The convenience food market has steadily risen since the pandemic. With consumers globally having busier-day lives, coupled with the increased cost of living, global demand for convenience food has grown significantly. New research has suggested that global demand for convenience food is anticipated to rise at a CAGR of 7.2 percent over the next decade, with its value by 2033 projected to be US$ 1,138.8 million.
The variety of convenience food options on the market also propels consumer interest in convenience options, therefore increasing demand. However, in contrast, the demand for natural and fresh foods has the potential to hinder convenience food market expansion significantly.
However, this can be mitigated if convenience food options were enhanced regarding their health and nutritional benefits, which consumers are wary of, and increased quality and diversity inspired by popular cuisines. Capitalising on consumer trends will be vital to opening up profitable opportunities in the market to drive its expansion.
With urban areas and cities becoming more populated, consumer tastes are transforming, fueling the expansion of the retail sector for convenience foods, combined with innovative goods made with natural components, organic foods, and packaging advancements.
While consumers have busier day-to-day lives, remaining sedentary behind a desk and at home has increased as people increasingly spend more time behind screens. This digitisation within daily life is also anticipated to contribute to the growth of the convenience food market, as it enables instant, uncomplicated meal preparation, which became prevalent during the pandemic when there was reduced accessibility to supermarkets.
However, significant factors which could harm the growth of the convenience food market include issues of suitable preparation, storing, and bundling facilities that should be addressed within the sector. Another obstacle the sector will are the high expenses related to the ongoing upkeep and temperature monitoring necessary to store these goods.
The preservatives used to prolong convenience foods' shelf life are another aspect to be considered, as consumers are becoming increasingly health-conscious. Strict regulation imposed on a social and legal level when using a preservative ingredient could further make it difficult to manufacture. Store convenience foods as their longevity is integral to their appeal for manufacturing.
Europe holds the largest share of the convenience foods market, with significant revenue of 40.5 percent, as consumers in this region typically have busy lives and less time to prepare food. As a result, there has been an increase in the use of frozen, canned, and dried goods.
With revenue of 33.8 percent, North America is the second largest shareholder in the convenience food market.
This is due to industry giants and market players in this region. Increasing demand for ready-to-eat food, such as frozen pizza and handheld breakfast, will propel the convenience food market growth, which can be attributed to these products high quality and freshness, sold at a lower cost.