Frozen convenience products: market trends in recession environment
— 2009-12-25 —

 Stefano Vlahovic spoke at the VIII Adam Smith Forum saying that even in crisis conditions the frozen convenience foods market has demonstrated sustainable growth.
- Meat products account for almost 45% of the frozen convenience products market.
The growth in the market segment is primarily driven by demand for chicken meat products, which demonstrated the highest growth rates in the last two years.
2009 consumer trends indicate that increased supply and affordability for consumers have made a major contribution to such growth.
Crisis effects have not been too severe on the Russian foods market and while product price has become a major factor, consumers are not ready to compromise in terms of quality or their favored brands even despite a slight decrease in the number of product purchases.
Retail plays the leading role as a major distribution channel for frozen convenience products.
HoReCa segment has been the most severely affected distribution channel (-3%) as restaurant visits have become much less frequent occasions.
In the next two years purchasing power of consumers will largely determine the development rates for the market together with expansion of value for money offers, dependency on imports, general development of distribution systems and further development of modern retail trade formats. Russia still demonstrates a tremendous growth potential in consumption of frozen convenience products when compared to existing consumption rates in developed economies.
Analysts predict improvements in general economic environment in 2010-2011 and this will additionally support growth in demand for frozen convenience products, and specifically the demand for chicken meat products.