The typical worth per unit within the frozen meals division elevated 17% to $4.91 in September 2022 vs. September 2021, and up 31.6% vs. 2019, in response to IRI gross sales knowledge.
The rise tracks forward of whole retailer stage inflation, which was +14.3% in September 2022 vs. one 12 months in the past.
Frozen classes with the most important year-over-year per unit worth improve (September 2022 vs. September 2021) included vegetables and fruit (+19.2%), snacks (+19%) meals (+18.8%), and meat/poultry/ seafood (+17.9%).
Just one space, frozen drinks, averaged a single-digit (+7.1%) year-over-year worth improve.
Complete meals & beverage gross sales (measured channels, retail, IRI) have been up +9.5% YoY in September 2022, with models down -4.1%, whereas frozen gross sales have been up +9.7% with models down -6.2%.
Large CPG and frozen meals
Giant gamers reminiscent of Conagra Manufacturers (Chook’s Eye, Marie Callender’s, Banquet, Wholesome Selection) and Basic Mills (Häagen-Dazs, Totino’s) have reported sturdy gross sales in its frozen meals portfolios and funding into its frozen meals choices.
“Frozen generated a big acceleration of quarterly gross sales progress on a one and three 12 months foundation of 8% and 27% respectively. Clearly, our give attention to catering to shopper preferences for comfort, high quality and nice style continues to resonate,” stated Conagra president and CEO Sean Connolly on the corporate’s Q1 2023 earnings name.
In August 2022, Basic Mills introduced a $100m funding at one among its manufacturing vegetation making Totino’s frozen pizza merchandise.
Earlier this 12 months, Nestlé USA-owned Candy Earth Meals expanded its frozen mealsline to fulfill demand for comfort and plant-based vitamin.
Acosta: Shoppers nonetheless consider frozen supplies higher worth
However whilst the typical unit worth for frozen merchandise has risen by double digits vs. one 12 months in the past, shoppers proceed to pick out frozen merchandise as a key a part of their meals buying expertise, famous Kathy Risch, SVP, shopper insights and developments at Acosta.
“We have discovered that standards for buy are balanced between the necessities of affordability and worth, wholesome selections that meet dietary or way of life wants, comfort of preparation and a little bit of consolation,”stated Risch.
Acosta discovered that 98% of households buy frozen with 86% of these customers visiting the frozen part on all or most of their grocery visits.
Whereas 93% of customers are noticing increased costs on frozen meals, 67% of shoppers nonetheless consider that frozen typically supplies a greater worth than non-frozen in particular classes of greens, fruit, meat, fish, and pizza and 40% of customers are spending extra time in search of offers within the frozen meals aisle, in response to Acosta analysis.
A part of deal looking is being completed at membership shops the place searching for frozen meals has jumped 5% this 12 months, with 52% of households reporting they’re shopping for in bulk to economize, Acosta discovered.
As well as, shoppers’ frozen meals purchases are sometimes deliberate vs. impulse choices, and shoppers typically favor to buy frozen meals in-store vs. on-line citing dealing with considerations as a key barrier.
In terms of what shoppers are in search of out and shopping for within the frozen meals aisle, 91% are buying desserts to fulfill cravings for consolation, comfort, and indulgence.
Many (89%) of shoppers are buying ready meals and 59% of shoppers changed a frozen foremost dish as a alternative for consuming exterior the house. Three-quarters bought greens as frozen greens are sometimes perceived as a greater worth than contemporary, famous Acosta.
Spend money on the frozen meals aisle
To capitalize on shoppers’ allegiance to the frozen meals aisle, Acosta recommends producers and retailers put money into their frozen meals units with clear advertising and marketing and packaging communication on the worth proposition of frozen meals, particularly bulk objects and entries.
“Spotlight the comfort of meal options and talk dinner meal options that blend and match frozen with contemporary objects,”notice Acosta.
Well being messaging also needs to be entrance and middle with retailers and types selling the wholesome dietary content material preserved in frozen meals and elevate choices with more healthy innovation reminiscent of introducing extra plant-based choices.
Acosta additionally advises retailers to make the freezer part a extra enjoyable, fulfilling, and fascinating buying expertise for shoppers.
“There is a chance to do extra to have interaction with clients and drive pleasure and buy within the frozen part, in-store and on-line, by means of focused omnichannel advertising and marketing, gross sales promotions and experiential retailing. Understanding the buyer mindset in frozen will play an necessary position in supporting anticipated progress and driving buy choices,”stated Risch.