16 minute read
Strong Growth in Frozen Food
Convience and Innovation are Major Factors
The Global Frozen Food market continues to be affected by the Covid-19 pandemic. While people are slowly resuming typical routines, there remains a level of cautiousness and people are still spending more time at home. These trends have contributed to an increase of sales in the Frozen Food market.
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According to a recent report by Allied Market Research, titled, “Frozen Food Market by Product Type and User: Global Opportunity Analysis and Industry Forecast, 2020–2027,” the global frozen food market is projected to reach $404.8 billion by 2027 at a CAGR of 4.2% from 2020 to 2027. Driving this growth is not only pandemic shopping behaviors but changing preferences of shoppers who are looking for convenience, as well as an improved view of frozen food.
The American Frozen Food Institute’s (AFFI) 2021 "Power of Frozen" report notes that frozen food sales are still up from last year. Data shows that over the last 52 weeks ending in May 2021, frozen food sales were up 9.2% compared to the same period a year ago. Furthermore, during this same time period, frozen foods were still 22.6% above their 2019 pre-pandemic baseline. Frozen ready meals and seafood showed the highest grossing sales, with 6.7% and 13.8% dollar gains, respectively, over the previous year.
Even as consumers have had more time at home, preparing several meals daily can become tedious and time-consuming. Frozen foods help to resolve this issue, providing tasty, nutritious meals, ready in only a few minutes. Frozen foods also have a longer shelf life, which, during recent lockdowns, enabled shoppers to stock up on products and resulted in fewer trips to the market. Aside from pandemic purchasing behaviors, contributing to the increase in sales is the idea that in recent years, consumers have changed their perspective about the quality of frozen foods. Once viewed as bland, color-less foods with less nutrition than their fresh counterparts, frozen foods now are considered equal in taste and nutrition to fresh foods. This is in part due to consumers gaining knowledge of the process of freezing food, improvement in freezing methods, introduction of new, on-trend items and retailers overhauling their packaging to advertise the positive attributes of their products.
Trends within the Frozen Food market tend to be similar to fresh food. Consumers continue to look for products that are healthier, all natural, organic, free from added preservatives, and specialty such as vegan, gluten or dairy free. Additionally, as many consumers were in their homes longer than usual in the past year, snacking increased and shoppers continue to be drawn to items in snack sized portions. A desire to support local businesses and community, also spurred interest in items that are made with locally sourced ingredients.
Retailers across Europe and the US have taken note of Frozen Food’s increase in sales and are updating and expanding their private label offerings to cater to consumer trends. Retail powerhouses such as Aldi and Edeka in Germany; Tesco and Sainsbury’s in the UK; Carrefour and Casino in France; Conad and Coop in Italy; and H-E-B and Kroger in the US, all offer on-trend store brand Frozen Food items. Below is just a taste of the private label options at these retailers and supports the notion that the future is bright for frozen food, especially private labels.
GERMANY
Edeka
The Edeka Group, with headquarters in Hamburg, Germany, is the largest German supermarket corporation, holding 20.3% of the market share. Founded in 1898, the group currently consists of several cooperatives of independent supermarkets ranging from small markets to hypermarkets. According to reports, during the past year, the group’s sales rose by 9.5% to 61 billion euros. Under the name Edeka, there are approximately 3600 independent stores that showcase a strong private label program. Edeka’s private labels include Gut & Gunstig, Edeka Bio, Edeka Bio+Vegan, Edeka Selection and Edeka Wines.
Edeka is constantly innovating with its store brand portfolio. In 2020, the retailer joined the meat alternative trend and rolled out a new range of private label vegan burger patties and mince under the brand No Meat. The retailer noted that the patties are made of plant-based ingredients and imitate meat in taste, texture and flavor. The patties are available deep-frozen and fresh. Edeka also announced in August 2021, the rollout of a new private label brand of premium products that are marketed for festive occasions under the name 'Genussmomente'. Edeka’s goal with this new line is to provide customers with a festive experience through food. The line will showcase about 70 specialty products, which also includes frozen items such as a frozen dessert, an apple crumble ice cream which is geared towards the Christmas season. The dessert is made with vanilla ice cream in biscuit flavour, apple fruit ice cream with a subtle note of cinnamon, delicate caramel sauce, fine biscuits and pieces of semi-candied apple.
Keeping up with innovation and trends, Edeka Bio brand enables consumers to choose from organic and natural options such as Edeka Bio Vegetable Pizza. Consumers continue to snack and frozen food products available in snack sizes are convenient with a longer shelf life, providing shoppers with convenience and value. Edeka stocks its freezer aisles with an assortment of snack sized private label frozen foods. Options include:Gut & Gunstig chicken spring rolls, Gut & Gunstig meatballs in a caper cream sauce, and Gut & Gunstig mozzarella sticks, just to name a few.
Private label frozen fish fared well in sales over the past year, and Edeka provides shoppers with a plethora of selections including sustainable options such as Gut & Gunstig MSC Alaska breaded fillet, Gut & Gunstig MSC Redfish fillet, and Gut & Gunstig MSC Arctic prawns.
SAINSBURY’S
Founded in 1869, Sainsbury’s is headquartered in London and is the second largest chain of supermarkets in the UK. The pandemic shopping trends have helped Sainsbury’s growth, and according to reports, in the year ending March 2021, Sainsbury’s sales grew by 7.3 % to hold 15.3% market share. With over 1400 grocery retail locations in the UK, Sainsbury’s boasts a multitude of private labels under names such as: Taste the Difference, So Organic, My Goodness, Sainsuby’s Be Good to Yourself, Deliciously Free From, Sainsbury’s Basics and bySainsbury’s.
Sainsbury’s appeals to consumers by stocking its shelves with trending items at quality prices. In the past couple of years, Sainsbury’s launched several new meat alternatives as well as redeveloped 20 meatfree options including seven new Sainsbury’s Love Your Veg! ready meals and four redeveloped Sainsbury’s’ favourites which are now vegan. Shoppers can find frozen options such as Sainsbury’s Love Your Veg! Sweet Potato, Quinoa & Lentil Burger, and Sainsbury's Love Your Veg! Indian Inspired Lentil Quarter Pounders. For consumers sticking to healthy eating or need diet-specific foods, Sainsbury’s offers frozen items such as Sainsbury's Deliciously Free From Vanilla Iced Dessert, which is a coconut oil-based alternative to vanilla ice cream, Sainsbury’s Deliciously Free From Minced beef and tomato ragu layered between sheets of FreeFrom pasta and topped with béchamel sauce, Sainsbury's Be Good to Yourself Tomato & Basil Pasta-Penne pasta with tomato and basil sauce, topped with mozzarella cheese, which is low in fat and low in calories, and Sainsbury's Be Good to Yourself Cottage Pie, which also is low in fat and calories.
To satisfy snackers, the retailer’s options do not disappoint. Shoppers can choose from frozen snacks such as: Sainsbury's Indian Inspired Mini Selection, with 6 Vegetable samosas, 6 Onion bhajis and 6 Vegetable pakoras, and Sainsbury's Vegan Sweet Chilli Cauliflower Bites, just to name a couple.
FRANCE
Carrefour
Carrefour SA, with headquarters in Paris, was founded over 60 years ago. Carrefour SA is one of the world’s largest retailers and operates stores under more than two dozen names. The Carrefour umbrella consists of convenience stores, supermarkets and hypermarkets. Carrefour is one of Europe’s largest grocery chains with over 2000 supermarkets and more than 700 hypermarkets. As of April 2021, Carrefour holds about 20% of the market share. Its private label program is a driver of its sales, providing shoppers with a multitude of quality options at value prices. Its ownbrands include names such as Carrefour Market, Carrefour Bio, Carrefour Extra, Carrefour Original, Carrefour Classic.
Carrefour does not disappoint when it comes to its on-trend frozen items. In its portfolio it includes Organic options, ready meals, meat alternatives, snacks and health-focus products. Customers can find organic items such as: Carrefour Bio Frozen Atlantic salmon steaks from organic farming, Carrefour Bio pure beef ground steak which is sourced in France and is 100% organic beef, Carrefour Bio ratatouille, Carrefour Bio mini vegetable gratins, just to name a few. Carrefour caters to shoppers from a wide variety of countries and its frozen ready meals portray this diversity. Under the Carrefour brand, shoppers can find ready meals originating from many different cultures including: Carrefour Sensation couscous with vegetables, Carrefour moussaka, Carrefour Seared Thai with chicken and Carrefour halal Cheeseburgers.
As consumers slowly get back to going to a physical workplace, they may be looking for quick ready meals and Carrefour has them covered with its Plat Minut selections ready in only several minutes, with options such as Carrefour Plat Minut Creamed Rice and Fish, Carrefour Plat Minut Spaghetti Bolognese and Carrefour Plat Minut Tagliatelles carbonara.
Meat alternatives also grace Carrefour’s shelves with products including but not limited to: Carrefour Veggie Steak, Carrefour Veggie Lasagna Bolognese, and Carrefour Veggie Chili without meat.
COOP
Coop, headquartered in Casalecchio di Reno, a Province of Bologna, Italy, was founded in 1854. Coop is a system of Italian Consumers’ Cooperatives that operates retailers of various sizes, including Coop, a leading supermarket chain in Italy. According to the company, Coop with 2120 locations, holds 13% of the market share with a turnover of 14.3 billion euros. Its private label program is also strong, with 4823 SKUS, a 26.7% market share and a turnover of 2.7 billion euros. Coop’s private labels include Coop brand, Vivi Verde, fiorfiore, Solidal, Bene-Si, Origine, Crescendo, Amici Speciali, Casa, d’Osa, and io.
While Coop produces organic, Fairtrade and sustainable private label products, the company is dedicated to holistic sustainable behaviors. As witness, Coop recently announced that it would be joining the EU Commission’s code of conduct responsible for the food sector, illustrating its commitment towards sustainability. Coop is the only company in the Italian largescale distribution. The responsibility of the companies involved in the code of conduct “is to strengthen the transition towards sustainable food systems, also assuming voluntary quantitative objectives for environmental and social sustainability along the entire supply chain. A further step in the EU Farm to Fork strategy adopted in May 2020.” Coop’s products highlight the company’s values. For example, shoppers can find an assortment of private label frozen foods that are organic, locally sourced, and catering towards healthier lifestyles with meat alternative products and items that are free from harmful ingredients. Consumers can find healthier items under its Viviverde line and Bene Si line. For example, its Viviverde line provides an assortment of organic meat alternative products including: Frozen organic vegetable lasagna, Frozen soy dumplings with organic grilled vegetables, Frozen organic soy schnitzels, Frozen organic soy stew with peas and Frozen organic soy croquettes.
Shoppers can also find a healthier frozen pizza made from Kamut Khorasan wheat flour under the Viviverde line. Choices include, Frozen organic “Margherita” Kamut® pizza and Frozen organic grilled vegetables Kamut® pizza. Coop’s Bene Si line also offers options that also have healthy or special diet attributes such as gluten and lactose free, as well as functional foods that help consumers take care of themselves. Selections include items such as Soy ice cream made with vegetable ingredients, including 100% Italian GMO-free soy. Varieties include, Sweet milk with sour cherry swirls, Sweet milk with cocoa swirls, Cacao with Bittersweet chocolate swirls, and Chocolate and Hazelnut Ice cream, which is made with vegetable ingredients and lupine seeds, that are naturally lactose free. Furthermore, consumers who cannot tolerate gluten can choose from Frozen Gluten Free ready meals under the Bene Si line, with varieties such as: Lasagne Bolognese with béchamel, Ricotta and spinach ravioli with tomato and basil sauce, and Tortellini with ham filling and cheese sauce. Other gluten free products include items such as: Gluten Free Crispy Chicken Fillets, Gluten Free Mozzarella-stuffed Potato Croquettes, just to name a couple.
UNITED STATES
Kroger
The Kroger Group, which operates the United States’ largest supermarket was founded in 1883 in Cincinnati, Ohio. The group includes retail formats such as hypermarkets, supermarkets, superstores, department stores, and jewelry stores.
Kroger’s supermarket format has maintained a growth in sales, During the fiscal year 2020, Kroger added $10 billion to its top line. Sales totaled $132.5 billion, rising 8.4% from $122.29 billion in 2019. This year, its shares are up about 50%. Kroger holds about 10% of the food-at-home market share.
Kroger has a strong private brand portfolio which includes over 10,000 items under the names: Private selection, Kroger Brand, Hemisfares, Heritage Farm, Simple Truth, Simple Truth Organic, Comforts just to name a few. In recent news, Kroger continues its path towards sustainability. According to the retailer, it is “the first retailer in the world to offer a FREE and easy flexible plastic packaging recycling program for all of Our Brands.”The Kroger Co. is expanding its Simple Truth Recycling Program to include all private-label brands, including Private Selection, Kroger Brand, Comforts, Luvsome, Abound and more. The Kroger Our Brands Recycling Program encourages customers to mail in flexible plastic Our Brands packaging, including potato chip and snack bags, shredded cheese bags, frozen food bags, pouches, deli meat and cheese bags, grain and bean bags, as well as flexible plastic pet food packages. The list of eligible products can be viewed at Kroger.com. The program was developed in partnership with TerraCycle. Kroger claims that the Our Brands Recycling Program is the first program of its kind. Kroger continues to push innovation across its company and when it comes to product innovation and changes, Kroger indicates that it looks to which brands lead the way in sales to direct its attention. For example, in 2020, Kroger saw significant growth for its Simple Truth line which included organic and natural foods. Following this lead, the company expanded its offerings, launching 53 new items in 2020, including frozen foods.
Kroger’s private label frozen food options illustrates why its sales continue to climb. Shoppers can enjoy a variety of meat alternative products under its Simple Truth line, including items such as:
Simple Truth™ Plant Based Jackfruit Enchiladas, Simple Truth™ Plant Based Korean Style Meatless Meatballs, Simple Truth™ Tofu Pad Thai Frozen Meal, Simple Truth™ Meatless Crispy Tenders, and Simple Truth™ Meatless Breakfast Patties, just to name a few.
New to shelves are creative items such as a selection of Roman style pizzas including options: Private Selection Eggplant & Buffalo Mozzarella Rustic Pinsa Romana Frozen Pizza, Private Selection Focaccia Style Rustic Pinsa Romana Frozen Pizza, Private Selection® Goat Cheese & Crispy Bacon Rustic Pinsa Romana Pizza Although summer is over, consumers can still indulge specialty ice creams at Kroger, including: Private Selection® Strawberry Champagne Ice Cream, which has a glittering champagne ribbon and rosé fizzing rocks swirled with pink strawberry ice cream for a truly divine indulgence, Private Selection® Cannoli Ice Cream, Private Selection Orange Blossom Olive Oil Ice Cream.
Kroger also enables consumers who want milk alternative options to enjoy frozen desserts with options under its Simple Truth line, including: Simple Truth™ Maple Pecan Oatmilk Non-Dairy Frozen Dessert, Simple Truth™ Strawberry Graham Oatmilk Non-Dairy Frozen Dessert, Simple Truth™ Sea Salt Caramel Oatmilk Non-Dairy Frozen Dessert.
H-E-B H-E-B
H-E-B Grocery Company, based in San Antonio, Texas, was founded over 100 years ago. The retailer has more than 340 stores throughout Texas and northeast Mexico and is a market leader in Texas. According to reports from Forbes, at the end of 2019, H-E-B’s revenue was $31.2 billion dollars. Additionally, H-E-B was named Grocer of the Year in 2020 by industry publication Grocery Dive. H-E-B is committed to sustainable practices and employs various initiatives to help protect the environment, especially in Texas. The company aims to source locally and invest in its community. H-E-B’s private label portfolio exhibits this commitment and shoppers can find many items with locally sourced ingredients and have flavors that appeal to Texans. Store brands include: H-E-B Brand Products, H-E-B Select Ingredients, H-E-B Organics™ Products, Hill Country Fare Products, H-E-Buddy Products, Central Market Products, Cocinaware, and H-E-B Kitchen & Table.
H-E-B’s private label portfolio is expansive and diverse and caters to current trends. Its frozen food selections showcase its reach. Fulfilling the needs of busy consumers, the retailer provides an assortment of ready meals, from hearty meals to healthier lighter options. For example, shoppers can find ready meals such as: H-E-B Select Ingredients Texas Ranch Style Chicken Casserole, H-E-B Select Ingredients Smoked Brisket Tacos, H-E-B Select Ingredients Vegetable Lasagna, H-E-B Chicken Pot Stickers, among others. For those who are adverse to Gluten, H-E-B offers an alternative with its H-E-B Veggie MightyCrust Pizza, which is a thin and crispy crust made with real cauliflower, a rich and robust pizza sauce, top quality cheese and topped with peppers, onions and olives or its H-E-B Pepperoni MightyCrust Pizza, which features a thin and crispy crust made with real cauliflower, a rich and robust pizza sauce, top quality cheese and topped with uncured pepperoni. Also available are gluten free meat items such as: H-E-B Fully Cooked Natural Gluten Free Breaded Chicken Breast Chunks.
Breakfast options abound as well, making mornings more convenient. Options include, H-E-B Select Ingredients Flautas For Breakfast Sausage Egg & Cheese, H-E-B Fully Cooked Sausage Egg & Cheese Biscuits, Central Market Organics Mini Homestyle Waffles, just to name a few. Customers wanting organic or natural frozen foods can find several varieties of frozen meats at H-E-B, including: H-E-B Select Ingredients Fully Cooked Original Beef Burgers, H-E-B Fully Cooked Natural Southern Style Breaded Chicken Nuggets, H-E-B Fully Cooked Natural Buffalo Style Chicken Tenders, and H-E-B Frozen Natural Whole Young Turkey 16-20 lb, among others.
H-E-B maintains a focus on locally sourced foods and offers several frozen seafood items that are sourced from the Gulf. For example, shoppers can find items such as: H-E-B Raw Head, Tail and Shell-On Texas Raised Large Shrimp, 31-40ct /lb, H-E-B Raw Wild Gulf Large Shrimp, 31-40ct /lb.
LOOKING TOWARDS THE FUTURE
While the world still grapples with the Covid 19 pandemic, shoppers' habits don’t seem to be changing. This fares well for the frozen food market and it would behoove retailers to continue innovating and expanding their private label selections. If the above snapshot is an indicator of how retailers across Europe and the US are focusing on their private label frozen food programs, we are sure to continue to be able to enjoy on-trend, convenient, quality, price conscious frozen products.
