Growth in Frozen Begins to Slow Down

The retail frozen market is now beginning to show signs of slowing down with the market to the 52 weeks ending 21^st March now showing value growth of 1.6% year on year whilst the market is worth just over £5.1 billion.  The latest data is kindly supplied by Kantar Worldpanel.

The ice cream market continues to show significant value growth at 5.2% year on year and even more impressive volume growth of 6.0% year on year.  Whilst coming out of two really awful summers can only help ice cream the market continues to move more and more upmarket as consumers turn to premium products as a well deserved treat.

The frozen fish market shows value growth of 2.6% year on year whilst volume is down 1.2%.  There has been great activity in the market place with Birds Eye and Young’s launching new higher value premium products.

The biggest sufferer from a volume point of view is the meat and poultry sector which has declined by 7.7% year on year.  The sector has suffered from high inflation as both sterling and import quotas impact costs.  This sector will be hoping for a good summer, at long last, to help boost sales in the barbeque season.

Most markets suffered in January and February because of the very poor weather with consumers unable to shop as frequently as the previous year and it is evidenced in the frozen food market with nearly all of the product sectors showing small year on year increases of between 1% - 2%.

In recent months markets have been changing with premium products beginning to reassert themselves whilst the fear factor of spending by consumers begins to recede a little.

However now that the general election has been called for 6^th May many people will be casting their eyes to the second half of the year to see, whichever party that wins, if indeed there is a clear winner, how they will tackle the record deficit.

Many people believe that the level of pain to be suffered, whether through reduction in public spending or increases in taxation, or most likely a combination of both will take its toll. 

It may well be not until the second half of the year before a clear picture emerges as to how consumers behave and whether the return of confidence of consumers has been short lived or not.