With a steady YoY growth of approximately 9% from 2011 to 2016 in Germany, Ireland & the UK and a promise of sustaining this figure into 2020 (Euromonitor International), the Frozen Food category is one not to be overlooked. While the predictable top spots belong to Pizza, Fruit & Vegetables and Seafood (ice-cream excluded), there is an opportunity for new product development in frozen.
Included in the drivers for the upward trajectory in consumer spending in frozen are the convenience, price, and minimal waste. These are matched by Bord Bia’s consumer lifestyle trends of the same nature, namely Busy lives, Value Seeking and Responsible living.
The strong value propositions of frozen foods are, however, met with challenges from lifestyle changes. The shrinking size of homes (& freezer space) discourages consumers from visiting the frozen isles. In addition, with the rising popularity of Scratch Cooking, consumers feel more confident about preparing their meal from scratch with chilled produce as they feel they have more control. Iceland has cleverly worked to show that cooking from scratch can be done with frozen ingredients. They have nurtured this customer segment in its Channel Mum YouTube network, in which a community of Vlogger Mums share recipes prepared from frozen ingredients.
On the up-side, posh-frozen and diet-specific foods like gluten-free as well as superfoods are on the up, which sees a broadening of the customer base. A swanky Christmas dinner with all the trimmings will cost under €18 per person and saves on quarreling over who does the dishes!
The main obstacle to success in premium frozen food is the image. Shoppers consider frozen to be inferior as well as the unwelcoming displays in the frozen food sections of supermarkets.
Consumer drivers and trends considered, the key development areas for the frozen sector include shrinking pack and ensuring product portioning is central to suit a decreasing household size. In addition, the combined drivers of health and convenience, e.g. premium vegan food, promise a notable opportunity for growth in the frozen sector. While convincing scratch cookers on the benefits of frozen or encouraging store owners to create eye-catching frozen isles may seem like hard work, the evidence suggests that rewards are there for those who are willing to persevere.
