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Summary of full report
by
Grant Vinning
Asian Markets Research
February 2001
RIRDC Publication No: 00/126
RIRDC Project No. AMR-5A
Executive Summary
Culinary herbs have traditionally been consumed in Australia in the fresh, dried, dehydrated, chopped / minced, ground / powdered, and canned forms. The main outlets for herbs have been in the retail, food service, fast food, and food manufacturing sectors.
Demand has been met by local and imported products. Australia has supplied culinary herbs in the traditional forms. In response to the expanding and diversifying market, Australia is now supplying culinary herbs in the paste, bottled, freeze-dried, and frozen forms. Nevertheless, imports continue to occur.
A survey was undertaken of each of the major sectors. That revealed that the issues that are important to the four sectors are convenience and food safety. HACCP requirements are having an increasingly major impact on the form in which food is delivered through the chain. In addition, the catering sub-sector and the food manufacturing sector were extremely cost sensitive and any product that could provide portion control had an advantage.
Culinary herbs presented in the frozen form seem to meet these criteria.
The study was able to establish that there is a market for frozen herbs because product is currently imported. However, it was unable to quantify the exact volume as there are no official statistics and the importers concerned were reluctant to provide data.
The study showed that the market prospects for frozen culinary herbs are mixed.
In the high-end market represented by four and five star restaurants and even the smaller specialist restaurants, there is little demand for frozen culinary herbs. This is because their chef's training and whole approach is that of "fresh is best".
There are prospects within the retail sector as a stand-alone product. However, to be successful, producers of culinary herbs must be conscious that they have to comply with a number of principles that are common with the introduction of nearly all new products. Specific issues to be addressed include the need to offer a range of at least five and preferably ten, frozen culinary herbs, and undertaking cooperative advertising with the chains as a means of educating the consumer. Given that the bigger retail chains have defined policies relating to how long a new product has to make its mark, a detailed program encompassing supply strategy, pricing, promotion, and even product development must be in place before the chains are approached. However, the frozen sector must be aware that since the study was initiated, a major retailer has introduced a range of pre-packed fresh herbs. Consumer response has been encouraging, especially to the size of the packs and the price range.
The food manufacturing sector holds the greatest promise as it leads to the incorporation of frozen culinary herbs into other products and it is the "other products" that have the potential for expansion. "Other products" are both physical products such as the ready-to-eat meals and par-processed foods as well as the service products associated with the expansion in the catering sector. As this sector is extremely price sensitive, the price, quantity, and quality of the frozen product must be regular, reliable, and repeatable over a twelve month period. However suppliers of frozen culinary herbs have to convince chefs that their products are not only better than the competing fresh and dried herbs but are demonstratively better. They have to demonstrate the twin elements of superiority in organoleptic attributes and economic advantages.
Two issues over-reach all
the market sectors for frozen culinary herbs. First, there is a demand
for organic product. However, producers should not expect a high premium
for being organic. Second, considerable effort needs to be given to the
packaging of the product. Overseas, the poor experience with packaging
that sought to develop the products' attributes of pourability and capable
of being repeatedly thawed and frozen was a major element in retailers
withdrawing product from their shelves.
 
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