JACKSONVILLE, FLA. – Frozen meals gross sales skyrocketed in double-digit percentages as soon as COVID-19 struck final yr and compelled shoppers to eat at residence extra usually. If that progress within the class continues after the pandemic wears off, it might hinge on costs, selection, and firms realizing when shoppers eat frozen meals in the course of the day.
Frozen meals posted $ 65.1 billion in U.S. retail gross sales in 2020, marking a 21% enhance over the prior yr, based on the American Frozen Meals Institute, Arlington, Va. Nearly all sorts of frozen meals skilled double-digit gross sales will increase. Unit gross sales elevated 13%.
A report printed on April 14 by Acosta, an built-in gross sales and advertising supplier within the shopper packaged items business, confirmed that US frozen meals gross sales elevated 23% within the first half of 2020, in in comparison with 16% of whole groceries and 18% within the second half, which in comparison with 11% of whole groceries. Within the first half of 2019, the will increase had been 1.9% for each frozen meals and whole groceries. Within the second half of 2019, the will increase had been 2.5% for frozen and a couple of.2% for whole groceries.
“As COVID-19 set in, shoppers started to eat at residence extra out of necessity,” mentioned Colin Stewart, government vp of enterprise intelligence for Jacksonville-based Acosta. “To adapt, they seemed for brand spanking new methods to cook dinner creatively, and for a lot of, frozen meals had been the reply.”
Acosta gathered data for his report by means of on-line surveys performed February 17-23, in addition to business analysis, together with analysis from Nielsen and allrecipes.com.
The report examined what customers will search for within the frozen meals aisle after COVID-19 clears up. The three major buying components had been low costs at 50%, product availability at 45% and lots of selection at 43%.
Dinner was the most well-liked meal for frozen meals in the course of the pandemic. 13 p.c of these surveyed within the Acosta report mentioned they ate frozen meals more often than not at dinner, whereas 46% mentioned usually. The chances had been 9% and 32% for lunch and 11% and 27% for breakfast. When requested which frozen meals they purchased essentially the most throughout COVID-19, 31% mentioned fruit, adopted by greens at 29%, pizza at 28%, snacks at 28%, and entrees at 27%.
Information from Data Assets, Inc., a Chicago-based market analysis agency, confirmed that the biggest share of frozen meals gross sales progress within the US in 2020 was in seafood classes, 35.three% extra, poultry 34.7% and snacks, a rise of 28.9%.
On-line gross sales of frozen meals elevated 75% in the US over the previous yr, based on AFFI. Dinner / entrees, steaks, poultry, and seafood had been the most important sellers on-line. Amongst households shopping for frozen meals, 42% purchased it on-line previously yr, up from 23% in 2018.
Through the pandemic, the proportion of high U.S. frozen meals shoppers, outlined as those that eat frozen meals every day or each few days, elevated to 39% in 2020 from 35% in 2018, based on the AFFI.
“Buyers have been within the COVID-19 pandemic for nearly a yr and are consuming extra household meals at residence than ever,” mentioned Doug Baker, vp of commercial relations for FMI, the Meals Business Affiliation. “The frozen meals class provides these advantages to customers, and that’s the reason we see all areas, from meal substances to meal options, reaching new audiences and rising purchases.”