Convenience Food Retail Market Research Report By Product Type (Frozen Food, Ready-to-Eat Meals, Snacks and Appetizers, Dairy Products, Bakery Products, Produce, Meat and Poultry), By Sales Channel (Grocery Stores, Convenience Stores, Supermarkets, Chain Drug Stores, Online Retailers, Vending Machines), By Distribution Channel (Direct-to-Store, Through Wholesalers/Distributors, Online Platforms, Third-Party Logistics Providers), By Packaging Type (Single-Serve, Multi-Serve, Bulk, Vacuumed, Atmosphere-Modified), By Consumer Demographics (Age

Convenience Food Retail Market Overview

Convenience Food Retail Market Size was estimated at 2,461.15 (USD Billion) in 2022. The Convenience Food Retail Market Industry is expected to grow from 2,552.22(USD Billion) in 2023 to 3,538.1 (USD Billion) by 2032. The Convenience Food Retail Market CAGR (growth rate) is expected to be around 3.7% during the forecast period (2024 - 2032).

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Key Convenience Food Retail Market Trends Highlighted

Increasing consumer demand for convenience, expanding urban populations, and hectic lifestyles are major drivers of the Convenience Food Retail Market. Growing disposable income and changing consumer preferences favor ready-to-eat meals, snacks, and beverages. The rise of e-commerce and delivery services has also revolutionized the way consumers access convenience foods. Exploring opportunities such as healthy and innovative convenience options, catering to specific dietary restrictions, and expanding into emerging markets presents immense potential. Additionally, the integration of technology and data analysis to optimize operations and enhance customer experience is a key trend shaping the market. Convenience food retailers are also focusing on sustainability and reducing environmental impact, meeting increasing consumer demand for ethical and eco-friendly products in the Convenience Food Retail Market.

Convenience Food Retail Market Drivers

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  Changing Consumer Lifestyles

  
  

The rapid change in the life of people working has resulted in the increase in demand for convenient food which can save time. In recent years, convenience food products have been prepared and sold by convenience food retail stores, which contain ready-to-eat meals, snacks and beverage items. In the upcoming years, there is no stopping the demand for convenient and inexpensive food products. Therefore, the Convenience Food Retail Market Industry is anticipated to experience growth in the forecasted period.Moreover, the changing lifestyles of consumers are considered the major reason which drives the demand for convenient food products. The number of working women and disposable income is expected to further spearhead the demand for convenience food products. Apart from that, the trend of online shopping is also expected to increase the growth of the Convenience Food Retail Market Industry.

Growth of the Foodservice Industry

The major driver of convenience food retail is the foodservice market. The foodservice establishments, such as restaurants, cafes, and others, require processed and convenience foods in order to meet the demands of their customers through quick-ready food. As more people eat away from home, the foodservice business will provide an even greater opportunity for the growth of convenience food retail over the next few years.

Expansion of Retail Channels

Convenience food retail stores appear to be extending their reach to various delivery channels, such as traditional outlets, and ordering via the internet and smartphones. As a result, it is expected that the expansion of retail channels will make convenience food products easily available. Thus, the expansion can be expected to lead to an increased demand for products from various convenience food retail stores.

Convenience Food Retail Market Segment Insights

Convenience Food Retail Market Product Type Insights

The Convenience Food Retail Market is categorized into product type, which include Frozen Food, Ready-to-Eat Meals, Snacks and Appetizers, Dairy Products, Bakery Products, Produce, Meat and Poultry and Others. Among these, Frozen Food holds the highest market share in 2023 and is expected to dominate the market throughout the forecast period. The increasing demand for frozen meals incorporating convenience, cost-effectiveness and the longer shelf life is the factor that is propelling the growth of this segment. Ready-to-Eat Meals are anticipated to expand at a comparatively higher growth rate over the next five to seven years.The increasing population of working women and professionals who seek quick and time-saving fast food items is likely to drive the growth of ready-to-eat meals during the forecast period. The snacks and Appetizers segment is anticipated to grow at a stable rate in the coming years. The improved disposable income with growing youngsters and based consumers is anticipated to subsidize the growth of this segment. Dairy Products segment is expected to grow at a moderate rate throughout the forecast period. Due to the growing health and dietary needs, the demand for products such as milk, cheese and yogurt is growing daily.The Bakery Products is anticipated to grow at a stable pace over the upcoming years. The changing taste preferences of consumers with high demands for artisanal bread and pastries are driving the growth of the segment. The produce segment is anticipated to grow at a slow rate during the forecast period. The rising importance of the consumption of fruits and vegetables for health benefits is driving the growth of this segment. Meat and Poultry segment is anticipated to grow at a sluggish rate over the next five to seven years. The concern related to animal welfare prevails, leading to focused shipments in the household economy.Overall, the Convenience Food Retail Market is anticipated to grow at an escalating rate over the upcoming years.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Convenience Food Retail Market Sales Channel Insights

The Convenience Food Retail Market is divided by sales channel, namely grocery stores, convenience stores, supermarkets, chain drug stores, online retailers, and vending machines. Among these segments, grocery stores accounted for the major share of the market which was nearly 35% in 2017. This is due to the main factor that most of the convenience food products are available in the grocery stores and the presence of a large number of grocery stores around the world. Convenience stores are expected to witness the highest CAGR of nearly 4.2% during the forecast period.This is primarily due to the increase in the number of convenience stores in developing nations and the rise in demand for on-the-go food products. Supermarkets are anticipated to capture nearly 28% of the share of the market in 2017, and the growth in this segment can be attributed to the growing number of supermarket chains across the world. Chain drug stores are expected to have a share of about 15% of the convenience food retail market in 2017 and are anticipated to grow at a CAGR of 3.5% in the forecast period, whereas the online retailers segment is likely to capture about 10% of the market share in 2017 and will have a higher CAGR of 4.0% in the forecast period.Finally, vending machines are likely to capture a share of 2% in 2017 and will have a lesser CAGR of 3.0% in the forecast period. Some of the major factors that augment the growth of the Convenience Food Retail Market are the high demand for convenience foods, the rise in the number of working women, and a change in consumer lifestyles.

Convenience Food Retail Market Distribution Channel Insights

The Convenience Food Retail Market segmentation by Distribution Channel includes Direct-To-Store, Through Wholesalers/Distributors, Online Platforms, and Third-Party Logistics Providers. Online Platforms are projected to witness significant growth over the forecast period, owing to the increasing popularity of e-commerce and home delivery services. Third-Party Logistics Providers play a crucial role in ensuring efficient and timely delivery of convenience food products to retail stores, contributing to the overall growth of the market. Understanding the dynamics of each distribution channel is essential for manufacturers and retailers to optimize their supply chain strategies and cater to the evolving needs of consumers.

Convenience Food Retail Market Packaging Type Insights

The Convenience Food Retail Market is segmented based on Packaging Type into Single-Serve, Multi-Serve, Bulk, Vacuumed, and Atmosphere-Modified. In 2023, the Single-Serve segment led the market with a revenue share of 48.7%, owing to the increasing demand for convenient and portable food options. The Multi-Serve segment is projected to exhibit a significant CAGR of 4.3% during the forecast period, driven by the rising popularity of family-sized packs and meal kits. The Bulk segment is expected to contribute a substantial revenue share of 22.3% by 2032 due to its cost-effectiveness and suitability for commercial applications.Vacuumed and Atmosphere-Modified packaging types are gaining traction due to their ability to extend product shelf life and maintain freshness.

Convenience Food Retail Market Consumer Demographics Insights

The Convenience Food Retail Market segmentation by consumer demographics provides valuable insights into the target customer base. Age Groups: Millennials and Gen Z consumers are driving market growth with their busy lifestyles and preference for convenience. In 2024, millennials accounted for the largest share of the market, with a significant portion of spending attributed to grab-and-go meals and snacks. Income Levels: Consumers with higher disposable income tend to spend more on convenience foods. The market is expected to witness steady growth in the premium segment as consumers seek healthier and more upscale options.Household Size: Smaller households are a key target market for convenience food retailers. Single-person households often rely on convenient and affordable meal solutions, contributing to the growth of meal kits and home delivery services. Eating Habits: Changing eating habits, such as the rise of on-the-go consumption and snacking, are fueling market expansion. Convenience foods offer a quick and easy way to satisfy these changing preferences. Urban vs. Rural: Urban areas are expected to drive market growth due to higher population density and a faster-paced lifestyle.However, rural areas also present opportunities for convenience food retailers, with growing demand for grocery delivery and meal kits.

Convenience Food Retail Market Regional Insights

The Convenience Food Retail Market segmentation by region includes North America, Europe, APAC, South America, and MEA. North America is the largest region in the Convenience Food Retail Market, accounting for a significant share of the market revenue in 2023. The growth of the region is attributed to the increasing demand for convenience food products due to the busy lifestyles of consumers. Europe is the second largest region in the Convenience Food Retail Market, with a significant market share. The growth of the region is attributed to the rising popularity of convenience stores and the increasing demand for ready-to-eat meals.APAC is the fastest-growing region in the Convenience Food Retail Market, with a significant market growth rate. The growth of the region is attributed to the rising disposable incomes and the growing awareness of convenience food products. South America and MEA are also expected to witness significant growth in the Convenience Food Retail Market during the forecast period.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Convenience Food Retail Market Key Players And Competitive Insights:

The Convenience Food Retail Market Industry's key players are involved in the launch of new products and expansion of their distribution network at the cost of an increased number of convenience store units to offer various meal options and attract health-focused consumers. Alongside, the Convenience Food Retail Market is also driven by the increased demand for ready-to-eat products originating from the busy life of the customers. Furthermore, the Convenience Food Retail Market has benefited from the increased popularity of online grocery shopping across the world. The leading companies competing in the Convenience Food Retail Market Industry Experience in the Meals Category are rather fragmented and can be reported in several corporations. Nevertheless, new entrants, especially in countries with developing economies, have been noted.7-Eleven, Inc. is among the largest companies nowadays in the Convenience Food Retail Market Industry Experience in Meals Category. 7-Eleven is an American company operating an international chain of convenience stores with a wide range of food and beverage options, such as prepared meals, snacks, and drinks. 7-Eleven has a strong position in dense urban populations and is known for its multiple stores and 24/7 working schedules. Convenience stores in almost 19 countries are included in 7-Eleven’s network. This company is also known for its focus on the international level to expand its products and come up with new ones for its customers.Another leader among the convenience food retail market players in the industry is the company Couche-Tard. It originates from Canada and operates a chain of convenience stores circulating under the well-known brand Circle K. The network provided by Couche-Tard is characterized as extensive, as the company is known for the offer of multiple products and services. Couche-Tard is also focused on constant innovation and a range of work techniques to improve the convenience store experience for customers.

Key Companies in the Convenience Food Retail Market Include:

• Statoil


• TotalEnergies


• EG Group


• Circle K


• Ampm


• Chevron


• ExxonMobil


• Valero Energy


• Casey's General Stores


• Alimentation CoucheTard


• Shell


• 7Eleven


• BP


• Esso


• Phillips 66

Convenience Food Retail Market Industry Developments

The Convenience Food Retail Market is expected to witness steady growth in the coming years, driven by increasing consumer demand for convenience and time-saving meal options. The market is projected to reach a valuation of USD 3,538.1 billion by 2032, expanding at a CAGR of 3.7% from 2024 to 2032.Recent industry developments include the growing popularity of online grocery shopping and meal delivery services, as well as the expansion of convenience stores and gas stations offering prepared foods. Additionally, the market is seeing increased investment in product innovation, with a focus on healthier and more sustainable convenience food options. Key players in the market are adopting strategies such as mergers and acquisitions, new product launches, and geographic expansion to capitalize on growth opportunities.

Convenience Food Retail Market Segmentation Insights

• Convenience Food Retail Market Product Type Outlook
  
  
  
  • Frozen Food
  
  
  • Ready-to-Eat Meals
  
  
  • Snacks and Appetizers
  
  
  • Dairy Products
  
  
  • Bakery Products
  
  
  • Produce
  
  
  • Meat and Poultry
  
  
  
  

• Convenience Food Retail Market Sales Channel Outlook
  
  
  
  • Grocery Stores
  
  
  • Convenience Stores
  
  
  • Supermarkets
  
  
  • Chain Drug Stores
  
  
  • Online Retailers
  
  
  • Vending Machines
  
  
  
  

• Convenience Food Retail Market Distribution Channel Outlook
  
  
  
  • Direct-to-Store
  
  
  • Through Wholesalers/Distributors
  
  
  • Online Platforms
  
  
  • Third-Party Logistics Providers
  
  
  
  

• Convenience Food Retail Market Packaging Type Outlook
  
  
  
  • Single-Serve
  
  
  • Multi-Serve
  
  
  • Bulk
  
  
  • Vacuumed
  
  
  • Atmosphere-Modified
  
  
  
  

• Convenience Food Retail Market Consumer Demographics Outlook
  
  
  
  • Age Groups
  
  
  • Income Levels
  
  
  • Household Size
  
  
  • Eating Habits
  
  
  • Urban vs. Rural
  
  
  
  

• Convenience Food Retail Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa