Saying that a crisis can act as a catalyst for some industries is a cliché, but one that we need to consider as the global economy seems to head downwards.
As such, let’s look at why Frozen could and should gain new ground in economic uncertainty. To do that, we need to look no further than 2020 when the latest crisis occurred. With a large asterisk, that is: people are not confined to their homes as was the case back then.
In 2020, frozen food sales grew in both dollars (+21%) and units (+13.3%), with nearly all types of frozen foods seeing double-digit sales increases, according to the American Frozen Food Institute.
As consumers also turned to online shopping at a record rate, the vast majority were adding frozen to their digital cart. 42% of households that buy frozen foods have bought frozen foods online, up from 23% in 2018. Online frozen food dollar sales increased 75% in 2020, with frozen dinners/entrees, meat, poultry, and seafood being the biggest online sellers.
So, while it’s easy to think that these figures were mainly down to the fact that consumers had to cook at home, later studies showed that habits outlasted the actual economic downturn. In the 2022 Frozen Fruit and Vegetables study conducted by 210 Analytics on behalf of the American Frozen Food Institute and made possible by Hillphoenix, 29% of consumers shared that they have expanded their freezer capacity since the onset of the pandemic.
Another factor to keep in mind is that a longer shelf life becomes more important when uncertainty kicks in. So, while a tariff-generated crisis is by no means a development any of us are hoping for, opportunities are there to be taken. And, if history taught us anything, when trends settle in, they usually stay in place for a significant amount of time.
What’s your take? Let me know at bogdan.angheluta@trade.media