A matter of convenience

Convenience is key

The chilled and frozen food markets in the UK are the most vibrant in the whole of Europe due to a strong demand for innovation in both taste and format from both consumers and retailers.

The chilled food market alone is worth a massive £7 billion, or over 10 million euros, and accounts for 60% of the total European chilled food market.

Chilled food evolves

The UK chilled food market has changed a lot over the 35 years, according to the Chilled Food Association (CFA).

In the 1970’s the predominant chilled foodstuffs were meat products, including pre-sliced meat, pies, dressed salads and non-dairy desserts.

In the 1990’s and beyond the variety and popularity of chilled products is startling. Dips, dressings, ethnic sauces, prepared fruit, speciality breads, stir-fry kits and sushi are now commonplace.

These products reflect the sea change in Britain’s eating habits and the market potential for manufacturers that can supply new and exotic products to retailers.

Product churn

And change is happening fast. In the UK a 30 per cent annual churn of products is not unusual.

The major chains and other players are always looking to the latest consumer trend. Manufacturers that can respond to this can reap rewards.

Just some recent examples of the chains following consumer demand is that supermarkets are now producing more expensive branded lines that reflect aspirational and lifestyle choices;

Retailer own-label creates demand for manufacturers.

Amazingly retailer own-label brands account for 95 per cent of the chilled food market. This provides a rich source of income to food manufacturers across the UK as most of the major supermarkets do not directly own their own food production facilities.

The whole chilled food sector has grown by nearly 65 per cent in the past six years, with a predicted continuation to this trend.

Feeling frozen

The frozen food market is equally vibrant in the UK. Divided into two distinct sectors, retail and foodservice, it accounts for a healthy part of the country’s economy.

Last year the retail market was worth around £4billion, according to the British Frozen Food Federation (BFFF), representing a volume growth of around 3 per cent, and with own-label products outselling their branded counterparts.

But the BFFF’s Alf Carr believes there is plenty of room for newcomers to the market in terms of manufacture and production:

“Most of the innovation in retail is being carried out by the bigger branded producers but the majority of innovation seems more directed to product enhancement than to really revolutionary recipe formulations.”

The UK Health Education Authority recently announced that frozen foods contain just as many nutrients as their fresh counterparts.

So today’s increasingly health-conscious, but convenience driven consumer is also likely to be looking towards frozen products more.

Investment from overseas

The BFFF estimates that over 50 companies from overseas are invested in the UK ‘own-label’ frozen food market.

They supply the major retailers with products which they brand with their trademark. These retailers are always looking for more providers in a fast-growing market.

Food service: the innovator

Frozen products in the food service sector, which represents cafes, restaurants, pubs, workplace canteens and hotel dining, are growing fast.

Now worth an estimated £3billion, the sector is growing at around 4.0 per cent in value and 5.0 per cent in volume.

This sector is even more vibrant than retail in terms of recipe formulation, enhanced re-generation (cooking), utility of packaging and in suitability for high-capacity microwave cooking.

Opening doors

Overall the UK has a voracious appetite for convenient, quality foods.

Ever more aware of the stresses and strains on their time they are looking to retailers to provide healthy, convenient solutions to their meal needs.