The frozen retail market has shown continued growth year on year (yoy) despite the overall retail industry presenting a very mixed market environment.
The latest figures from Kantar Worldpanel, which look at the 52 weeks to 7 December 2014, show that the frozen retail market is now valued at £5.8bn, a figure which is growing by 0.9% yoy.
The major winners in the frozen category have been frozen savoury products and potato products which have both shown strong value growth yoy of 4.9% and 4.1% respectively. Similarly, the ice cream sector is enjoying the results of good summer weather and an increase in popularity of premium brands with value growth of 3.8% yoy alongside a volume increase of 0.4%.
In terms of volume, while most of the market remains flat, some sectors have seen good growth yoy. The frozen savoury food sector has seen impressive volume growth of 2.9% yoy with the ready meals sector showing signs of recovery from recent difficulties with a volume growth of 1.6% yoy.
Brian Young, chief executive of British Frozen Food Federation, said: “The retail industry as a whole is currently experiencing very mixed fortunes which are bound to have an impact across the entire food industry. While many of the big name retailers are struggling, success in the premium and more so discounter ends of the market is positive for the frozen market.
“We’ve seen some good growth in a variety of sectors from the latest figures. Volume growth in the frozen ready meals is of particular note as consumers start to regain confidence in prepared meals.”
Young: “The outlook for 2015 is promising as consumer confidence begins to grow in the run up to the general election. Although typically this confidence can wane once the votes are in and big promises die down, the growth of the UK economy ahead of the rest of Europe may lead to continued confidence in the retail sector.”