Grey market boost for ready meals

By Angela Frewin

An ageing population and more ethnic options will boost the use of chilled or frozen ready meals in catering, claims a new Mintel survey.

It predicts the biggest growth will come from the health and welfare market, thanks to an ever-greying population.

While institutions favour frozen meals (currently 67% of the catering ready-meal market), chilled meals will prove the most dynamic sector. More exotic, ethnic dishes such as Caribbean, West African and Thai food will help restaurants - already significant users of ready meals - pubs and hotels meet consumer demand for a more varied menu.

Mintel defines ready meals as manufactured meals sold to retailers and caterers. All figures are based on makers' selling prices.

Catering represents 19% of a total ready-meal market worth £1.127b in 1996. The catering sector grew by just 9% between 1992 and 1996, to £210m from £175m, but Mintel expects this to climb to £220m this year and to £283m (up by 29%) by 2001.

Contract caterers have driven the use of ready meals, as the number of outlets they run rocketed by 88%, from 8,581 in 1989 to 16,105 in 1996. Contractors favour frozen meals, which offer easier storage, longer shelf life and lower costs - a multi-portion frozen pack costs just 35-75p per helping against as much as £2.99 for individually packed chilled dishes.

But the amount of chilled meals soared by 52% between 1994 and 1996, to take 33% of the catering ready-meal market, and should rival frozen meals within two years, says the survey.

l Phone 0171-606 6000 for Mintel's The Catering Market for Ready Meals, priced £445.