Why should you invest in the fresh prepared foods market?

Here are 10 good reasons:

1. Flexible eating patterns
People are increasingly fitting eating and drinking around their leisure activities, work and chores. The rise in the number of single-person households means that people can choose to eat when they want. Even in families, people are less likely to sit together regularly to eat meals. These influences fuel demand for food which can be eaten quickly and on-the-go, and fresh prepared foods are often a first choice.

2. Health on the agenda
With global obesity on the rise, governments and retailers are promoting balanced eating and encouraging the consumption of fruit, vegetables and salads.  Many of Bakkavör Group’s products are intrinsically healthy, contain fresh ingredients and are perceived to be more balanced than other foods.

3. Recession-proof?
For many people, fresh prepared foods are part of their daily lifestyle, with consumers spending less than fifteen minutes preparing an evening meal every two days. Unless there is a deep and long-lasting recession, it is probable that people will save money on other items rather than radically change their cooking habits.

4. Rise in disposable incomes
Average disposable incomes have increased steadily in recent years, allowing many people to afford premium foods on a regular basis. Fresh prepared foods are often a primary choice as an everyday treat.

5. Increasing urbanisation
By 2050, one third of the world population (around six billion people) will be living in towns and cities. With urbanisation comes a greater concentration of people, shops and consumer choice, changing people’s eating and shopping habits to a more just-in-time way of life.  Urban trends favour the consumption of fresh prepared foods

6.Mirroring the growth hot spots
The two areas recognised to have the most attractive growth rates for grocery retail are Central and Eastern Europe (CEE) and Asia. Bakkavör Group has already invested in operations in China and the Czech Republic and is exploring further opportunities in these areas.

7. Global retailers gaining share
The consolidated turnover of the largest four global grocery retailers reached approximately ?480 billion in 2006 and is expected to grow 8% each year until 2011.

8. Global private label trends
Whether local or global, retailers are looking to differentiate themselves from the competition, often through their private label ranges.  Private label now has 24% penetration in Europe and 16% penetration in the US, with respective growth rates of 7% and 5% each year, outpacing the growth of manufacturer brands. Bakkavör Group specialises in private label development and aims to be the private label partner of choice for its customers.

9. Working women under time pressure
Half of all the women in the world work outside the home, 77% are responsible for all cooking and household chores and 80% of women make or influence household purchasing decisions. With increased time pressures, greater affluence and increasing influence, women are demanding more convenient services and products, such as fresh prepared foods, to save time and effort.

10. Increase in top-up shopping
The weekly shop is in decline with the average consumer in the US and Europe making a shopping trip around 13 times each month, buying food for the shorter term. Fresh prepared foods benefit from this trend, as they are perceived to be fresh, day-to-day meal solutions.