The frozen foods market is worth £3.35bn in the latest year and is fairly static, down 0.3% in value year-on-year.
Volume sales (in kilograms) have also remained fairly static in the latest year, up slightly at 0.3%.
Ninety nine percent of all British households purchase frozen foods in a year. Market decline has therefore been driven by households spending less on frozen foods, currently £137.91 per household a year, down from £138.58 the previous year, due to less frequent shopping trips.
In expenditure terms, frozen meat products is the largest sector within the category, with a 26% share. It has contributed to the decline of the overall frozen foods market, experiencing a value decline of 3.3%.
The main sub-sectors driving this decline are defined meat/poultry products (such as slices) and defined chopped and shaped products (predominantly grills and steaks).
Birds Eye is the largest brand within frozen meat, reflecting its position in the market as a whole.
Of the five frozen food sectors, frozen confectionery is experiencing the steepest value decline, down 5%. This decline is down to the poor performance of cheesecake, tarts, pies, flans and bakery products (excluding cakes and pastries).
Frozen fish is the fastest growth area within the sector, up 2.8% in value. Battered fish, breaded fillets and fish fingers, the three largest sub-sectors, have driven this growth.
Young’s is the number one brand within frozen fish, but although it is experiencing stable growth, it is own-label products that are fuelling sector growth.
Tesco has the largest share of the market, reflecting its position as a top-line packaged grocery level.
However, as a specialist in frozen foods, Iceland, which holds the second largest share, continues to overtrade in the market against total packaged groceries.
Arada George, TNS Superpanel
Produced for The Grocer by TNS Superpanel. For more information call 020 8967 4521