Trends driving innovation in frozen foods.
According to a report1 published by Conagra Foods, based on data from NIQ on the 52 weeks ending 12/2/23, the frozen food category reached nearly $78 billion. The biggest share of these sales (33%) belong to prepared foods, which have a seen a sales growth of 8% compared to four years ago. The American Frozen Foods Institute (AFFI)2 says that 38% of those who eat frozen foods do so every few days or on a daily basis, and treat it as a total meal solution that saves them time while also meeting taste expectations.
Frozen foods can fit into consumer’s lifestyles by offering convenience and flexibility, while also helping consumers create less food waste. This is particularly important for large, busy families. Technological advancements are also helping consumers prepare frozen food with more ease and enthusiasm. Conagra’s report calls out the important role air fryers are playing in the frozen food landscape. According to that report, citing data from Circana LLC’s Kitchen Audit 2020 and 2023, 63% of households own an air fryer. This is 27% more than 2020. The number of frozen food products with air fryer instructions have therefore grown by 90% compared to four years ago. Consumers also perceive the use of air fryers as a healthier way to cook food, which is in contrast to how frozen foods are perceived more broadly.
According to the 2024 International Food Information Council’s (IFIC) Food & Health Survey,3 “Fresh” was the top criteria for the definition of healthy food. Similarly, 91% of survey respondents ranked fresh foods among their top three healthiest food options. In the same survey, 39% of respondents ranked frozen foods among the top three healthiest options while 26% ranked it among the bottom three, least healthy food options. So, while frozen foods are not universally considered the healthiest, more consumers do find that frozen options can be a part of a healthy diet.
Breakfast is becoming the prime example of how consumers are incorporating frozen foods into their diets, particularly with frozen breakfast sandwiches. According to Conagra, over the past four years frozen breakfast sandwiches have seen double digit growth and now account for $2.3 billion in sales. And within this category there has been a great deal of growth in options with packaging claims such as “high in protein,” “gluten-free,” and “carb-conscious.” Of these, high protein options are selling the fastest. The IFIC survey shows that every year, more consumers are seeking to eat protein. In 2024, the percentage reached 71% from 67% in 2023, and 59% in 2022. According to AFFI, the two major drivers of innovation in frozen foods are better-for-you options and more convenient solutions. Breakfast sandwiches are well-positioned for both.
References
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