Frozen food remains a hot commodity as pandemic endures

6 Jan 2021

Frozen food sales continue to outpace the growth of all food items in the grocery store, according to data from IRI and the International Dairy Deli Bakery Association (IDDBA). Total sales of frozen products rose 17.4% from November 2019 to November 2020, with the largest gains of more than 27% posted by the processed poultry, seafood, snacks and beverage categories.

Overall food sales rose 9.3% during the same timeframe while sales of fresh products gained a comparatively conservative 7.8%. Remarkably, sales of frozen meat except for poultry and seafood were down 10% in November even though the category posted a 21.5% growth in dollar sales.

Frozen food remains a hot commodity as pandemic endures
Image via Devin Rajaram on Unsplash

These data indicate that pricing strategies for frozen products have evolved with the growing demand for these center aisle options. A survey done in the spring by the American Frozen Food Institute found that sales within frozen food jumped 70% between March and April, and the demand has waned little since then. Propelled by the popularity of these products, retailers inflated their pricing strategy for in-demand offerings, resulting in the large gap between recorded volume sales and the corresponding dollar sales.

As cases of coronavirus rose in December following a decline during the summer months, the number of people consuming meals at home continued to be high. In a September report released prior to the most recent spike, by sales and marketing agency Acosta, 55% of consumers are eating at home more frequently since the pandemic began.

To assist with daily meal prep, frozen food has become an indispensable addition to many family freezers due to its convenience as well as the fact that it is often an economical choice for shoppers looking to stretch their incomes further. The growth in sales is also helped along by the fact that long-held associations with frozen products being less healthy and tasty are thawing.

Major frozen food producers like Nestlé, Conagra Brands and B&G Foods have spent the last several years investing heavily in making over their frozen food lines into appealing offerings that resonate with modern consumers that are looking for clean labels and healthy ingredients. The result of these efforts is evident in the gains posted by companies across the spectrum that are selling frozen products.

While long term these gains may not stay in the double digits, the growth garnered today may have lasting effects such as establishing frozen food as a vital addition to a healthy portfolio for food and beverage companies that are looking to recuperate following the difficulties caused by the pandemic.

Related news

DSM acquires Amyris’ bio-based flavors and fragrances business

DSM acquires Amyris’ bio-based flavors and fragrances business

9 Apr 2021

Netherlands-based Royal DSM acquired the flavor and fragrance bio-based intermediates business of California-based Amyris in order to extend the Dutch corporation’s presence in bio-based flavor and fragrance ingredients. The transaction was completed o...

Read more 
‘Bread as good as veg’: Modern Baker makes bread better with science-based Superloaf

‘Bread as good as veg’: Modern Baker makes bread better with science-based Superloaf

8 Apr 2021

Packing in 12 high-fibre, plant-based ingredients and no additives, Modern Baker’s Superloaf claims to be as healthy as eating vegetables, and has won the praise of ‘gut guru’, Dr Tim Spector.

Read more 
Danone Manifesto Ventures makes first UK-based investment

Danone Manifesto Ventures makes first UK-based investment

8 Apr 2021

Danone’s VC arm, Danone Manifesto Ventures (DMV) made its first investment in a UK-based business with its commitment to a £2.5m funding round for the healthy drinks brand Moju. Moju said the French Dairy giant’s minority investment in the company will...

Read more 
AeroFarms goes public through merger with Spring Valley Acquisition

AeroFarms goes public through merger with Spring Valley Acquisition

5 Apr 2021

Vertical farm company AeroFarms merged with the publicly traded special purpose acquisition company (SPAC), Spring Valley Acquisition in order to continue the expansion of the greens grower both in terms of production and distribution. The transaction ...

Read more 
Topo Chico finally debuts its hard seltzer

Topo Chico finally debuts its hard seltzer

1 Apr 2021

Molson Coors Beverage Company, which is exclusively manufacturing Topo Chico Hard Seltzer through a brand authorization agreement with Coca-Cola, finally released the concept onto shelves on March 29 after announcing the development of the brand in Jul...

Read more 
Chobani enters into pilot program with PepsiCo

Chobani enters into pilot program with PepsiCo

30 Mar 2021

Greek yogurt maker Chobani recently entered into a distribution partnership with PepsiCo to sell its new yogurt drinks at convenience stores, colleges and universities in the northeastern part of the U.S. In the original report on this news, Bloomberg ...

Read more 
Unilever and Nestlé petition to phase out caged hens in Europe

Unilever and Nestlé petition to phase out caged hens in Europe

29 Mar 2021

In a letter to the European Commission, major food titans called on the government to end the practice of raising hens in cages in the European agricultural sector. To accomplish this push, industry heavyweights Unilever and Nestlé partnered with the o...

Read more 
Alaska takes on 21 companies in a $1 billion price-fixing lawsuit

Alaska takes on 21 companies in a $1 billion price-fixing lawsuit

26 Mar 2021

The state of Alaska filed a lawsuit a $1.05 billion lawsuit against 21 chicken producers, accusing these companies of price fixing. In its filing, the State of Alaska is asking for $50 million in damage and restitution payments from each defendant.

Read more 
Swiss cultivated meat start-up raises $2.2m; aims for 2022 product launch

Swiss cultivated meat start-up raises $2.2m; aims for 2022 product launch

26 Mar 2021

This month, Swiss cell-cultured meat start-up Mirai Foods announced it raised US$2.2 million in a second seed round, bringing the total seed financing raised in 2021 to $4.5m.

Read more 
Givaudan launches new digital sensory insights tool

Givaudan launches new digital sensory insights tool

25 Mar 2021

Givaudan Taste & Wellbeing has introduced a new digital tool which uses AI and aroma technology to enhance its understanding of consumer preferences.

Read more