The ready-to-eat food market in Europe is expected to grow from US$ 252.29 billion in 2021 to US$ 336.34 billion by 2028. It is estimated to grow at a CAGR of 4.3% from 2021 to 2028.
Ready-to-eat food manufacturers are making significant investments in product innovation to attract a large number of consumers. They are offering organic, gluten-free, sugar-free, and plant-based products and products suitable for a keto diet, which meet various requirements of consumers. Companies such as Kellogg's Company, Nestle SA, and General Mills produce various nutritious RTE products in different flavors and varieties. For instance, General Mills released a range of instant oatmeal cereals in 2021.
Moreover, people are focusing on convenience food products while maintaining the nutritional balance in their diets. With the flourishing trend of veganism, manufacturers are also venturing into a plant-based food segment. For instance, the Nestlé-owned brand, Freshly, launched its first fully vegan meal line in August 2021. Under its new Purely Plant menu, the chef-prepared meal delivery service will offer 6 options developed to showcase plant-based foods' nutritional benefits and delicious possibilities.
Similarly, in 2020, Gardein launched five new varieties of soups prepared from plant-based meat alternatives, made with 100% vegan ingredients. Such product innovations help companies extend their reach in domestic markets and gain a competitive edge in international markets.
Leading manufacturers are employing creative strategies, such as new product releases and production capacity scaleup, to serve their customers better and satisfy their growing demands. In May 2018, Del Monte Foods, Inc., a prominent processed food company, launched a canned Gold Pineapple line with a major focus on teenagers as a target consumer group. Major RTE product manufacturers are collaborating and partnering with other market players to launch innovative products in the market. In January 2021, Nomad Foods announced plans to acquire the Frozen Foods (FFBG) business of Fortenova Group, which includes Ledo, Frokom, and other frozen brands. The acquisition of FFBG would extend Nomad's portfolio into new and developing European markets while creating scope for potential future consolidation in Central and Eastern Europe. Such initiatives by manufacturers are creating lucrative growth opportunities in the ready-to-eat food market.
With new features and technologies, vendors can attract new customers and expand their footprints in emerging markets. This factor is likely to drive the Europe ready-to-eat food market at a substantial CAGR during the forecast period.
Europe Ready-to-Eat Food Market Segmentation
The Europe ready-to-eat food market is segmented on the basis of product type, distribution channel, and country.
Based on product type, the market is segmented into breakfast cereals, ready meals, instant soups and noodles, snacks, baked goods & confectioneries, and others. In 2021, the others segment held a larger market share, and the ready meal segment is expected to register a higher CAGR during the forecast period.
Based on distribution channel, the market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. In 2021, the supermarkets & hypermarkets segment held the largest market share, and the online retail segment is expected to register the highest CAGR in the market during the forecast period.
Based on country, the market is segmented into Germany, the UK, France, Italy, Russia, and the Rest of Europe. In 2021, the Rest of Europe held the largest market share, and France is expected to grow at the fastest CAGR during the forecast period.
Nestlé SA; Conagra Brands Inc.; The Kraft Heinz Company; General Mills Inc.; MTR Foods Pvt Ltd.; Hormel Foods Corporation; Tyson Foods, Inc.; JBS S.A.; and The Kellogg Company are a few leading companies in the Europe ready-to-eat food market.
Some of the leading companies are: