Future Convenience Food And Drinks: New opportunities in a developed market

Future Convenience Food and Drinks
New opportunities in a developed market
Business Intelligence for the Consumer Goods Industry
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Key issues examined by this report

• Ethical packaging. Green packaging is a primary concern for the food and drinks industry. Using less packaging will become a key focus over the next five years, and this is especially important for convenience products that rely heavily on packaging benefits such as multi-packs, compartment packaging and portioning.
• Health concerns. Health is an increasingly important driver of convenient products, and marketing is becoming multi-faceted with the evolution of food and drink offering more advanced health benefits such as weight control and other specific health concerns.
• Emerging markets. Growth in regions such as Asia-Pacific and Latin America is acting to boost overall sales of dried, instant and wet ambient convenient products. These have shown increasing signs of maturity in Western markets where demand has tended to move into fresher convenient products.

Convenience continues to be a key trend in food and drinks, with consumers increasingly looking for products that suit their lifestyle requirements. The extent of the development of convenient products is signaled by the notion that consumers are coming to view various convenience benefits as the norm. Adding value in terms of convenience is increasingly linked to providing further benefits, combining saving time and effort with additional aspects of food and drink marketing. These include providing health, freshness, taste, versatility and ethical benefits, and marketing products that suit particular consumer needs such as on-the-go convenience and products for children.

Future Convenience Food and Drinks is a new report published by Business Insights that provides insight into the direction of the convenient food and drinks market and how the sector will develop over the next five years. This report analyzes current and future trends that are set to impact significantly on the marketing, formulation and packaging of convenience food and drinks.

Discover future growth opportunities in the convenience food and drinks market with this new report

This new report will enable you to
• Identify future growth opportunities in a developed sector, using this reports analysis of sales of convenience food and drinks in emerging markets to 2011.

• Gain insight into industry opinions on the convenience food and drinks market over the next 5 years through an exclusive survey of industry executives undertaken by Business Insights.

• Improve the targeting and effectiveness of your NPD strategies with this report’s analysis of convenience benefits, product categories and regional trends based on analysis of Productscan data of 35,000 convenient food and drinks products launched globally between 2005 and 2008.

• Predict future convenience food and drink market size and growth levels, using this report’s forecasts to 2011, including category specific analysis, in Europe and the US.

Your questions answered
• How are different convenient food formats developing and which products will provide growth?

• What innovations are driving new opportunities in convenience food and drinks NPD?

• Which region will experience the most growth in convenience food and drinks to 2011?

• Who are the most innovative convenience food and drinks manufacturers?

• How does the industry expect the marketing of convenience food and drinks to change over the next 5 years?

Some key findings from this report
• The convenience food and drinks market is worth $158bn in Asia-Pacific and is expected to grow at a CAGR of 3.9% to 2011. Latin America and the Middle East and Africa are set to grow at a faster rate, but these regions hold a collective share of less than 13% of global sales.

• A growing share of 40% of new convenient products launched globally in 2008 feature benefits relating to speed of preparation, compared to shares of 30% for single serving products and 15% for fresh convenience.

• Expenditure on convenient products peaks in Sweden at over $700 per capita, and is over $400 in the US. Per capita spend in all other regions is less than a quarter than that of the average for Western Europe and North America, but the gap is expected to narrow steadily.

• The number of dinners prepared from scratch at home is highest in France and Spain but is falling fast. The level of cooking from scratch is lowest in the US but the trend away from this appears to be slowing.

Table of Contents
Future Convenience Food and Drinks
Executive Summary 8
The convenience market 8
Development of convenience drivers and markets 9
Innovation and NPD in convenience 10
Key trends in convenience food and drinks 11
Future development of convenience 12
Chapter 1 The convenience market 14
Summary 14
Introduction 15
Defining convenience 15
The perceived value of convenience 18
Developing and emergent aspects of convenience 21
Chapter 2 Development of convenience drivers and markets 24
Summary 24
Introduction 25
Drivers of convenience 25
The role of women 27
Changing eating habits 30
Household size 34
Convenience market trends 36
Development of core European and US markets 37
Globalization of convenience 40
Fast growth markets 43
Structural change 45
Chapter 3 Innovation and NPD in convenience 50
Summary 50
Introduction 51
Convenience food and drinks 51
Convenience features 52
Product features 54
Instant and quick 55
Microwaveable 57
Single serving 58
Fresh convenience 59
Conclusions 59
Packaging features 60
Recyclable packaging 61
Disposable and reusable packaging 62
Reduced packaging 62
Product categories 62
Regional analysis 68
Innovation analysis 71
Chapter 4 Key trends in convenience food and drink 78
Summary 78
Introduction 79
Key convenience features 79
Adding value with convenient packaging 81
Packaging innovation 82
Improved functionality 82
Marketed features 83
Portability and on-the-go convenience 85
Breakfast on-the-go 87
On-the-go convenience for children 89
Healthy convenience 92
Natural convenience 94
Calorie-counting and weight control 96
Functional convenience 98
Indulgence and convenience 100
Key themes in indulgent convenience 102
Ethical convenience 105
Ethical packaging and convenience 108
Chapter 5 Future development of convenience 114
Summary 114
Introduction 115
Future convenience 115
Category growth in convenience 117
Convenience trend development 119
Targeting convenience 121
Index 124
List of Figures
Figure 1.1: Key aspects of convenience 16
Figure 1.2: How perceived convenience value changes 19
Figure 2.3: The importance of selected drivers of convenience food and drink purchases 26
Figure 2.4: Number of at-home dinner occasions, per capita, by preparation type, Europe and US, 2006 and 2011 32
Figure 2.5: Number and share of meals from scratch of total at-home dinner occasions, per capita, Europe and US, 2006 33
Figure 2.6: Per capita expenditure and growth of the convenient food market in Europe & US ($), 2007-2011 39
Figure 2.7: Breakdown of cumulative additional convenient food market value by region ($bn) 2007-2011 42
Figure 2.8: Regional potential for growth of convenience food and drinks over the next 5 years 43
Figure 2.9: Regional breakdown of value sales of convenient food by type, (%) 2007 46
Figure 3.10: Share of convenient products as a percentage of total food and drinks launched, 2005- 2008 52
Figure 3.11: Share of convenient products launched, by feature (product tag), 2005-2008 53
Figure 3.12: Share of convenient products launched, by product feature, 2005-2008 54
Figure 3.13: Share of convenient products launched, by packaging feature, 2005-2008 61
Figure 3.14: Share of convenient products as a percentage of total food & drinks launched, by category, 2005-2008 63
Figure 3.15: Share of convenient products launched, by category, 2005-2008 64
Figure 3.16: Share of convenient products launched, by region, 2005-2008 68
Figure 3.17: Innovation in serving convenience 73
Figure 3.18: Innovative ethical packaging for convenient products 75
Figure 4.19: Ranking of the importance of convenient features of food and drinks 80
Figure 4.20: Improved packaging convenience: Presto Italiano and Oreo Snack ‘n Seal packs 83
Figure 4.21: Crystal Light Singles 84
Figure 4.22: Selected new on-the-go convenience products 86
Figure 4.23: On-the-go breakfast products 88
Figure 4.24: New on-the-go convenience products for children 90
Figure 4.25: Rating of importance of health features in convenience food and drinks NPD 92
Figure 4.26: Mars World of Grains and Kraft Back to Nature 95
Figure 4.27: Kashi Veggie Medley 96
Figure 4.28: The range of weight management products 98
Figure 4.29: Mott’s Plus and Crystal Light LiveActive 99
Figure 4.30: Rating of importance of indulgent features in convenience food and drinks NPD 100
Figure 4.31: Selected new gourmet and premium convenience products 103
Figure 4.32: Rating of importance of ethical features in convenience food and drinks NPD 105
Figure 4.33: Nestlé NaturNés 107
Figure 4.34: Importance ranking of ethical packaging strategies for future convenience NPD over the next 5 years 109
Figure 4.35: Ethical packaging use in bottled waters 112
Figure 5.36: Performance of key convenient product categories over the next 5 years 118
Figure 5.37: Importance of convenience trends over next 5 years 120
Figure 5.38: Importance of consumer groups for convenient products over next 5 years 122
List of Tables
Table 1.1: Mainstream and developing aspects of convenience 21
Table 2.2: Labor force, female as a % of total labor force, 2003-2013 28
Table 2.3: Time (minutes) spent on food preparation per day, selected European countries, 1998- 2004 29
Table 2.4: At-home dinner occasions and snacking occasions per capita, Europe and US, 2006-11 30
Table 2.5: Average number of occupants per household, Europe & US, 2003-2008 35
Table 2.6: Number of single person households in Europe and US, (m), 1997-2007 36
Table 2.7: Convenient food market value, Europe and US, ($m), 2007-2011 37
Table 2.8: Convenient food market value, by region, ($m) 2007-2011 41
Table 2.9: Top 10 emerging markets, convenient food market value, ($m), 2007-2011 44
Table 2.10: Convenient food market value by type, global, ($m) 2007-2011 45
Table 2.11: Convenient food sales by type and by region, ($m) 2007-2011 47
Table 3.12: Share of innovative convenient products launched, by type of innovation, 2008 72