Global Chilled Food Industry
The global chilled and deli food industry recorded 4% growth in 2010 to exceed $472 billion, according to research from MarketLine. The market is expected to generate close to $575 billion in 2015, representing almost 22% growth in five years.
The global chilled and deli food market is expected to reach a volume of 57 billion kilograms in 2015, representing more than 12% growth in five years. This industry involves the retail sales of chilled fish/seafood, chilled pizza, chilled ready meals, chilled fresh pasta, sandwiches, salads, chilled meat products and deli food, which includes cured, fermented and cooked meals.
Key Segments
- Chilled meat products represent the largest market segment in the global chilled and deli food industry, accounting for 38% of the overall market in terms of value, according to MarketLine.
Industry Leaders
- Brasil Foods is the number one company operating in the global chilled and deli food market, with a 6% share in the overall market, reports MarketLine.
Regional Market Share
- The EU holds just over 42% of the world market for chilled and deli food, estimates MarketLine. In Western Europe, there is intense rivalry between the frozen and chilled food sectors, reports LeatherHead Food Research. Over recent years, the frozen market has been driven by sectors such as pizza and ready meals. The economic recession also boosted demand as consumers looked for cheaper meal options such as frozen meals. Growth has begun to taper off to a degree, though chilled foods seem to be perceived as the better option over frozen food for quality and choice.
- In the UK chilled and deli food market, the pizza and ready meals sectors are dominated by own-branded products but in the yoghurt products sector, brands are more dominant, with higher presence of discounting and promotions, reports KeyNote. The market has a combination of small UK-based outfits, smaller companies specialized in premium products, and large global companies all operating together. In the yoghurt and dessert sectors, large brands such as Müller and Nèstle operate alongside large outfits such as Bakkavör producing own brand products. Other outfits such as Greencore and Northern Foods produce both branded and own-brand products.
- The UK chilled foods sector is expected to record steady growth over the coming years, driven by rising commodity prices. When inflation levels begin to ease in around 2013, the market should see volume sales rise.
- In Germany, the chilled and deli food industry was worth almost $36 billion in 2009, having maintained close to 2.5% yearly growth for the four preceding years, reports MarketLine. Market growth is expected to slow to a yearly rate of just over 1.5% between 2009 and 2014 to reach almost $39 billion.
- The Asia-Pacific region’s chilled and deli food industry was worth almost $147 billion in 2010, having recorded yearly growth of 7% for the four preceding years, according to research from MarketLine. Deli food represented the leading market segment in 2010, worth close to $72 billion, accounting for 49% of the overall market in terms of value. Market growth is expected to accelerate to a yearly rate of more than 7% between 2010 and 2015 to reach almost $207 billion.
- Asia’s chilled foods companies sell through new networks using hypermarkets, with organized supermarket chains fuelling chilled food sales. Due to rising disposable income, demand for more expensive chilled foods is growing among urban consumers, who are using a wider array of products in their cooking and varying their eating habits.
- The US chilled and deli food industry recorded yearly growth of close to 3% between 2006 and 2010 to reach almost $59 billion, reports MarketLine. Chilled meat products represented the leading market segment, exceeding $24 billion in 2010, accounting for more than 41% of the overall market. Market growth is expected to slow to a yearly rate of almost 2.5% between 2010 and 2015 to reach almost $66 billion.
Market Outlook
The global chilled and deli food industry has benefited from cultural changes and technological advancements in recent years. The range of frozen and chilled meals available to consumers has also grown significantly, allowing consumers to vary their eating habits and experiment with new types of meals. Ready meals are also being marketed as a cheaper option to eating out, proving popular with consumers lacking in free time but not wishing to spend on expensive meals out.
Moving forward, manufacturers are likely to concentrate on adding healthy options to their product offerings by reducing fat and salt content in these products.
Leading Industry Associations
- National Frozen and Refrigerated Foods Association www.nfraweb.org
- American Frozen Food Institute www.affi.org
- British Frozen Food Federation www.bfff.co.uk
- Thai Frozen Foods Association www.thai-frozen.or.th
- Chilled Food Association (UK) www.chilledfood.org
