Frozen Foods

UK - Market Report 2009, 24th Edition

Publication Date	August 2009
Publisher	Key Note
Product Type	Report
Pages	103
ISBN Number	978-1-84729-513-2
Product Code	KEY00023

Buy this product or for assistance call +44 20 7060 7474

PDF £460.00$765 | €515

FAX Order above formats by FAX

Summary

Retail sales of frozen foods rose by 5.4% in 2008 to reach a value of £4.96bn. Between 2004 and 2008, the value of the market increased by 10.9%.

In this Key Note Market Report, the frozen foods market is divided into the following ten sectors: meat and meat products; fish and fish products; ready meals (excluding pizza); ice cream; poultry and poultry products; potato products; vegetables and fruit (excluding potatoes); pizza; cakes and desserts; and vegetarian foods. Meat and meat products comprise the largest sector of the frozen foods market, while the fastest-growing sector between 2007 and 2008 was that of vegetables and fruit (excluding potatoes).

In the past, sales of frozen foods suffered from the popularity of alternative items such as chilled foods and ready meals. However, the economic recession has increased consumer interest in the more competitively priced frozen foods and this has helped to boost sales. The frozen foods producers and retailers have also been able to change consumers’ perception of frozen foods from a negative to a more positive image, and the low wastage and hence cost-saving benefits of frozen foods have also appealed to consumers. Promotional campaigns that have highlighted the nutritional goodness of frozen foods have similarly helped to bolster market sales.

Merger and acquisition activity have been a feature of the UK frozen foods market for some years and this trend has continued in 2009, following the acquisition by Dr. Oetker (UK) Ltd of the European frozen pizza business of the US Schwan Food Company (which included the Chicago Town brand) and the acquisition by Foodvest of the Findus licence in the UK from the previous license owner Newcastle Production Ltd (formerly Findus Ltd), which went into administration in January 2009. Further consolidation activity is likely to be witnessed in the market later in 2009 and beyond.

The market for frozen foods performed strongly in 2007 and 2008, and this upward trend is expected to be repeated in 2009. A contracting economy, falling disposable income, rising unemployment and increasing taxes will all result in a tightening of household budgets and lead consumers to
look to higher-value, lower-wastage foods including frozen foods. Food price inflation will also continue to affect the market value, although market-specific factors — including new product innovations, increasingly positive consumer attitudes towards frozen foods and the healthy image that
is associated with some sectors of the frozen foods market — should all aid sales growth.

Content

1. Market Definition
REPORT COVERAGE

MARKET SECTORS
Meat and Meat Products
Fish and Fish Products
Ready Meals (Excluding Pizza)
Ice Cream
Poultry and Poultry Products
Potato Products
Vegetables and Fruit (Excluding Potatoes)
Pizza
Cakes and Desserts
Vegetarian Foods

MARKET TRENDS
Sales of Frozen Foods Benefit from the Recession
Image of Frozen Foods Changes
New Product Development Remains Central to Sales Growth
High Food Price Inflation
Table 1.1: Percentage Change in Retail Price Index for Food (Excluding Seasonal Items) by Product, Year Ending December 2008
Branded Sector of the Frozen Foods Market Becomes More Concentrated

ECONOMIC TRENDS
Population
Table 1.2: UK Resident Population Estimates by Sex (000), Mid-Years 2004-2008 Gross Domestic Product
Table 1.3: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2004-2008
Inflation
Table 1.4: UK Rate of Inflation (%), 2004-2008
Unemployment
Table 1.5: Actual Number of Unemployed Persons in the UK (million), 2004-2008
Household Disposable Income
Table 1.6: UK Household Disposable Income Per Capita (£), 2004-2008

MARKET POSITION
The UK
Table 1.7: UK Household Expenditure on Frozen Foods and Household Consumption Expenditure on Food and Drink at Current Prices (£m at rsp and %), 2004-2008
Overseas

2. Market Size
THE TOTAL MARKET
Table 2.1: The Total UK Frozen Foods Market by Value at Current Prices (£m at rsp), 2004-2008
Figure 2.1: The Total UK Frozen Foods Market by Value at Current Prices (£m at rsp), 2004-2008

BY MARKET SECTOR
Table 2.2: The Total UK Frozen Foods Market by Sector by Value at Current Prices (£m at rsp and %), 2008
Meat and Meat Products
Table 2.3: The UK Frozen Meat and Meat Products Sector by Value at Current Prices (£m at rsp and %), 2004-2008
Fish and Fish Products
Table 2.4: The UK Frozen Fish and Fish Products Sector
by Value at Current Prices (£m at rsp and %), 2004-2008
Ready Meals (Excluding Pizza)
Table 2.5: The UK Frozen Ready Meals (Excluding Pizza) Sector by Value at Current Prices (£m at rsp and %), 2004-2008
Ice Cream
Table 2.6: The UK Ice Cream Sector by Value at Current Prices (£m at rsp and %), 2004-2008
Poultry and Poultry Products
Table 2.7: The UK Frozen Poultry and Poultry Products Sector by Value at Current Prices (£m at rsp and %), 2004-2008
Potato Products
Table 2.8: The UK Frozen Potato Products Sector by Value at Current Prices (£m at rsp and %), 2004-2008
Vegetables and Fruit (Excluding Potatoes)
Table 2.9: The UK Frozen Vegetables and Fruit (Excluding Potatoes) Sector by Value at Current Prices (£m at rsp and %), 2004-2008
Pizza
Table 2.10: The UK Frozen Pizza Sector by Value at Current Prices (£m at rsp and %), 2004-2008
Cakes and Desserts
Table 2.11: The UK Frozen Cakes and Desserts Sector by Value at Current Prices (£m at rsp and %), 2004-2008
Vegetarian Foods
Table 2.12: The UK Frozen Vegetarian Foods Sector by Value at Current Prices (£m at rsp), 2004-2008

OVERSEAS TRADE
Meats
Table 2.13: UK Exports and Imports of Meat by Type by Value (£m), 2004-2008
Poultry
Table 2.14: UK Exports and Imports of Poultry by Value (£m), 2004-2008
Table 2.15: UK Exports and Imports of Poultry by Selected Country by Value (£m), 2008
Frozen Fish
Table 2.16: UK Exports and Imports of Frozen Fish by Value (£m), 2004-2008
Table 2.17: UK Exports and Imports of Frozen Fish
by Selected Country by Value (£m), 2008

3. Industry Background
RECENT HISTORY

NUMBER OF COMPANIES
Table 3.1: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Processing and Preserving of Fish and Fish Products, Fruit and Vegetables, and Potatoes, the Manufacture of Ice Cream and the Production and Preserving of Poultry Meat, 2004-2008
Table 3.2: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Processing and Preserving of Fish and Fish Products, Fruit and Vegetables, and Potatoes, the Manufacture of Ice Cream and the Production and Preserving of Poultry Meat by Turnover Sizeband (£000 and %), 2008

EMPLOYMENT
Table 3.3: Employee Numbers in Enterprises Engaged in the Processing and Preserving of Fish and Fish Products, Fruit and Vegetables, and Potatoes, the Manufacture of Ice Cream and the Production and Preserving of Poultry Meat (000), 2004-2008
Table 3.4: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Processing and Preserving of Fish and Fish Products, Fruit and Vegetables, and Potatoes, the Manufacture of Ice Cream and the Production and Preserving of Poultry Meat by Employment Sizeband, 2008
REGIONAL VARIATIONS IN THE MARKETPLACE
Table 3.5: Distribution of UK VAT- and/or PAYE-Based Local Units Engaged in the Processing and Preserving of Fish and Fish Products, Fruit and Vegetables, and Potatoes, the Manufacture of Ice Cream and the Production and Preserving of Poultry Meat by Government Office Region, 2008

DISTRIBUTION
Table 3.6: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Storage of Frozen and Refrigerated Goods, 2004-2008
Table 3.7: Distribution of UK VAT- and/or PAYE-Based Local Units Engaged in the Storage of Frozen and Refrigerated Goods by Government Office Region (number and %), 2008
Figure 3.1: Distribution in the Frozen Foods Market by Type of Outlet by Value (%), 2008
HOW ROBUST IS THE MARKET?
Table 3.8: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Processing and Preserving of Fish and Fish Products, Fruit and Vegetables, and Potatoes, the Manufacture of Ice Cream and the Production and Preserving of Poultry Meat by Age of Business, 2008

LEGISLATION
Quick Frozen Foodstuff Regulations
Other Legislation
Food Hygiene Regulations 2006
Food Safety Act 1990
Ice Cream

KEY TRADE ASSOCIATIONS
British Frozen Food Federation
Food and Drink Federation
The Ice Cream Alliance
Other Associations

4. Competitor Analysis
THE MARKETPLACE

MARKET LEADERS
Bernard Matthews Ltd
Birds Eye Ltd
Dr. Oetker (UK) Ltd
Farmfoods Ltd
HJ Heinz Frozen and Chilled Foods Ltd
Iceland Foods Group Ltd
McCain Foods (GB) Ltd
Newcastle Production Ltd
Northern Foods PLC
R&R Ice Cream UK Ltd
Unilever PLC
William Jackson & Son Ltd
Wrigley Candy UK
Young’s Seafood Ltd
Other Companies

OUTSIDE SUPPLIERS
MARKETING ACTIVITY
Main Media Advertising Expenditure
Table 4.1: Main Media Advertising Expenditure on Frozen Foods (£000), Years Ending March 2005-2009
Frozen Vegetables
Table 4.2: Main Media Advertising Expenditure on Frozen Vegetables (£000), Year Ending March 2009
Ice Cream and Lollies
Table 4.3: Main Media Advertising Expenditure on Ice Cream and Lollies (£000), Year Ending March 2009
Frozen Ready Meals
Table 4.4: Main Media Advertising Expenditure on Frozen Ready Meals (£000), Year Ending March 2009
Fresh and Frozen Fish
Table 4.5: Main Media Advertising Expenditure on Fresh and Frozen Fish (£000), Year Ending March 2009
Fresh and Frozen Poultry
Table 4.6: Main Media Advertising Expenditure on Fresh and Frozen Poultry (£000), Year Ending March 2009
Fresh and Frozen Meat
Table 4.7: Main Media Advertising Expenditure on Fresh and Frozen Meat (£000), Year Ending March 2009
Frozen Pizza
Table 4.8: Main Media Advertising Expenditure on Frozen Pizza (£000), Year Ending March 2009
Exhibitions
Food and Drink Expo
The Ice Cream Alliance Exhibition
InterCool
International Food and Drinks Exhibition

5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

6. Buying Behaviour
CONSUMER PENETRATION
Table 6.1: Penetration of Selected Frozen Food Products (% of adults), 2008
Table 6.2: Frequency of Penetration of Selected Frozen Food Products (% of adults), 2008
Table 6.3: Penetration of Selected Frozen Food Products by Sex, Age, Social Grade, Region, Presence of Children and Marital Status (% of adults), 2008

HOUSEHOLD EXPENDITURE ON FROZEN FOODS
Table 6.4: Average UK Weekly Household Expenditure on Fresh, Chilled or Frozen Beef, Pork, Lamb, Poultry and Fish (£), Years Ending March 2004 to 2006 and Years Ending December 2006 and 2007
Table 6.5: Average UK Weekly Household Expenditure on Fresh, Chilled or Frozen Beef, Pork, Lamb and Poultry by Gross Income Decile (£), Year Ending December 2007
Table 6.6: Average UK Weekly Household Expenditure on Fresh, Chilled or Frozen Beef, Pork, Lamb and Poultry by Age Group (£), Year Ending December 2007
Table 6.7: Average UK Weekly Household Expenditure on Fresh, Chilled or Frozen Beef, Pork, Lamb and Poultry by Government Region Office (£), Year Ending December 2007
Table 6.8: Average UK Weekly Household Expenditure on Fresh, Chilled or Frozen
Beef, Pork, Lamb and Poultry by Place of Purchase (£), Year Ending December 2007

7. Current Issues
EUROPE
Food Labelling in the EU

POLITICAL FACTORS
Competition Commission Looks into UK Groceries Retailing
Review of Salt-Reduction Targets
The Office of Fair Trading Passes Dr. Oetker’s Takeover of Schwan’s Pizza Business

MARKET DEVELOPMENT
UK Foodservice Industry Urged to Switch to Frozen Foods

CONSUMER BEHAVIOUR
Frozen Food is a Good ‘Credit Crunch’ Choice for Consumers

CORPORATE ACTIVITY
ENVIRONMENT
Improving the Energy Efficiency of the Cold Chain
Environmental Targets of the Frozen Foods Manufacturers

8. The Global Market
OVERVIEW
Table 8.1: Global Sales of Frozen Foods by Country by Product by Value (£m), 2007
Table 8.2: Global Sales of Frozen Foods by Country by Product by Volume (000 tonnes/million litres), 2007

THE US

JAPAN
Table 8.3: Number of Factories Producing Frozen Foods in Japan, 2004-2008
Table 8.4: Production of Frozen Foods in Japan by Volume and Value (000 tonnes and ¥100m), 2004-2008
Table 8.5: Production of Frozen Foods in Japan by Market by Volume (000 tonnes and %), 2004-2008
Table 8.6: Production and Imports of Frozen Foods in Japan by Volume (000 tonnes and %), 2004-2008
Table 8.7: Per Capita Consumption of Frozen Foods in Japan (kilograms per year), 2004-2008

9. Forecasts
INTRODUCTION
The Economy
Population
Table 9.1: Forecast UK Resident Population by Sex (000), Mid-Years 2009-2013
Gross Domestic Product
Table 9.2: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2009-2013
Inflation
Table 9.3: Forecast UK Rate of Inflation (%), 2009-2013
Unemployment
Table 9.4: Forecast Actual Number of Unemployed Persons in the UK (million), 2009-2013
FORECASTS 2009 TO 2013
Table 9.5: The Forecast Total UK Frozen Foods Market by Sector by Value at Current Prices (£m at rsp), 2009-2013
MARKET GROWTH
Figure 9.1: Growth in the Total UK Frozen Foods Market by Value at Current Prices (£m at rsp), 2004-2013

FUTURE TRENDS
Further Consolidation in the Industry
Health Benefits Should Continue to Boost Sales

10. Company Profiles
Birds Eye Ltd
HJ Heinz Frozen & Chilled Foods Ltd
Mccain Foods (GB) Ltd
Unilever PLC
Wrigley Candy UK

11. Further Sources
Associations
Publications
General Sources
Government Publications
Other Sources
Key Note Sources
Understanding TGI Data
Number, Profile, Penetration
Social Grade
Standard Region