The frozen food market has grown in value by 2.5%, according to the latest retail statistics from Kantar Worldpanel. The report values the frozen food market at just under £5.8bn.
The Kantar Worldpanel statistics, which look at the 52 weeks ending 22 June 2014, show that the value of frozen food has continued to grow, despite it being a tough year for food retailers. Three of the four major retailers have shown like-for-like sales declines in the same time period.
The main area of growth for frozen food came in the ice cream market, growing in volume at 7.1% year-on-year. The ice cream market is now valued at £850-million, increasing in value at a rate of 9.9 per cent. This growth is likely to be down to the long, warm summer in 2013.
Brian Young, chief executive of the British Frozen Food Federation, said: “The retail frozen food market has now enjoyed year-on-year value growth for the last 14 quarters. This steady growth is particularly impressive when you compare it with the food retail market in general.
“Whilst undoubtedly we are seeing an economic tipping point in the food industry now, as there are real signs of life in foodservice, growth in retail is beginning to stall. It seems that frozen food is bucking this trend. In the retail world it’s the freezer specialists, the discounters and the premium retailers that are still enjoying growth.”
The Kantar Worldpanel results also highlighted the success of frozen potato products and frozen savoury foods, with a year-on-year growth in value of 5.6% and 4.3% respectively.
Young said: “There is much talk about the economy being in sustainable growth, but the simple truth is disposable income is still not a luxury available to the average person. It may well be some time before consumers feel the benefit in their pockets, until then I believe that frozen food will continue to outperform retailers overall performance.”