Fresh Convenience Foods in the U.S.

Published by	Packaged Facts
Published	August, 2010	Product code	125398
Content info	214 Pages
Price	US $ 3300 PDF by E-mail ( Single User License) US $ 3700 Hard Copy US $ 4100 Hard Copy & PDF by E-mail (Single User License) US $ 5500 PDF by E-mail (Global Site License)

Introduction
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Fresh Convenience Foods in the U.S. published by Packaged Facts in August, 2010. This report consists of 214 Pages and the price starts from US $ 3300.

Introduction

Abstract

During 2008 and 2009, as the “Great Recession” took hold, many consumer product marketers and retailers acted as if the walls were closing in on them, in many cases resorting to rampant price-slashing. But not fresh convenience food marketers and retailers, who instead saw an opening. Wisely gauging their main competition as coming from the restaurant industry instead of less costly unprepared food, they continued the innovations in quality and convenience that had been underway in the market for several years, and simultaneously began aggressively competing on price with the foodservice industry in an effort to woo customers away.

According to Packaged Facts, these efforts proved successful, spurring a shift by many consumers from restaurant meals to prepared food purchased at retail outlets. As a result, the market for fresh convenience foods grew by 5.1% in 2009 to reach sales of $22.3 billion. Packaged Facts expects these marketing and merchandising efforts to continue to prove successful over the short term, driving sales of fresh convenience foods up another 28% by 2014 to $28.5 billion.

Fully updated from the December 2007 edition, Fresh Convenience Foods in the U.S. offers a comprehensive look at this complex market. It examines the both myriad types of fresh convenience foods and the myriad retail channels through which they are obtained - from traditional outlets such supermarkets and supercenters/mass merchandisers to such increasingly dynamic segments as convenience stores, delis and local food outlets, drugstores, the Internet, and even food carts.

This full updated report details the complex changes that have taken place in the market since the previous edition, with new attention to competition by retail sector. Using Symphony/IRI mass-market sales tracking data, it offers detailed accounts of sales and marketer/brand activity across 17 refrigerated product segments, from lunch kits and dinners/entrees to fresh soup and side dishes, while diving into selected segments using SPINSscan data for natural supermarket channel. The report projects sales, market growth drivers, and competitive opportunities, including an extensive account of the battle with the foodservice industry for consumer dollars that details the staggering - and still growing - assortment of menu and marketing trends shaping the industry.

A special feature of this report is custom survey data by Packaged Facts specifically addressing consumer purchasing of fresh prepared foods, including vis-a-vis the down economy. Additional demographic analysis derives from data compiled by Experian Simmons, New York, NY, including demographic indexing of consumers most or least likely to often eat store-made, pre-cooked meals.

Chapter 1: Executive Summary

Introduction
- Scope of Report
- Two Classifications
  - Unpackaged Foods
  - Packaged Foods
  - Exclusions
- Report Methodology
Market Trends
Myriad Modalities of Fresh Prepared Food
- Retail Channels Compete with Each Other and with Foodservice
- Mega Brands Play Less of a Role in Fresh Convenience Food
- Private Label/Store Brands Are Disproportionately Important
- U.S. Retail Sales Top $22 Billion in 2009
- Unpackaged Food Accounts for Lion' s Share of Market
- Figure 1-1: Share of U.S. Retail Sales of Fresh Convenience Foods by Classification, 2005 vs. 2009 (percent)
- Supermarkets the Primary Retail Channel
- Marketers and Retailers Turn Recession to Advantage
Retail Trends
- Take-and-Bake Is Taking Off
- Illustration 1-1: Papa Murphy' s Website Banner for Take ‘N' Bake Pizza
- Going Head-to-Head with Restaurants
- Supermarkets: The Top Retail Channel for Fresh Prepared Foods
- Small Marts: Tesco Sets the Pace
New Product, Menu & Food Trends
- Rate of Introductions
- Ready Meals and Salads Are the Most Active Classifications
- NRA' s “What' s Hot In 2010” Survey IDs Top Menu Trends
- Local Food Holds Broad Appeal
- World Cuisine: Ethnic Food as American as Apple Pie
- Mediterranean Food
Packaged Food Trends
- Fresh Prepared Food Retail Segments
- Refrigerated Lunch Kits
- Refrigerated Prepared Salad/Fruit/Coleslaw
- Refrigerated Dinner/Entrees
Consumer Trends
- Though Time-Pressed, Most Americans Are Trying to Eat Healthier
- Recessionary Decline in Restaurant Traffic a Plus for Fresh Convenience Foods
- Figure 1-2: Impact of Recession on Consumer Cooking and Restaurant Habits, May/June 2010 percent of U.S. adults)
- 18% of U.S. Consumers Are Buying More Fresh Prepared Foods
- Prime Targets: Young Singles Living on Their Own

Chapter 2: Market Trends

Introduction
- Market Definition: Fresh Prepared Convenience Foods
- Two Classifications
  - Unpackaged Foods
  - Packaged Foods
  - Exclusions
- Report Methodology
Market Fundamentals
- Myriad Modalities of Fresh Prepared Food
- The Lunch Kit Lesson: Freshness and Nutrition Sometimes in Eye of Beholder
  - Mommy Bloggers Give Meal Kits a Big Thumbs Up
  - Divergence of Views Underscores Complexity of Competition
- HACCP (Hazard Analysis and Critical Control Point) = Prevention
State of the Market
- Retail Channels Compete with Each Other and with Foodservice
  - Legal Sea Foods Covers Supermarket, Restaurant, and Online Bases
- Illustration 2-1: Kroger In-store Bistro Columbus Ohio (2009)
- Illustration 2-2: Carrabba' s Italian Grill in a Publix supermarket in Sarasota Florida
- Mega Brands Play Less of a Role in Fresh Convenience Food
- Private Label/Store Brands Are Disproportionately Important
- Table 2-1: Private-Label Ranking in 17 Packaged Fresh/Refrigerated Convenience Food Segments (in millions of dollars)
- More Retailers Manufacturing Their Own Brands
  - Some Retailers Manufacturing Other Stores Brands
Market Size and Growth
- U.S. Retail Sales Top $22 Billion in 2009
- Table 2-2: U.S. Retail Sales of Fresh Convenience Foods, 2005-2009 (in millions of dollars)
- Unpackaged Food Accounts for Lion' s Share of Market
- Figure 2-1: Share of U.S. Retail Sales of Fresh Convenience Foods by Type, 2005 vs. 2009 (percent)
- Entrees Top Unpackaged Foods Chart
- Figure 2-2: Prepared Deli Foods: Share of Total U.S. Retail Dollar Sales by Type, 2009 (percent)
- Lunch Kits the Top Mass-Market Packaged Segment
- Table 2-3: Percent Share of SymphonyIRI-Tracked Dollar Sales of Packaged Refrigerated Fresh Convenience Food by Segment, 2009
- Supermarkets the Primary Retail Channel
- Figure 2-3: Share of U.S. Retail Sales of Fresh Convenience Foods by Channel, 2009 (percent)
Looking Ahead
- Marketers and Retailers Turn Recession to Advantage
  - On The Food Front
  - On The Packaging Front
  - On the Merchandising Front
- Targeted Pricing Plus Innovation Equals Profit
- Prepared Foods Gain at Convenience Stores
- Restaurant Industry Takes It on the Chin
- The I Hate to Cook Book: Lessons and Opportunities
  - Sandra Lee Combines Fresh Ingredients and Prepared Food on the Food Network
- Illustration 2-3: Recipe for Sandra Lee' s Creamy Chicken Noodle Soup
  - Prepared Foods Are a Time-Saving Meal Component
- Can Sales of Fresh Convenience Food Continue to Grow?
  - Will Jobless Recovery Be Enough to Trigger New Product Turnaround?
- Projected Market Growth
- Table 2-4: Projected U.S. Retail Sales of Fresh Convenience Foods, 2009-2014 (in millions of dollars)

Chapter 3: Retail Trends

Introduction
- Retail Distribution Methods
  - Direct Delivery Advantages
  - The Cost of Face-to-Face Business
  - Advantages of Warehouse Delivery
  - Smaller Marketers Work Through Brokers
  - Fresh Prepared Foods Can Involve Unique Distribution
- Trade Shows Introduce New Products to Market
- Types of Retail Channels
Retail Trend Overview
- Take-and-Bake Is Taking Off
- Illustration 3-1: Papa Murphy' s Website Banner for Take ‘N' Bake Pizza
  - Kroger Is an Early Adapter of Take-and-Bake
  - Overall Deli Pizza Sales Up 15% in 2009
  - Incentives in Retail Pizza
- Going Head-to-Head with Restaurants
  - In-Store Full-Services Restaurants: Focus on Wegmans' Pub
  - Store Brands Dominate 2009 Product Launches
- Table 3-1: Leading Marketers of Fresh Convenience Foods by Number of New Product SKUs, 2009-2010 (percent)
  - Fresh & Easy Focusing on Eatwell Line
- Illustration 3-2: Fresh & Easy Website Banner for Eatwell Fresh Prepared Foods
Retail Channel Spotlight
- Channel Blurring
- Supermarkets: The Top Retail Channel for Fresh Prepared Foods
  - Bloom: Wave of the Future?
- Illustration 3-3: Website Description of Bloom Stores from Shopbloom.com
- Small Marts: Tesco Sets the Pace
- Health & Natural Food Stores: Retailers Moving Mainstream
- Delis and Other Local Food Outlets: Urban Cannibals Bodega and Bites Applies New Spin
- Illustration 3-4: Interior of Urban Cannibal Bites and Bodega
  - Social Media Work Well for Small Food Shops
- Illustration 3-5: Sparrow Market Facebook Wall Page
- Supercenters, Mass Merchandisers and Warehouse Clubs
  - Prepared Foods Leads BJ' s Comeback
- Convenience Stores: Prepared Foods Becoming Increasingly Sophisticated
  - C-Store Strategies
  - 7-Eleven Going Strong
- Gourmet/Specialty Food Stores: A Tough Competitor in Affluent Urban Areas
- Drugstores: Prepared Food Redux
- Illustration 3-6: Lunch Counter and Soda Fountain at Hewitt' s Drugstore (Anchorage, Alaska) 1940s
- Illustration 3-7: Duane Reade Convenience Food Section, 2009
- Illustration 3-8: Sushi Duane Reade Drugstore Style
  - Walgreens Moves Forward with Chilled Prepared Foods Tests
- Dollar Stores: Prepared Food One of Three Top Gainers
- E-tailers and Mail Order
- Illustration 3-9: Fresh Direct prepared Food webpage
- Illustration 3-10: Susan' s Healthy Gourmet Homepage
- Illustration 3-11: Google Search Shopping Results for “Fresh Crab Cakes”
- Gourmet Food Trucks & Carts: A Great Test Kitchen
- Table 3-2: Percent of Adults Who Have Bought Food from Street Stands, Food Trucks or Mobile Food Carts in Past Month: Overall and by Key Demographic, February 2010

Chapter 4: New Product, Menu & Food Trends

New Product Trends: Fresh Packaged Products
- Rate of Introductions
- Figure 4-1: Number of Fresh Prepared Food Reports and SKUs, 2005-2010
- Ready Meals and Salads Are the Most Active Classifications
- Figure 4-2: Number of Fresh Prepared Food SKUs by Classification, 2005-2009
- New Product Themes
  - Fresh and Convenient
- Illustration 4-1: Olivia' s Organics Single Salad to Go! and Walmart' s Marketside Hoagie
  - Small Mart and Other Private-Label Brands Going Strong
  - Value Appeals
- Illustration 4-2: Wegmans Alternatives to Eating Out Pulled BBQ Pork, and Fresh & Easy' s Family Size Fully Cooked Big Lasagna with Meat Sauce
  - Gourmet and Ethnic
  - Natural/Organic
  - Kids Foods
- Illustration 4-3: Oscar Mayer Lunchables Beef Taco Wrapz, and Natural Foods Corp.' s Better' n Peanut Butter Sandwiches
- Table 4-1: Examples of Fresh Prepared Food New Product Introductions: By Type, Marketer and Brand, 2009-2010
Selected Menu & FoodTrends
- NRA' s “What' s Hot In 2010” Survey IDs Top Menu Trends
- Local Food Holds Broad Appeal
  - 7 Different Aspects of Local Food Trend
  - Taste
  - Value
  - Nutrition
  - Global Ecology
  - Freshness
  - Local Economic Development
  - Local Vegetables Could Add Green to Local Economies
  - Food Safety
  - Informal Focus Group Reflects Packaged Facts' 7 Aspects of Local Food Appeal
  - Local Fresh Prepared Foods
- Illustration 4-4: Dinners to You Web Page Featuring Dinners with Fresh, Local and Seasonal Ingredients
- World Cuisine: Ethnic Food as American as Apple Pie
- Mediterranean Food
  - An Increasingly Diverse Segment
  - Regional Mediterranean Cuisine
  - But Mediterranean Often Painted with Broad Brush
- Sushi
  - Sam' s Sushi
- Gluten-Free Foods
  - Why a Gluten-Free Diet?
  - Gluten-Free Takes on Healthy Halo
  - Gluten-Free Fresh Prepared Food
- Illustration 4-5: Jason' s Deli Gluten-Free Sandwiches Online Survey, 2010

Chapter 5: Packaged Food Trends

Introduction
- Fresh Prepared Food Retail Segments
- Table 5-1: Selected Segments of Packaged Refrigerated Fresh Convenience Foods: 2009 SymphonyIRI-Tracked Dollar Sales and Percentage Change, 2009 vs. 2008 (in millions of dollars)
Refrigerated Lunch Kits
- The Largest Segment, at $771 Million
- Top Three Marketers Account for 98% of Sales
- Most Top 10 Marketers Show Impressive Growth
- Spotlight on Kraft Foods
- Focus on Lunch Kits
- Table 5-2: Leading Refrigerated Lunch Kit Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
Refrigerated Prepared Salad/Fruit/Coleslaw
- Sales Up 7.3% in 2009
- Lower Tier of Top 10 Marketers Tightly Bunched
- Eight of Top 10 Marketers Register Strong Growth
- Spotlight on Del Monte Foods
- Table 5-3: Leading Refrigerated Prepared Salad/Fruit/Coleslaw Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
- Refrigerated Dinner/Entrees
- Sales Slip a Bit in 2009
- Curly' s & Jack Daniels Are Only Top 10 Gainers
- Spotlight on Hormel
- Table 5-4: Leading Refrigerated Dinners/Entrees Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
Refrigerated Appetizers/Snack Rolls
- Sales Up 12% to $385 Million
- Advanced Fresh Concepts Controls Over Half of Sales
- Japanese Food Express Leads Growth Among Top 10
- Smaller Marketers Show Explosive Growth
- Spotlight on Segment Leader AFC
- Table 5-5: Leading Refrigerated Appetizers/Snack Rolls Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
Refrigerated Flavored Spreads
- Sales up 16% to $312 Million
- Mediterranean Dip Specialist Sabra Leads
- Sabra Also the Growth Leader Among Top 10
- Spotlight on Segment Leader Sabra
- Joint Agreement with PepsiCo
- Table 5-6: Leading Refrigerated Flavored Spreads Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
Refrigerated Potato Side Dishes
- Segment Sales Stagnate
- Spotlight on Segment Leader Northern Star
- Table 5-7: Leading Refrigerated Potato Side Dish Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
Refrigerated Pizza/Pizza Kits
- Sizzling 18% Growth in 2009
- Plaza Belmont Controls a Third of Sales
- Vicolo Scores 90% Retail Sales Gain
- Spotlight on Segment Leader Plaza Belmont
- Table 5-8: Leading Pizza/Pizza Kit Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
Refrigerated Hand-held Non-Breakfast Entrees
- Sales Slip 2%
- Top 10 Marketers Had Tough Sledding In 2009, But Lower Tier Marketers Excel
- Spotlight on Segment Leader Stefano Foods
- Table 5-9: Leading Hand-held Non-Breakfast Entrees Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
Refrigerated Fresh Soup
- No Growth Despite Dazzling Performance by Legal Sea Foods
- Spotlight on Third-Place Legal Sea Foods
- Table 5-10: Leading Fresh Soup Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
Other Fresh Convenience Food Segments
- Refrigerated Side Dish Growth Stagnant, Competition Hectic
- Spotlight on Refrigerated Side Dish Segment Leader Bob Evans Farms
- Reser' s Leads Refrigerated Meat Spread/Salad Segment
- Bob Evans Leads Moderately Gaining Refrigerated Breakfast Entrees Segment
- Great Lakes Kraut Bests Kraft, ConAgra and Birdseye in Sauerkraut Segment
  - All Top Marketers See Sales Decline in 2009
  - Spotlight on Sauerkraut Segment Leader Great Lakes Kraut
- Refrigerated Chili Segment Cools Despite Some Strong Showings
- $3 Million Potato Segment Dominated by Bob Evans
- Stuffed Potatoes and Sweet Potatoes
- Table 5-11: Leading Refrigerated Side Dish Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
- Table 5-12: Leading Refrigerated Meat Spread/Salad Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
- Table 5-13: Leading Refrigerated Breakfast Entrees Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
- Table 5-14: Leading Refrigerated Sauerkraut Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
- Table 5-15: Leading Refrigerated Chili Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
- Table 5-16: Refrigerated Potato Marketers and Brands: by SymphonyIRI-Tracked Sales and Share, 2009 vs. 2008 (in millions of dollars)
Natural Supermarket Channel Top Picks
- Introduction
- Refrigerated Entrees & Sushi & Grab N Go Meals
- Table 5-17: Top 5 Marketers/Brands in the Natural Supermarket Channel: Refrigerated Entrees & Sushi & Grab N Go Meals, 52 Weeks Ending February 10 vs. Year-Ago (in dollars)
- Salsas & Dips
- Table 5-18: Top 5 Marketers/Brands in the Natural Supermarket Channel: Salsas & Dips, 52 Weeks Ending February 10 vs. Year-Ago (in dollars)

Chapter 6: Consumer Trends

Introduction
- Methodology
- Though Time-Pressed, Most Americans Are Trying to Eat Healthier
- Figure 6-1: Consumer Attitudes About Healthy Foods and Time Constraints, 2009/10 (percent of U.S. adults)
- Recessionary Decline in Restaurant Traffic a Plus for Fresh Convenience Foods
- Table 6-1: Level of Agreement with Statement, “I Am Spending Less on Groceries These Days Because of the Economy,” May/June 2010 (percent of U.S. adults)
- Figure 6-2: Impact of Recession on Consumer Cooking and Restaurant Habits, May/June 2010 percent of U.S. adults)
- NGA Survey Supports Shift from Restaurants to Retail/At- Home Meal Prep
- Packaged Facts Survey Indicates Trend Will Continue
- Table 6-2: “In Comparison to Right Now, How Much Money Do You Plan to Spend on Meals Eaten at Full-Service Restaurants During the Following 3 Months?”, May/June 2010 (percent of adults)
- Table 6-3: “In Comparison to Right Now, How Much Money Do You Plan to Spend on Meals Eaten at Fast-Food Restaurants During the Following 3 Months?”, May/June 2010 (percent of adults)
- Table 6-4: “In Comparison to Right Now, How Much Money Do You Plan to Spend on Takeout/Delivery/Drive-Thru Meals Eaten at Full-Service Restaurants During the Following 3 Months?”, May/June 2010 (percent of adults)
- 18% of U.S. Consumers Are Buying More Fresh Prepared Foods
- Table 6-5: “Have You Eaten More Store-Bought Fresh Prepared Foods Since the Recession Began?”, May/June 2010 (percent of adults)
- Room for Growth
- Table 6-6: Percent of Adults Who Have Purchased or Eaten Any Store-Bought Fresh Prepared Foods in the Last 3 Months, May/June 2010
- Reasons for Buying Ready-to-Eat and/or Heat-and-Eat Food from Grocery Stores or Convenience Stores
- Table 6-7: Reasons for Getting Ready-to-Eat and/or Heat-and-Eat Food from a Grocery Store/Supermarket, 2009 (percent)
- Table 6-8: Reasons for Getting Ready-to-Eat and/or Heat-and-Eat Food from a Convenience Store/Gas Station, 2009 (percent)
- Walmart Tops List of Outlets for Fresh Convenience Foods
- Table 6-9: Percent of Adults Who Have Purchased Fresh Convenience Food from Outlets Other Than Conventional Supermarkets in the Last 3 Months: By Type of Outlet, May/June 2010
- 45% of Consumers Have Dinner Composed Solely of Fresh Convenience Food
- 55% of Consumers Have Dinner Partially Composed of Fresh Convenience Food
- Table 6-10: Percent of Adults Who Have Eaten a Meal Composed Solely of Store-Bought Fresh Prepared Food Items in the Last 3 Months: By Daypart, May/June 2010
- Table 6-11: Percent of Consumers Who Have Eaten a Meal Composed Partially of Store-Bought Fresh Prepared Food Items in the Last 3 Months: By Daypart, May/June 2010
- The Experian Simmons Survey System
- Relatively Flat indexes Among Frequent Consumers of Store- Made, Pre-Cooked Meals
- Prime Targets: Young Singles Living on Their Own
- Table 6-12: Above-Average Demographics for Agreement with Statement: “I Often Eat Store-Made, Pre-Cooked Meals” (index of U.S. adults)
- Large Households Make for Less Frequent Consumers
- Table 6-13: Below-Average Demographics for Agreement with Statement: “I Often Eat Store-Made, Pre-Cooked Meals” (index of U.S. adults)
- Customers Who Disagree That They Frequently Eat Fresh Prepared Meals
- Table 6-14: Above- and Below-Average Demographics for Disagreement with Statement: “I Often Eat Store-Made, Pre-Cooked Meals” (index of U.S. adults)
- Summing Up: Good News for Fresh Convenience Food Marketers
- Store-by-Store Analysis: Thumbs Up for Meijer, Down for Sam' s Club
- Table 6-15: Above Average Consumer Demographics for Agreement with Statement “I Often Eat Store-Made, Pre-Cooked Meals” by Outlet (index of U.S. adults)
- Table 6-16: Below Average Consumer Demographics for Agreement with Statement “I Often Eat Store-Made, Pre-Cooked Meals” by Outlet (index of U.S. adults)
- Table 6-17: Above Average Consumer Demographics for Disagreement with Statement “I Often Eat Store-Made, Pre-Cooked Meals” by Outlet (index of U.S. adults)
- Table 6-18: Below Average Consumer Demographics for Disagreement with Statement “I Often Eat Store-Made, Pre-Cooked Meals” by Outlet (index of U.S. adults)
- Wegmans Survey Shows that 22% of Americans Eat Fresh Prepared Foods Weekly
- Customers Want Their Meals to Be Easy, Healthy and Affordable