Trends

frozen food has been expereicning growth of more than 10% last year. overall, private
label grocery is gaining share over 26% by 2011 in EU. the industry expects recession
continuing to drive the market for the next 5 years, buyer behavior is likely to remain
heavily influenced by price and value promotion.
In 2013, the United Kingdom food retail industry is forecast to have a value
of $194.8 billion.
London is the most representative market as it contributes to 24.5% of overall sales for
Sainsbury.
Own brand products and organic food will lead to grocers’ growth
(Sainsbury’s Basics)

Convenience sector is a hot issue

(Small stores need brand awareness of big retailers)

Grocers to exploit space growth opportunities

(Take full advantage of space left vacant by collapsed retailers)

Internet shopping increasingly popular

Environmental issues will define marketing strategies

 Frozen food has been experiencing remarkable 10% growth rate last year.
 The industry expert is predicting the recession continues to drive the market for
the next 5 years, buyer behavior is likely to remain heavily influenced by price
and value promotion.
 Overall private label grocery is going to gain over 26% of marketing share by
20111 in EU. Another forecast is that by 2013, food retail industry will reach
value of 194.8 Billion pounds.

Consumer trends over the next 5 years

According to the industry survey conducted for this report, recession-related consumer
trends will still be important in determining demand in over the next five years. This is
indicative of the scale of the downturn and the effect it has already had on the grocery
business. The industry consensus view implies it will take many years before consumer
trends are more in line with those prevalent in the pre-recession environment.

Figure 5.20: Rating of importance of consumer trends over next five years
Source: Business Insights industry survey

Consumers will remain preoccupied with value-for-money and absolute prices over the
next five years. Value/price promotion-led buying is viewed as becoming more
important by some 63% of respondents. Roughly half of those surveyed believe trading
down price-wise and shopping in lower cost supermarkets will be more important over
the next five years.
Companies focused more on consumer grocery and not exposed to the
foodservice market are likely to continue to benefit from growth in home consumption.
Nearly 60% of those surveyed expect eating more at home to grow in importance as a
consumer trend over the next five years. More than half of respondents anticipate no
change in the importance of cooking from scratch over the next five years, suggesting
that growing home demand will be met primarily with processed foods.
The implication of the growing importance of price to consumers is that companies will
look to develop lower cost products and reduce current costs. These themes look set to
dominate the grocery sector, at least in the medium-term, and may well remain the
primary focus of strategy for much of the 2010s. The recession has fostered a growing
consumer culture of thrift, involving careful consideration of price, what is bought and
where they shop. There is a likelihood that this culture will persist after developed
economies return to growth.
 • As in previous recessions, private label grocery is gaining share as
consumers trade down. By 2011, private label share of grocery is
expected to grow to over 26% and close to 18% of the EU and
US markets respectively.
The industry expects recessionary consumer trends to continue to
drive the market for the next five years. Buyer behavior is likely to
remain heavily influenced by price and value promotions, and
consumers will still be inclined to trade down and shop at cheaper
supermarkets. Companies will nevertheless be able to benefit
from the ongoing development of home consumption

In 2013, the United Kingdom food retail industry is forecast to have a value
of $194.8
billion, an increase of 17.8% since 2008.
The performance of the industry is forecast to decelerate, with an
anticipated CAGR
of 3.3% for the five-year period 2008-2013, which is expected to drive the
industry to
a value of $194,819.4 million by the end of 2013.

The UK's online retailing is expected to grow at a fast pace. According to

industry reports, online sales in the
UK are expected to reach £44.5 billion ($75.7 billion) by 2012. In keeping
with this trend, Sainsbury operates
online home delivery shopping service, which currently operates from 169
stores. The company's online
operation annualizes as a £500 million ($850 million) business and delivers
over 100,000 orders a week.
Sainsbury is positioned to benefit from continued strong growth in retail
internet sales.

Client Press Releases

24 April, 2009
Frozen Food Bites Back At Recession

In the wake of the economic downturn it is apparent that frozen

food is becoming more important than ever. The latest figures
reported by the British Frozen Food Federation show that frozen
food sales are growing at a rate of 7% per annum, bucking UK
trends.

Research commissioned by Dorot Garlic and Herbs shows there is

far more we could be doing to get the most out of our freezers.
While an impressive 62% of respondents make food in bulk and
freeze it, a shocking 40% admit that their freezers are so badly
packed they don't even know what is at the back of them!

The survey also showed 83% waste vital freezer space by packing
them with foods that never get eaten.

Back in the seventies freezers became commonplace with the

baby boom generation embracing the concept of frozen food.
Popular frozen staples from the hippie era included fish fingers
and black forest gateau's, with the chicken nugget and humble
potato waffle also being introduced around this time.

Classics such as the Arctic Roll have seen a revival in recent times
however other modern day freezer pleasers look a little different.
Products commonly stocked these days tend to be slightly more
sophisticated with luxury ice cream, vodka and even pre-chopped
herbs appearing regularly - a far cry from the crispy pancake and
oven chip dinners of the seventies.

With the recession biting, the importance of saving money is more

crucial than ever so it is little wonder consumers are making
smarter choices. Brian Young, director-general of the British
Frozen Food Federation comments: "As consumers continue to
recognise frozen as a good value food source, sales are expected
to increase."

"Frozen meets the needs of any busy household as it is

convenient, economical, nutritious and tasty. We are excited that
more people than ever are now visiting the freezer aisle in order
to take advantage of the great value of frozen food."

The Dorot Garlic and Herbs range supports this trend by offering
consumers value for money as well as ease and convenience. The
pre-portioned cubes of crushed garlic, ginger, coriander, parsley,
basil and Italian mix have made short-life herbs a thing of the
past. And with the launch of the new Chilli flavour next month this
trend looks set to continue. Dorot has a shelf life of 24 months
and the frozen cubes retain vitality and freshness meaning flavour
and taste are not compromised.

Dorot cubes can be popped out and used straight from frozen,
injecting massive flavour with minimum effort. Plus with nothing
to chop or crush, hands, kitchen worktops and utensils stay free
from mess or odours - making for real convenient cookery.

Like all good trends, frozen food is back in fashion. And with
frozen being cheaper, longer lasting and more convenient, it's no
surprise that 65% of people wish they had an even bigger freezer.