Rupert Ashby, chief executive officer, British Frozen Food Federation (BFFF)
BFFF (British Frozen Food Federation) members have faced and continue facing various challenges. Most notably, rising ingredients and labour costs continue to drive food inflation. Energy prices remain high by historical standards, which is having an impact on this energy-intensive industry. When you add to this the ongoing issues around importing and exporting goods to and from the EU, the challenges facing the frozen food sector are immense.
Additionally, the coronavirus pandemic generated challenges and opportunities for the frozen food industry. It accelerated the growth of remote and hybrid working, meaning people spend more time at home. This allows frozen to be a choice for the lunchtime meal occasion.
Birds Eye marketing director Jim Shearer stated, "There's been 19 percent growth of lunchtime occasions featuring frozen food in the past two years."
The cost-of-living crisis has significantly affected consumer spending habits, with more shoppers buying frozen food to help increase their budgets. According to Which? Consumers can achieve up to 86 percent savings when buying frozen over fresh. Moreover, the cost of eating out in Britain has risen by almost 15 percent over the past year. As shoppers have less disposable income to spend on luxuries such as restaurant dining, shoppers are trading up to more premium frozen offerings for special occasions and weekend treats.
Despite the industry facing many challenges, our recent independent research, aimed at gaining insight into shopper habits, unveiled that two in five consumers (38 percent) now buy more frozen food than last year.
We expect the frozen food industry will face immense challenges in 2024. However, when we look to the future, the frozen aisle will continue to provide shoppers with value for money, exciting innovation and health-conscious products that will remain a firm favourite among consumers and appeal to a growing customer base.
There is an increasing number of consumers embracing vegetarian and vegan lifestyles. According to statistics from YouGov, as of the 12th of July, 2023, vegans, vegetarians, and flexitarians account for 21 percent of the British public. With the growing interest in this type of diet has come a diverse range of frozen food that makes vegetables and meat alternatives the star. Delicious vegetable spring rolls, crispy bang bang cauliflower bites and sweet potato falafel balls are just a few options that cater to all tastes and requirements.
The shift towards healthier eating is undeniable. More consumers are on the hunt for mouth-watering meal options that are healthy and nutritious. According to Public Health England, approximately 61 percent of people are now looking to consume healthier foods. Freezing food locks in vital nutrients, vitamins and flavours, preserving the quality and taste of foods for much longer. Fresh and chilled foods, however, lose their nutritional value over time. Frozen food, therefore, offers shoppers excellent value without compromising on quality. We have seen many brands and retailers react to this shift, and there is now a more comprehensive array of frozen foods that combine health-conscious considerations with vibrant flavours.
We have seen more AB shoppers buying frozen and expect to see further innovation and variety in premium frozen products as consumers continue to swap eating out for eating at home to save money. The need to tighten belts amidst the cost of living crisis and the growing demand for healthier eating has helped categories such as frozen fish emerge as a standout choice for savvy shoppers seeking value for money and quality.
In our ever-globalising world, culinary diversity is key, and the frozen aisle now offers a wide array of dishes from various cultures and cuisines worldwide. Frozen food is no longer limited to British freezer staples like potato smiley faces and turkey dinosaurs. Gyoza's, bao buns and Korean fried chicken are just a few foods that now feature in the frozen aisle and accommodate a much more diverse range of preferences.
Implementing the Border Target Operating Model (BTOM) will be a massive challenge for UK food manufacturers in 2024. When we departed from the EU, the promise of frictionless trade with Europe was made. Yet, the current reality falls vastly short of that commitment, and the continuous postponement of the regulations is causing our members unnecessary frustration and costs.
The eventual implementation of the BTOM will introduce an entirely new layer of complexity, delays, and increased costs for our members and trade partners, upon whom we depend significantly for our food supply. Moreover, it may deter some EU exporters from servicing the UK market, favouring markets with fewer trade barriers. However, when implemented, the BTOM will be a positive step towards stabilising post-Brexit trade relations. These controls will ensure our environment is better protected and food is delivered that is safe to eat whilst maintaining security of supply for consumers.
We, the BFFF, have consistently emphasised a straightforward solution for restoring the efficiency and cost-effectiveness of our two-way food trade without rejoining the EU. This solution lies in establishing a Common Veterinary Agreement, which would formalise the UK's commitment to the food standards it currently upholds for trade with the EU.
Additionally, introducing a 'red and green lane' system, intended to remove the burdens of East-West trade by freeing them of unnecessary paperwork and checks, will also be a significant challenge for the frozen food industry in 2024. Certain high-risk products, such as meat, dairy, and composite goods, must be labelled "Not for EU" to use the' green lane'. This labelling requires a phased approach, and the products included in each phase will have a mere 30 days to comply. This is impractical and, in many cases, simply not feasible. Whilst the Government provides a financial support scheme to help businesses with the costs of producing compliant packaging, this funding is only available during the scheme's first phase.
Many questions continue to be unanswered, and issues remain unresolved. Going into 2024, the industry needs more effective consultation, the absence of clarity, and the prospect of having to work with what seems like a rushed and ill-thought-out system.
Due to environmental concerns, consumers are calling for a more sustainable supply chain as they become more aware of the impact of their choices on the planet. UK households waste a staggering 4.5m tonnes of food every year. The most common reasons for food waste are fresh foods being left in the fridge until they become inedible or simply cooking too much.
Opting for frozen food offers a solution for reducing food waste in two ways. Firstly, its longer shelf-life affords consumers more time to consume their food before it spoils. Secondly, frozen produce can be easily portioned, meaning consumers can cook what they need and store the rest. By reducing food waste, it is estimated that we could reduce global greenhouse gas emissions by up to 10 percent, and an average family with children could save approximately £720 per year.
Frozen food generally has a lower price than its fresh and chilled counterparts. There is a common misconception that this is because frozen food is of poorer quality and taste. However, one of the critical reasons fresh food is more expensive is that it is highly perishable and has a short shelf life compared to frozen food. This means that there is more flexibility in the frozen supply chain. Fresh food must be quickly transported to its end destination, meaning expensive forms of transport, such as air freight, are used. Producers and retailers must also account for fresh produce being damaged or spoiled before selling. As a result, chilled food has a notably higher markup than frozen. Frozen food offers value for money without compromising quality or taste.
Entries are now open for the prestigious British Frozen Food Federation (BFFF) Annual Awards. Celebrating excellence in the frozen food industry, the awards feature an array of categories highlighting the diverse and innovative products available in retail and food service sectors, with three new categories for 2024. Highlighting the evolutionary nature of the category, new retail categories are for pet food, bakery, morning goods, and frozen drinks.
With a commitment to recognising outstanding achievements, the awards serve as a platform to showcase the latest frozen product development. Retail category submissions are due by the 1st of December 2023, while the food service category will remain open until the 16th of February 2024.
See more insights from the 2024 Buyer's Guide below:
