FROZEN EXPLOSION After last year’s sales boost, it seemed Kiwi shoppers were giving frozen food the cold shoulder – but if recent data is anything to go by, they’re not about to let it go. About 34% of New Zealanders rely on convenience products to make cooking quick and simple, meaning frozen foods are a valuable addition to any shopping list – one that sees one in three shoppers regularly reaching for them5. As well as this need for speed and ease, the lift in sales in recent years can be attributed to product innovations that align with our dietary demands and desire for discovery and indulgence, capturing interest across a broader spectrum of consumers.
The big chill Pravina Patel Insights Consultant Solutions & Innovation at IRI
16
Today, frozen food has reached $1.1 billion in annual sales and now makes up 7.4% of total pre-packaged groceries4, compared to 6.5% in 2019. The ‘at home’ trend in 2020 and ‘circumstantial consumption’ prompted by Covid-19 gave frozen foods a boost of 19.1%, trending ahead of total food and beverage sales in the grocery channel1. However, to date in 2021, the frozen aisle has been thawing out, with sales melting 7.5% on last year2. Consumers are coming back though, and the June period has seen a turnaround, improving 2.8%3 on last year and 20.6% compared to June 2019, leading to 1.3% growth in the latest 52-week period4.
FMCG BUSINESS - AUGUST 2021
Global flavours Perhaps a reflection of Aotearoa’s changing population, internationally influenced snacks and meals are an area of sustained attention in the frozen food aisle. Local consumers are willing to explore more diverse flavours, with 52% of Kiwis claiming they ‘like to try new ethnic foods’5. Asian buns and dumplings alone have risen 10.7%, with 27 new products launched in in the latest 52-week period. New Zealanders’ passion for DIY has even seen dumpling-pastry sales steaming 38.8% ahead of the equivalent period last year. Brands like Kungfood, Cartel and Elliott-Bateman, providers of frozen Asian, Mexican and Indian meals, have all experienced remarkable growth this year. And although it remains niche, the Asian influence is exerting itself on frozen desserts as well, with Lotte’s range of Yukimi Daifuku mochi products soaring 33% in the past 12 months4.
Big on bites Taking their cue from our love of ‘quick and tasty’, frozen ‘bites’ are big news. Launched in late 2020, Ingham’s Chicken American Bites are boasting sales of almost $700,000 in the past year; Howler