14-07-2014, 10:01 AM
THE TREND
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THE TREND
Today's consumers are seeking solutions that allow them to maximize their free time and disposable income dollar, and spend more time doing the things they value. The convenience trend is driven by this desire to create more leisure time. The convenience trend is driven by this desire to create more leisure time. In 2008, a Datamonitor survey found that 44% of citizens across 15 countries feel that it is difficult to manage their daily obligations and find time to relax. A Yankelovich study conducted in 2008 discovered 70% of Americans aged 16 years or older feel that they do not have the time to do all the things they need to do. In addition, 50% of Americans believe the lack of time is a bigger problem than money (Datamonitor 2009). This trend is having a dramatic influence on food preparation and consumption.
Due to changing lifestyles, consumers are spending less time planning and preparing meals. A recent survey conducted by Waitrose Food and Green & Black, an organic chocolate company, found that 58% of U.K. consumers spend no more than 30 minutes cooking dinner each night (Datamonitor 2006). In addition, 60% of American consumers do not know at 4 p.m. what they will have for dinner that night, and expect to spend a total of about 30 minutes preparing, cooking and eating the meal, including clean up. Cooking at home is seen as a chore, and meal preparation is considered very time consuming. Eating alone at non-fixed mealtimes is becoming more common, as a result of changed eating habits, attitudes toward cooking, and busy lifestyles (Ahlgren 2005).
Convenience is multi-faceted and will continue to evolve and converge with other trends to meet the food needs and demands of society. Convenience means more than single-serve, easy-to-prepare, and easy-to-take-away products. Consumers also want convenient products with additional attributes, such as foods that are healthy, ethical, and comforting.
This report is designed to provide the reader with insights into what is driving consumers' consumption of convenience food products and innovative solutions. By understanding the dimensions of this trend, manufacturers will be better able to capitalize on emerging opportunities and position their products successfully in the marketplace.
...plan ahead, keep menus simple, and use lots of canned, packaged, and frozen foods." — L. Chapman, Good Housekeeping, 1950
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Defining Convenience
Simplicity is key. Convenience foods are entrenched in every food category; however, the definition of convenient has changed. At one time, convenient meant quick-to-prepare. This began with the advent of cake mixes and TV dinners in the 1960s, and continued more recently with the explosion in microwaveable foods in the 1980s. But today convenience also means assistance. Products may not be fast, but may remove steps in the meal preparation process, making it easier for novice cooks or time-pressured parents to make healthy meals. Some slower foods, such as slow-cooker meal kits, allow the consumer to quickly assemble a meal in the morning and return to a ready-made dinner in the evening. This convenience-as-assistance theme also appears in the growth of convenient meal components, rather than complete ready-to-heat dishes (Mintel November 2009).
Demographic Influences
Changing consumer demographics have contributed to the growth of the convenience food market. For instance, the aging population is seeking smaller packages and ease of preparation. Despite having cooking skills, these older consumers are embracing convenience options to maximize their free time. On the other hand, there is a subset of younger consumers who are experimenting more with slow food cooking and looking for solutions to improve their cooking knowledge and heighten sensory experiences. Mid-lifers (25-49 years) increasingly feel the pressures of parenthood and other factors pushing them towards convenience to achieve a work-life balance (Datamonitor 2006).
Average household size in Europe and North America is decreasing, with more households consisting of just one or two people. Convenience cooking will depend on the families' priorities, the demands on their time and the size of the household, among other factors. Families look to blend convenience, health and comfort in meal solutions. One of the biggest challenges for working parents with children is balancing work, life and personal time. Globally, Americans have the highest consumption rates for convenience mealtime solutions due to time pressures, with 54% using convenience products three to six times per week (Datamonitor 2009).
Convenience options have been influenced by increased female participation in the workforce, more use of household technologies, longer working hours, and rising consumer incomes. The increased use of appliances has been particularly influential. Microwave ovens, for example, save preparation and cooking time. Freezers make food available for later consumption, food processors shorten preparation time, and dishwashers speed clean up (Buckley 2007).
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Drivers
The convenience trend symbolizes the increased time pressures, stresses and work-life balance problems that consumers are increasingly experiencing, as illustrated in Figure 1. Time scarcity, meal fragmentation, speed shopping and the erosion of cooking skills are stimulating the demand for more convenient food options. Working longer hours and lack of cooking skills increase the attractiveness of convenience foods. Consumers also want food products that are healthier and interesting, such as experimenting with new ethnic foods; retailers, such as Canada's Loblaws, are producing new lines of convenience foods to meet these consumer demands. This includes Loblaws' Blue Menu line of healthier products and ready-to-eat ethnic entrees and sauces.
The current economic downturn has affected people's behaviour as they choose meal solutions. Many are trying to save money by cutting their use of takeaways and reducing the frequency with which they go to restaurants. This behaviour correlates with consumers preparing more meals at home (Mintel 2009).
Figure 1: A number of lifestyle and demographic factors are responsible for driving convenient approaches to food preparation
Organic Box Delivery Systems
Popular in the U.K. , the organic box delivery system appeals to consumers ' ethical and convenience needs (Datamonitor, 2008). With these systems, farmers, small businesses and some supermarkets, capitalize on consumer demand for organic, ethical food that is locally sourced and deliver it directly to their homes. According to The Soil Association, sales of organic boxes have increased by 53% from US$189 million in 2005 to US$ 291 million in 2006. Abel and Cole is one of the most successful organic box delivery models in the U.K. with over 50,000 customers. The company has expanded its distribution network by delivering fresh fruits and vegetables to offices and schools. The office delivery program called Brain Food give employees healthy and convenient snack options in the workplace. Able and Cole also has a business model called Farmers Choice, wherein the company supplies schools with bags of fruits and vegetables every week. Teachers and parents sign up for produce bags and pay the following week. A portion of the proceeds goes to the school which acts as a fund raiser (Datamonitor, 2008).
Healthy Convenience for Children
Kidfresh is a food retail and eating outlet in New York specially designed for children. The store caters to affluent and busy families who desire healthy convenience food. The outlet, dubbed as the "Whole Foods for the junior set", concentrates on healthy foods and markets products as being largely organic, free of artificial preservatives and additives, and low in fat and sugar. The concept capitalizes on both the health and convenience trends, which are driving children's food consumption. A Datamonitor survey on functional food and drink consumption trends showed that almost two thirds of parents surveyed (64%) had concerns about their children's overall diet, with 50% worried about their intake of junk food. A growing parental reliance on convenience foods has arisen due to the increasing number of families in which both parents work, meaning many families are cash-rich but time-poor. These factors have led to an increased demand for convenience foods, lunch box items, takeaways and children's menus. Kidfresh provides grab and go breakfasts, lunchboxes, snacks and dinners.
Kidfresh's standout product is the Shapewich (Figure 3), a sandwich that can be created in-house in a range of different shapes such as hands, faces and teddy bears. The store provides delivery in the Manhattan area. The company has developed four different children's meal ranges, each one made in keeping with the nutritional requirements of the target age range, based on the U.S. Department of Agriculture's dietary guidelines for Americans. The key to this idea is its simplicity; helping busy consumers make heal th y dec is ions f as t (Datamonitor, 2008).
Conclusion
There are market opportunities for food manufacturers to develop product offerings that assist families and individuals in simplifying their lives and enhancing their quality of life. Fully-prepared and partially-prepared meal solutions that address decision making, time, energy and skill shortages of today's consumers will find a home in the marketplace. Products targeting the convenience trend can also be bundled with other attributes appealing to consumers interests in technology, health, and ethical concerns. This will assist companies differentiate their products from the competitor. In addition companies can capitalize on the convenience trend by building consumers' confidence in the kitchen and serving as a trusted helper, as well as by targeting the differing comfort needs of consumers and their preferences for traditional /home cooked dishes.