The UK’s frozen food market was buoyed by increased activity in ‘occasional indulgence’ as it recorded steady – albeit unspectacular – growth.
The frozen food retail sector recorded volume growth of 1.3% in the year to March and is now worth £5.77 billion, according to figures from Kantar Worldpanel.
Ice cream and frozen confectionery were at the forefront of growth for the fifth consecutive quarter; value growth of 4% and 11% respectively was accompanied by volume growth of 2.9% and 7.1%, as increasingly health-conscious consumers look for permissible ways to indulge.
The British Frozen Food Federation (BFFF) said that it ‘demonstrates the versatility’ of the sector.
BFFF chief executive John Hyman said: “As consumers are increasingly concerned about healthy choices, many treat categories are struggling to see real growth. Frozen seems to be bucking this trend and that’s partly down to how the category has positioned its sweet products.
“By owning the occasional indulgence occasion through significant, premium NPD across the board, frozen confectionery and ice cream categories have managed to maintain their appeal to consumers still looking for life’s little luxuries.
“Similarly this trend has enabled frozen to expand into new meal occasions and widen its appeal to new groups of consumers with a wide range of prepared fruit and vegetable options to offering healthier choices.”
Occasional indulgence
Brands have clued up to the fact that ice cream is no longer a frequent treat, particularly during the summer, and more of an occasional indulgence. Consumers are becoming increasingly health-conscious, and brands are ramping up the premium nature of their products in order to ensure that they weather the shift in consumer behaviour. Häagen-Dazs recently launched a line of upmarket ice cream bars, available in white chocolate and almond, salted caramel, and vanilla-caramel-almond.
The ice cream and frozen confectionery sub-categories – now valued at £1.22 billion – represent more than 21% of the total frozen food retail market. In part, frozen confectionery is being driven by increasing demand for frozen fruit, which saw sales growth of over 35%.
The move towards healthier eating has also led to other sub-categories seeing growth: vegetables saw both value and volume growth of 3.3% year on year, as sales of frozen sweet potato increased by a staggering 119% in 2016 alone.
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