The pandemic has changed the way people shop, perhaps permanently, and given frozen food sales a huge boost.
This is according to the new Frozen Food Report that reveals retail frozen food sales increased by £872m in 2020, and the value of frozen food sold in the UK stores is now worth £7.21bn after year-on-year growth of 13.8%. This compares to the total grocery market which grew 11.3%, and fresh and chilled at 9.3%.
The report, produced by the British Frozen Food Federation (BFFF), also found Generation Z (those born between 1997 and 2012) are 23% more likely to eat frozen food as they are attracted by the convenience and flavour of the growing range of vegetarian and vegan products on offer.
Whilst the retail market saw massive growth last year as consumption patterns changed dramatically, the hospitality sector suffered enormously due to lockdown. But while out-of-home spending dropped by £1bn per week in 2020, takeaway sales increased by 250%, and the report highlights how foodservice businesses have embraced technology to keep going.
BFFF chief executive, Richard Harrow commented: “It’s 10 years since we produced the first Frozen Food Report. In that time, the frozen food market has experienced impressive growth, improved quality perception and faced some of its greatest challenges.
“Since 2005 the retail market has seen a steady growth rate, achieving a 3.3% category average growth rate (CAGR) to reach a value today of £7.21bn. The market was boosted in 2020 by the pandemic lockdown, adding a massive £889m as sales moved from the foodservice market into the retail sector. Despite the challenges of 2020, and in some cases because of them, the UK’s frozen food industry continues to be a real success story.
“March 2020 was a record month for online penetration, which increased by 140,000 households, and further research in October found only 26% of shoppers stated they intend to revert to pre-pandemic shopping habits, with 55% saying they will never shop in the same way again. This means, potentially, 74% of shoppers will maintain their online shopping habits long-term.
“Another change in consumer behaviour is the frequency of shopping trips has declined overall, but increased for frozen, and basket spend is higher. Consumers are also looking for convenient products that will not spoil between shopping trips. This plays to the strengths of the frozen category and means we’re optimistic frozen will continue to grow its share of online purchases.”
