Frozen Ready-Meal Sales Slide

By Charles, Gemma

The ready-meals market has gone into decline for the first time in more than a decade as concerns over healthy eating and the effects of celebrity chefs extolling the virtues of home cooking eat away at sales. Consumers’ busy and time-pressured lifestyles throughout the 90s and the early part of this decade had contributed to a boom in the market. However, it has now hit a plateau and even declined slightly, slipping from Pounds 2.029bn in 2006 to Pounds 2.024bn in 2007, according to figures from Mintel.

The decline has come primarily in the frozen-foods category, which is currently worth Pounds 448m, but is predicted to slip to Pounds 383m by 2012. By comparison, the chilled ready-meals sector shows continued growth, with sales expected to top Pounds 1.58bn by the year-end.

However, according to Mintel, the current economic downturn could stem the decline of frozen foods, which are cheaper and less likely to be wasted than chilled foods. Bird’s Eye, the UK’s biggest frozen- food manufacturer, hopes to improve sales through a tie-up with the Waste and Resources Action Programme (Marketing, 21 May).

Among ethnic food categories, growth of traditionally popular foods, including Chinese and Indian, have slowed, while newer categories, such as Thai, Spanish and Mexican cuisines, as well as premium ready meals, have surged in popularity.

Frozen foods: sales are predicted to slip to Pounds 383m by 2012

Copyright Haymarket Business Publications Ltd. Jun 11, 2008

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