Sales of frozen food in both retail and foodservice are set to grow further according to a new report.
The Frozen Food Report II, released today, says the value of frozen food sold in the UK in retail is now worth £5.73bn and foodservice sales are worth £2.4bn giving a total market value in excess of £8 billion.
It predicts the value of retail sales will continue to grow at between 1% and 2% over the next five years, driven by innovation and demand for convenience. In foodservice the authors estimate the value of frozen food sales will grow at over 2% on the back of an increasingly buoyant eating out sector.
The report, which is produced by British Frozen Food Federation, brings together research from leading names including Kantar Worldpanel, BRC-Nielsen, Horizons, CGA Strategy and MCA to give a full picture of the market for frozen food.
It also features opinions and market predictions from industry leaders including, Wayne Hudson, MD of Birds Eye, Peter Ward, former CEO of Young’s Seafood, Ken McMeikan, CEO of Brakes Group and Andrew Selley, chief executive of Bidvest Foodservice.
As well as examining the achievements of industry in the last five years it highlights the opportunities and challenges it faces in the next five years, by focussing on four broad themes: market growth, changing customer perceptions, food industry drivers and the future of frozen.
Commenting on the launch, BFFF chief executive, Brian Young said: “The UK’s frozen food industry is a real success story and I am proud to say that, despite a challenging period for the entire food industry, the sector has demonstrated its resilience and has enjoyed solid growth. In the next five years we are set to enjoy further growth as the industry continues to innovate and respond to changing consumer demands.”
He added: “The case for frozen food is no longer in dispute thanks in part to BFFF and our members who have built up a significant bank of evidence to promote the nutritional, cost, quality and sustainability benefits of frozen.
“Looking ahead, frozen will benefit from the growth of online retailing, and as the economy improves and net disposable income grows, foodservice will undoubtedly continue to benefit from more people eating out and eating on the go.”