Frozen Foods Provide Healthy, Affordable Alternatives to Dining Out as Market Grows

Dec. 28, 2010 - PRLog -- The frozen foods industry reached domestic retail sales of $56 billion in 2010, fueled by consumer tendencies to seek out quality meals at affordable prices amidst the economic downturn, according to Frozen Foods in the U.S., 3rd Edition by market research publisher Packaged Facts. During the 2006-2010 period, sales rose 22%—or $10 billion—overall, for a compound annual growth rate (CAGR) of 5%.

“A lingering effect of the recession is that consumers are eating at home more. This trend has had a positive impact on the frozen foods market, as consumers turn to the freezer aisles to supplement more expensive fresh produce and meats,” says Don Montuori, publisher of Packaged Facts. “Additionally, microwaveable frozen products provide a quick and easy lunch-at-work for those looking to avoid pricey lunches out.”

While the economy is impacting the spending of the majority of U.S. consumers, spending on food has been affected to a lesser extent, according to the report. The new economic reality feeds two opposing trends in consumer goods markets, including frozen foods:  premiumization (upscaling) and cutting back (downsizing). Rather than cancelling each other out, these two trends interact in the face of slow economic recovery as consumers juggle how to get the most out of less money or less spending.

Beyond the recession, one of the biggest macrotrends in the food industry is consumers’ demand for products that meet their health, wellness and nutrition needs.  Many frozen foods marketers actively promote their goods based on health claims, whether based on calorie count (e.g., portion-controlled frozen entrees), preparation method (e.g., steam-in-the-bag vegetables), or ingredients (e.g., gluten-free foods).

As the nation slowly pulls out of the recession, frozen food sales are expected to be buoyed by new product introductions, especially in the case of innovative health- and convenience-targeted introductions. Packaged Facts projects that retail sales of frozen foods and beverages will reach $70 billion in 2015, an increase of 25% over 2010 revenues.

Frozen Foods in the U.S., 3rd Edition examines the U.S. market for frozen foods and beverages sold to consumers through the entire retail spectrum. The report takes an omnibus approach, providing a broad overview of the frozen foods market as a whole tracking five main classifications: Center Plate, Desserts, Breakfast Foods, Beverages, and Vegetables/Appetizers/Snacks/Sides. A comprehensive “Market Overview” chapter provides overall sales statistics and breakouts by classification, along with a thorough analysis of the current market outlook, examining overarching trends affecting frozen foods sales such as the economy, health/wellness and environmental concerns. For further information, please visit: http://www.packagedfacts.com/Frozen-Foods-Edition-2511637/.

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