US Frozen Food Sales to Reach USD 23bn by 2018

The overall sale of frozen dinners/entrees, frozen pizza, frozen side dishes, and frozen appetizers/snacks are estimated to slightly grow at a compound annual growth rate of 1,07% in the US, by 2018. According to research company Packaged Facts, the overall value of the four frozen food categories sold in the US will reach USD23bn in the next four years.

However, consumer preference for fresh foods, as well as competition from retailers’ own ready-to-eat fresh products created in-store have impacted sales of frozen food, which decreased by 1% in 2013, compared to the previous year. Taking into account the fact that sales have also slowly declined in 2012 and that estimates show flat results for 2014, the research company says that one of the main challenges for frozen food producers and marketers is to come up with more variation, as well as improve the current image of the category, in the eyes of North American consumers.

“In the last few years sales of frozen foods have hit a wall as a result of a growing demand from consumers for fresh foods,” states a report by Packaged Facts. “While frozen foods might have survived this trend with little damage to sales because of their convenience and relatively lower prices, retailers have invested in promoting ready-to-eat or heat-and-eat meals created fresh daily in their stores and easily accessible to consumers though enhanced ordering, pick-up and delivery services.”

The report, called “Frozen Foods in the U.S.: Hot Meals, Sides, and Appetizers/Snacks” covers frozen food products sold through all types of retail outlets, including supermarkets, discount stores and super centers, warehouse clubs, and mass merchandisers, as well as convenience stores, drugstores, health and natural food stores, dollar stores, farms and farmers markets. 

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