Australia’s ready-meal sector will surpass $1 billion in the near future and a shift towards healthier eating is playing a major part, it has been claimed.
Paul Hitchcock, CEO of Patties Foods, has said the company is seeking new acquisitions with projections showing the huge growth in the market.
Having recently acquired Australian Wholefoods, he also believes the sector is now providing far more than “TV dinners” and told the AFR it will grow by more than 10 per cent annually.
“The category is still relatively new,” Hitchcock told the AFR. “It’s trending toward $1 billion but we’re not there yet.
The chilled ready meals category grew by 13 per cent in the past year for the retailer “as customers continue to look for convenient and affordable meal solutions”, according to a Woolworths spokesman.
“Busy lifestyles mean consumers are attracted to convenience meals by their relatively low cost, ease of use and variety,” a spokesman for Coles added.
Patties Foods was acquired by the provate equity firm Pacific Equity Partners for $231 million last year.