Frozen Foods in the U.S

Sales in the $44 billion U.S. retail market for frozen foods have been flat to declining, with nearly all dollar sales gains attributable to inflation or new products—not to increased consumer demand. Contributing to this stagnation are the nation’s slow economic recovery; changing consumer eating patterns, shopping patterns and demographics; lack of excitement in frozen foods categories and merchandising; retailers’ increased focus on the fresh foods perimeter to the detriment of center store categories; and competition from fresh foods (including prepared fresh foods), shelf-stable foods, and restaurants. This situation presents huge challenges and opportunities for marketers and retailers. Already, major marketers such as ConAgra, Heinz, and Unilever are slimming down and refocusing their brand portfolios. The crucial question is whether—and how—marketers and retailers can reinvent and re-emphasize frozen foods to re-attract consumers to these core center-store categories.

Frozen Foods in the U.S., 4th Edition, a fully updated Packaged Facts report, examines frozen foods across four classifications: Center Plate (frozen dinners/entrees, frozen hand-held non-breakfast entrees; frozen poultry, seafood and meat; frozen pizza; frozen pot pies; and frozen baby food); Vegetables, Appetizers/Snacks, and Sides (plain and prepared frozen vegetables; products positioned as appetizers/snacks or frozen side dishes; and other meal components such as frozen bread/dough, frozen pasta, frozen tortillas, and frozen sauces, gravies and seasonings); Breakfast Foods (waffles/pancakes/French toast; frozen breakfast hand-held entrees; frozen breakfast entrees; and other frozen breakfast foods such as bagels, muffins, and frozen egg substitutes); and Frozen Desserts (including frozen whipped toppings, frozen sweet baked goods, and frozen cheesecakes; frozen pies; frozen fruit; and frozen cookie dough and cookies—ice cream and frozen desserts are excluded). Building on the market tracking and forecasting of previous editions, the report forecasts market size and growth; examines the factors influencing this market; highlights key marketing tactics and new product introductions; and analyzes the demographic and lifestyle shifts representing calls to action to meet the needs of today’s shoppers. 

Chapter 1: Executive Summary
Introduction 

Market Definition: Frozen Foods 

Report Methodology 

Market Trends 

Sales to Near $49 Billion by 2017 

Table 1-1: Projected U.S. Retail Sales of Frozen Foods, 2012-2017 (in millions of dollars) 

SymphonyIRI-Tracked Sales Approach $26.2 Billion in 2012 

Center Plate Classification Two-Thirds of Frozen Food Sales 

Table 1-2: Share of SymphonyIRI-Tracked Dollar Sales of Frozen Foods by Classification, 2012 vs. 2011 (percent) 

Frozen Dinners/Entrees the Largest Category at $6.1 Billion 

Frozen Baby Food Category Tops Percentage Growth 

Supermarket/Grocery Store Share Slips to 53% 

Figure 1-1: Share of U.S. Retail Dollar Sales of Frozen Foods by Retail Channel, 2012 (percent) 

Marketer Overview 

Multinational Conglomerates Dominate 

Recent Mergers and Acquisitions 

Marketing and New Product Trends 

Overview 

Healthy Eating in the Frozen Aisle
Reformulating Products for Health 

Freshness in Frozen 

Addressing Allergy Concerns 

Improving Microwave Technologies
Oven-Baked Taste from the Microwave 

Steaming Hot 

Licensed Restaurant Names 

Private-Label Penetration Varies Widely by Category
Kroger Launches Simple Truth 

Consumer Trends 

Frozen Vegetables the Top Category in Packaged Facts Survey 

Taste Appeal, Price, Quality the Main Considerations in Choosing Frozen Foods 

Preference for Fresh the Chief Reason for Not Buying Frozen 

Table 1-3: Reasons for Not Buying Frozen Foods in Last 3 Months, August 2012 (U.S. adults who shop for groceries) 

Frozen Vegetables and Pizza the Most Popular Categories,Per Experian Simmons Survey 

Household Use by Product Type by Age Group 

Household Use by Product Type by Ethnic Group 

Regional Preferences for Different Frozen Products 

Frozen Food Use Generally Declines with Higher Education and Upper Income Bracket 

Frozen Foods Hold Strong Appeal to Families with Children 

Chapter 2: Market Trends
Introduction 

Market Definition: Frozen Foods 

Market Size and Composition 

Retail Sales Reach $44.0 Billion in 2012 

Table 2-1: U.S. Retail Sales of Frozen Foods, 2008-2012 (in millions of dollars) 

SymphonyIRI-Tracked Sales Approach $26.2 Billion in 2012 

Table 2-2: SymphonyIRI-Tracked Retail Sales of Frozen Foods by Dollar and Volume Growth, 2011-2012 (in millions of dollars and pound volume) 

Center Plate Classification Two-Thirds of Frozen Food Sales 

Table 2-3: Share of SymphonyIRI-Tracked Dollar Sales of Frozen Foods by Classification, 2012 vs. 2011 (percent) 

Frozen Dinners/Entrees the Largest Category at $6.1 Billion 

Table 2-4: SymphonyIRI-Tracked Retail Sales of Frozen Foods by Classification and Category, 2011-2012 (in millions 

of dollars and pound volume) 

Frozen Baby Food Category Tops Percentage Growth 

Table 2-5: Top 20 Frozen Food Categories by Percentage Growth in SymphonyIRI-Tracked Retail Dollar Sales, 2011-2012 (in millions of dollars and pound volume) 

Raw Poultry the Largest Category in Dollar Sales Gains 

Table 2-6: Top 20 Frozen Food Categories by Dollar Growth in SymphonyIRI-Tracked Retail Dollar Sales, 2011-2012 (in millions of dollars) 

Supermarket/Grocery Store Share Slips to 53% 

Convenience Store Sales 

Figure 2-1: Share of U.S. Retail Dollar Sales of Frozen Foods by Retail Channel, 2012 (percent) 

Market Outlook 

A Mature Market 

The Economy and Its Impact on Frozen Foods 

Food Shoppers Focus on Value 

Eat-At-Home Trend a Double-Edged Sword for Frozen Foods 

Challenges for Share of Stomach 

Eating Patterns Changing 

Shopping Patterns Changing 

Challenging Negative Perceptions 

Frozen Food Aisles Are Too Cold
New H.J. Heinz Study Measures Shopper Behavior in Stores 

Demographics Help Explain Frozen Food Trends 

U.S. Population Growing Older and More Diverse 

Table 2-7: Demographic Snapshot of the U.S. Population 

Overall U.S. Population Is Aging 

Figure 2-2: U.S. Population by Age Group, 2011 (percent) 

Hispanic Population is Growing Fastest 

Figure 2-3: U.S. Population by Race/Ethnicity, 2011 (percent) 

Changing Household and Family Composition 

Table 2-8: U.S. Households by Type: 1990, 2000, and 2010 (percent) 

Hispanic Marketing Opportunities 

African-American Marketing Opportunities 

Table 2-9: Frozen Foods Categories with High Indexes Among African-American Consumers, 2012 (U.S. adults) 

Asian-American Marketing Opportunities 

Eating Healthy 

Portion Control and Convenience Are Benefits 

Retail Deals 

Projected Market Growth 

Sales to Near $49 Billion by 2017 

Table 2-10: Projected U.S. Retail Sales of Frozen Foods, 2012-2017 (in millions of dollars) 

Chapter 3: Competitive Trends
Multinational Conglomerates Dominate 

Recent Mergers and Acquisitions 

Trend Overview by Classification 

Trends in Center Plate 

“Full Meal” Options Lose Ground to Poultry, Seafood 

Table 3-1: SymphonyIRI-Tracked Dollar Sales and Share of Frozen Center Plate Classification by Category, 2011 vs. 2012 (in millions of dollars) 

Single-Serve Dinners/Entrees the Largest Subcategory 

Table 3-2: SymphonyIRI-Tracked Dollar Sales of Frozen Dinners/Entrees by Subcategory, 2011-2012 (in millions of dollars) Nestlé Leads in Single-Serve Dinners/Entrees 

Nestlé Also Dominates Frozen Hand-held Entrees 

Nestlé Also on Top in Frozen Multi-Serve Dinners/Entrees 

Raw Poultry 55% of Poultry Market 

Chicken Accounts for Two-Thirds of Frozen/Refrigerated Raw Poultry 

Private Label the Biggest Frozen/Refrigerated Raw Poultry 

Competitor 

Figure 3-1: SymphonyIRI-Tracked Dollar Share: Raw vs. Processed Frozen/Refrigerated Poultry, 2011 vs. 2012 (percent) 

Figure 3-2: SymphonyIRI-Tracked Dollar Share of Frozen/Refrigerated (Raw) Poultry by Subcategory, 2011 vs.2012 (percent) 

Chicken 97% of Frozen/Refrigerated Processed Poultry Category 

Figure 3-3: SymphonyIRI-Tracked Dollar Share of Frozen/Refrigerated Processed Poultry by Subcategory,2011 vs. 2012 (percent) 

Tyson Leads Frozen/Refrigerated Processed Poultry Category 

Frozen Pizza and Pizza Crusts/Dough 

Figure 3-4: SymphonyIRI-Tracked Dollar Share of Frozen Pizza by Subcategory, 2011 vs. 2012 (percent) 

Nestlé Leads Frozen Pizza with 46% Share 

Fish/Seafood, Cooked Shrimp, and Raw Shrimp 

Figure 3-5: SymphonyIRI-Tracked Dollar Share of Frozen Seafood by Subcategory, 2011 vs. 2012 (percent) 

Private Label 44% of Frozen Seafood Category 

Meat 60% of the Frozen Meat Category 

Figure 3-6: SymphonyIRI-Tracked Dollar Share of Frozen Meat by Subcategory, 2011 vs. 2012 (percent) 

Frozen Meat Category Highly Fragmented 

Table 3-3: Top Marketers and Brands of Frozen Single-Serve Dinners/Entrees by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Table 3-4: Top Marketers and Brands of Frozen Hand-held (Non-Breakfast) Entrees by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Table 3-5: Top Marketers and Brands of Frozen Multi-Serve Dinners/Entrees by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Table 3-6: Top Marketers and Brands of Frozen/Refrigerated (Raw) Poultry by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Table 3-7: Top Marketers and Brands of Frozen/Refrigerated Processed Poultry by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Table 3-8: Top Marketers and Brands of Frozen Pizza by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Table 3-9: Top Marketers and Brands of Frozen Seafood by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Table 3-10: Top Marketers and Brands of Frozen Meat by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Trends in Vegetables, Appetizers/Snacks, & Sides 

A Varied Classification 

Table 3-11: SymphonyIRI-Tracked Dollar Sales and Share of Frozen Vegetables, Appetizers/Snacks, and Sides Classification by Category, 2011 vs. 2012 (in millions of dollars) 

Plain Vegetables Dominate Frozen Vegetables Sales 

Figure 3-7: SymphonyIRI-Tracked Dollar Share of Frozen Vegetables by Category, 2011 vs. 2012 (percent) 

Private Label 41% of Frozen Vegetable Sales 

Frozen Potatoes 96% of Frozen Potatoes and Onion Rings Category 

Figure 3-8: SymphonyIRI-Tracked Dollar Share of Frozen Potatoes and Onion Rings by Subcategory, 2011 vs. 2012 (percent) 

Heinz and Private Label Capture 80% of Frozen Potatoes and Onion Rings Category 

General Mills and Heinz Lead Frozen Appetizers/Snacks 

Baked Goods Dominate Frozen Bread/Dough Category 

Figure 3-9: SymphonyIRI-Tracked Dollar Share of Frozen Bread and Dough by Subcategory, 2011 vs. 2012 (percent) 

T. Marzetti Leads Fragmented Frozen Bread/Dough Category 

Table 3-12: Top Marketers and Brands of Frozen Vegetables by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Table 3-13: Top Marketers and Brands of Frozen Potatoes and Onion Rings by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Table 3-14: Top Marketers and Brands of Frozen Appetizers/Snacks by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Table 3-15: Top Marketers and Brands of Frozen Bread and Dough by SymphonyIRI-Tracked Sales and Market Share,2011 vs. 2012 (in millions of dollars) 

Trends in Breakfast Foods 

Frozen Breakfast Classification Gains 4% 

Table 3-16: SymphonyIRI-Tracked Dollar Sales and Share of Breakfast Foods by Category, 2011 vs. 2012 (in millions of dollars) 

Kellogg’s Eggo Dominates Waffles Category 

Hillshire Brands’ Jimmy Dean Dominates Frozen Hand-held Breakfasts Category 

Hillshire Brands Leads Frozen Breakfast Entrees 

Table 3-17: Top Marketers and Brands of Frozen Waffles by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Table 3-18: Top Marketers and Brands of Frozen Hand-held Breakfasts by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Table 3-19: Top Marketers and Brands of Frozen Breakfast Entrees by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Trends in Desserts 

Frozen Dessert Classification Includes Frozen Desserts/Toppings, Frozen Pies, and Frozen Fruit 

Table 3-20: SymphonyIRI-Tracked Dollar Sales and Share of Frozen Desserts by Category, 2011 vs. 2012 (in millions of dollars) 

Frozen Pies by Subcategory 

Figure 3-10: SymphonyIRI-Tracked Dollar Share of Frozen Pies by Subcategory, 2011 vs. 2012 (percent) 

ConAgra Grabs a Larger Slice of the Pie 

Private Label Captures Three Out of Four Frozen Fruit Dollars 

Table 3-21: Top Marketers and Brands of Frozen Pies by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Table 3-22: Top Marketers and Brands of Frozen Fruit by SymphonyIRI-Tracked Sales and Market Share, 2011 vs. 2012 (in millions of dollars) 

Natural/Organic Market 

Segment Overview 

Lunch/Dinner Entrees Largest Frozen Classification in Natural Channel 

Table 3-23: Frozen Food Categories by SPINS-Tracked Sales and Market Share, 2011-2012 (in millions of dollars) 

Deli Meats and Fruits the Largest SPINS-Tracked Subcategories 

Table 3-24: Top 10 Frozen Food Subcategories by SPINSTracked Dollar Sales, 2012 (in millions of dollars) 

Frozen Pancakes Subcategory Sees Largest Gains 

Table 3-25: Top 10 Frozen Food Subcategories by Percentage Growth in SPINS-Tracked Dollar Sales, 2012 (in millions of dollars)