Consumers are walking
the aisle of the grocery store looking for a meal that is less expensive than
eating out. Delivery charges, price
increases, slow service, inconsistent quality are but some of the comments
gather in Foodservice Solutions®
latest round of grocerant scorecards, according to Steven Johnson Grocerant Guru®
at Tacoma, WA based Foodservice Solutions®.
Struggling with year
over year customer count declines and inflation restaurant have to consider
just here are their customer getting their next meal. By all accounts more and more consumers are
visiting the frozen food court at their local grocery store. Is your brand on
the aisle, on the shelf, or in the basket of the consumer tonight?
Consider this, price is top of mind for
consumers, frozen food sales have exceeded $70 billion over the past
year, according to NielsenIQ – a
7.6% increase over 2021 and 31% increase over 2019 pre-pandemic sales. Now are
your sales up 7.6%? Are your sales up
31% over 2019 pre-pandemic sales?
In a new report from Acosta, titled Frozen Food Trends & Insights study, done
in conjunction with the National Frozen & Refrigerated Foods Convention. With price top of mind for consumers, frozen food sales have
exceeded $70 billion over the past year, according to NielsenIQ – a 7.6% increase over
2021 and 31% increase over 2019 pre-pandemic sales. According to the research,
there are three key drivers for consumers' frozen food purchases this year:
value, convenience and healthy options. Comfort weighs in as an ancillary
driver to purchase.
Kathy Risch, SVP, Consumer Insights and
Trends at Acosta, stated, "Two years
ago, our research attributed frozen food sales growth predominantly to the
pandemic and the resulting evolution of consumer demand with more people
cooking at home," ... "Today, even as the average unit price for
frozen products has risen 15% over 2021, consumers continue to select frozen as
a key part of their food shopping experience," she stated.
"We've found that criteria for purchase are balanced between the requirements
of affordability and value, healthy choices that meet dietary or lifestyle
needs, convenience of preparation and a bit of comfort."
Pay attention to these numbers, 98% of
households purchasing frozen foods, 86% of those shoppers are visiting the
frozen section on all or most of their grocery visits. Innovation is driving
flavorful options to meet multiple dietary needs and lifestyle choices with
numerous new entries taking key positions on freezer shelves. There are ongoing
opportunities for manufacturers and retailers to influence purchase decisions.
Value is Key
·
67% of consumers believe that frozen
sometimes provides a better value than non-frozen, listing the categories of
vegetables, fruit, meat, fish and pizza
·
93% of shoppers are noticing higher
prices on frozen foods and 40% of shoppers are spending more time looking for
deals
·
Shopping for frozen foods at club stores
has jumped 5% this year, with 52% of households reporting they're buying in
bulk to save money
Understanding Frozen Foods Shopping
Habits
·
When it comes to frozen food purchases:
·
91% purchased desserts – comfort,
convenience and indulgence
·
89% purchased prepared foods and 59% of
consumers had a frozen main dish recently as a replacement for eating outside
the home
·
75% purchased vegetables, as frozen
vegetables are often perceived as "healthier" than fresh, and a
better value
·
72% said frozen purchases are planned vs.
impulse
·
Consumers continue to prefer purchasing
frozen foods in-store vs. online, citing handling concerns and preference to
select as the key barriers
Acosta's
Insights for Manufacturers and Retailers
·
Clearly communicate the value proposition
of frozen foods, especially bulk items and entrees that help shoppers stretch
dollars, with clear marketing and packaging
·
Frozen foods are undergoing a health-centric
rebrand – educate consumers on the healthy nutritional content preserved
in frozen foods and continue to elevate options with healthier innovation, such
as plant-based options
·
Highlight the convenience of meal
solutions and communicate dinner meal solutions that mix and match frozen with
fresh items
·
Strengthen the freezer section shopping
experience to make it more fun, enjoyable and engaging
"There is an opportunity to do more
to engage with customers and drive excitement and purchase in the frozen
section, in-store and online, through targeted omnichannel marketing, sales
promotions and experiential retailing. Understanding the consumer mindset in
frozen will play an important role in supporting anticipated growth and driving
purchase decisions," said Risch.
For more information, visit www.acosta.com/news or email insights@acosta.com.
Invite Foodservice
Solutions® to complete a Grocerant ScoreCard, or for product positioning or
placement assistance, or call our Grocerant Guru®. Since 1991 Foodservice
Solutions® of Tacoma, WA has been the global leader in the
Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869
