According to recent reports, frozen food is experiencing a significant rise in popularity among U.S. shoppers. Gabriela Barkho from Modern Retail highlights that January alone saw frozen food sales hit $8.3 billion. A study by SmartSense revealed that over half of consumers have turned to frozen meals due to concerns about their budgets in a shaky economy.
Key Insights
Here are some interesting takeaways from the SmartSense “Frozenomics” survey:
Economic Pressure: Sixty-five percent of adults reported tightening their grocery budgets in the past year, with 57% feeling their financial situation worsened.
Longevity Matters: About 39% of respondents choose frozen food for its long shelf life. Many also look for budget-friendly private label options.
Sales Drive Purchases: A striking 63% of people are prompted to buy frozen items when there are sales, and 34% are bulk-buying due to economic uncertainty. This uptick in demand can put stress on supply chains.
Generational Trends: For Gen Z, frozen foods are a “financial survival tool,” with 73% feeling their situation has worsened recently. Meanwhile, 91% of millennials view frozen meals as a safety net, and a surprising 70% say they would buy more frozen options if prices rise further.
Image Challenges
Despite the strong demand, frozen foods face challenges in brand perception. Yehiav and Detweiler discuss a “PR meltdown” that impacts how consumers view these products. High-profile issues, like the recent “radioactive shrimp” incident, can tarnish the reputation of frozen items. Unlike fresh produce, frozen foods are packaged and can be easily linked to specific recalls.
The “Frozenomics” data supports this concern. About 62% of survey participants have discarded frozen food due to safety worries. Additionally, 56% believe poor handling during shipping contributes to recalls. A significant number—45%—would stop purchasing a brand after a recall, with 47% of Gen Z indicating they already have.
Conclusion
The frozen food aisle has become a go-to for many shoppers, especially as economic pressures grow. While the convenience and savings are clear, brands must work hard to improve their image and address consumer concerns. Addressing these perceptions will be crucial for maintaining the momentum in this growing segment.
For more insights on the frozen food market trends, you can check out the Fortune and Modern Retail reports.
