Who is responsible for the rise in the consumption of convenience meals and what the impacts?
Consumers’ changing lifestyles are said to be driving the market for convenient meal solutions and Mintel (2004a) points out that the market spend for ready meals reached a high of £900 million for the year 2005. Poulter (2001) signifies that Britain is said to be the biggest European market for ready meals, accounting for more than half the total market by 2007, when it is estimated to be worth over £5 billion. However it can be questioned as to whether the growth of the convenience meal sector is driven purely by consumers or whether there are other drivers encouraging the growth.
Britons are eating more ready meals than ever, with 31,000 extra packs being bought each month compared with a year ago (Hasting, 2005), however the trend is said to be having a grave effect on the nation’s health according to the Food Standards Agency (FSA) (2003). Trading standards chiefs highlight that many convenience meals are questionable when it comes to health and nutritional value (Blundell, 2006). Lawrence (2005) points out that Europe is so reliant on supermarkets for its food shopping, it in no coincidence that the country most attached to supermarket shopping has the worst eating habits in Europe.
Nestle (2003) emphasises that in an economy of overabundance, food companies can sell products only to people who want to buy them. Whether consumer demand drives food sales or the industry creates such demands is a matter of debate as the essay shall discuss.
The essay will reason the rise of the convenience meal sector as well as highlight the health concerns relating to ready meals. It will also discuss the extent to which consumers and the food industry are key players relating to the rise of the meals sector and consider the implications. The essay will also focus on changing consumer lifestyles and link this into the concentration of retailing in the UK and how ‘giant’ supermarkets use tactics to influence consumers.
The UK’s food industry is the result of the twentieth century trends that have led from small farms to giant corporations, from a society that cooks at home to one that buys nearly half its meals prepared and consumed elsewhere (Montel, 2006). The essential requirements for a product to fall within the ready meal category are, first that there has been some element of recipe input on the part of the manufacturer and second, that the product is already prepared and part-cooked to the point where it needs only to be re-heated (Mintel, 2004b).
Demographic patterns are said to impact the way people shop and eat (Prynn, 2003). Trends including the growth of female employment, the increasing number of single person households and longer and irregular working hours have meant the evening meal has been fragmented (Stockley, 2003). Hastings (2005) particularly stresses the point that working status impacts significantly on consumer lifestyles, particularly women, who still tend to take the lead in food shopping and cooking chores. As a result, working women find life hectic due to the need to juggle work commitments, childcare and domestic chores, which leads them to buying prepared foods, typified by ready meals. This shows how supermarkets have fostered the stereotype of the ‘time poor, cash rich’ shopper in the way that they sell lucrative convenience meals fitting the consumers daily lifestyle (Blythman, 2005).
Eating between meals across Europe is on the rise, with snacks accounting for the majority of the food consumed. A new report from market analysts Datamonitor (2006) shows that most Britons eat a little over 4.5 times a day, and although ‘proper’ meals are eaten more frequently than snacks, the margin between meals and snack frequency consumption is declining. This shows that consumption is increasingly being made to fit around the needs and lifestyles of people, rather than people fitting their lives around structured mealtimes (Gould, 2005). Therefore consumers are grazing more due to their hectic lifestyles and thus they are pushed to opt for convenient meal solutions.
Browne (2003) highlights that convenience meals have eliminated the tradition of domestic cookery from British homes and supermarkets have played a major role in providing the means by which the UK has become a ‘can’t cook, won’t cook’ nation. Blythman (2005) further emphasises that the UK has become a nation of food voyeurs rather than cooks, thus it can be said that the consumers limited food preparation knowledge has helped to boost the growth of the ready meals market (Browne, 2003).
Although supermarkets might be seen to encourage home cooking, by selling goods such as cookery books, the sector does not make enough money for the retailers, and the extra margins that can be slipped in with ready meals are far greater. So as a result supermarket shelves are increasingly filled with foods that obviate, or at least minimize the need for any home cooking, and make the store’s owners a tidy profit at the same time (Poulter, 2001), from which it looks as though the food industry is largely driving the ready meals market.
Tesco have announced annual profits over £2 billion, an increase of 20% on the previous year (BBC, 2005), which again emphasises the food industries huge power in controlling where the consumer shops (Bunting, 2004). Supermarkets claim that their innovation has broadened the British palate and has introduced new tastes and flavours (Mintel, 2004a). Blythman (2004) on the other hand retaliates this point and feels that supermarkets are selling consumers the same standard components, continually re-assembled and re-marketed in a multiplicity of forms. Blythman (2004) goes on to stress that since supermarkets clientele shop routinely in their stores, they lack any alternative point of reference, thus the public is conditioned, by repetition and force of habit to believe that what supermarkets offer is the best (Blythman, 2004). This shows that again there are two sides to the story, and whether consumers drive the ready meals market or vice-versa still clouds a fundamental debate.
The food industry is unquestionably powerful (Cook, 2004) and this can be further evidenced by the level of advertising and price promotions it carries out, particularly on convenience meals (for example ‘buy one get one free’) (Prynn, 2003). Lang and Millstone (2002) point out that people do not need to be persuaded to eat, and yet the food industry spends $40 billion each year advertising, again showing the food industries dominance and power.
Advertising and promotions encourage consumers to try new products and to buy more than they might otherwise buy (Elliott, 2002). A report by Mintel (2004b) suggests that supermarkets make spending impossible to resist and that price offers encourage consumers to stock up on foods they might not even need, which reiterates their strong impact.
Interestingly Mintel (2004b) researched that most consumers believe that they choose foods for reasons of personal taste and deny that they can be manipulated by advertising and other marketing practices. Felix (2004:2) somewhat supports this finding and quotes:
….they are exploiting you and me…….we’re more concerned with convenience and generally believe supermarkets will always offer good value and competitive prices
This shows that because supermarkets offer an attractive package consisting of choice, convenience and value for money (Raven, Lang and Dumonteil, 1995), consumers refuse to believe that they are being manipulated, overpowered or controlled, as supermarkets are meeting their demand for convenience at a cheap price.
Some ready meals are receiving current negative press coverage regarding their high fat and salt content (Felix, 2004) and Blundell (2006) also agrees that eating some ready meals could contribute to long-term and serious health problems. On one hand the perceived healthiness and freshness of convenience meals helps boost the sectors growth, and on the other the ‘unhealthy’ content of the meals is said to deter a minor percentage of consumers from using them on a regular basis (Felix, 2004). Gould (2005) however points out that despite growing consumer concerns of the content of many ready meals, growth in the market shows no signs of abating, which again shows how consumers are wielded into the supermarket way of thinking and the way in which supermarkets have almost ‘trapped’ consumers into ‘their world’.
Blundell (2006) believes that one reason that only a small proportion of consumers are worried about the content of convenience meals is because when it comes to nutrition education, no government agency has the funds to promote dietary recommendations in competition with food advertising (Blundell, 2006), which shows how government in comparison to ‘giant’ supermarket retailers has limited power.
The FSA have launched a new drive to encourage people to cut their daily salt intake to 6g a day. They want the public to check the labels on meals (Mintel, 2005), which shows that government organisations are concerned and are playing their role in trying to educate consumers to some extent. However The British Medical Association (2004) explain that only 34% of consumers are said to look at food labels to check the salt content, which means that although warnings about checking food labels are given, the majority of consumers choose to ignore them and carry on eating the regular meals, and thus supermarkets continue to make their money from the sector.
The food industry creates a sales friendly regulatory and political climate and are defensive about the slightest suggestion that their products might raise health risks (Stanner, 2006), and thus in this instance government is restricted to act, as they rely upon ‘giant’ supermarkets for financial resources through for example taxes (Cook, 2004). Nestle (2003) also agrees and explains that the industry devotes enormous financial resources to lobbying congress, forming partnerships with professional nutrition organisations, funding research on food and making sure that influential groups are aware of the benefits of their products (Nestle, 2003). Therefore as a result government is unable to go against the food industry and directly advise consumers to limit their consumption of ready meals.
The government does however play a role in educating consumers about healthy eating to some degree and Cuthbertson (2004) says that the reason for this is because diseases such heart disease and obesity result in a huge financial burden for government and the NHS, thus showing that in this way government realises that action is necessary. It appears as though whilst trying to support the food industry as much as possible, the government is concerned about the nation’s health and as a result offers some guidance to educate consumers on how to eat better. Asthana (2005) however suggests that the government needs to do more to inform consumers about how ready meals could be dangerous if consumed excessively. Asthana (2005) feels that government should mount a sustained public education campaign to improve people’s understanding of the benefits of healthy eating and that new standards in nutritional content and food labeling should be agreed jointly by the food industry and the FSA.
Breed (2003) believes that food companies are interested in consumer food pounds, however Marber (2005:1) feels:
It comes down to choice…..We must stop blaming the people who make ready meals for including excess sugar, salt and saturated fats, to make their dishes palatable and saleable
Which shows that although some sources feel that the food industry is interested in purely making a profit, others argue that it is up to the consumer as to what they chose to eat. As the debate continues to rage, however, it seems that more responsibility for the health of consumers is being pushed on to retailers and manufacturers (Lelic, 2005). Winterson (2005) highlights that it is important to improve the nutritional content of ready meals and quotes (Winterson, 2005:3):
Read the back of any ready-meal and what you are eating is mainly water, fat, sugar and additives…… What we in Britain spend most of our money on is the rendered, re-constituted, fat laden, convenience and packaged food, which is more like chemicals and filler than food…
What Winterson (2005) suggests is that supermarkets are serving consumers low quality ready meals consisting of ingredients particularly unhealthy for them. However as has been discussed the stress and strain of modern lifestyles leads consumers further down the convenience line. Not only are the meals conveniently suited to lifestyles but they are also a more economical option, which can be related to Britain’s cheap food culture (Winterson, 2005). Supermarkets argue that all consumers want is cheap food and Asthana (2005) emphasises that by selling cheap ready meals full of fat and additives they are able to make massive revenues. Nestle (2003) highlights that the primary mission of food companies is to sell as much as they can and nutrition for these companies becomes a factor only when it can help sell food. Which shows that food company ‘giants’ are solely interested in making a profit as opposed to offering foods which are healthier.
Stanner (2006) stresses the point that ‘convenience’ shouldn’t mean an increased. Some retailers are promoting healthier ready meals and food manufacturers are developing healthier meals to meet the growing demand (Caraher, Lang and Hill,1998). On the other hand whilst there is an option for a healthier ready meal, most consumers still opt for regular meals. Asthana (2005) argues:
Why is it that the healthy option is a niche market? If it tastes good with less fat and salt, why is that not the norm?
However it must be pointed out that the healthier meals cost more and can only be afforded by wealthier consumers who usually choose better diets (Nestle, 2003). Evidence suggests that for particularly low income families, economic concerns may override any health information (Stanner, 2006). Thus to combat such a problem more action needs to be taken suggests Elliott (2002). Some critics believe that dietary guidelines represent too great of an intrusion of government into habits that are none of its business (Lawrence, 2005), other sources however argue that the responsibility lies on the government because after all the government is responsible for the huge costs that will accrue if the epidemic with obesity for example goes unchanged (Meikle, 2004). From this it can be seen that there exists a problem in regard to the cost of healthier meals and the extent to which government can or should act, thus showing debatable views.
Blythman (2005: xvi) argues:
…our shopping choices are now dictated by a few monopolistic retailers who, by wooing consumers with apparently low prices and lobbying subsequent governments not to interfere with their divine right to make money, have been allowed to develop an unhealthy grip over the nation’s shopping basket
This yet again shows the influence of retailers who look to be not only in control of the nation’s shopping basket but also of government. Montel (2006) has the view that people’s freedom to consume ready meals should not be directly restricted, but a system of taxation should be introduced to redress their effects, in the same way as cigarettes and alcohol. The proceeds of such taxation could be used to support healthier and more beneficial forms of consumption (Nestle, 2003). This shows that although it is up to the individual to choose what they consume, governments can play their role in shaping food habits as opposed to controlling them which could be a possible way to minimise health risks associated with convenience meals.
Therefore to conclude it can be said that the ready meals sector is driven largely by the food industry, particularly supermarket retailers who work together with manufacturers to produce convenience meals that will suit consumers in their busy modern everyday lifestyle. It can be summarised that the consumer is partly to blame for the rise in the ready meals sector due to the stress and strain of their daily life and the way in which they lack the time to prepare meals and thus are increasingly snacking and grazing. The food industry has been quick to cash in on the situation and has provided consumers the convenience solutions they need in the form of quick to prepare, fresh and low priced ready meals. Thus the food industry is trying very hard to satisfy the consumer in every way possible to make life easier for them and in this way retailers look to be succeeding as the essay has discussed.
Manufacturers work in partnership with retailers to tailor make the ready meals to key consumer groups and the essay has shown how the food industry is to a large extent only interested in ‘consumer pounds’ as opposed to for example the consumer’s health. Although some healthier meals exist, the retailers/manufacturers do not generate enough profit from these meals as only wealthier consumers are able to afford them. It appears as though the government to some extent is concerned about the content of some ready meals, however the government is restricted in taking action as it relies on the food industry financially and therefore is not able to go against it.
The essay has shown how the consumers changing behavior patterns impact on the food industry and the way in which supermarkets tailor marketing practices such as advertising and promotion to consumer needs and expectations, thus tricking them into buying their products. It can be concluded that ‘giant’ retailers are meeting consumer demands by offering them the easy option of ready meals and manufacturers assist supermarket operators in doing this, thus boosting their sales.
Whether the industry creates convenience meals in response to consumer demand or generates demand by creating the products is difficult to untangle as discussed in the essay. Therefore to conclude it can be said that industry together with consumers drive the demand for convenience meals and thus most likely both interact.