Retail Foodservice on the Rise

Prepared foods from stores continue to capture market share from restaurants
Posted October 9, 2013

Prepared foods from supermarkets, drugstores and other retail outlets will continue to capture share of the meal/snacks market by stealing visits from restaurants, reports The NPD Group (Rosemont, Ill.). Its recent study, which forecasts trends out to 2022, finds that purchased retail-prepared food for at-home consumption will increase by 10 percent over the next decade compared to a 4 percent increase forecast for commercial foodservice traffic.

While no one age group takes greater advantage of the prepared food offerings from retail outlets than another, the needs being met do differ, according to NPD. For example, adults 35 years and older are more likely than 18- to 34-year-olds to purchase prepared foods for dinner. Seniors are particularly interested in buying lunch from these retailers, while consumers aged 18-24 are more inclined than others to make purchases from retail outlets for afternoon or evening snacks.

Aging baby boomers will comprise the larger share of home meal replacement purchases from retailers over the next 10 years, reports NPD. Prepared foods retailers are also expected to benefit from increased visits from those in their thirties. “Efforts to pull consumers out of their homes and back into restaurants will require touting the benefits of eating out versus staying at home and cooking or eating meals offered by home meal replacement retailers,” says Bonnie Riggs, NPD restaurant industry analyst.