Frozen Foods Face Off With Fresh Foods

In its assessment of U.S. households, Package Facts estimates that slightly more than 60 percent use frozen pizza, 40 to 45 percent eat frozen dinners and entrees, and more than a third consume frozen snacks.

Compared to some foods, many processed foods often contain more calories, sodium, sugar and saturated fat. Still, American shoppers continue to choose prepackaged, processed meals to help lessen the time, effort and skills required to make meals.

According to ScienceDaily, University of Minnesota and Duke University scientists recently investigated why parents purchase prepackaged, processed foods and found the majority of parents surveyed (57 percent) stated time savings as a reason for purchasing frozen dinners, followed by 49 percent reporting buying ready meals because their families really liked them, one third selecting processed foods because children could help prepare them, and 27 percent preferring the cost savings of frozen dinners.

Conversely, the growth in popularity of fresh foods and meal kits has likely helped keep frozen food sales steady at best. “Packaged Facts estimates that frozen food products in the collective categories of dinners/entrees, pizza, side dishes and appetizers/snacks had overall sales of $22 billion in 2016, almost identical to the sales total four years prior,” according to a press release issued in early 2017 by Packaged Facts, announcing their Frozen Foods in the U.S.: Hot Meals, Sides and Snacks, Sixth Edition report. Packaged Facts forecasts that between 2016 and 2021 sales for the same four key frozen food categories will realize a negative compound annual growth rate of -1.2 percent landing at around $21 billion.

In its assessment of U.S. households, Package Facts estimates that slightly more than 60 percent use frozen pizza, 40 to 45 percent eat frozen dinners and entrees, and more than a third consume frozen snacks. In addition, sales of packaged frozen hot meal items for heating or microwaving at home have experienced a surge with 90 percent of Americans purchasing them, an increase of 15 percent in two years, Packaged Facts reports.

While frozen foods are being challenged by fresh foods, due in part to consumers placing a greater emphasis on health, the frozen foods industry is innovating and will introduce products that incorporate consumer nutrition trends, according to IBISWorld’s 2016 Frozen Food Production in the U.S.: Market Research Report.

Food Dive, a company specializing in food industry news and analysis, recommends that frozen food producers “market the nutritional value of their products on packaging and in advertising campaigns” to build trust with shoppers regarding the nutrient profiles of their products.

[1] ScienceDaily. “Parents purchase frozen dinners for more than convenience.” 6 Jan 2017. Accessed on 17 Mar 2017. Retrieved from www.sciencedaily.com/releases/2017/01/170106125846.htm

[1] ScienceDaily.

[1] Packaged Facts. “Frozen Food Market Sales Reach $22 Billion.” 23 Feb 2017. PR Newswire. Accessed on 17 Mar 2017. Retrieved from http://www.prnewswire.com/news-releases/frozen-food-market-sales-reach-22-billion-300411682.html

[1] Packaged Facts. “Frozen Food Market Sales Reach $22 Billion.”

[1] Packaged Facts. “Frozen Foods in the U.S.: Hot Meals, Sides and Snacks, 6th Edition.” 14 Feb 2017. Abstract. Accessed on 17 Mar 2017. Retrieved from https://www.packagedfacts.com/Frozen-Foods-Hot-10646999/

[1] Packaged Facts. “Frozen Food Market Sales Reach $22 Billion.”

[1] IBISWorld. “Frozen Food Production in the US: Market Research Report.” Sep 2016. Report Snapshot. Accessed on 17 Mar 2017. Retrieved from https://www.ibisworld.com/industry/default.aspx?indid=236

[1] Harris, Doug. “Report: Frozen Food Sales Are Stuck at 2012 Figures.” 2 Mar 2017. Food Dive. Accessed on 17 Mar 2017. Retrieved from http://www.fooddive.com/news/report-frozen-food-sales-are-stuck-at-2012-figures/436911/