Price Increases Spurring Most Growth in Frozen Food Sales

Cleveland OH, March 28, 2024 — US demand for frozen foods is forecast to see annual growth of 1.2% in nominal terms through 2027, according to Frozen Foods: United States, a report recently released by Freedonia Focus Reports. Advances will be driven by factors such as growth in population and disposable personal income. Suppliers are attempting to improve the health profile of frozen foods, as well as the marketing, to stimulate sales. Longer term, enhanced spending power will enable consumers to purchase more expensive frozen items that offer high-quality food in a convenient format and spur sales for the foodservice industry, which relies on frozen food for many of its menu items. In fact, projected annual growth rates for retail sales at food and beverage stores and at eating and drinking places are 3.7% and 5.7% to 2027, respectively. However, the perception among many consumers that fresh food is healthier than frozen food will continue to restrain demand. For example, many consumers assume that frozen foods contain high amounts of preservatives; however, such frozen items as meat and vegetables do not need additives as a result of the freezing process.

In 2023, demand is expected to grow 7.6%, largely due to rising prices, although also supported by rising population and disposable personal income, which is expected to rise 7.9% that year.

These and other key insights are featured in Frozen Foods: United States. This report forecasts annually to 2027 US frozen food demand and shipments in nominal US dollars at the manufacturer level. Total demand and shipments are segmented by product in terms of:

• meals

• meat and poultry

• produce and juice

• seafood

• baked goods

• ice cream and frozen desserts

To illustrate historical trends, total demand, total shipments, the various segments, and trade are provided in annual series from 2012 to 2022.

Frozen food includes items frozen at the manufacturer level (i.e. products thawed for retail sale, such as fish, are included in the scope of this report). Packaged ice and shelf-stable or refrigerated products frozen after purchase are excluded from the scope of this report. Frozen dough (e.g., pizza dough for restaurant use) is excluded from the scope of this report. Lactose free/non-dairy ice cream, powdered ice cream mixes, and ice cream prepared in foodservice establishments (e.g., ice cream shops) are excluded from the scope of this report. Re-exports of frozen foods are excluded from demand and trade figures.

This report includes the results of a proprietary national online consumer survey of US adults (age 18+). This Freedonia Focus Reports National Online Consumer Survey has a sample size of approximately 1,500, screened for response quality, and representative of the US population on the demographic measures of age, gender, geographic region, race/ethnicity, household income, and the presence/absence of children in the household.

More information about the report is available at:

https://www.freedoniagroup.com/freedonia-focus/frozen-foods-united-states-ff10015.htm

About Freedonia Focus Reports

Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Food & Beverage reports can be purchased at Freedonia Focus Reports or MarketResearch.com.

Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including:

• total historical market size and industry output

• segmentation by products and markets

• identification of market drivers, constraints, and key indicators

• segment-by-segment outlook in five-year forecasts

• a survey of the supply base

• suggested resources for further study