Enjoyed on any occasion, perfect in terms of convenience and riding the healthy, better-for-you wave: frozen finger foods seem to enjoy a great run at the moment, and figures suggest this trend will continue for the foreseeable future.
According to Mintel’s ‘US Frozen Snacks Market Report 2023’, the pandemic changed how people shopped, which helped the frozen snack category grow by more than 21%. However, from 2020, inflation has been a major factor in the growth of dollar sales.
Despite an increase in dollar sales, volume sales in the frozen appetizers, snack rolls, and pretzels segment increased very little in 2022 and decreased in the frozen handheld entrees area. While the market is still accessible, costs are beginning to level off. Frozen treats need to demonstrate their quality and diversity to maintain their appeal to younger audiences.
The fact that only 16% of US consumers say they don’t interact with frozen snacks suggests there is a genuine need for these goods. Still, no single snack is the market leader because opinions on what to buy are divided. To differentiate themselves, organizations need to uphold essential features such as crave-worthiness and convenience, while incorporating distinctive aspects like flavor, cooking technique, packaging, and health claims. Generations are evolving their eating patterns, moving away from formal dinners and toward more informal gatherings.
As previously indicated, most customers participate in frozen snacks, but it’s crucial to remember that each generation participates differently. For instance, Millennials are the biggest eaters of corn dogs, whereas Gen Z is the largest consumer of pizza bites and rolls (see full study for graph). All ages can be engaged in frozen foods by highlighting their flexibility.
According to Mintel research, many people find the frozen snack options available to them to be sufficient, which presents opportunities and tactics for frozen snack manufacturers. Better-for-you (BFY) purchasing factors are still specialized, but there is potential for combining BFY with foreign flavors to boost engagement. In general, products can be positioned to be consumed multiple times by serving as a part of a complete meal.
A healthy, steady growth
In terms of value, from 2023 to 2033, the size of the frozen snack industry worldwide is projected to rise at an enormous rate. Future Market Insights’ research report indicates that the global market is expected to achieve a valuation of USD136,981m in 2023. By 2033, it is expected to be valued at USD250,736.0m. Through 2033, the market is expected to grow at a compound annual growth rate (CAGR) of 6%. Customers are becoming more aware of the nutritional content of frozen and packaged foods. As a result, companies are responding to the increasing demand by adding vitamins, minerals, and nutrients.
To read the entire article, please access your complimentary e-copy of the Frozen Food Dossier Autumn, 2023 issue here.