Europeans spent €888 billion on food and beverages over the past year, with 37% of that dedicated to 'immediate consumption' options across both retail and foodservice channels.
The immediate consumption category includes food and drinks purchased for immediate use, like ready-to-eat meals and snacks such as sandwiches, salads, hot foods, and beverages, requiring no further preparation.
The findings by Circana, a leading advisor on the complexity of consumer behaviour, also found that annual European foodservice visits have surged from 35.2 billion to 51.5 billion in the last four years.
France leads retail growth in Europe, with a 17.5% increase in consumer spending, accounting for a 7% market share, while Spain experienced the highest growth rate at 21%
Blurred Lines
The research, based on Circana’s comprehensive CREST data, finds key shifts in the foodservice industry reveal that traditional boundaries between foodservice and retail are becoming increasingly blurred.
As consumers increasingly seek convenience, ready-to-eat (RTE) options—ranging from pre-packaged salads and sandwiches to warmed meals like lasagna, paella and roasted chicken —have expanded beyond restaurants and are now available through channels like supermarkets. convenience stores, and service stations.
Ready-to-eat meals purchased from retail stores, once considered a minor option, have now emerged as significant competitors to commercial restaurants.
Notably, non-commercial segments within the foodservice industry, are gaining market share in this category, reshaping the competitive landscape as consumers increasingly turn to ready-to-eat options beyond traditional foodservice outlets.
Market Decline
This shift is fuelling growth for other channels including retailers, while traditional commercial restaurants (including full and quick-service restaurants) are losing ground, particularly in the post-pandemic environment where convenience and quick access to food are key drivers of consumer behaviour.
Commercial restaurants saw their market share decline from 79% in 2021 to 77% by the end of June 2024, while other retail channels experienced growth, increasing from 21% to 23% during the same period.
Edurne Uranga, VP of Foodservice Europe at Circana, explained, “Consumers are no longer bound by traditional categories.
"They make decisions based on convenience, value, and experience, whether that’s from a quick service restaurant (QSR) or a ready-to-eat section in a supermarket.
"Quick service restaurants, like McDonald's, Burger King, Subway, and O’Tacos, are in a fierce competition, not just against each other, but also with major European supermarkets like Tesco, Mercadona, and Edeka."
Retail Sales
Over the past seven years, retail sales have steadily risen across most European countries. As of June 2024, in the foodservice sector (focussed on immediate consumption), France leads with the highest percentage of consumer spending at 6.8%, reflecting a growth of +17.5%.
The UK follows closely with a 6.6% share, while Germany at 5.8%, Spain holds 4.2%, and Italy has 3.5%.
Consumers are embracing the new retail trend of RTE meals, especially for lunch. This segment saw an impressive growth of almost 9% last year.
These figures highlight the increasing consumer demand for convenient, ready-to-eat options during both lunch and snack times.
