Michael Hussey, Consumer Foods Division, Bord Bia

According to Eurofood an increasing number of British consumers are buying frozen foods. Research carried out by Insight Track found that 81% of respondents who buy branded frozen food said they do so because of its “good taste and flavour” and 78% said because it is good quality. Some 9% of respondents state that they are purchasing more frozen food than they were 6 months ago and 10% are eating more food from the freezer. According to the research, consumers know that the freezing process locks in nutrients, helps minimise waste and the versatility of frozen food means it is easily incorporated into making great tasting meals.

In the US, according to Brand Week magazine, private label sales in the freezer sector has grown by 8.1% this year versus 2.1% for branded products. Mintel expects private label frozen food sales to continue to grow from the 20% market share level of today. Over the past number of years private label sales have grown strongly in the ice cream, desserts, fruits, juices and vegetables categories. This has given retailers more leverage over brands in these categories and has resulted in more selling under promotion or with price reductions to drive branded sales. However, national brands continue to drive most frozen food categories such as ready meals, pizza and frozen snacks through innovation and aggressive promotions.

According to private label brand broker, Daymon Worldwide, private labels in frozen foods will not continue to grow at the same rate as during the recession in the US but they will continue to grow. The implications for the frozen foods sector are that the recession has changed the way the consumer shops in the long term in that they are more value conscious and are more willing to buy frozen private label products.

Innovation and NPD offer opportunities for national brands to gain market share. Bord Bia can help with the innovation process. For further information contact your sector manager.