Frozen food is among the fastest growing categories in grocery in many markets across the world including the North American one. According to data from the American Frozen Food Institute (AFFI) and the Food Marketing Institute (FMI) frozen food takes a large market share for most retailers in the country, bringing nearly USD57bn annually.
Additionally, a recent report from research firm MarketsandMarkets sheds light in terms of preferences, noting that in both U.S. and Canada consumers enjoy including frozen snacks into their diets. A large percentage of U.S. consumers eat branded frozen snacks, such as Hot Pockets, pizza rolls, and similar bite-size heat-and-eat snacks. The opportunity is even more pronounced among younger consumers: three-quarters of 18-34 y.o in the U.S. say they eat some type of frozen snack in the twelve months preceding March 2018.
In the same vein, in Canada, the demand for snacks and other kinds of convenience foods among the young population is gradually increasing. The price of these products remains a determining factor, but the rising disposable income among the population has allowed these consumers to make the shift towards convenient, time-saving meals, ready-to-cook/eat, and other kinds of mini-meals. Additionally, a report published by the United States Department of Agriculture (USDA) in 2018 showed that sales of frozen and chilled products were very high. According to the data, meat patties are set to experience a growth rate of 11% (in volume) between 2017-2023. Natural, heathy frozen meat substitutes and frozen processed fruits and vegetables are also poised to grow by 6.2% and 6.0% respectively.
For a more in-depth overview of the North American frozen food market, check out our latest Whitepaper on the topic. You can download it for free by filling out the form below.