Rabobank believes the rise of new channels; online, hard discountand convenience stores, will provide exciting growth opportunities for frozen food manufacturers. According to its latest report “Europe’s New Ice
Age”, Rabobank foresees growth opportunities for the frozen food market, with a base case scenario where frozen food will over-index overall foodgrowth by almost 50 percent by 2030.
“In Europe, frozen food sales have a lot of upside potential in online, discount and convenience store channels, as these channels are stillrelatively immature,” explained Rabobank Analyst John David Roeg. “Channel
and category scenario analysis show that frozen food has the potential to almost double its sales growth rate in the next decade.”
In leading online grocery regions such as France and the UK, frozen food accounts for a greater part of shoppers’ basket online than it does in store. This trend is unlikely to disappear as this format has many
advantages; buying frozen food online is much more convenient due to collection and home delivery options, it also gives better economic value, easier bulk purchasing and a wider selection, according to the report.
In addition, the growth in discount stores and convenience stores should also benefit the frozen food market. As retailers increasingly focus on both fresh and frozen food categories; the hybrid consumer will gradually come to appreciate frozen food, which is a more economical alternative.
However, Rabobank believes that while the foundations for robust sales growth may seem excellent, growth will not materialize without the rightinitiatives for producers.
Online, producers will have to refocus their assortments, making them filter proof, and tailor their marketing to make them stand out from competing products, according to Rabobank.