Ready-to-eat segment buoyed by retailers

Analyst the NPD Group said that retail stores were now accounting for six per cent of $62 billion foodservice meals and snacks market in the country, according to latest report on retails meals.

The findings suggest that a shift has taken place over the last year away with consumers looking away from traditional restaurants to markets and stalls to sate their snacking appetite, a $13bn segment in the US.

According to the report, for the twelve-month period ending August 2008, the number of purchases for ready to eat-meal and snacks was up by two per cent on the back of consumers increasingly seeking greater convenience.

In comparison, the report states that the Quick Service Restaurant (QSR), which directly competes with retails stores in the convenience segment, served only a single per cent more meals and snacks over the period. The market share of the full service restaurant had even fallen for the year, according to the analyst.

Meeting demand​

Convenience, a growing availability of healthier options and affordability were all highlighted as major drivers in pushing popularity of the segment at retail level, stated the report.

Bonnie Riggs, restaurant analyst for NPD, said the report highlighted the growing opportunity for retailers and manufacturers alike in supplying ready-made meals.

“For some time, retail stores have offered prepared foods in the deli department, but have now expanded foodservice offerings to include a variety of cold and hot ready-to-consume meals and snacks,”​ stated Riggs.

NPD claimed that’s its findings also dispelled many industry myths regarding snacking trends, particularly in supper being the prime period for retails meal and snacks.

Riggs claimed that on-the go needs of consumers were increasingly being fulfilled by retailers that allowed consumers to eat on their way to work, in the car, or even at the office itself.