TL;DR
With consumers seeking convenience and nutrition, the frozen food market continues to experience growth, particularly in the breakfast and better-for-you segments. Independent retailers can capitalize on this trend by offering a variety of quick and nutritious frozen food options. Smaller grocery trips throughout the week and holidays/events also contribute to the market’s expansion. Younger consumers and parents are significant consumers in this space.
The frozen food industry is thriving as more consumers prioritize convenience and nutrition in their busy lives. In a recent interview highlights that on-the-go consumers are increasingly turning to the frozen food aisle for quick and nutritious options. This change in consumer behavior presents a significant opportunity for independent retail store owners to tap into this growing market.
In the aftermath of the pandemic, people have become more accustomed to cooking at home. However, as school and work schedules become busier, the need for convenient food options has risen. Frozen foods offer the perfect solution, balancing convenience and value. By providing a range of tasty, ready-to-eat frozen meals, retailers can meet the demands of time-strapped consumers and enhance their shopping experience.
The growth in the frozen-food segment is largely driven by consumers who still prefer eating at home but require time-saving options. According to the data, 44% of consumers choose to eat at home instead of dining out to save money, benefitting the frozen food market significantly. This trend has steadily increased over the years and shows no signs of slowing down.
Advancements in frozen food technology, such as individually-quick-frozen (IQF) technology, have also contributed to the market’s growth. IQF technology improves food quality and taste, enhancing the appeal of frozen meals. As a result, the global frozen food market is projected to reach a value of $612.28 billion by 2032, with a compound annual growth rate (CAGR) of 4.6% between 2023 and 2032, according to Precedence Research data.
Breakfast foods have become a popular category in the frozen food market, especially for time-constrained individuals. Waffles and bagels have seen a surge in sales, offering a quick and nutritious option for the morning routine. Healthier and better-for-you options are resonating with consumers, particularly those with children, as they prioritize ensuring their families’ health.
In addition to breakfast foods, high-protein products, including plant-based protein options, have gained significant traction. Protein is a vital component of a balanced diet, and prepared breakfast items that offer sufficient protein levels are highly sought after by health-conscious consumers. Independent retailers can cater to this demand by stocking a variety of protein-rich frozen food items.
When it comes to shopping habits, consumers are predominantly making in-store purchases for frozen food items. However, there has been a shift towards more frequent, smaller grocery trips throughout the week, as opposed to one large trip. Retailers should take note of this trend and make sure their stores are well-stocked with a diverse selection of frozen food options to accommodate these shopping patterns.
It is also important to recognize the target demographic for frozen food purchases. Younger consumers and parents, particularly those from the Gen X generation, are among the primary consumers in this market. Families with children, whether they’re buying chicken nuggets for younger kids or pizza rolls for older kids, value the convenience and value that frozen foods provide.
Independent retail store owners have a valuable opportunity to tap into the growing frozen food market. By offering a wide range of quick and nutritious frozen food options, tailored specifically for busy consumers and families, retailers can attract and retain customers. Moreover, with smaller, more frequent grocery trips becoming the norm, it is crucial to ensure product availability and variety to meet the demands of these shopping habits.
The rise of frozen foods presents a lucrative opportunity for independent retail store owners. By understanding the preferences and needs of busy consumers, retailers can tailor their offerings to meet the demand for convenient and nutritious frozen meals. Investing in a diverse selection of breakfast items, high-protein options, and meals suitable for families will aid in capturing a share of the growing frozen food market. With the right strategies in place, independent retailers can maximize their potential and drive business growth in this thriving industry.
