Online to benefit frozen food

Decades of growth in supermarkets and hypermarkets have come to an abrupt end in most markets over the past few years. However, Rabobank believes the rise of new channels – online, hard discount and convenience stores ­– will provide exciting growth opportunities for frozen food manufacturers. According to its latest report Europe’s New Ice Age, Rabobank foresees growth opportunities for the frozen food market, with a base case scenario where frozen food will over-index overall food growth by almost 50% by 2030.

“In Europe, frozen food sales have a lot of upside potential in online, discount and convenience store channels, as these channels are still relatively immature,” explains Rabobank analyst John David Roeg. “Channel and category scenario analysis show that frozen food has the potential to almost double its sales growth rate in the next decade.”

Many online grocery retailers are not yet fully focusing on frozen food, as they are still in the process of fine-tuning their supply chains and delivery processes. Once online channels achieve more scale and further professionalise supply chains and delivery services, frozen foods are likely to benefit even further.

In addition, the growth in discount stores and convenience stores should also benefit the frozen food market. As retailers increasingly focus on both fresh and frozen food categories, the hybrid consumer will gradually come to appreciate frozen food, which is a more economical alternative.