Despite the price challenges that European consumers have had to face in recent years, the German frozen food market has kept a positive trajectory, registering a modest, but steady, growth.
As 2025 will most likely bring forward new issues, we spoke to Dr Sabine Eichner, managing director of the German Frozen Food Institute (Deutsches Tiefkühlinstitut e. V. – dti), about the Institute’s overview of 2024 and its expectations for this year.
Frozen Food Europe: What were the key market dynamics and consumer trends influencing the performance of the German frozen food industry in 2024, including market growth, sales and changing consumer preferences?
Dr. Sabine Eichner, dti: The frozen food market in Germany continued to develop positively in 2024 despite the ongoing weak consumer sentiment and high price sensitivity of customers. According to our half-year report, which we published in mid-September 2024, we can expect sales growth in the overall market of 2.5% to 4.145 million tonnes for 2024 as a whole. The dti forecasts total turnover for 2024 to grow by 9.6% to EUR23.428bn.
This is particularly pleasing as we were already able to announce new record results for 2023: Total sales of frozen food grew by 3.4 per cent to a volume of 4.043 million tonnes in 2023, exceeding the four million tonne mark for the first time. Sales in the out-of-home market increased by 6.5% to 2.061 million in 2023, breaking through the two million tonne barrier for the first time. Per capita consumption of frozen food rose to a record 49.4 kg in 2023 (2022: 47.7 kg).
Demand for frozen food in the food retail sector and from home services has also held up well in recent months. Yougov reports sales growth of 3 per cent for frozen food and ice cream up to the end of November compared to the previous year, with sales remaining stable. This means that our product group is one of those that has developed positively, which is not the case for all food product groups. Frozen food has a high consumer reach of 96 per cent and is present in almost every household.
Frozen food is asserting itself as an important freshness category in the food market and provides people with affordable, fresh food that makes their everyday lives easier. Convenience products are currently continuing to perform well in the market because they fulfil the desire for convenient nutritional solutions. In the out-of-home market (OOHM), frozen food is proving its worth as a high-quality solution for many catering establishments, enabling them to hold their own in difficult waters.
Demand for frozen products in the out-of-home market remains strong. A positive trend emerged in 2024, especially in the quick-service restaurant segment, which performed particularly well among the various sales channels in the out-of-home market. A clear picture will not be available until April 2025: This is when the dti publishes the data from the 2024 dti sales statistics for the overall frozen food market in Germany.
You recently issued a statement outlining your support for the “Move to -15 degrees C” initiative. What is your position on this issue and when do you think such a change could be implemented across the industry?
As a leading member of the International Frozen Food Network (IFFN), the German Frozen Food Institute supports the project to investigate the opportunities and risks of a possible increase in the current statutory frozen food temperature of minus 18 degrees Celsius in the EU on a scientifically sound basis in order to better understand the potential for lowering the frozen food temperature.
Sound data collection and expert discussions throughout the international frozen food chain are required before a recommendation for a temperature change can be made and proposed to the relevant political institutions. Increasing the freezer temperature could offer a great opportunity to significantly reduce energy consumption and carbon emissions. However, to achieve this, we need to be sure that this can be done for all and especially sensitive frozen products without compromising on high quality, safety and shelf life.
A more sustainable food industry and nutrition is a major global challenge for the future. The international frozen food industry is aware of its great responsibility and has already been optimising the value chain at all levels towards greater sustainability and climate protection for many years. We therefore consider such a research initiative to be very important and support this international process, which must involve partners from the entire value chain, from manufacturers to logistics and cold stores, retail and catering, as well as consumers and politicians.
One thing is clear: there is still a long way to go before the regulations can be amended. The prerequisite for a new temperature standard is that it is practicable for all frozen food groups and all national and international supply chains. All stakeholders in the frozen food industry and political decision-makers in Germany and the EU must be convinced and involved.
To read the entire interview, please access your complimentary e-copy of Frozen Food Europe January-February, 2025 issue here.