Packaged Facts is the latest market research organization to add its voice to those hailing the frozen food sector as ‘recession proof’, in a new report entitled Frozen Foods in the US. It says that frozen food sales are set to increase by 25 percent by 2013, up to $64.8bn, even if the world economy improves.
“Even as the nation pulls out of recession—most likely beginning in late 2009 or early 2010, according to most economists—frozen foods will continue to be buoyed by new convenience and health-targeted introductions,” it said.
It predicts that this dual aim of combining healthier recipes – in line with the overall consumer trend – with the convenience of frozen foods, will be strongest in breakfast foods, vegetables, appetizers, snacks and sides.
“With more and more consumers wanting to eat healthy and yet not having time to prepare home-cooked meals for their families – healthy frozen foods packaged for quick preparation and clean-up can only continue to grow in popularity,” it said.
Frozen food is a mature sector of the market however, and, after high growth of 6.5 percent in 2008, this growth is expected to slow over the next few years, to under five percent per annum. Even so, Packaged Facts points out that the sheer size of the frozen foods sector, which saw sales of $51.8bn last year, means that even a one percent increase equates to over $500m.
Consumers may be cutting back, but the renaissance of frozen foods is driven at least as much by perception of quality as convenience, said the report. According to Datamonitor figures, there were 624 new frozen food products launched in the US in 2008, down from a record high of 720 in 2007. The top on-pack claim last year was ‘upscale’, which appeared on 43 percent of new products, followed by ‘quick’, ‘natural’, ‘microwaveable’, and ‘single-serving’.
The report added that ‘no trans fat’ and ‘no gluten’ have both moved up the list.