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United Kingdom chilled processed food market: £10 billion industry in 2012

Press Release   •   Feb 19, 2013 17:27 GMT

Private label dominates the United Kingdom chilled processed food market, with Tesco Plc at the top of the pile with expected 2012 value share of 20%. The next four ranking positions in this category are held by the other major grocery retailers, giving private label an overall 73% share. In response to the higher price points of chilled foods in the UK, the private label segment has established a strong leading position. All the grocery retailers will see growth in value share in 2012, no doubt boosted by the continuation of their aggressive approach to store development as well as product development. They have also undoubtedly benefited from their monopolisation of the supply chain, and the strong consumer emphasis on discounts in the current economic climate.

Expected value growth of around 3% is around the average growth rate since 2004, indicating that 2012 has not been an especially bad year for chilled food. It is however the slowest growth since 2006, indicating a lack of confidence in the market. This has been a slow year for new product developments as competition has centred more on price than on innovation.

Chilled processed food is forecast to perform significantly better than the other areas of processed food, not least because it is in competition with these other areas and is performing better. The trend has been in place for a while that consumers are turning towards chilled foods because they prefer the freshness guaranteed by chilled foods that they do not get from frozen or dried processed foods, for example. Similarly, chilled processed foods have the advantage of being seen to be healthier than other sectors of the market, and there are many products in chilled processed foods that simply cannot exist in frozen, dried or canned format, and which are considerably better-for-you products.

Key Headlines

- Chilled processed food grows by 3% to reach £10 billion in 2012
- Chilled processed food continues to struggle against ready meals in its fight for growth
- Chilled Soup sees the highest volume and value growth in 2012, of 2% and 6% respectively
- Unit price increases in 2012 to £7.10
- Private label dominates the chilled sector with Tesco reaching 19% value share in 2011
- Chilled processed food is forecast to grow 3% per annum over the forecast period

For more information on the United Kingdom chilled processed food market, please click here: United Kingdom chilled processed food market

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