In 2015, fresh, chilled, and prepared foods reached 11 billion in revenues, representing 10% year-over-year growth according to research by L.E.K Consulting. This spike in revenue drew attention to a few major take-aways from the report.
1. Convenience is Key
Convenience has quickly risen to the top of everyone’s wish list as the holiday season becomes a busy time for most consumers. Whether they are shopping for a meal to eat now or ingredients to cook with later while they entertain family and friends, the numbers persist: the share of fresh, prepared foods continues to expand in their basket.
2. Prepare for Expansions + Additions
Prepared foods is not the only category seeing the effects of the season’s time crunch. In fact, over the last 5 years, 23 of the 30 largest convenience store operators have increased their store count. This proliferation indicates that consumers are no longer only factoring brand and price into their purchase decision, but location and convenience as well.
3. The Importance of Strategy
If your company is evaluating a shift into this profitable growth sector of the food and beverage industry, consider a food and beverage specific financing option as well. First American Food and Beverage Division is familiar with the types of equipment and build-out costs associated with a shift in product and mix change like the fresh and prepared trend presents.
Read more about our experiences assisting your peers with build-outs and expansions.
*source: The Modern Family and Its Impact on Food and Beverage Consumption (LEK Consulting)