CONSUMER NEEDS

• According to US food solutions company Grande, "convenience is key," and remains the "main driver" for US consumers when selecting "prepared food products."
• Similarly, research company Magid highlights that convenience is the "key pillar" for day to day food choices by consumers.
• US consumers also highly prioritize "health," or products which are not "overly processed" and that are "more nutritious," when purchasing prepared foods, with more than 37% of consumers eating fewer processed foods.
• Notably, "fresh, ready-made foods" are generally viewed as an option that satisfies both the desire for healthy and convenient meals and sides.
• Meanwhile, along similar lines, research and analytics consultancy IRI reported a rise in consumer preferences for "protein content" and "on-the-go snacking," which has driven a 14.72% increase in sales and 12.95% increase in units sold for refrigerated lunches and sides.
• Additionally, IRI highlighted the consumer need for a balance between the familiar and the new in food products, adding that fresh, convenient foods need to provide a simplicity of ingredients that's familiar, alongside a "foreign taste" or more "on-trend culinary appeal."

CURRENT CHALLENGES

• Perhaps the most significant challenge facing the fresh meals and side dishes market is the return of the US consumer to frozen foods.
• According to researcher NPD, frozen foods are no longer in the "shadows" of the "health-focused fresh movement," as the new "general market consensus" has shifted to view frozen foods as offering the same health advantages of fresher options.
• Specifically, frozen foods were part of 9.8 billion "eating occasions" within the US home in 2018, representing a 2% rise from the past decade.
• Additionally, 43% of millennials are purchasing frozen foods more often, representing a significant market influence given that millennials have approximately $600 billion in buying power per year.
• In contrast, US customers are "losing interest in meal kits," which stand as a competitor for fresh meals and side dishes based on convenience and health benefits.
• However, the pressures faced by meal kits may also present a challenge for fresh meals and sides, given that both industries must address the "constant change" in consumer preferences, as well as increasing competition overall from providers like Amazon/Whole Foods and online, direct to consumer platforms.
• More generally, an inherent and continued challenge for the fresh meals and sides industry is the "shorter shelf-lives" of fresh products, owing to the inclusion of natural ingredients.