Frozen Food Market in the UK: Innovation and NPD Continue to Drive Growth

Frozen Food Market in the UK

The frozen food market in the UK is performing well over both the retail and foodservice sectors, with each being valued at £5.8 billion and £2.3 billion respectively.

By Brian Young, chief executive of British Frozen Food Federation (BFFF).

Recent retail figures have shown the continued growth of frozen product categories that offer consumers great-tasting, convenient options. Categories such as frozen confectionery and ready meals have performed very well with both growing significantly over the last year, with value increasing by 6.4% and 2.1% year-on-year respectively.

The demand for gourmet fast food continues to grow in popularity and UK operators in the foodservice sector have been quick to adapt to this trend, with frozen pre-prepared food helping to meet the rising demand. As consumers continue to seek out great tasting, convenience foods that can be eaten quickly and on-the-go, they now also expect more luxurious fast-food options on their menus. The need for quick, great-tasting food has increased the appeal of sourcing frozen food products that can be used to create numerous gourmet dishes.

dreamstime_xxl_51109389Innovation is key

Innovation in the frozen food market continues to heighten the appeal to consumers, as more aspirational but affordable products are brought to market. The growth of the frozen food market looks set to continue into 2016 and beyond, as food manufacturers and processors continue to expand NPD with more aspirational but affordable products.

The wide array of frozen products now available in the foodservice sector allows chefs and caterers to create lots of popular ‘on-trends’ dishes. Frozen brioche buns can be used to accompany gourmet hot dog dishes or frozen pre-prepared filleted cod can help produce great-tasting Scandinavian street-style food dishes, which have become increasingly popular in the UK over the last year.

The ever expanding range of frozen food products – from frozen herbs and luxury frozen vegetables to artisan breads and patisserie – has allowed chefs and caterers to offer a greater variety of dishes on their menus. Plus, lower skilled chefs can produce more complex dishes due to the greater accessibility that frozen food products provide.

Frozen food’s future

dreamstime_xxl_28761198The level of home delivery continues to grow and indeed many predict major new entrants, including retail-giant Amazon, will come into the market throughout 2016. So what’s the outlook for frozen under those circumstances?

Well, from my perspective, I believe that frozen will continue to outperform other categories. The rationale for that is that any expansion of home delivery benefits frozen. The retail landscape has changed considerably in the last year with the big four UK retailers feeling the effect. The rise of the discounters has seen the big retailers reducing the number of SKU’s and embarking on new initiatives. The discounters, however, are still actively looking for more space and outlets, according to recent announcements.

Around 15million tonnes of food and drink were thrown away in the UK in 2013 but as more people begin to understand how immoral it is to throw away perfectly good food when a billion people on the planet are undernourished, there is no doubt the benefits of frozen food will become ever more relevant and understood. Research supports BFFF’s belief that increasing production and use of frozen food in the UK can help to counter food waste and enable a more sustainable food supply in the UK, now and in the future. The Frozen Food and Food Security in the UK report launched last year by BFFF highlights the waste saving potential that frozen food can provide.

Frozen food also has an important part to play in Europe as countries such as Germany are continuing to see the benefits of frozen food, as the sustainability challenge takes a higher profile. 

BFFF Mission

  • BFFF is the leading Trade Association for the frozen food sector in the UK. Its mission is to promote and protect the interests of the frozen food industry. Members cover the whole of the entire cold chain including large companies to SMEs.
  • The Federation works to increase its influence with Government and develop alliances with outside agencies affecting the success of frozen foods. It is involved in a wide range of consultations with Government departments, covering a diverse set of issues affecting the frozen food industry. It also campaigns with its members to educate, promote and inform consumers, retailers and the foodservice sector about the value of frozen food.
  • BFFF runs a number of projects to address special issues; Elected Committees look both at industry and sector-specific issues, whilst Working Groups of selected specialists tackle areas such as the retail and foodservice supply chain and school meals.