Still Just Grabbing a Quick Bite? Warm Up a Comfortable Meal [The World of Convenience Foods]

Quick and Hearty Meals Made Healthier
Meal Kit Growth Drives HMR Market to 5 Trillion Won This Year
Diversification of Types... Considering Nutrition and Eco-Friendliness
Well-Prepared Meals Becoming Trend Despite Higher Prices

The ready meal market has grown significantly due to the spread of non-face-to-face trends caused by COVID-19. As the ‘stay-at-home’ culture became widespread with remote work, online learning, and strengthened social distancing, demand for home-cooked meals increased over dining out, and as the frequency of home meals rose, consumers developed greater interest in ready meals that reduce the time and energy spent on meal preparation. Additionally, with the popularity of trends like ‘healthy pleasure’ that aim for enjoyable and convenient health management, ready meals are diversifying and becoming more premium. The term ‘ready meal,’ which was unfamiliar just a few years ago, has now deeply integrated into daily life. Consumers accustomed to convenience are expected to continue seeking ready meals. However, as we enter the endemic era (periodic outbreaks of infectious diseases), voices are emerging that policy support is necessary for the ready meal market to develop healthily while maintaining global competitiveness. Accordingly, we have prepared an opportunity to highlight the trends and prospects of the ready meal market, expected to reach 5 trillion won this year, and to introduce representative domestic ready meals.

The domestic ready meal market is accelerating from quantitative growth to qualitative growth. Ready meals, which were once consumed hurriedly to fill meals, have evolved through the home meal boom caused by COVID-19 into hearty meals comparable to elegant dishes at restaurants. Consumers are also changing their consumption patterns of ready meals to care not only for their taste and preferences but also for their health.

According to the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Food and Drug Safety, and the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 23rd, the size of the domestic home meal replacement (HMR) market, including ready-to-eat foods, fresh convenience foods, and ready-to-cook foods, jumped from 1.1067 trillion won in 2011 to 2.2682 trillion won in 2016 and 3.03 trillion won in 2018. The HMR market grew to 3.6511 trillion won in 2020, the first year of COVID-19, and is expected to reach 5 trillion won this year with the added growth of the meal kit market.

HMR refers to fully or semi-prepared foods processed, manufactured, and packaged as convenient meal substitutes. The first ready meal was ‘Ottogi 3-Minute Curry,’ launched by Ottogi in 1981. The Korea Rural Economic Institute regards the era of instant rice emphasizing convenience in the 1980s as the first generation of home meal replacements. The 1990s, which emphasized freshness, is considered the second generation, and the era of diversification into cup rice, soups, stews, and more is the third generation. Since 2015, with the rise of single-person households and solo diners, the ready meal market has accelerated quantitative growth as large corporations and startups entered the market, and the prolonged COVID-19 pandemic has accelerated qualitative growth. With strengthened social distancing limiting dining out, longer stays at home due to remote work and school delays have increased the frequency of home meals, leading more consumers to turn to ready meals to reduce the time and energy spent on meal preparation. The increase in home dining populations diversified ready meal types and introduced products considering not only taste but also ingredients, nutrition, and eco-friendliness. Meal kits, semi-prepared products containing pre-portioned ingredients, seasonings, and cooking methods, have also become popular.

In response to these trends, since 2020, the Ministry of Food and Drug Safety has added ‘ready-to-cook sets (meal kits)’ to the classification of ready-to-eat foods, fresh convenience foods, and ready-to-cook foods in the Food Code, managing them separately. The recent changes in ready meals focus less on the short time required for cooking and eating and more on ‘being able to enjoy a proper meal comfortably without spatial constraints.’ This is why the industry is competing to introduce restaurant ready meals (RMR) applying famous chefs’ recipes from nationwide popular restaurants, hotel fine dining meal kits, camping meal kits, and more. The fourth generation, a premium everyday meal era led by private brand (PB) ready meals and RMRs in the distribution industry, is maturing. Strengthening popular ready meal corners in offline stores such as department stores and large supermarkets has become a key competitive channel.

The industry expects that after the endemic, an era centered on ‘well-being ready meals’ focused on health will become widespread. Having experienced COVID-19, it is anticipated that ready meals focusing on health and personalization will be introduced diversely in the market. Product development reflecting consumers’ diverse lifestyles and eating habits will accelerate, and consumption methods such as customized subscription services are expected to expand. A food industry official said, “Ready meals, once an inevitable choice for busy modern people, have now evolved into a form that takes responsibility for a proper meal, allowing people to save cooking time and invest it elsewhere,” adding, “The premiumization trend will continue to meet consumer demands for well-prepared meals, even if they are somewhat more expensive.”