Deep Freeze

A resurgent category attracts new fans, and manufacturers and retailers work to keep them buying.

- Lynn Petrak

A funny thing happened when folks thought the frozen food category was stagnant and outmoded: It received a new lease on life.

It wasn’t that long ago that sales across many frozen food segments were flatlining, leading some to believe that such products would be out in the cold as the fresh perimeter took off.

While the fresh sector continues to thrive, however, many frozen products are performing well and capturing interest across a broad spectrum of shoppers.

Cold Cash, Warmer Sales

First, the big picture.

According to the 2019 “Power of Frozen” report from the American Frozen Food Institute (AFFI) and FMI — the Food Industry Association, both based in Arlington, Va., sales of frozen foods have topped $57 billion annually. The more revealing statistic is growth, and to that end, the report finds that both dollar and unit sales grew in 2018, up 2.6% and 2.3%, respectively.

The Harrisburg, Pa.-based National Frozen & Refrigerated Foods Association (NFRA) just released its annual “State of the Industry” report showing a second consecutive year of sales growth, reaching $54.6 billion. Several segments within frozen experienced “solid” growth in the past 12 months, including pizza, vegetables, seafood, prepared potatoes and desserts, with increases between 3.7% and 5.1%.

Beyond sales figures, other research confirms consumer interest in frozen foods and the reinvigoration of segments within the category. In its daily tracking of U.S. consumer eating behaviors, The NPD Group, based in Port Washington, N.Y., found that frozen foods were included in the 9.8 billion at-home eating occasions last year, a 2% increase from a decade ago. That figure represents billions of meals, by NPD’s estimation.