The frozen food market has gained impressive momentum due to the increased impulse purchasing, and huge demand for convenient ways of life in this fast-paced modern era. The frozen food market size is expected to reach USD 421.10 Billion by the year 2027. Let's have a look at the frozen food market size, demand and growth.
Frozen Food: Market Research and Industry Analysis
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| Frozen Food Market |
Frozen Foods: The Superhero That Saves the Day in A Pandemic Hit Kitchen
The frozen food market is witnessing an ideal opportunity to increase the demand for frozen food products, due to the lack of time.
Despite the fact that Christmas is almost three months away, reports say that sales of frozen turkeys have increased by more than 400%.
According to industry analysts, the spike in demand is being fueled by a consumer shift toward buying more frozen food during the pandemic, as well as fears about food shortages.
Iceland, a British retailer that specializes in frozen foods, is currently experiencing a 409 percent rise in turkey sales over the same period last year. In the previous week, the phrase "Christmas" has been searched over 17,000 times on Iceland's website, with customers already starting to buy holiday food.
Iceland has raised its order of frozen turkeys by 20% in anticipation of a busier season than usual. It will also release its entire Christmas meat lineup two weeks earlier than usual.
The coronavirus pandemic has changed a lot of aspects of everyday life. When people were told for the first time to stay at home for extended periods, store up on foods and essentials and not to go out unless it cannot be avoided, they had to rethink their lives and habits. Since restaurants were closed and no one was sure how the virus was spreading, more people were preparing their own meals rather than eating out, and frozen dinners were becoming more popular.
According to research from the American Frozen Food Institute (AFFI), 70% of Americans increased their frozen food purchases. Frozen meals became a source of comfort for many people.
According to the AFFI poll, 90 percent of Americans were eating more meals at home than they were before the coronavirus outbreak.
In the United States, 86 percent of consumers purchased frozen food. Consumers were buying more frozen foods due to their extended shelf life, desire to store up in case of shortages, and ease of preparation and cleanup, according to the report. Currently, around a third of people believe frozen goods are safer than fresh meals.
Frozen Food Has Registered Significant Uptick in Sales
According to Reports and Data, the frozen food market size is expected to reach USD 421.10 Billion by the year 2027, registering a CAGR of 5.1%. As people try to step out of home only when essential, they are trying to make fewer shopping trips which means stocking up on frozen food make more sense. In comparison to 2019, the number of supermarket trips has decreased by 8%. Meanwhile, supply-chain failures have lengthened the time products spend in transit and storage before reaching shelves, adding to consumers' concerns about food perishability. Sixty percent of shoppers believe fresh food's shelf life has shortened.
Food waste is also becoming more of a concern among consumers. When making a buying decision, more than seven out of ten people stated they considered how much food they waste. This, paired with the perceived lower cost, convenience, and nutritional value of frozen foods, is expected to keep frozen items in shoppers' baskets.
Consumers across demographics have been purchasing more frozen foods, as well as a variety of items and brands, than they did in the past. Millennials, who already bought more frozen food than the typical person, are the most likely to have done since the pandemic began.
Frozen foods are clearly a solution for families, as 81 percent of households with children under the age of 18 living at home have purchased more frozen, compared to 61 percent of households without children. The dollar value of frozen food sales in the United States increased by 21% year over year to USD 65.1 billion, while unit sales increased by 13.3 percent. This is due in part to more eating at home – as well as a need for diversity in terms of meal ingredients.
The cold, hard truth is that the Covid-19 pandemic increased frozen food sales as customer shopping habits shifted and consumer packaged products embraced better, more nutritious frozen foods.
But not just nutritious foods, comfort foods also registered an increased demand. Pizza and other comfort foods are also high on the list, despite the popularity of frozen vegetables and meat. Multi-serve dinners such as lasagna and pot pies are becoming more popular. consumers also stocking up on frozen treats and munchies. Some people turn to comfort eating to cope with stress and uncertainty.
Frozen Foods Are Evolving To Become More Accepted Mainstream Food
Consumers are buying frozen dinners for a variety of reasons, including the desire to reduce the number of trips to the grocery store and the risk of exposure to the coronavirus.
The availability of things on store shelves is another major factor in their decisions. Shoppers who can't find canned vegetables, for example, are resorting to frozen vegetables. According to the AFFI, the trend of increased frozen food purchases may continue in the future, as half of the consumers anticipate buying a lot more or slightly more frozen foods in the coming months.
Evidence shows that frozen vegetables can actually be better than fresh vegetables in most cases. Fresh vegetables lose their nutritional value fast between being plucked and being bought to be consumed. But frozen vegetables and fruits only lose a part of their nutritional value when blanched. After that, once they are frozen, they retain most of their nutrients. Brands are also working to change the image of frozen foods in people’s minds. The frozen food industry has also evolved: while frozen food may conjure up thoughts of TV dinners. But now, as awareness about frozen food increases and its demand continues to rise, companies are bringing it to the attention of people that frozen does not necessarily mean processed and are a far better lifestyle choice than was previously perceived.
Frozen foods are going mainstream. It has expanded to include lunch, snacks, and breakfast. The most popular meal for frozen meals is dinner, with 59 percent of customers choosing frozen for dinner. However, 41 percent eat frozen food for lunch and 38 percent eat it for breakfast frequently or almost all of the time. Waffles, pancakes, breakfast burritos, smoothies, and other frozen breakfast dishes are available. According to AFFI, the percentage of Americans who eat frozen food every day or every few days increased from 35% in 2018 to 39% in 2020.
Another major factor driving the increase was the shift from brick-and-mortar to internet shopping. Nearly half of all households that buy frozen meals did so in the previous year, or 42%. This is nearly double the 23% who bought frozen foods online in 2018. Dinners, meat, poultry, and seafood accounted for 75 percent of all online frozen food purchases in 2020. This industry has benefited from the internet.
Some of the rise is likely to persist as companies launch new items and stores make space and rack up online sales. But as the pandemic recedes there are fears that frozen food purchases may decline. Although delivery is easy, it is not as quick as opening a freezer door. Domino's, for example, thrives on pizza delivery, yet the microwave is speedier when time is of the essence. According to Statista, the global frozen pizza industry will expand from USD16.2 billion in 2020 to USD23.3 billion in 2027.