Chilled food technology has had a very significant impact on the types of food eaten by consumers during the 1980s and 1990s. This method of food preservation has satisfied the desires of people for safe, reliable, ‘fresh’ products providing convenience despite the limited shelf-life. This introduction reviews the definition, range and market size of chilled food and indicates trends for the future. I.1 Definition Foods distributed under refrigeration and sold from refrigerator cabinets have been available for many years. Although there were many new chilled product introductions made during the 1970s, it was not until the 1980s that significant numerous and major technological developments for chilled foods occurred (Bond 1992). This trend continued throughout the 1990s with the major emphasis on value added, convenience and increasing consumer choice. This unprecedented activity during the 1980s and 1990s stimulated the production of good practice guides related to refrigerated or chilled foods. In 1990, the Institute of Food Science and Technology (IFST) defined chilled foods as ‘perishable foods which, to extend the time during which they remain wholesome, are kept within specified ranges of temperature above C01oC’ (IFST 1990). More recently the UK Chilled Foods Association (CFA) restricted the term to ‘prepared foods’ with the following definition ‘prepared foods that, for reasons of safety and/or quality, are designed to be stored at refrigerated temperatures (at or below 8C but not frozen) throughout their entire life’ (CFA 1997). Whereas the IFST definition emphasises ‘perishability’, the CFA Introduction The chilled foods market C. Dennis and M. Stringer, Campden and Chorleywood Food Research Association definition excludes non-prepared materials such as raw meat, poultry and fish and commodity dairy products such as butter and cheese which are also not considered ‘prepared’. The more general and broader definition of chilled foods has been used in compiling the content of this book, although some sections more appropriately only deal with prepared chilled foods as defined by the CFA. Food Products Intelligence (FPI) at Campden and Chorleywood Food Research Association (CCFRA) has been monitoring new UK food and drink product introductions since 1969. Its records of new products for the 1980s and 1990s illustrates the dramatic increase in the number of chilled products identified as new (Table I.1) with almost fourfold increases in the 1980s and again in the 1990s. The definition of ‘new’ used by FPI is one that appears in a major food retail outlet and is previously unknown to FPI or has been recorded by FPI but has been packaged in a different size/format which creates a new eating occasion or new consumer purchase. Frequent updates on new chilled foods entering the UK market-place are available from FPI together with full details of each product on the NewFoods CD-ROM 1 or via the internet (www.newfoods.com). Unlike other major technology sectors (e.g. frozen foods, ambient foods) the development of the chilled foods market in the UK has been dominated by own label brands for example Marks & Spencer, Tesco and Sainsbury. Approxi- mately 80% of new chilled foods introduced during the 1980s and 1990s were own label. In particular, Marks & Spencer with the St Michael brand is recognised by both the trade and the consumer as having pioneered the early development of chilled foods and for initiating many innovative product concepts which have since been built on and expanded by other brands. Chilled foods can be designed to be ready to eat, to be reheated (minimal heating before serving for organoleptic purposes) or to be cooked (thorough and Table I.1 Number of chilled product introductions in the UK market-place 1972 35 1975 86 1980 249 1983 535 1985 605 1988 774 1990 945 1992 1578 1994 2385 1997 2920 1998 3616 1999 3365 1 NewFoods: The UK new product database and visual guide on CD-ROM published by Blackwell Science, ISSN 1359–2971. 2 Chilled foods prolonged heating before serving for both safety and quality). Cooked chilled foods are sometimes wrongly referred to as ‘cook-chill’. This specific category of foods has been defined as a catering system based on the full cooking of food followed by fast chilling and storage in controlled temperature conditions (0– 3oC) and subsequent thorough reheating before consumption (Department of Health (UK) 1989). Cook-chill foods have a maximum recommended shelf-life of five days, inclusive of the day of cooking. I.2 Drivers in the chilled food sector The background to the market in the UK is provided by demographic trends shown in Table I.2. This shows the biggest areas of growth to be the 10–14, 35– 44 and 55–64-year-old age ranges. Against this background, there are a number of forces driving the market: ? convenience ? snacking ? healthy eating ? variety and choice ? taste ? the origins of food ? competition. It is reported that for 40% of eating occasions, convenience is the most important factor. The average home-cooked meal is estimated to take about 30 minutes to prepare. This has halved over the last decade (Anon. 1999a). Table I.2 Demographic trends in the UK 1992–2002 (Source: Office for National Statistics) 1992 1997 2002 (estimate) Age group Number Number Number (Total Percentage (millions) (millions) (millions) population) change (%) 1997–2002 0–4 3.8 3.7 3.5 6 C04 5–9 3.7 3.9 3.7 6 C05.4 10–14 3.6 3.7 3.9 7 5.7 15–24 7.9 7.2 7.4 13 2.9 25–34 9.2 9.1 8.1 14 C012.7 35–44 7.8 8.3 9.2 16 11.7 45–54 6.9 7.7 7.7 13 0.4 55–64 5.8 5.8 6.5 11 13.1 65+ 9.1 9.2 9.2 16 0.2 Introduction 3 The drive towards more convenience foods, such as ready meals, has reflected the decline in traditional home-prepared meals and the associated skills. Convenience is a specific need of the cash-rich time-poor consumer. This development is in part the result of the increase in the number of working women, single-parent and single-person households with limited time available for home cooking. Government estimates suggest that there are over 12 million women in full or part-time work in the UK, representing 45% of the total workforce. Also in the UK, demographic trends show particular growth in numbers of older children and their parents. It is these families in particular, with children at school and with a greater degree of independence, where there is most scope for women to undertake part- or full-time work. It is also in these families in particular that members have developed more independent and flexible patterns of eating. Such patterns have also been stimulated by the increase in microwave ownership and the dramatic rise in the availability of microwaveable foods, especially chilled foods (see Table I.3). This can be seen in the increase in ‘snacking’, eating more frequent small meals at varying times in the day. Research in 1998 suggested that 31% of UK housewives snacked between meals (Anon. 1998a). The trend towards snacking is also reflected in the decline of the single family evening meal, and the shift towards differing members of the family eating at different times. This development has also prompted consumers to look for a range of light, easy to use ingredients such as cheese spreads or salads, for example, which can be used to prepare a variety of quick snacks or meals tailored to the requirements and preferences of individual family members. Recent research also shows that the total lunch box occasions (i.e. prepared and packed lunch) have grown steadily over the past seven years, up by 21%, with sandwiches featuring in 81% of these. Children are estimated to consume 675 million sandwiches in the UK or 7% of total consumption (Anon. 1999b). A survey of 25,000 adults in the UK in 1997 found that 17% of all those surveyed and 22% of women in the survey were concerned about counting calories in their diet, whilst over half of all respondents claimed to have reduced fat intake in their diet. In the US, surveys also suggest that consumers are Table I.3 Different categories of chilled food product introductions in the UK market- place 1997 1998 1999 Total % Total % Total % Microwaveable 586 20% 818 23% 763 23% Healthy eating 296 10% 485 13% 526 16% Vegetarian 790 27% 1163 32% 1143 34% Organic 7 0% 78 2% 177 5% Childrens 90 3% 139 38% 128 4% Total 2920 3616 3365 4 Chilled foods concerned about nutritional issues, particularly information on calorie and fat content of food products (Bender 1992, Rodolfo 1998). The trend in attitudes in the UK has been for a slight reduction in concern about healthy eating since the early 1990s, but a large number of consumers remain concerned about levels of fat intake. This is noticeably true of the 35–44-year-old age range, which has a particularly high proportion of dieters. The overall picture is of consumers feeling more in control of their diet, looking for low-fat and low-calorie products but with a greater tendency to allow the occasional treat in what they eat. Consumers have also shown an increased interest in the origin and composition of food products and in their methods of production. After adverse publicity in the 1980s, consumers demonstrated an increased concern about the health implications of synthetic additives, related to a general fear of chemicals and their possible links to disease or allergy (Sloan 1986, Crowe 1992, Wandel 1997). This is reflected in increasing consumer pressure for fresh-tasting products with fewer preservatives and minimal preparation. During the 1990s there has also been a growing interest in more environmentally friendly and ‘natural’ methods of production, reflected in demand for organic foods (Jolly 1989). The FPI at Campden and Chorleywood Food Research Association recorded approximately 5% of the new chilled food products in 1999 as organic. Exposure to a wider range of cuisine, stimulated in part by the growth in overseas holidays, has encouraged consumers to look for greater variety and novelty in the food they eat. There has been much greater interest in ethnic food, reflected for instance in the growth in popularity of Chinese, Indian and other ethnic chilled ready meals. Britain’s younger generations are reported to be as familiar with ethnic food as with roast beef with nearly three-quarters of British households buying ethnic food (Anon. 1999c). Consumers are now more adventurous than ever, demanding variety and authenticity from the dishes selected. The flavours for the start of the new millennium are predicted to originate from South America (e.g. Cuba, Argentina, Brazil) to extend the hot and spicy trend (Sloan 1999). In tandem with this interest in variety, consumers continue to put a premium on taste and enjoyment of food. Recent research in the UK suggests that 21% of housewives ranked taste over other factors in what they ate, with 14% of respondents claiming to buy treats for themselves and their families at the weekend (Anon. 1998b). This interest reflects the relative decline in health concerns as a dominant factor in food purchases. This renewed emphasis on food as a treat or an indulgence has, for example, fuelled the expansion of the chilled desserts market. Competition in the chilled food sector has intensified, with the leading retailers increasing the range of own-label products, and an increasing emphasis throughout the sector on quality and value-added products. Table I.4 indicates the new product introductions by the major UK retailers during recent years and not only particularly highlights the leading position of Marks & Spencer in this sector, but also the high level of activity by some of the other major players. Introduction 5 Table I.5 summarises the key features of the UK chilled food market in the 1990s and highlights the importance of drivers such as convenience including microwaveability, snacking, healthy eating, ethnicity and vegetarianism. In addition, notable inclusions are products designed for home entertainment such as items for dinner parties as well as more informal type snacks and products specifically for children. These trends have developed from the extensive range of products available during the 1980s (Bond 1992). I.3 Overall market size In the UK, the chilled foods market for dairy products, meat products, ready meals, pizzas and prepared salads was valued at ￡5 billion in 1997, representing 6% of total grocery sales (Anon. 1998b). Forecasts are for continued growth at as much as 6% per annum, reaching a market value of over ￡6 billion by 2002 (Anon. 1998a; Anon. 1998b, Anon. 1997). The various chilled foods categories had the following shares of overall UK chilled foods sales in 1997 by value (Anon. 1998a, Anon. 1997: figures have been rounded to the nearest whole number): ? dairy products 70% ? meat products (excluding raw meat, poultry and fish) 15% ? ready meals, pizzas and prepared salads 15% (chilled ready meals 9%; pizzas 5%; prepared salads 1%). These categories show differing levels of growth in value over the period 1993– 7 ((Anon. 1998a; Anon. 1998b, Anon. 1997, IDF 1995): ? dairy products 17% ? meat products 30% ? ready meals 30–50% (differing estimates from Keynote and Mintel) ? pizzas 50% ? prepared salads 40% Table I.4 New chilled foods introduced by different UK retailers Retailer 1997 1998 1999 Marks & Spencer 528 575 502 Tesco 402 526 544 J Sainsbury 367 504 498 Safeway 222 390 326 Asda 364 408 414 Waitrose 306 433 354 Wm Morrison 200 222 213 Somerfield 179 196 192 CWS/CRS Retail 146 155 159 6 Chilled foods Table I.5 Product features of UK chilled foods market in the 1990s Product area Key product development Yellow fats Butter ? Increasing numbers of organic butters ? Biggest innovation has been spreadable butter Fat blends and spreads ? Spreads have been one of the success stories of the 1990s ? The aim to produce a ‘butter tasting’ product with low/or no cholesterol ? Olive oil products e.g. Olivio ? The move to functional products e.g. Benecol Cheese ? Cheddar still popular, the stronger flavours being most popular ? Regional varieties and flavour additions continue ? Healthy eating (specifically low fat) ? Innovation with cheese snacks e.g. Lunchables, Dunkers and Cheestrings – ideal for lunch boxes. ? Now large variety of imported cheeses ? Cottage cheeses follow the ethnic trends for flavour additions and healthy eating trends ? Organic varieties available Milk ? Overall, decline in milk consumption ? Health-conscious consumers have switched to lower-fat milks ? Few with added vitamins and aimed at specific groups of consumers (age groups) ? Flavoured milks are growing, aimed at younger consumers (in competition with soft drinks) ? Organic milks also available Poultry ? Gained more popularity during BSE crisis ? Processed poultry products, and crumb coated are popular with children ? Added value, marinaded chicken, particularly popular for the barbecue season ? Free range and organic also available at a premium Meat ? Leaner, smaller joints developed, more modern image ? Quick cook joints and presentations, component meals and recipe dishes – convenience ? Sausages declined during BSE crisis, but since then sausages have moved more upmarket and traditional – now more of a premium image ? Marinaded/added-value cuts available, particularly during the barbecue season ? RSPCA freedom food, animal husbandry, organic meats available Fish and seafood Fish ? Perceived as healthy, benefited from BSE crisis. ? Processed and crumb coated or battered aimed at encouraging children to eat more fish ? In store fishmongers, with trained staff to ‘educate’ and help consumers ? Salmon, once seen as a speciality, now farmed, are used in recipe dishes Introduction 7 Table I.5 Continued Product area Key product development Fish and seafood Seafood (continued) ? Increased in popularity. Convenience and further processing make seafood more attractive Dips, pa?te′ and spreads ? Products are convenient, no preparation and reflect trends seen across other food groups e.g. vegetarian, healthy eating, ethnic and traditional ? Lend themselves to the snacking culture ? Pa?te′s – especially fish are ideal for starters and entertaining, with the emphasis on presentation ? Sandwich spreads – quality and fresh ingredients to compete with the huge range of sandwiches now available ? Dips – ideal complementary products for crisps and snacks Pizzas ? A success story of the 1990s ? Huge range of different bases and toppings, reflecting some of the trends seen across all food groups i.e. vegetarian, healthy eating, children’s, ethnic ? Perceived as a snack, but also popular as a main meal ? Suits today’s lifestyles of minimum cooking and no preparation time Pastry products ? Pastry products still popular with the fillings reflecting vegetarian, healthy eating, traditional – poultry meat, fish and vegetables ? Many different formats and use of different pastries e.g. filo pastry ? Lattice topped became popular ? Individual pies as well as family pies – ideal for single-person households and snacking Recipe dishes and ready meals ? Indian, Italian and Oriental meals are outstripping traditional meals as popular alternative for consumers ? Kit meals such as Fresh Creations and Just Cook (packed individually and arranged together in one cabinet, so combinations can be selected) (from Sainsbury’s) enable customers to create restaurant-quality meals for two in 10 minutes ? More indulgent and up-market foods e.g. Tesco’s Finest and Marks & Spencer Cafe′ Specials for eating in rather than eating out ? Snack meals suit today’s lifestyles with family members eating different foods at different times. Vegetarian, healthy eating, children’s products. Easy, convenient, microwave, reheat ? Meat alternatives such as Quorn giving choice in basic raw material e.g. minced, cubed and in recipe dishes, and complete meals ? Poultry recipe dishes and ready meal new products now outnumber red meat Pasta ? Fresh pasta has grown in popularity, with the perception of it being ‘quicker to cook’ and ‘because it’s ‘‘fresh’’ it’s better’ ? Pasta and sauces create quick, convenient meals with that Mediterranean healthy image ? Filled pasta with an Italian-style bread is a quick-to-prepare meal Rice ? Many different ethnic styles to accompany the many different dishes from India, China, Thailand. Ready prepared and convenient for quick reheating in either the microwave or the oven ? More authentic styles as consumers become more knowledgeable 8 Chilled foods Table I.5 Continued Product area Key product development Rice (continued) ? Arborio rice (Italian risotto rice) eaten as a ready meal. The traditional dish is quite time consuming – microwave reheating makes this a very quick meal Salads, layered salads and deli dressings ? Ready prepared salad combinations now incorporate many different salad ingredients, e.g. raddichio, endive, rockette, lambs lettuce ? Fresh oil-based salad dressings are now also a feature of the chilled cabinet ? Pre-washed salads offer healthy, convenient product which can be tailored to today’s eating requirements ? All-year-round availability ? Ideal for sandwiches and replicating restaurant-style foods and presentations ? Organic possibilities ? Dressed salads, layered salads and deli-style salads reflect choice of ingredients, different styles of eating, snacking, healthy, vegetarian and ethnic flavours and styles ? Salad dressings – a huge variety of many flavours, reflecting ethnic influences and healthy eating Sauces Savoury ? Pasta sauces no longer a niche market – to accompany pasta which is convenient, easy to prepare, healthy and extremely versatile – fitting today’s lifestyles ? Many new flavour sauces - microwaveable in the pot ? Stir fry sauces, in many flavours and ideal for quick cook stir fries – again convenient, easy to prepare, healthy and extremely versatile Sweet ? Custard sauces – indulgent with cream and healthy eating versions now commonplace. Some flavoured varieties available ? Microwave reheat in the container for real convenience Cream ? Additions to the standard presentations of double, single and whipping cream have been clotted, extra thick, spooning, alcohol flavoured and low-fat cream alternatives. All these presentations are now commonplace – many alcohol varieties, some using dual branding, available at Christmas time Vegetables ? Again, convenience and quick preparation of fresh products at a price premium – suiting today’s lifestyles ? Ready prepared and ready to cook, some with added value sauces, dressings and flavoured butters – microwaveable in the pack ? May be just bunches of carrots or upmarket variety mixes, or stir fry combinations using ethnic ingredients ? No preparation, no waste, quick and easy and versatile Vegetable accompaniments ? Convenient, no preparation quick reheat times and most often microwaveable ? Mix and match with main ingredient (i.e. meat, poultry) to create variety e.g. flavoured mashed potato, roasted vegetables, cauli- flower cheese Introduction 9 Table I.5 Continued Product area Key product development Cooked poultry ? Varieties of joints e.g. breast, leg or wings or whole birds in many ethnic flavours – now commonplace ? Can be reheated or eaten cold with salads or ideal for snacks and sandwiches ? Also available sliced and flavoured and cut into strips or chunks for cooking ? Not only prepacked but also available on deli counter ? Home Meal Replacement market is growing – one of the most popular purchases is the rotisserie chicken Cooked meats ? Availability of ethnic meats e.g. proscuito, salami ? Many styles of cooked meats, straight and flavoured ? Different formats for different uses – thick sliced and wafer thin ? All suit sandwich making, snacking Bakery Savoury ? Started with the garlic bread concept, of which there are many flavour extensions ? The popularity of ethnic meals has led to development of ethnic- style breads e.g. flavoured topped foccacia Sweet ? Cream-filled traditional and ethnic cakes, muffins, desserts and pastries. Sold individually packaged – ideal as a snack or whole for entertaining, for a dessert Sandwiches ? Innovation in styles of bread, ethnic and traditional e.g. filled rolls, baguettes, croissants, wraps ? Innovation in fillings – children’s style, ethnic, traditional, healthy eating, vegetarian ? Suits snacking and grazing Soups ? Reflecting the ongoing need for convenience, quality (particularly in terms of taste) and choice, this market has seen massive growth ? The flavours and combinations reflect traditional ethnic, vegetar- ian and healthy eating versions ? They range from cold summer soups for entertaining to hearty winter recipes, as meal replacements ? Many are microwaveable Fruit juices and drinks ? Juices, drinks, nectars, smoothies – freshly squeezed, smooth, ‘with bits’, some with added vitamins ? Many exotic flavour combinations ? Seen as healthy and consumption increases in hot weather ? Some organic varieties available Yoghurts ? One of the oldest products in the supermarket but the range of products on offer is astounding ? The biggest market is the children’s sector ? Low-fat and very low-fat yoghurts constitute a big market ? Luxury yoghurts are also important, as are plain natural ? Bio yoghurts also have a following and it is expected that in the future functional yoghurts will grow e.g. Maval, Benecol ? Organic also have a niche sector ? Sold as individuals, multipacks and split pots – ideal for snacking 10 Chilled foods Whilst the more mature dairy products market has shown steady growth, the most dynamic categories have been in ready meals, pizzas and salads, reflecting the increasing importance of convenience foods in consumer purchasing. These figures may be compared to data on two dairy products for Europe shown in Table I.6. The biggest per capita consumption of yoghurt in 1992 was in the Netherlands, followed by France, Switzerland, Finland and Sweden. Average per capita consumption of yoghurt in Europe in 1992 was 9.76 kg. The biggest per capita consumption of chilled desserts in 1992 was Denmark, followed by France, Germany, Austria and Luxembourg, with an average per capita consumption across Europe in 1992 of 2.86 kg. The UK spends less on food as a percentage of total consumption, and around half of the European average for per capita consumption of yoghurt and chilled desserts. It is perhaps not surprising that, from such a modest base, it has shown some of the most dynamic growth. Whilst average annual growth in yoghurt and chilled desserts consumption by value for Europe as a whole between 1987 and 1992 was 6% and 14% respectively, comparable growth in the UK was 17% and 50%. This comparison suggests that these sectors of the UK chilled foods market are catching up rapidly with Europe and that growth will settle down in the coming decade to more modest levels reflecting the European average. Table I.5 Continued Product area Key product development Yoghurts (continued) ? Some have spoons included in the pack to encourage eating on the go ? Some are in pouches e.g. Yo-to-go from Yoplait, again ideal for lunchboxes and eating on the go Desserts ? Pot desserts and fromage frais suit snacking, luxury, healthy eating and children’s trends, similar to the yoghurts ? Packaged in individual pots, some with spoons, multipacks, twinpots and tubes e.g. Frubes ? Some of the indulgent varieties are dual branded with famous confectionery brands e.g. Cadbury’s flake ? Some up-market desserts are ideal for entertaining and are packaged in glass reusable containers ? Amongst chilled desserts are such products as cheesecakes, fools, mousses, rice puddings and trifles Ethnic accompaniments ? As people travel more and experience different cuisines they are demanding more authentic foods. The accompaniments for these are widely available as prepacked products and also sold on the deli e.g. onion bhajis, samosas, spring rolls. They are ideal for parties, snacking and as part of an Indian or Chinese meal Meat alternatives ? There are many reasons for people becoming vegetarians or decreasing their intake of meat Introduction 11 I.4 Individual categories within the chilled food sector (see also Table I.5) I.4.1 Dairy products Dairy products remain the biggest single category in the chilled foods sector. The various components of this category by value in 1997 in the UK were (Anon. 1998a; Anon. 1998b): ? cheese 40% ? butter, margarine and spreads 26% ? yoghurts/fromage frais 22% ? desserts 7% ? cream 5%. Growth rates in value for these segments between 1993 and 1997 in the UK were: ? cheese 15% ? butter, margarine and spreads 4% ? yoghurts/fromage frais 19% (yoghurt 15%; fromage frais 44%) ? desserts 74–77% (Keynote and Mintel estimates) ? cream 20%. Table I.6 Consumption of yoghurt and chilled desserts in Europe (Sources: Eurostat Yearbook 1997; European Food Databook 1994) Country Consumption of food Per capita consumption Per capita consumption as a percentage of of yoghurt in 1992 (kg) of chilled desserts in total consumption in 1992 (kg) 1995 (value) Europe 14.7 9.76 34.34 UK 10.4 4.91 1.38 Ireland 16.6 3.55 France 14.2 18.39 6.96 Germany 10.9 9.47 2.86 Austria 13.0 8.15 2.57 Italy 16.3 3.54 0.45 Spain 9.54 2.10 Portugal 7.76 Greece 28.8 7.78 Netherlands 10.8 22.0 1.71 Luxembourg 8.11 2.58 Belgium 13.0 7.38 1.78 Denmark 14.3 9.15 10.12 Sweden 14.3 10.01 Finland 14.1 11.74 0.95 Norway 7.66 12 Chilled foods Cheese remains both the biggest segment of dairy products and the biggest single sector in the chilled foods market in the UK (just under 30% of the chilled foods market as a whole). The sector has demonstrated steady growth in recent years. The strength of the market has been due, in part, to the emergence of low- fat cheeses, but it has also been boosted by consumers’ desire for greater variety and improved taste, reflected in the popularity of mature cheddar and speciality cheeses. The soft cheese market has also benefited from the growth in snacking with successful brands such as Kraft Dairylea and Philadelphia. The overall market for butter, margarine and spreads has remained generally static. Consumption of butter and margarine has declined overall, balanced by an increased use of low-fat spreads influenced by consumer concern for healthier eating. More recently, sales of butter have shown some improvement, suggesting consumers might be showing a renewed interest in taste as a factor in purchasing decisions. Sales have also been boosted by the introduction of spreadable butter aimed in part at the snacks market. The yoghurt and fromage frais markets have benefited both from the move to snacking and the concern for healthier eating. Manufacturers such as Mu¨ller have met this demand through such developments as split pots and bio yoghurts which have helped it move out of the dessert category in consumers’ eyes. Because they combine nutritional value with sweetness and are in conveniently small portions, yoghurt and fromage frais have become especially popular as a children’s snack. The growth in sales has also been driven by increased interest in the range of Continental food, boosting sales of fromage frais and Greek yoghurt, for example. Natural fromage frais is widely seen by consumers as a low-fat alternative to cream, and this, together with its popularity as a children’s snack, has kept sales expanding significantly. Indeed, some 39% of housewives in the UK claimed to have purchased fromage frais at some point during 1998 (Anon. 1998a). Similarly, the biggest areas of growth for yoghurt have been in bio yoghurts, low-fat and children’s yoghurts, reflecting in part the growing importance of the 10–14 age group and their diet-conscious middle-aged parents. Per capita consumption of yoghurt in the UK is 4.8 kg per annum, under half of the total for Germany and just over one-fifth of French consumption, suggesting scope for further expansion of the UK market. However, with an annual growth rate of 17% between 1987 and 1992, compared to a European average of 6%, The UK market has been catching up rapidly. At a per capita consumption of 2.1 kg in 1993, the United States lags behind even the UK market, suggesting potential for growth (IDF 1995). The most dynamic single sector of chilled dairy products has been desserts. This category is highly diverse, including rice pudding, mousse, trifles, cheese cake and gateaux. The biggest single categories are mousse and trifles. The success of this category has been partly the result of the development of low-fat desserts, but it has been fuelled by manufacturers’ emphasis on luxury, premium products meeting consumer demands for taste and enjoyment. The biggest areas of expansion in this sector have been in sales of mousse, non-cream topped desserts such as tiramisu, rice pudding and fools. Sales of cream represent a Introduction 13 small proportion of overall chilled dairy product sales, but sales have also benefited from a renewed consumer interest in taste and a sense of enjoyment and indulgence in eating. I.4.2 Chilled meat products Even when more narrowly defined to exclude raw meat, the chilled meats sector is the second largest sector of the dairy market, and has shown significant recent growth, despite concern over BSE. Growth has been stimulated by consumer demand for prepacked meats for snacks. Ham remains the most popular meat at the delicatessen, outselling other meats such as beef, pork and poultry. However, sales in this sector have also benefited from consumer interest in Continental, premium-priced products such as pa?te′ and salami. I.4.3 Chilled ready meals, pizzas and prepared salads Although they still represent only 15% of the overall UK chilled foods market, these sectors have seen some of the most dramatic growth as consumers have looked for an alternative to home cooking. Improvements in quality have made ready meals a cheaper and more convenient option than eating out or ordering a takeaway. Almost half the sector is made up of ethnic dishes, primarily Chinese and Indian, reflecting the interest in more exotic tastes, with a further third made up of Continental recipes, particularly Italian. Indeed, Italian ready meals represent the biggest single variety of ready meal given the healthy image of pasta and its appeal to children. Over the period 1993–98 the value of the chilled ready-meals market has been estimated to have grown by as much as 50% in real terms, with recent growth rates of 7–10% a year. Within the ready-meals market, the biggest growth has come from vegetable-based ready meals, followed by fish-based meals and then those with a meat base, reflecting the healthier profile of vegetables and fish. The UK is the most developed market in Europe for chilled ready meals, with per capita consumption of 1 kg in 1994, compared to 0.3 kg for Germany, 0.2 kg for France and 0.1 kg for Spain (Anon. 1996). If UK trends are reflected in Europe, the European market for ready meals may well have significant future potential. Pizza sales have shown the most dramatic growth of all, with an annual growth rate of over 10% in the period 1994–97. Manufacturers have sought to stimulate demand in part by introducing a wider variety of flavours to exploit consumer interest in more exotic tastes, and also by extending the range of vegetarian pizzas to respond to consumers’ healthier life styles. At the premium end of the market manufacturers have sought to provide a more authentic taste by refocusing on traditional Italian recipes and ingredient quality. Consumer interest in convenience, healthier eating and more exotic tastes has fuelled strong growth in the prepared salads sector. Salads are now widely seen as a convenient replacement for vegetables in a main meal, as well as a popular ingredient in snacks. Manufacturers have responded by producing a wider range 14 Chilled foods of mixed salads, using new varieties of leaves as well as other ingredients such as peppers. Another important sector of the chilled food market not mentioned above is sandwiches, a major feature of the snacking habit. According to the British Sandwich Association sandwiches are now the UK’s most popular fast food with a market of ￡3.25 billion and growing at 13% a year (Anon. 1999d). Sandwiches are estimated to represent 41% of the fast food market compared to burgers at 18% and fish and chips at 12%. The UK has the highest per capita consumption of sandwiches in the world, with every man, women and child munching their way through 37 bought sandwiches a year. Sandwiches are perceived as a healthy snack meal, they are portable, yet nutritious and offer infinite variety in terms of combinations of ingredients which can be used. This variety and choice in availability of sandwiches is highlighted in the data of new introductions in the major retail outlets recorded by FPI at CCFRA. The standard varieties, however, still account for 80% of the total sales and there has been little change in the most popular varieties according to the British Sandwich Association. The top selling sandwiches by fillings are tuna, chicken, egg mayonnaise/salad, ham, cheese, prawn and bacon, lettuce and tomato. The ethnic trend is also a feature of the sandwich sector with for example Spanish, Italian and Moroccan varieties. I.5 Conclusion The chilled foods market has been successful because it has met a number of customer needs. Chilled foods have been seen as fresh and healthy, and they have been ideally suited to meet the growing demand for ready meals and snacks. At the same time they have been rapidly adapted to cater for ever more cosmopolitan tastes and consumers’ desire for variety, quality of sensory experience, and even indulgence in what they eat. Product innovation will remain essential in an increasingly competitive sector of the industry. Market analysts suggest that continued growth may be restricted to the ‘extremes’ of the market, that is extra low-fat products at one end and premium indulgent products at the other (Anon. 1998b). Manufacturers will need to differentiate their products even more on the basis of quality, emphasising the fresh and ‘authentic’ taste consumers look for, and their concern for more environmentally friendly and ‘natural’ methods of production. Such trends suggest that the whole supply chain will need to pay attention to a range of factors, including: ? the importance of raw material selection in final product quality ? the quality of packaging and temperature control technologies across the chill chain in maintaining product quality ? the complexity and interdependence of technologies across the chill chain – the improved control of the microbiological and other factors affecting product safety. Introduction 15 1.6 References ANON (1996) The European ready meals market. Leatherhead Food Research Association. Leatherhead. ANON (1997) The UK Food and Drinks Report. Leatherhead Food Research Association. Leatherhead. 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