The cooking ingredients and meals industry posted slight market size growth year-on-year for 2024. The market was quite stagnant compared to the thriving period 2021-2022 when convenient meal or condiment solutions alongside the growing home cooking trend laid the ground for innovation and experimentation. New launches have subsided due to high inflation and disturbed global supply chains; however, consumers’ desire for novel products has remained. Products suited to various dietary, lifestyle and health needs have continued to see demand with greater focus on conscious consumption, exciting flavours and the ability to save too much expense.
Plant-based shifts to plant-focused
Plant-based products gained sales over the historic period. Overall, the dairy industry was most successful in expanding plant-based options, targeting not only consumers who are vegan but those who are lactose intolerant or have allergies/sensitivities to dairy protein. Elsewhere, meat and seafood alternatives gained attention by offering quick meal options and often mimicking fast food items, but hit a plateau in terms of sales more recently. Sales stagnation was caused by multiple factors, including a limited vegan and vegetarian population, high prices, and highly processed products not associated with healthier choices.
In cooking ingredients and meals, the need for plant-based meals, sauces and spreads (or other condiments) has not gone away, but the desired features have changed
Source: Euromonitor International
Ingredients that are easily recognisable, recipes similar to home cooking and a focus on seasonality are increasingly expected from plant-based or plant-predominant products. Demand is not just driven or shaped by the vegan or vegetarian population but by consumers who just want to reduce their meat intake, and they are open to trying out vegetable bowls with some dairy components while at the same time avoiding meat as the main protein source. Possibilities are quite vast when it comes to plant-focused rather than 100% plant-based products. Ingredients and tastes can be adapted to local preferences and not rely solely on plant-based substitutes to be the highlight of the meal.
Balancing food habits with rising prices
Many foods have seen significant price increases over the last few years. While, initially, consumers were willing to spend more on convenience at home in lieu of visiting foodservice establishments, across 2022-2024 budget constraints became even tighter. In this context, convenience in the form of ready meals is still attractive to many consumers who work from home or just simply want to spend less than foodservice prices. Many are seeking ways to save – bigger sizes allow savings per volume unit and buying private label alternatives helps decrease the shopping basket cost. Further savings can be achieved when manufacturers introduce new recipes using more affordable (possibly more local) ingredients. Edible oil blends, or meals with higher vegetable content can attract consumers who still want to enjoy similar tastes but at a lower price.
The introduction of new ways to save is expected to help maintain brand growth trajectory as well as help volume sales return to growth
Source: Euromonitor International
Despite the challenges of balancing budgets, cost-cutting innovations in cooking ingredients and meals can be achieved by focusing on more features. Developing products that are portioned out and that ensure long shelf life can help reduce food waste and lower grocery expenditure, long term. Maximising and concentrating flavour in sauces, condiments or spreads can ensure lower costs but provide a flavourful experience at home.
Health is increasingly important among consumers and diet is one of the ways many choose to address their health concerns. The desired product features differ depending on the region. Asia Pacific and Middle East and Africa consumers are more likely to seek out products with vegetarian and natural claims. A predominant vegetarian population and a desire to consume less processed and artificial food continue to support demand for products with these claims. Fortification with vitamins and minerals is also desired among Asia Pacific and Middle East and Africa consumers, especially in products meant for family meals. Fortification ensures that diets are not deficient in vital micronutrients like iron.
People in the Americas, Australasia and Europe have slightly different preferences. Gluten free demand saw significant increase over the historic period and is expected to grow over the forecast period as more people are diagnosed with coeliac disease, have other gluten sensitivities or claim to feel better while committing to a gluten-free diet even without a formal diagnosis. Other dietary and free from claims are increasing in popularity, and consumers seek out products that will improve their diet often by adding protein or fibre while reducing salt or sugar intake. This reflects the fact that a lot of motivation to seek out healthier options comes from the need to manage weight and the related issues that are becoming more prominent within developed economies.
The overall packaged food market, including cooking ingredients and meals, has seen budget constraints force consumers to prioritise and choose essential products. While saving money remains important and seeking out bargains, promotions or simply better deals is still paramount, many shoppers want to maintain a diet that fits their health goals and needs. Desired dietary or better for you claims vary depending on the category and even geographical region, but clear communication is key in attracting shoppers and helping them quickly make a decision.
Although health is expected to be the core driver of innovation, flavour and new tastes remain important. Consumers still want to enjoy new cuisines, recipes or ingredients and excitement in food despite budgeting constraints. Social media is expected to help attract consumers to experience more (even with limited budgets) by focusing not only on trending final products but on recipes, helping replicate restaurant or even ready meal choices at home at a fraction of the cost.
For more information on trends in cooking ingredients and meals, please see Euromonitor’s forthcoming report, The World Market for Cooking Ingredients and Meals.