The ready meal market - France

1.2 A growing global market

Frozen meals represent the largest market share in **** and are set to maintain their lead over the forecast period thanks to a wide range of products with long shelf lives and consumer convenience. Frozen pizza is the most popular frozen-ready meal, significantly contributing to global revenues. Also, due to their convenience, canned meals are expected to experience the fastest growth between **** and ****. [***] The chart below shows the forecast development of the prepared meals market size over the period ****-****. Over this period, the global market grew by *.*% per year, reaching *** billion euros in ****. Estimated growth in the global ready meals market World, ****-****, in billions of euros Source: ****

The chart below shows the different distribution channels for ready-made meals worldwide. Unsurprisingly, supermarkets top the list with **% of sales.

Distribution of ready-made meals World, ****, % of sales Source: ****

Regarding the geographical distribution of ready-made meal consumption, North America is currently the world's leading market, accounting for **.*% of global consumption. This is due to the convenience of ready-to-eat, take-away meals and to an increasingly varied offer. The Asia-Pacific market, on the other hand, is expected to grow most rapidly in the coming years due to the increase in population and income.

1.3 France: a major market for ready-made meals

In France, the ready-cooked meals market is estimated at over €* billion in ****, up +*.*% in ****. Between **** and ****, the market was relatively stable before increasing in ****.[***]

French ready meals market France, ****-****, in millions of euros Source: ****

The majority of French people say they consume ready-made meals on an occasional or regular basis.

Percentage of French people who eat prepared meals France, ****, in Source: ****

According to France Agrimer's latest study, which dates back to ****, the primary sales of prepared dishes are meat-based dishes and dishes with pastry: pizzas/quiches/tarts/pies. The breakdown of French people's annual purchases of ready-made meals in **** is shown in the graph below:

Breakdown of French households' annual purchases of ready-made meals (***) France, ****-****, in % Source:France Agrimer The market's offer is diversifying while at the same time addressing the food concerns of the French, i.e., the origin of products, the presence of gluten, meat, etc...

Even so, this market has a very high penetration rate, estimated at **% in ****. [***] Individual dishes are France's favorite ready-made meals, accounting for **% of market sales.

Breakdown of ready-made meal sales by category France, ****, in Source: ****

1.4 France's foreign trade

French exports of ready-made meals:

Main export destinations for ready-made meals France, ****, millions of euros Source: French Customs The vast majority of French exports in **** were destined for * countries: Belgium, the UK, Spain, and Germany. These four countries represent a total export value of over ***.* million euros in the same year, i.e., almost a third (***) of the total export value for prepared dishes.

The difference in value between exports to Belgium and Italy, respectively the first and fifth largest destination for French exports, is substantial and will be around ** million euros in ****. Finally, the total value of exports in **** is *,***.* million euros.

French imports of ready-made meals:

Main countries of origin of ready meal imports France, ****, millions of euros Source: ****

Italy will be the main source of French imports of prepared dishes in ****, with an import value of ***.* million euros. The Netherlands and Germany are France's other main partners, with ***.* and ***.* million euros respectively in the same year. Between them, these three countries account for almost half of total imports (***).

The value of Belgium's imports is significantly lower, falling below the *** million euro mark (***). Notably, the total value of French imports of prepared dishes in **** is *,***.* million euros, i.e. ...

1.5 The impact of Covid-19 on the ready-made meals market

Against all expectations on the part of market players, the coronavirus crisis has boosted sales of ready-made meals in France. Ready-made meals have the advantage of being cheap, easy to store, and easy to cook. Against a backdrop of economic crisis linked to the pandemic and the waves of fear that preceded the first confinement, we will remember the empty shelves of toilet paper, pasta, and cans. Faced with the uncertainty of the health situation, the French stocked up on necessities and bought ready-made meals to meet their dietary needs, as these had the advantage of being less perishable.

During the first two weeks of the first containment period, sales of ready-to-eat (***) meals skyrocketed, with growth of ***% and ***% in weeks ** and ** compared with ****.

Booming sales of ready-to-serve meals in **** compared with **** France, ****-****, in Source: ****

While **% of households consumed ready-made meals in ****, almost **% did so in ****. The market has thus captured new customers and established new consumer habits.

On average, sales of ready-made meals rose by *.*% between **** and ****, thanks to the Covid-** crisis.

2.1 Consumer profile

Ready meal consumption by time of day

According to a study published in **** by the Institut National de la Consommation, **% of those surveyed would consume ready-made meals more frequently at lunch than at dinner. The main reasons cited are time-saving and convenience.

Consumption occasions for ready-made meals France, ****, in Source: ****

Ready meal consumption by purchasing power

The graph above shows that household purchasing power influences the consumption of ready-made meals. It can be seen that the most affluent households consumed the least ready-made meals in ****, while modest households consumed the most. The greatest differences in consumption are found in two categories of dishes: pasta-based dishes and pizzas/quiches/pies/pies, both of which are dominated by modest-income households.

Consumption of prepared dishes by household purchasing power France, ****, in % Source: ****

Ready meal consumption by age

Age is another factor influencing ready-meal consumption in France. According to the Institut National de la Consommation's **** study, **-**-year-olds consume the most ready meals. **% say they eat them at least once a week.

As regards the type of dishes consumed by age group, we can assume that these are stable trends over time. FranceAgrimer's **** results show that those aged ** and over are the least frequent consumers ...

2.2 Demand for prepared meals by product category

Aggregated demand:

Data from France Agrimer's latest **** study published in **** shows that the hierarchy of prepared dishes from most consumed to least consumed has not changed over the ****-**** period. We can, therefore, imagine a stable trend over the years, which continues today despite possible changes in proportions. Over the entire period, French consumers purchased the most meat-based ready-made meals, with **% of them buying them in ****. Conversely, the dishes least consumed were potato-based ready meals, with less than one in two French people consuming these products in **** (***). Trends in the proportion of ready-made meal consumers France, ****-****, in Source: ****

Demand for fresh ready meals :

A difference with aggregated demand can be observed for chilled ready meals, since it is not meat-based dishes, pizzas, quiches, tarts, and pies, with **% of French people eating them in ****. On the other hand, potato-based ready meals are once again the least sold (***). This segment is linked to the fresh delicatessen aisle, which includes pizzas, tarts, ready meals, sandwiches and salads, and which is showing good momentum in ****, resisting the crisis in French purchasing power, with volumes up by *.*% over the first three quarters of ****, while those of the mass market fell by *.*%. [***]

Trends in the number ...

2.3 Demand drivers

According to the French Ministry of Agriculture'sprêt à manger report , urbanization is one of the factors driving the consumption of ready-made meals. Housing is being concentrated on the outskirts, while jobs are increasingly located in city centers (***). The commuting involved in this double concentration reduces the amount of time French people can and want to devote to preparing their meals.

According toINSEE figures published in ****, this trend seems to be confirmed, as the time spent preparing meals fell from ** minutes in **** to ** minutes in ****. This is accompanied by a relative decline in the consumption of fresh produce, in favor of prepared meals. By ****, almost one in * French people will be spending between ** and ** minutes preparing meals.

Time spent by French people preparing meals France, ****, in Source: ****

An important factor in the consumption of ready-made meals in France is the ease with which they can be obtained. The accessibility of prepared meals outlets in city centers - convenience stores, hypermarkets, etc. - means that employees can quickly buy these products before eating them.

However, the French tend to spend more time on their lunch break compared to the rest of Europeans. According to **** data from Edenred and Toute l'Europe, only **% of French ...

2.4 An increasingly demanding market

Rapid consumption

Increasingly, consumers are turning to home and office delivery services for their lunch and dinner needs. With a market capitalization of just under $*.* billion, Deliveroo is a potential threat to the market for ready-made meals consumed by workers who prioritize speed and consumed ready-made meals until now[***].

Product Quality

French food consumption is also changing. According to a study by Kantar World Panel, they increasingly prefer quality products (***),

**% of consumers pay attention to the origin of products when making a purchase **% of French people say they pay attention to what they eat **% of those questioned consider organic and natural products to be healthy food[***].

In contrast, only **% of those surveyed are concerned about the environmental impact of their products.

Seazon, a home-delivery brand of prepared meals owned by FoodChéri, offers consumers information on the provenance of the ingredients used, their ecological impact, and the proportion of organic ingredients.

Consumers' demands in terms of health and ecological and environmental responsibility are leading to the adoption of special diets. In ****, **% of French people will follow a special diet. * in * French people would like to reduce their meat consumption. The main reasons given are :

Animal protection (***) health (***) preservation of the ...

3.1 Market organization and distribution

The market can be broken down into two main categories:

Manufacturers (***). Distributors (***).

The manufacturers ' market is an oligopoly, with a few companies controlling the market (***).

Ready meal distribution:

There are no exact statistics on the distribution of ready-made meals in supermarkets. However, it is possible to give an overview using data on the distribution channels preferred by the French in ****. [***] The graph below shows that distribution is concentrated mainly in supermarkets and hypermarkets.

Weight of supply channels in household food expenditure France, ****, in Source: ****

3.2 A market dominated by large companies

A handful of major companies dominate the French market with brands distributed in large and small stores.

Breakdown of the total number of ready-to-heat microwave meals France, ****, in % Source: ****

Several insights can be gleaned from this data. First, we can segment the market into * roughly equal parts regarding market share.

The major market players (***). Medium-sized players, offering between ** and ** products (***): This segment is a little more competitive, with ** companies holding just under a third of the market. These brands include Lidl, Cora, Thiriet, Sodebo, etc. Small players, offering a range of fewer than ** products (***): Over *** companies make up this segment of the microwave reheatable meals market. This segment is highly fragmented, with players having little influence on the market and being subject to distributor rules.

3.3 The French production fabric

As can be seen from the graphs below, the number of players in the ready meals market is growing. The market is becoming slightly denser, with new players entering the market at a rate of around *% per year.

Number of companies in NAF code **.**Z - Manufacture of prepared meals France, ****-****, in number of companies Source: ****

The number of employees in the sector thus naturally rises with the increase in the number of players in the market. However, the whole market is stable regarding the number of manufacturing companies and their workforce.

Number of employees in NAF code **.**Z - Manufacture of prepared meals France, ****-****, in number of employees Source: ****

4.1 Product typology and production processes

Product classification:

The ready-made meals available on the market are numerous. We can begin by classifying them according to the type of products used in their manufacture:

meat-based ready meals ; pasta-based ready meals ; fish-based ready meals; potato-based ready meals; pizzas/quiches/pies/pies.

They can also be classified according to the form in which the product is sold to the consumer :

Vacuum-packed trays (***) ; Canned (***); Frozen (***); Boxed (***).

Production processes for ready-made meals :

All ready-made meals follow the same production process, which can be summarized as follows:

Research and development: The brand determines its marketing orientation, considers consumer expectations, studies competitor demand, and then determines a set of specifications to be met by the product developed. Development: A chef, sometimes a renowned one - Joël Rebuchon for Fleury Michon - is tasked with designing recipes and dishes that meet the specifications provided by the company (***). sampling: The manufacturing company then studies the recipes, and the R&D team selects one or more. Mini-production: A small quantity of prepared dishes is produced by the company to test the viability of the product and correct any problems. Manufacturing: Once the last problems have been corrected, mass production of the product is launched, with quality ...

4.2 Offers in all price ranges

Ready-made meal prices

Prices for ready-made meals vary little - most are between €*.* and €*. However, it is possible to note a few differences depending on the nature of the products available on the websites of the major retail brands:

The "classic" range, whose products are nothing special - famous chefs neither produce them nor are they organic - with prices between *€ and *€ each. It's more of a low-price range, but not necessarily low-end. The organic range offers organic products that are supposed to be more respectful of the environment. In their case, prices tend to vary between €* and €* each; The top-of-the-range offer tends to develop, with prices hovering around €** per unit[***].

A dynamic to take into account: the impact of inflation on French food consumption

It should be noted that the inflationary context, which has strongly affected the food market and manufacturers in the sector, has consequently modified the French's purchasing behavior and eating habits. This was revealed in a study carried out by OpinionWay for Bonial in August ****: **% of those surveyed said they were looking to optimize their food budget, whether by keeping an eye on promotions, reducing their consumption of specific products such as meat, or fish, replacing them ...

4.3 An offering undergoing a complete makeover

Moving upmarket with certain ready-made meals:

At a time when the range of ready-made products is expanding with distributors' brands, companies that have been present on the market for a long time, or new entrants, are seeking to distinguish themselves by offering upmarket products. This trend is reflected in the development of new products:

Better quality, as in the case of Les Mijotés de Marie, which sell for around €* each, andAssiettes Plaisirs from Fleury Michon. Exotic recipes often evoke Asian countries, such as Cookedby's Chicken Tikka Masala. Created in partnership with star chefs Thierry Marx with Lustucru, Rivoire, and Carret. Healthier, notably with the development of organic products by Weight Watchers. More elegant, with the development of new forms of packaging, such as jars - from Vrai & Bon, for example - or a more sophisticated aesthetic for the presentation of food - cups from Seazon or the Côté Végétal range from Fleury Michon.

In addition, one of the problems raised by ready-made meals is the use of single-use plastic. In response to growing concern in France about the environment, brands such as Fleury Michon are launching ranges of ready-made meals sold in wooden trays. With this approach, ...

5.1 Current regulations

Health scandals regularly make the headlines (***), despite the rules in force, the main points of which are[***]:

In the case of heat preservation

Raw materials: must be fit for consumption and show no signs of deterioration; Packaging - storage: As soon as cooking is complete, food must be packaged and stored in such a way that the core temperature is above **°C; Consumption: ready-made meals prepared in this way must be consumed on the same day.

In the case of cold preservation

Raw materials must be preserved according to current refrigeration, freezing, or deep-freezing rules; Packaging - storage: As soon as cooking is complete, food must be packaged, the core temperature of **°C must be reached in less than * hours, and stored in an environment where the temperature is less than or equal to *°C (***) ; Consumption: refrigerated ready meals not consumed within * days after manufacture, and dishes that have been refrigerated and then reheated but not consumed on the day they were reheated.

Labeling:

Rules have also been put in place concerning the labeling of ready-made meals. The DGCCRF carries out inspection operations and, during its investigation, noted anomalies in **% of cases.

The rules to be respected are as follows:

The ...

6.1 Segmentation

• Fauchon
• Picard Surgelés
• William Saurin (Cofigeo Groupe)
• Marie (LDC Groupe)
• Fleury Michon
• Weight Watchers
• Bjorg (Ecotone)
• Auchan groupe
• Marks & Spencer
• Feed
• Foodcheri
• Nestor
• Lesieur (Avril Groupe)
• Rivière Maison
• Guyader Gastronomie
• Euralis
• Le Graët Groupe
• Raynal et Roquelaure (Cofigeo Groupe)
• Cofigeo
• Armor Cuisine (Dupont Restauration Groupe)
• Dupont Restauration
• Maître Coq (LDC Groupe)
• Gendreau Groupe
• Clarelia / Natâma