Canada Prepared Meals – Frozen and Refrigerated Market Report 2022

Overview

• What you need to know
• Key issues covered in this Report
• Definition

Executive Summary

• Top takeaways
• Market overview
  • Figure 1: Category outlook for prepared meals, 2022-27
• Opportunities
• Speed and ease is what Canadian demand most from prepared meals
• Even as inflation skyrockets, most consumers are willing to pay more for quality
• Moms in particular exhibit cooking fatigue; prepared meals can help
• Challenges
• Despite the perception that the quality of prepared meals has improved, work remains
• Most consumers often stock up on frozen meals when they’re on sale, which can hinder profitability
• As life becomes more ‘normal’, prepared meals face stiffer competition

Market Factors

• Foodservice sales have recovered to pre-pandemic levels, but grocery sales remain elevated
  • Figure 2: Retail trade sales for supermarkets and other grocery (except convenience) stores, January 2019-April 2022
  • Figure 3: Dollars spent at food services and drinking places in Canada
• Inflation’s grip heightens value’s importance
  • Figure 4: Top concerns expressed by Canadians (any rank), 2022
• • Figure 5: Canadian year-over-year consumer price index (annualized inflation rate) for all items and food from retail, by month, 2019-22
  • Figure 6: Expected increase in household income vs household spending by quarter among Canadians, 2014 Q4 -2022 Q1
• Immigration continues to drive Canada’s population growth…
  • Figure 7: Overall planned permanent resident admissions, 2021-23
• … with Asia and India more specifically as the primary source
  • Figure 8: Permanent residents admitted to Canada in 2019 by country (top 10), 2019
  • Figure 9: Types of internationally inspired foods consumers have eaten and show interest in trying, 2019

Competitive Strategies and Market Opportunities

• Even as high inflation soars, demand for quality persists
  • Figure 10: 3 Fois Par Jour Butter Chicken (Canada), 2022
  • Figure 11: PG Plaisirs Gastronomiques Ratatouille (Canada), 2021
• • Figure 12: Martha Stewart Red Wine-Braised Short Ribs with vegetables (US), 2021
  • Figure 13: Open Nature Savory Skillets Lobster Tortellini (US), 2021
• • Figure 14: Panera Bread Chicken Caprese (US), 2022
  • Figure 15: Newman’s Own Margherita Pizza (US), 2022
• • Figure 16: Fruits de Mer du Quebec Seafood Pizza (Canada), 2021
  • Figure 17: La Finca Jiménez Barbero Pro Edition Beef Burger (Spain), 2021
• • Figure 18: Herbert Adams Asian Fusion Style Slow Cooked Wagyu Beef Pie (Australia), 2022
  • Figure 19: The Pie Commission Butter Chicken Pie (Canada), 2021
• All-in-one meal solutions get creative
  • Figure 20: McCain Street Fries BBQ Beef Fries (France), 2020
  • Figure 21: Woolworths Food Pot Coconut Chicken Ramen Noodle Pot (South Africa), 2022
• • Figure 22: To Be Foodie Green Curry Dish (Poland), January 2021
  • Figure 23: Hungry-Man XL Bowls Chicken Fajita Bowls (Canada), 2021
• • Figure 24: Caulipower Southwest Breakfast Scramble (US), 2021
• Prepared meals can also help making meals from scratch meals easier
  • Figure 25: Maple Leaf Natural Shredded Chicken (Canada), 2021
  • Figure 26: McCain Style Bistro Selects 9 Minutes Savoury Coated Fried Potatoes (Canada), 2022
• • Figure 27: McCain Breakfast 9 Minute Potato Patties (Canada), 2021
  • Figure 28: Olivieri Cheddar bacon Skillet Gnocchi (Canada), 2022
• • Figure 29: Cracker Barrel 4 Cheese Italiano Cheese Sauce Kit (Canada), 2022

The Prepared Meals Consumer – Fast Facts

Consumption of Prepared Meals

• Among prepared meals, Canadians are more likely to turn to frozen side dishes
  • Figure 30: Packaged meals and side dishes eaten in past three months, 2022
• Younger Canadians are more likely to eat prepared meals
  • Figure 31: Packaged meals and side dishes eaten in past three months, by age, 2022
• • Figure 32: Packaged meals and side dishes eaten in past three months, parents vs non-parents, 2022
• • Figure 33: Refrigerated meals eaten in past three months, New Canadians vs not New Canadians, 2022
• • Figure 34: Packaged meals and side dishes eaten in past three months, by work location, 2022

Shifts in Consumption of Prepared Meals

• Two years in, the pandemic has done little to alter frequency
  • Figure 35: Perceived change in consumption of prepared meals vs before the start of the pandemic, 2022
• Younger Canadians are more likely to consume prepared meals more often
  • Figure 36: Perceived change in consumption of prepared meals: more often, by age and gender, 2022
• • Figure 37: Perceived change in consumption of prepared meals: more often, New Canadians vs not New Canadians, 2022
• • Figure 38: Perceived change in consumption of prepared meals: more often, by living location, 2022

Reasons for Using Prepared Meals

• Speed and ease are central to why Canadians use prepared meals
  • Figure 39: Reasons for using frozen or refrigerated meals/side dishes, 2022
• Speed matters more to middle-aged and older consumers
  • Figure 40: Reasons for using frozen or refrigerated meals/side dishes (select), by age, 2022
• • Figure 41: Reasons for using frozen or refrigerated meals/side dishes (select), mothers vs fathers, 2022
• • Figure 42: Reasons for using frozen or refrigerated meals/side dishes (select), by household income, 2022
• ‘New’ Canadians are more likely to view prepared meals as a means to try new cuisines
  • Figure 43: Reasons for using frozen or refrigerated meals/side dishes (select), New Canadians vs not New Canadians, 2022
• • Figure 44: Reasons for using frozen or refrigerated meals/side dishes (select), Quebec vs Canada overall, 2022

Reasons for Not Using Prepared Meals

• Consumers’ preference for meals made from scratch is the biggest hurdle for prepared meals
  • Figure 45: Reasons for not using frozen or refrigerated meals/side dishes, 2022
• • Figure 46: Reasons for not using frozen or refrigerated meals/side dishes (select), 18-44s vs over-45s, 2022

Important Factors When Choosing Prepared Meals

• When choosing what prepared meals to purchase, speed and ease top the list
  • Figure 47: Chef Hak’s Organic Lemion Rosemary Chicken (US), March 2021
• • Figure 48: Important factors when selecting prepared meals, 2022
• Older Canadians consider more factors when choosing prepared meals
  • Figure 49: Important factors when selecting prepared meals, by age, 2022
• • Figure 50: Peak Refuel Premium Freeze-Dried Beef Stroganoff (US), 2022
  • Figure 51: Important factors when selecting prepared meals, New Canadians vs not New Canadians, 2022

Interest in Prepared Meals by Category

• Three types of prepared meals top the list of what Canadians want to see more variety of
  • Figure 52: Types of frozen or refrigerated prepared meals/sides consumers would like to see more variety of, 2022
• Younger adults are more likely to seek variety from a range of prepared foods
  • Figure 53: Types of frozen or refrigerated prepared meals/sides consumers would like to see more variety of, by age, 2022
• • Figure 54: Types of frozen or refrigerated prepared meals/sides consumers would like to see more variety of (select), by parental status, 2022
• • Figure 55: Hormel Black Label Breakfast Combos Pancakes with Sausage and Syrup (US), 2022
  • Figure 56: Types of frozen or refrigerated prepared meals/sides consumers would like to see more variety of (select), New Canadians vs non New Canadians, 2022

Attitudes Toward Prepared Meals

• Canadians prefer to cook from scratch, but reality often gets in the way
  • Figure 57: Attitudes toward cooking from scratch, 2022
• • Figure 58: Attitudes toward cooking from scratch (% agree), mothers vs fathers vs overall, 2022
• • Figure 59: “I’ve grown increasingly tired of cooking from scratch” (% agree), by age, 2022
• • Figure 60: Attitudes toward cooking from scratch (% agree), New Canadians vs not New Canadians, 2022
• Prepared meals are a cost-effective way to address varying needs
  • Figure 61: Attitudes toward flexibility and preparedness (% agree), 2022
• • Figure 62: Attitudes toward flexibility and preparedness (% agree), by age, 2022
• • Figure 63: Attitudes toward flexibility and preparedness (% agree), by parental status, 2022
• • Figure 64: Attitudes toward flexibility and preparedness (% agree), by Quebec vs overall, 2022
• • Figure 65: “Meal kits are a good alternative to prepared, frozen meals when it comes to convenient dinner options” (% agree), New Canadians vs not New Canadians, 2022
• Prepared meals’ perception of being ‘overly-processed’ remains a challenge
  • Figure 66: M&M Food Market Classic Poutine (Canada), 2021
  • Figure 67: Attitudes toward prepared meals and health, 2022
• • Figure 68: “Prepared meals are too processed to eat on a regular basis” (% agree), men vs women 2022
• • Figure 69: Attitudes toward prepared meals and health (% agree), mothers vs fathers vs overall, 2022
• • Figure 70: “Prepared meals help make following a diet easier” (% agree), New Canadians vs not New Canadians, 2022
• • Figure 71: Attitudes toward prepared meals and health (% agree), work location, 2022
• Focusing on quality can be a means to provide value should confidence in the economy wane
  • Figure 72: Attitudes toward prepared meals and quality, 2022
• • Figure 73: Attitudes toward prepared meals and quality (% agree), by age, 2022
• • Figure 74: “It’s worth paying more for higher quality prepared meals” (% agree), by household income, 2022
• • Figure 75: “It’s worth paying more for higher quality prepared meals”, New Canadians vs not New Canadians, 2022

Appendix – Data Sources and Abbreviations

• Data sources
• Consumer survey data
• Abbreviations and terms
• Abbreviations