It is a tumultuous time for the world’s leading cooking ingredients and meals company. Market leader Kraft Heinz is preparing to split into two, while many other leading companies look to offload underperforming brands and shift their focus. All are trying to deal with wider pressures such as slow volume growth and consumers shifting towards private label.
Delivery
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Key Findings
Major players are keen to secure volume growth as revenues decline despite increasing product prices
In 2024, key players' revenues were influenced by increasing product prices and declining volume sales, driven by weakening consumer demand. To address this and secure growth, key players are focusing on their well-established brands and expanding their consumer base by launching new product lines that cater to diverse needs. For example, Unilever launched a mini meal range under Knorr, targeting busy, young consumers seeking convenience.
Key trends are widely embedded in new product launches
All key players are focused on serving consumers' changing eating habits in light of key trends around health, plant-based options, taste, and the pursuit of value. It is evident that brand owners are tapping into multiple trends rather than just one, leading to the launch of indulgent products with premium elements that remain affordable, eg truffle-based sauce by BeTruffle.
Private label prevails by delivering more than just affordability
Private label continues to be a major competitor to branded products, securing a leading position in various categories, including frozen ready meals, where Nestlé struggles with price competition. While affordability remains a key advantage, private label offerings are increasingly providing additional value, meeting consumer demands for health benefits and enhanced sensory experiences.
E-commerce expands across categories in developed and emerging markets
Driven primarily by meal kits, which are dominated by subscription models in developed markets, e-commerce is becoming an increasingly important channel for brands. Consumers are turning to online platforms for various reasons, including the convenience of easy delivery and the value offered through bulk purchases - particularly in the case of edible oils in emerging markets.
Executive summary
Companies at a glance
“Cooking ingredients and meals” exists within the wider food and beverage industry
It is an industry that is relatively fragmented, particularly in developing regions
Market share losses common among the largest players
A developed market focus is holding the largest players back
Stability in projected shares masks the wave of turbulence to come
The rise of private label is part of the wider affordability challenge
The biggest players are looking to split, shrink, or shift their focus
Why are the largest food companies struggling right now?
The challenges of Kraft Heinz have been symbolic of the industry as a whole
Unilever continues to sell off some of its largest food brands
Future industry leader Nestl é is tightening its focus onto its largest brands
Privately-held Ferrero is pursuing different goals than its public rivals
HelloFresh has seized control of the troubled meal kits category
Can anyone challenge HelloFresh?
Key findings
Questions we are asking
Projected company sales: FAQs
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