4 per cent between 2003 and 2007, from £1.87 billion to £2.08bn.

The Ready Meals Market Report Plus from Research and Markets shows that chilled ready meals account for the largest share of sales and have benefited from year-on-year growth since the mid-1990s. This has been driven by consumer demand for what are perceived to be ‘fresh’ convenient meal options, as well as an ongoing programme of new product development.

The development of a sophisticated brand offering on the part of retailers has also played an important role, as consumers have been able to choose from a range of labels at various prices - from premium to economy. Healthy-eating ranges offer consumers yet further choice.

The frozen ready meals sector has performed less successfully and has been declining in value since 2005, although it has gained from strong brand investment from the likes of Birds Eye and Findus. Promotional activity has centred on the integrity of freezing as a natural preservative.

Premium and health qualities of products are the two major drivers in the market, and in the food sector as a whole. Both factors are particularly important for ready meals, as there is a price difference to be paid for convenience, while such processed foods are often regarded with suspicion when it comes to healthy eating. Premium brands are performing well, as consumers tend to associate them with better-quality ingredients and recipes, while ‘better-for-you’ options, such as reduced-fat and reduced-calorie dishes, are not supported by recipes with more positive health attributes.

Research and Markets forecasts that value sales in the ready meals market will continue to rise to 2012. In part, this will be driven by inflation, as the retail market absorbs the impact of higher production costs. However, the success of premium products and healthy-eating options will also add value to the market.

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