Frozen Food Market review by Damir Imamovic, Vice-President of PP
— 2011-10-03 —

 PP market study points out the current 2.7% market growth compare with the last year. The company expects slower 2.7% growth with potential 4% growth in 2012. However the leadership of low-cost product segment is still an indicator of unstable situation.
In the same time a new customer purchase pattern takes places and customers prefer quality over low end prices. PP focuses on this category and provides middle and upper class clients with high-quality natural products. Such products are labeled with “Natural” sticker and include such items like fillet-made or ready-to-eat products.
2010 trend identified that 43.9% are meat base product with pelmeni being only 27.5% of market share. Such tendency illustrates the customers’ preferences as well as link between meat industry section and finished product.
With potential meat quotes there is a chance of price raise which would affect final product price; however, the chicken meat is the product with minimal import dependency. Such situation could help local chicken meat hatcheries as well as offer constant development of chicken product industry. Chicken meat consumption reaches 50% of all frozen meat sector therefore PP would focus on further product line development, as well as adding beef and pork product line.
Frozen fish and seafood market is still being affected by economic crisis with latest product decline by 5.6%. According to study, fish market holds 10% of overall share with annual produce of 185 thousand tons.
Frozen fruits and vegetables sector declined by 9.5% in 2009 but did show a smaller 5% growth in 2010 with total produce volume of 175 thousand tons.
Frozen potato sector was the fastest one to grow by 9.4% and it returns its pre-crisis 63 thousand tons sales level.
Pizza, pasta, staffed meat products is a new potential sector where manufacture manages price increase by using a small amount of meat in such assortment. Currently such products represent only 1% of the market with 20 thousand tons of produce but they do have a potential to grow.