Frozen Foods in the U.S.: Hot Meals, Sides, and Snacks, 5th Edition
Attention: There is an updated edition available for this report.
Frozen foods are convenient and healthy. The range of items one can find in the frozen food cases at supermarkets, club stores and convenience stores has come a long way from the 1950s, when “TV dinners” revolutionized the shopping and eating-at-home experience for the American consumer. Now, you can find just about any snack, side dish, entrée or dessert frozen and ready to pop in the microwave or oven.
Yet the market for these products has become somewhat frozen. Fresh foods have a healthier image in the minds of consumers. Retailers aren’t helping, as they ramp up their investment in promoting ready-to-eat or heat-and-eat meals created fresh daily in their stores and easily accessible to consumers though enhanced ordering, pick-up and delivery services. And even foodservice operators are posing a new threat, using digital media to make it easier for consumers to order and have delivered meals they traditionally would have had to “gone out to eat” to get.
The new Packaged Facts report, Frozen Foods in the U.S.: Hot Meals, Sides, and Appetizers/Snacks, examines the factors behind this new reality for frozen foods, as they affect in particular the market for frozen dinners/entrees, frozen pizza, frozen side dishes, and frozen appetizers/snacks. To battle these trends, frozen food marketers are working to provide customers with more variety and lower prices. They are also looking to offer more natural and organic products that consumers products can identify as healthy.
Despite the efforts, Packaged Facts estimates the overall sales of the products in the four categories covered were just over $22 billion in 2013, down by about 1% from 2012. Sales in 2012 were also down by one percent from 2011. Looking forward, Packaged Facts estimates that the categories under consideration will be essentially flat for 2014 but collectively enjoy a small but steady increase through 2018 at compound annual growth rate (CAGR) of 1.07% to top $23 billion that year.
Scope and Methodology
Frozen Foods in the U.S.: Hot Meals, Sides, and Appetizers/Snacks covers frozen food products sold through all types of retail outlets, including supermarkets, discount stores and supercenters, warehouse clubs, and mass merchandisers, as well as convenience stores, drugstores, health and natural food stores, dollar stores, farms and farmers markets.
Market estimates within this report were based on both public and syndicated data sources. Packaged Facts has analyzed available sales and trend data, together with information pertaining to those products that move through unmonitored outlets, to estimate the total size of the market for the products in the categories under consideration.
Sales and market size data sources include:
- IRI sales tracking through U.S. supermarkets and grocery stores, drugstores, and mass merchandisers (including Target, Kmart, and Wal-Mart) with annual sales of $2 million or more.
- U.S. Census Bureau retail food sales data from the Economic Census surveys, annual retail channel sales, non-employer statistics.
- U.S. Bureau of Economic analysis annual estimates for consumer spending by food type
- Major food and beverage retailer annual reports for individual retailer sales
- Publicly available data from other industry sources including trade associations such as the Frozen Foods Institute and print and online publications such as Food Navigator.com.
Information on new product introductions was derived from examination of the retail milieu and from relevant trade, business, and government sources, including company literature and annual reports.