Foodservice sales could begin to overtake retail by 2025 as more consumers spurn the kitchen in favour of eating out.
The IGD report Catering for the Consumer predicts that the foodservice market will grow 17% over the next 10 years and, with price inflation, the market will be worth £38.1bn.
The shift towards eating out will be driven by growing affluence, the decline in cooking skills, and a greater sophistication among consumers.
In an IGD survey, more than half those asked thought they would eat out more in five years' time.
The report says that as the demand for low price meals increases, home meal replacement will become a more direct substitute for foodservice. It believes that foodservice operators could also build sales by providing these ready meals. "Few consumers make a direct comparison between retail food value and foodservice.
"However, as foodservice increasingly competes for more everyday, functional eating and retailers develop more luxury food items, the value comparison will be made more frequently."
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