Positive outlook predicted for chilled foods
Research and Markets has added the Chilled Foods Market Update 2015 report to its offering.
This market update examines the UK market for chilled foods. In 2014, the market continued to exhibit year on year growth, with total market value increasing by 3.6% from 2013. This growth was spread across the majority of market sectors, with sectors such as chilled ready meals and chilled salads both exhibiting healthy growth.
The chilled pizza sector grew at the most substantial rate in 2014; the sliced cooked meats category consolidated its leading share of the overall market and the fresh soup sector remained the smallest operating in this market. The only category to exhibit decline in 2014 was the chilled cakes and desserts sector, wherein volume sales have been restricted by the media’s focus on the health dangers associated with overconsumption of sugar, says the company. Across the whole chilled foods market, in fact, the issue of health is exerting a key driving influence on buyer behaviour, it believes. The UK consumer base is becoming increasingly health conscious based on regular exposure to dietary advice and growing concern over the obesity crisis. During the week, when the demand for convenience is also most pronounced, consumers are increasingly trying to eat more healthily, making indulgences over the weekend more justifiable. This has significant implications for the chilled foods market, given the broad range of both healthy and unhealthy products therein.
Consumer trust remains low in this market, with concern over the potential for food fraud within overly complex supply chains remaining high. This is affecting the relationship between price and quality within the context of a gradually developing economic recovery. Chilled food products are widely perceived to be of superior quality to frozen competitors and consumers are increasingly willing to pay a little extra for this quality. Nevertheless, the rate of inflation remains high and some consumers still cannot afford to trade up to the chilled foods market, limiting potential sales.
Given that inflation is expected to remain high throughout the next five years, potential growth in the chilled foods market is likely to be somewhat restricted, Research and Markets predicts. Nevertheless, increasing consumer spending power among middle- and higher-income households in particular is driving the demand for high value premium goods. In addition, investment in new product developments is likely to increase as the economy stabilises, facilitating market progression.
Between 2015 and 2019, a healthy growth rate of 15.3% within the chilled food market is predicted.