Source: Mintel
The frozen food market in the UK and Ireland suffers to a certain degree from negative consumer perceptions. Compared to other European countries such as France, where many consumers perceive frozen food to be fresh, healthy and of a high quality, frozen food in the UK and Ireland continues to lag behind fresh and chilled alternatives, with products carrying a stigma of being highly processed, lower in quality, and of a lower nutritional value.
The UK is, however, one of the leading countries within the European frozen food market in terms of innovation, dominating total new product launch activity between January 2008 and September 2013, closely followed by Germany and France. In the first nine months of 2013 (January to September), however, the UK saw a sharp drop in the number of new frozen food product launches compared to the rest of Europe.
Dominant categories
According to Mintel’s Global New Product Database (GNPD), frozen food innovation in the UK and Ireland is dominated by three categories: ‘Desserts and Ice Cream’, ‘Meals and Meal Centers’, and ‘Processed Fish, Meat and Egg Products’. Between 2008 and 2012, these categories each accounted for around a quarter of all frozen food launches (27%, 24% and 24% respectively). In 2013 (January to September), however, all three categories have seen significant declines in the number of new product launches, with private label launches falling the most. In the UK, new product launch activity has been dominated by private-label brands since 2009, although share has evened out slightly in 2013, with private-label and branded players launching a similar number of products between January and September. In Ireland, on the other hand, neither private-label or branded players dominate, with share of launches changing quite considerably year-on-year.
Highly fragmented market
In the UK and Ireland, frozen food launch activity is very fragmented, with the top 10 players accounting for just over half of product launches. Tesco has been the dominant player for a number of years, although NPD activity evened out amongst the top players in the first nine months of 2013 (January to September). At Tesco, the second most active category in terms of NPD in the past couple of years has been ready meals. Within this category, the retailer launched Seafood Risotto and Green Thai Chicken Curry with Noodles in May 2013, both of which cook straight from the freezer in eight minutes to offer consumers a quick and easy complete meal solution. Unlike most frozen ready meals, which are microwavable and thus require little input from the consumer, these products are designed to be stir fried, which enables consumers to be involved in the cooking process. Similar ranges have also been launched by branded competitors. For example, Birds Eye launched Prawn Thai Curry Stir Fry with Rice, Chicken Stir Fry with Rice, and Beef Stir Fry with Noodles in March 2013. The meals can be cooked from frozen in a wok or pan in 10 minutes. In addition, Green Isle Foods launched Wok Wonders, a range of ‘wok and serve’ rice and vegetable-based dishes, which can be made into a meal with the addition of meat. Unlike Tesco’s and Birds Eye’s products, the packaging for the Wok Wonders range provides details of how to stir fry as well as microwave the products, which presents consumers with the option of a fast and convenient meal, or one that they can be more involved in the final stages of the cooking process with prior to consumption.
Frozen salad category shows potential
Tesco has also looked to extend its range of frozen products to salads with the introduction of Moroccan Cous Cous Salad back in 2012, which can be eaten hot or cold. While this is the only frozen salad product available on the UK and Ireland frozen food market, frozen salads are more common elsewhere in Europe, with the majority of frozen salad products launched in France, Spain and Finland, although the category as a whole is very small. In Europe, frozen salad meal innovation mirrors developments in fresh salad meals and kits, with products offering a selection of grains and legumes as bases, which are accompanied by fruits, vegetables and other theme-appropriate elements, such as herbs and olives. While none of these salads contain lettuce, many are creative blends that contain animal, dairy or vegetable-based protein elements to provide consumers with nutritionally complete salad meal options. They could thus serve as inspiration for frozen salad product innovation and development in the UK and Ireland.
Iceland looks to extend consumer base
Iceland, the second most active retailer in terms of new product development, is continuing to position products around convenience and affordability, whilst also looking to attract new consumers. As well as changing its approach to advertising (it has ended endorsements with celebrity mums to extend appeal away from a sole family focus), the retailer is set to a launch a new frozen ready meal range targeting men called ‘Hungry Man’. Designed for men with bigger appetites, the range features nine dishes, including Cowboy Burger & Bean Chilli, and Hot Kickin’ Chicken Noodles. In addition, Iceland has recently used co-branding to generate interest in its frozen potato product range, working with KP Snacks to launch McCoy’s Ridge-Cut Round Chips and Hula Hoops Potato Rings in September 2013. As well as giving these brands a presence in the freezer aisle to increase awareness, the products are likely to encourage uptake amongst consumers who may be more swayed to buy into products with familiar branding.
Products focus on convenient positioning
Frozen food products in the UK are often positioned with a focus on convenience. As a result of this, consumers are more likely to view products as stand-by items. Microwaveable and ease of use claims featured on 16% and 8% of frozen food product launches, respectively, in 2012, and 2013 has seen a significant rise in use of these claims, with over one fifth (21%) of frozen food products launched between January and September 2013 featuring a microwaveable claim, and 12% featuring an ease of use claim. In contrast, use of health-related claims is limited in the UK and Ireland, which does little to shake the negative perceptions that consumers have of the frozen food market. Between 2008 and 2012, just 10% and 6% of new products launched displayed Low/No/Reduced Transfat and Low/No/ Reduced Fat claims, respectively. This is compared to claims featured on all new food products launched in the same period, on which four of the top 10 claims were health-related: Low/No/Reduced Allergen (8%), Low/No/Reduced Transfat (8%), Low/No/ Reduced Fat (8%), and Gluten-Free (7%). Although the proportion of UK consumers agreeing that frozen food is as good for you as fresh food was up 4% between 2007 and 2011, continued innovation on a nutrition and quality front is needed to continue improving the reputation of frozen food, and to grow consumer trust. Moreover, while healthful attributes are becoming increasingly important during the purchase process of frozen foods, consumers are increasingly more interested in what nutrients are present rather than what has been removed, making ‘high-in’ claims centered on protein, fiber, wholegrain and vegetable servings more important to feature.
Food waste concerns
As well as there being opportunities to more overtly promote the health benefits of frozen food, there is also great potential to emphasize the benefits and advantages of frozen food in relation to the global issue of food waste. A report by the Department of the Environment Food and Rural Affairs (Defra) in the UK in July 2010 estimated that 17% of all food bought by UK shoppers ends up as waste in landfills, which is having a detrimental impact on the environment, and also causing consumers to waste money on products that are not eaten. One of the main reasons that food and drink products are thrown away is because they are not consumed on time. Based on this, opportunities are presented to promote the inherent advantage of frozen formats over fresh, with frozen products able to be stored for longer, remaining ‘fresh’ until they are thawed or cooked for use.
Innovation could drive uptake
Although more than two-fifths (42%) of UK consumers purposefully buy frozen fruit and vegetables to avoid waste, fresh fruit and vegetables, in addition to salad products, contribute significantly to food waste. This suggests potential to further increase household penetration and usage of frozen alternatives. As frozen fruit and vegetables account for just 6% of frozen food innovation in the UK and Ireland, however, it can be suggested that further innovation is needed in this area first to encourage uptake. For this, inspiration could be taken from other European markets, with Italy, France and Germany leading the way in terms of frozen fruit and vegetable innovation. When looking to extend fruit and vegetable ranges, frozen food manufacturers should focus on seasonal offerings to overcome the perception that products are not ‘fresh’. Product packaging and labeling can be utilized to communicate seasonal attributes and appropriateness to consumers.
Food aisle of the future?
Whilst the UK is one of the leading markets for new frozen food product launches, there is great potential to enhance consumer perceptions of frozen offerings, and educate them about the benefits of frozen food, particularly when related to health, freshness and food waste, in addition to convenience and time-saving attributes. By boosting the image of frozen food products, and by reassuring consumers about freshness and quality attributes, the frozen food aisle could become a more desirable destination. A shift towards leveraging freezing’s natural profile as an ideal vehicle for extending the shelf life of natural foods is the way forward for the industry, and more products have the opportunity to turn to freezing to maintain their natural profile, opting to adapt traditional recipes that handle freezing rather than adding preservatives to prolong the shelf life.