This month is dedicated to frozen food in the US and the National Frozen & Refrigerated Foods Association (NFRA) recently released its State of the Industry Report, providing broad-based insights that show how the frozen and refrigerated foods categories attract shoppers, drive shopping trips, build shopping basket dollars and deliver sales.
Today’s frozen and dairy departments are clearly connecting with shoppers showing combined sales of USD125bn in the 52 weeks ending June 29, 2019. Nearly every U.S. household buys from the frozen and dairy departments annually, and the diverse appeal of these products crosses generational, multicultural and socio-economic demographics. With an average buying frequency of 70 trips per year, shoppers are coming to the store more than once a week to make a purchase from the frozen and dairy aisles. The average frozen and dairy department shopper spends USD13.44 per trip – making these departments important for increasing the dollar sales of each shopping basket.
“Both the frozen and dairy departments have strong, broad appeal among consumers with the potential to drive short- and long-term growth for retailers. In 2019, dollar and unit sales increased in both departments attesting to consumers’ renewed excitement about the innovative products they can find there,” says NFRA President and CEO Skip Shaw.
The frozen department showed two years of back-to-back growth with sales of USD54.6bn delivering USD918 million in growth. The top-five selling frozen department categories were ice cream (USD6.7B), pizza (USD4.8B), seafood (USD4.8B), novelties (USD4.6B) and complete meals (USD4.5B). Pizza, seafood, novelties, vegetables and prepared potatoes all showed solid growth with an increased percentage of dollar sales ranging from 3.7 to 5.1% versus the prior 52-weeks.
The frozen department drives 31 trips per buying household annually and adds USD10.90 to shopping baskets per trip. Ice cream and vegetables are the categories with the highest household penetration, showing up in more than 80% of homes. With half of U.S. households having access to more than one freezer, there is opportunity to take advantage of this extra capacity.
“Frozen foods have seen strong growth over the last few years as innovative products now align with consumers’ demands for organic, plant-based, gluten-free and so much more,” states Shaw. “NFRA’s consumer PR efforts have been successfully working to tell this positive story about today’s frozen foods. It’s real food, just frozen.”
You can find more information in the March-April print issue of Frozen Food Europe magazine.