Rising Appetite for Ready-Made Meals
There’s little doubt that the Australian ready-to-eat meals market is a highly competitive space. “Growing at a CAGR of 1.1 % between 2020 and 2025…the market size of the Prepared Meals Production industry in Australia [stands] at $1.9bn in 2025” (IBIS World), and these figures are showing no signs of slowing down, with rates of growth predicted to grow steadily over the next five years.
Across the FMCG industry, the message is clear: jump on this fast-moving train or be left behind. With this in mind, manufacturers in this space have been responding voraciously, carving out their place in the market to ensure a cut of this lucrative space.
Some of the brands dominating the market space include My Muscle Chef, McCain Foods and Lite n’ Easy, amongst many others.
The key influences behind this growth? It ranges widely.
Convenient alternatives
One of the key consumer groups fuelling the current growth rate is the working population. Time-poor professionals are taking advantage of opportunities to enjoy a range of ready-made meals that offer a close substitute to a home-cooked meal.
Research by (Coles) reports that within this consumer group, “one in three do not have the time to cook from start to finish, and 52% are not interested in cooking at home.”
Many supermarkets have also introduced ‘modular’ menus, where consumers can mix and match different combinations to create their own individual dish. Customised options from varying proteins, sauces and vegetable blends can all be purchased separately and mixed according to personal taste.
“The pandemic has only continued to fuel demand. Dinner box services, like Hello Fresh, reported a 103% (YoY) growth in order numbers, while Marley Spoon recorded a revenue increase of 82% compared to the previous period” (FPE).
A move beyond single-serve portion sizes has also influenced the market. Larger-sized options, serving between four to six people, have widened the appeal for busy families to buy into the ready meal culture, offering a nutritionally balanced way to feed the whole family in just a few minutes.
High-value mature market
“In 2016 more than 1 in 7 people were aged 65 and over - and this population group is growing. The Australian Institute of Health and Welfare (AIHW) predict that by 2056, 22% of the Australian population will be aged 65+.”
With so much focus on younger consumers, it’s easy to overlook the 65 and over market share. When it comes to this group dynamic, it’s a largely untapped market, yet evidence suggests that the potential opportunities to be gained from capturing this consumer group could be extremely profitable.
“1 in 10 older Australians are employed, 7 in 10 own their own home and three quarters consider themselves to have ‘good’, ‘very good’ or ‘excellent’ health. This group of Australians are active members of society with a great deal of spending power, and an important group of consumers for FMCG brands to focus on” (Play Innovation).
Meals for aged care
Innovations in meals in this area of the market have developed in grand strides. Manufacturing improvements in areas from nutritional content to texture modification have seen dramatic improvements.
Hubfoods have shown themselves to be market leaders in this space, with a range of products that challenge classic preconceptions. “Dining is much more than what you eat, it’s about igniting all the senses,” they say. “Hubfoods’ Special Diet range has been prepared with high quality, taste, texture and consistency in mind to ensure all can dine with dignity.”
Looking at their range, it’s clear why they’ve managed to a take a prominent grasp on this substantial consumer base. With offerings from pureed fish filets and vegetables tastefully shaped to resemble a temptingly close image to that of their traditional counterparts, to indulgent chocolate mud cake that would look no different in a local restaurant – stigmas pushed aside, this is aged care meal production that’s risen to unrecognisable levels of ‘Haute Cuisine’.
A new wave of nutrition
Since the turn of the millennium, nutritional content in ready-made meals has changed beyond recognition. Statistics from a report carried out by Heighton, an Australian owned specialist food and beverage manufacturing company, show a “41% reduction in sodium, dropping from about 1,200mg to 710mg per serve”, while vegetable servings have grown “from 45g to 76g on average.”
Protein-rich meals are also on the rise, with the average serving having doubled from around 12g to 24g. Artificial ingredients, from additives to preservatives and flavour enhancers have fallen steadily, due to consumer preference, and many brands are now excluding them entirely.
“Australia’s frozen meal revolution was heavily shaped by the global “clean label” movement, which pushed for simple, recognisable ingredients and the removal of artificial additives…by 2015, a Food Standards Australia New Zealand survey found 67% of consumers were more concerned about artificial ingredients” (Heighton).
And the nutritional revolution is showing no signs of slowing down. Ready-made meals are continuing to keep up with dietary requirements due to consumer demand. Everything from plant-based and vegan dishes, to low-fodmap, keto, as well as dairy and gluten-free options.
Improvements in sustainability
These days companies are required to be fully accountable for their sustainability strategy. Everything from eco-friendly packaging, to lowering their carbon footprint, reducing waste and ensuring an optimum supply chain need to be promoted company-wide, with the evidence to prove it.
Australian-owned ready meal manufacturers, Dineamic, have drawn up a sustainability model that speaks volumes. Set up in 2008 by former AFL premiership player, Jason Johnson and accredited practising dietitian, Karen Inge, it wasn’t long before the company began to put as much emphasis on the environment as they did on nutrition.
“Our cardboard tray, or “Halo-pack”, uses 92% less plastic than a regular old plastic ready-meal tray—and prevents the use of 20 tonnes of plastic per year,” they say. “We moved on from plastic trays as “recyclable” doesn’t always mean it gets recycled.”
Another part of Dineamic’s sustainability strategy is to use locally sourced produce. “Our fully traceable ingredients spend less time in transport with fewer food miles resulting in tastier and healthier meals that are better for the community and the environment.” Dineamic are proud to reveal high amounts of Australian-derived ingredients – their ‘Teriyaki Beef with Rice and Broccoli’ contains “at least 90% Australian ingredients.”
Food waste is also an area deeply impacted by the rise in ready-made meals. “Australia throws away around 7.3 million tonnes of food each year, with households responsible for 34% of it. Frozen meals help tackle this through portion control, longer shelf life, and using ingredients more efficiently—turning what might have been waste into ready-to-eat meals” (Heighton).
What can manufacturers do to future-proof their market position?
Be accessible – Use broader means of supplying products. Simply approaching supermarkets is no longer enough. Scope out wider opportunities from direct-to-consumer and corporate foodservice. Look for opportunities to develop influential partnerships.
Tailor-made products – The modern FMGC consumer market is driven by individualism. From mix and match options to specifically tailored dietary requirements, manufacturers need to be on top of this to keep up. Using quality ingredients is a must, while authentic collaborations with chefs and culinary experts inform on valuable product development, and resonate with consumers far beyond surface-level marketing.
Invest in cutting-edge technology – With consistent significant advancements in technology impacting the industry, from packaging to freezing and even cooking processes, this is an area of high competition. To stay ahead, it’s vital to carve out a unique area of expertise that sets you apart from others.
Champion Sustainability – Take the lead by positioning the business in a transparent manner, weaving responsible practices into all areas of strategy from sourcing to packaging, production and logistics. Doing this effectively will define brand strength and deepen consumer trust and loyalty.
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