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Chilled Foods Market Report Plus 2005
Key Note Publications Ltd, Dec 2005, Pages: 127
This Market Report Plus focuses on the UK chilled prepared foods market, which comprises the following sectors: cheese, yogurts and chilled desserts, ready meals, delicatessen meats, yellow fats, pizzas, dressed salads, savoury pastry products, cream and other chilled prepared foods. We estimate that, in 2004, the total UK chilled prepared foods market was worth £8.09bn at retail selling prices (rsp), a rise of 5.3% on 2003.
Growth in the chilled prepared foods market has been driven by a number of factors. A positive economic background — with an ongoing rise in personal disposable incomes from 2000 onwards — has manifested itself in the food market through greater demand for more convenient, better-quality foods. At the same time, interest in food of all kinds is stronger than ever, as a result of a rise in international travel, a thriving restaurant trade in international cuisines and strong media interest in cookery. This has encouraged the development of regional and speciality products. In addition, consumers are willing and able to pay for more convenient food options.
These trends have become apparent in the chilled prepared foods market with an ongoing programme of new product development (NPD), revamps and relaunches to engage consumer interest. Successful development of branding in areas such as healthy eating, premium, regional and other sectors has also played an important role. In particular, the growth of functional foods has driven development in chilled dairy products, including spreads, cheese and yogurt products. Organic and `free-from' ranges have also had an influence.
The chilled prepared foods market includes a number of the UK's largest food groups, such as Dairy Crest Group PLC, Unilever UK Foods Ltd, Uniq PLC, Northern Foods PLC and Nestlé UK Ltd. Many offer their own major brands, including Cathedral City, Flora and Ski. At the same time, retailer own-label brands are prominent in all sectors. Since the late 1990s, retailers have been successful in developing the quality image of their brands and adding to them with the introduction of sub-brands based on health, quality and other factors.
The chilled prepared foods market has been outperforming the food sector as a whole for a number of years. Consumers have viewed the chilled cabinet as a destination for convenience and quality, and suppliers have managed to generate and maintain interest through a developing and changing portfolio of products, as well as major brands. In addition, consumers are often willing to pay more for chilled products than for ambient or frozen versions of the same lines. As a result, in real terms, sales of chilled prepared products will continue to grow in the medium term.
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