The packaged mac and cheese market in Europe is significantly growing as the region is home to a few of the most prominent global market players such as Nestle SA, Symington’s Limited, and Kabuto Noodles. The growth of the market in Europe is driven by the benefits of time saving and convenience offered by the product. Young consumers in the region are spending most of their income on convenient ready-to-eat (RTE) food products. Consumers between the ages of 20 and 30 are the easiest targets for RTE food manufacturing giants as these consumers are primarily working professionals and college students who cannot spend more time on cooking food at home due to their busy schedules and working hours. The convenience level of RTE products, such as packaged mac and cheese, propels their demand in Europe. According to Eurostat, in 2021, more than 250 million people in Europe will be working professionals, which comes to around 73.1% of the total population in Europe. Thus, consumers are moving toward RTE products as they save their time. These factors boost the demand for packaged mac and cheese in the region.
Rising Preference for Convenience Food Products Propels Packaged Mac and Cheese Market Growth
In recent years, the demand for convenience foods such as ready-to-eat (RTE) and ready-to-cook (RTC) products, including packaged mac and cheese, has upsurged owing to busy lifestyles, increasing demand for on-the-go food products, and rapid urbanization. The hectic and fast-paced lifestyle of people in the region and the growth in the working population propel the demand for ready-to-eat and ready-to-cook food products such as packaged mac and cheese. Packaged mac and cheese have gained popularity due to the minimal preparation time. Along with this, the availability of ready-to-eat products such as frozen packaged mac and cheese is also gaining popularity among the young population. According to the survey conducted by Food and Health—”International Food Information Council (IFIC),” convenience is a key driver for millennials while purchasing food.
Further, convenience food is rapidly gaining popularity among the working population, and teenagers have contributed to the growth of the packaged mac and cheese market. The availability of a wide range of packaged mac and cheese food options catering to various tastes and dietary preferences has further surged its demand. Thus, the rising preference for convenience food products bolsters the growth of the packaged mac and cheese market.
Packaged Mac and Cheese Market: Segmental Overview
Based on pasta source, the packaged mac and cheese market is segmented into wheat, rice, and others. The rice segment is expected to register a significant CAGR during the forecast period. Rice-based packaged mac and cheese cater to consumers seeking gluten-free alternatives. This variety of macaroni is made with rice flour. The rise in demand for rice-based mac and cheese can be attributed to the growing awareness of gluten intolerance or sensitivity among consumers. This option provides a suitable alternative for those with dietary restrictions while delivering a satisfying and convenient macaroni and cheese experience. The gluten-free trend, driven by health-conscious and gluten-sensitive consumers, has significantly propelled the demand for rice-based alternatives in the packaged mac and cheese market.
Based on Distribution channel, the packaged mac and cheese market is segmented into supermarkets and hypermarkets, conveneinece stores, online retail, and others. Supermarkets & hypermarkets segment held largest share in the global market. Supermarkets and hypermarkets are primary distribution channels for packaged mac and cheese, offering products of various brands and varieties under one roof. Consumers prefer purchasing packaged mac and cheese from these stores due to the convenience of one-stop shopping. The extensive shelf space allows for a diverse selection, catering to different tastes and dietary preferences. Additionally, the bulk purchasing options in hypermarkets make them cost-effective and appealing to families and individuals looking for value. The familiarity of these establishments and frequent promotional activities contribute to the preference for buying packaged mac and cheese from supermarkets and hypermarkets.
Impact of COVID-19 Pandemic on Packaged Mac and Cheese Market
Various industries faced unprecedented challenges during the COVID-19 pandemic in 2020. Moreover, packaged food manufacturers and food and beverage industries reported significant challenges in continuing production, procuring raw materials, and distributing products due to supply chain constraints caused by lockdowns and trade and travel restrictions. Further, the shortage of workforce and limited supply of raw materials led to halts in operations and processes across the world. The disrupted manufacturing operations eventually caused price hikes in the packaged mac and cheese market. These factors negatively impacted the packaged mac and cheese market growth during the COVID-19 pandemic.
Packaged Mac and Cheese Market: Competitive Landscape
Kabuto Foods Ltd, Symington’s Ltd, San Remo Macaroni Co Pty Ltd, Healthy Kids Ltd, TGK Brand Ltd, The Kraft Heinz Co, Nestle SA, General Mills Inc, Gooder Foods Inc, and Amy’s Kitchen Inc are among the major players operating in the packaged mac and cheese market. Companies in this market emphasize strategies such as R&D investments and new product launches. Such strategic initiatives by key market players boost the demand for packaged mac and cheese and drive the market.