Frozen food continues to grow, according to research from Acosta.
With 98% of households purchasing frozen food, and 86% of those shoppers visiting the frozen food section during most or all their shopping visits, innovation is key to keeping sales in the category hot.
According to NielsenIQ, frozen foods sales have exceeded $70 billion over the past year, a 7.6% increase over 2021 and a jump of 31% over 2019. Value, convenience, and healthy options are the three key drivers of sales, according to Acosta.
Kathy Risch, senior vice president, Consumer Insights and Trends at Acosta said, "Two years ago, our research attributed frozen food sales growth predominantly to the pandemic and the resulting evolution of consumer demand with more people cooking at home,"
"Today, even as the average unit price for frozen products has risen 15% over 2021, consumers continue to select frozen as a key part of their food shopping experience," Risch added.
The study pointed to several consumer shopping trends that are helping frozen food sales. Two-thirds of consumers believe that frozen food sometimes provides a better value than non-frozen. This was especially true with products such as vegetables, fruit, meat, fish, and pizza. Also, shoppers are grabbing frozen food at club stores, where sales of frozen food have increased 5%. More than half (52%) of consumers reporting that they are buying in bulk to save money.
The report also found 91% of frozen purchases were desserts and 89% of consumers purchased prepared foods. The study discovered frozen foods were taking the place of takeout in some cases. Fifty-nine percent of consumers have had a frozen main dish recently as a replacement for eating outside the home.
Frozen vegetables were popular as 75% said they purchased vegetables, which consumers perceived as "healthier" than fresh, and a better value. Frozen foods are also a fixture on shopping list as 72% said frozen purchases were planned and not purchased as an impulse buy.
"There is an opportunity to do more to engage with customers and drive excitement and purchase in the frozen section, in-store and online, through targeted omni-channel marketing, sales promotions and experiential retailing,” said Risch. “Understanding the consumer mindset in frozen will play an important role in supporting anticipated growth and driving purchase decisions.