Frozen Foods in the U.S., 2nd Edition

Table of Contents

Chapter 1: Executive Summary

• Scope and Methodology
  • Market Definition: Frozen Foods and Beverages
  • Focus on Three Savory Food Classifications
  • Report Methodology
• Market Size and Composition
  • Retail Sales Total $51.8 Billion in 2008
  • Table 1-1: U.S. Retail Sales of Frozen Foods, 2004-2013 (in millions of dollars)
  • IRI-Tracked Sales Approach $31.7 Billion in 2008
  • Center Plate Represents Half of Frozen Foods Market
  • Figure 1-1: Share of IRI-Tracked Dollar Sales of Frozen Foods and Beverages by Classification, 2004 vs. 2008 (percent)
  • Supermarkets Claim 55% of Sales
  • Economy Driving Consumer Purchasing Patterns
  • A Return to Eating at Home
  • Convenience First and Foremost
  • Kids and Teenagers a Driving Force
  • Competition from Fresh Prepared Foods
• Competitive Overview
  • Hundreds of Competitors
  • Niche and Natural/Organic Marketers
  • Restaurant Names, Licensing and Diet Tie-Ins
  • Competition from Private Label
• Marketing and New Product Trends
  • More Than 600 New Products Introduced Each Year
  • Center-Plate Classification Leads in New Products
  • The Top Product Claims: Upscale, Quick, Natural
• Retail and Consumer
  • Competitive Shifts in Retail Landscape
  • Household Penetration of Frozen Foods by Category
  • Table 1-2: Frozen Food Purchasing Patterns by Type, 2004 vs. 2008 (percent of U.S. households)
  • Ore-Ida and Eggo the Most Popular Frozen Food Brands

Chapter 2: Market Overview

• Introduction
  • Market Definition: Frozen Foods and Beverages
  • Focus on Three Savory Food Classifications
  • Report Methodology
• Market Size and Composition
  • Retail Sales Total $51.8 Billion in 2008
  • Table 2-1: U.S. Retail Sales of Frozen Foods, 2004-2008 (in millions of dollars)
  • Table 2-2: U.S. Retail Sales of Frozen Foods by Classification, 2004-2008 (in millions of dollars)
  • IRI-Tracked Dollar Sales Approach $31.7 Billion in 2008
  • Volume Sales Down 6.0% in 2008
  • Table 2-3: IRI-Tracked Retail Sales of Frozen Foods by Dollar and Volume Growth, 2007-2008 (in millions of dollars and pounds)
  • Breakfast Foods Grow Fast, Beverages Decline
  • Center Plate Represents Half of Frozen Foods Market
  • Figure 2-1: Share of IRI-Tracked Dollar Sales of Frozen Foods and Beverages by Classification, 2004 vs. 2008 (percent)
  • Fastest-Growing Categories in IRI-Tracked Channels
  • Table 2-4: Top 10 Frozen Food Categories by Percentage Growth in IRI-Tracked Dollar Sales, 2007-2008 (in millions of dollars)
  • Table 2-5: Top 10 Frozen Food Categories by Percentage Growth in IRI-Tracked Volume Sales, 2007-2008 (in millions of pounds)
  • Frozen Foods Make IRI' s New Products Pacesetters List
  • Supermarkets Lead Retail Market with 55% of Sales
  • Figure 2-2: Share of U.S. Retail Sales of Frozen Foods by Retail Channel, 2008 (percent)
  • Seasonal Sales Vary by Category
  • Table 2-6: IRI-Tracked Retail Sales of Frozen Foods by Classification and Category, 2004-2008 (in millions of dollars)
• Market Outlook
  • Economy Driving Consumer Purchasing Patterns
  • Table 2-7: Selected Food/Beverage Psychographics, February 2009 (percent of U.S. Adults)
  • Food Costs Are Rising
  • Figure 2-3: Impact of Economy on Grocery Purchases by Household Income: Agreement with Statement "I Buy More Canned, Frozen or Boxed Food Items as Opposed to Fresh, Nonpreserved Food" (percent of shoppers)
  • The Value Proposition
  • A Return to Eating at Home
  • Consumers Buying More Home Freezers
  • Convenience First and Foremost
  • Demographic Shifts
  • Table 2-8: Demographic Snapshot of the U.S. Population as of July 1, 2007
  • Health and Wellness
  • A Delicate Balance Between Health and Convenience
  • Figure 2-4: Consumer Attitudes about Healthy Foods and Time Constraints, 2008 (percent of U.S. adults)
  • Skittishness Over Food Safety
  • Brown-Bagging Lunch
  • Ethical Issues
  • Going Local
  • Natural/Organic Foods Going Mainstream, But Growth Slowing
  • Kids and Teenagers a Driving Force
  • Palate for Global Foods Is Growing
  • Consumers Like Customization
  • Industry Association Promotes Frozen Foods Through Schools
  • New Technologies Boost Quality
  • To Innovate, or Not to Innovate?
  • Competition from the Restaurant Industry
  • Competition from Fresh Prepared Foods
  • Figure 2-5: Supermarket Shopper Interest in Ready-to-Eat Meal Solutions, 2008 (percent)
  • Fighting the Frozen Foods Stigma
• Projected Market Growth
  • Sales to Approach $65 Billion by 2013
  • Table 2-9: Projected U.S. Retail Sales of Frozen Foods and Beverages, 2008-2013 (in millions of dollars)
  • Table 2-10: Projected U.S. Retail Sales of Frozen Foods by Classification, 2008-2013 (in millions of dollars)
• Competitive Overview
  • Hundreds of Competitors
  • Natural/Organic Marketers
  • Restaurant Names, Licensing and Diet Tie-Ins
  • Competition from Private Label
• Marketing and New Product Trends
  • More Than 600 New Products Introduced Each Year
  • Table 2-11: Number of U.S. Food Product Introductions: Overall vs. Frozen and Refrigerated, 1985-2008
  • Center-Plate Classification Leads in New Products
  • Table 2-12: Number of U.S. Frozen Food Product Introductions by Product Categories, 2004-2008
  • The Top Product Claims: Upscale, Quick, Natural
  • Table 2-13: Top Product Claims/Tags for U.S. Frozen Food Product Introductions, 2008 (number and percent)
  • Selling Convenience
  • Figure 2-6: Number of New Frozen Food Product Introductions by Selected "Convenience" Package Tags/Claims, 2007 vs. 2008
  • Natural Going Strong
  • Figure 2-7: Number of New Frozen Food Product Introductions by Top "Natural" Package Tags/Claims, 2007 vs. 2008
  • Selling Health Benefits
  • Table 2-14: Number of New Frozen Food Product Introductions by Top "Healthy" Package Tags/Claims, 2007 vs. 2008
  • Nestle, Kraft Lead 2008 Product Introductions
  • Table 2-15: Selected Leading U.S. Marketers of Frozen Foods Based on Stock-Keeping Unit (SKU) Introduction Levels, 2004-2008 (number)
  • Packaging Trends
  • Consumers' Brand Perceptions
• Global Marketing and New Product Trends
  • Nestle, Unilever Lead Frozen Food Introductions
  • Trends in International New Product Introductions
  • Table 2-16: Selected Leading Global Marketers of Frozen Foods Based on Stock-Keeping Unit (SKU) Introduction Levels, 2004-2008 (number)
  • Table 2-17: Top Product Claims/Tags for Food & Beverage Product Introductions by Selected U.S. and Global Measures: 2008 (percent)
  • Table 2-18: Top Product Claims/Tags for Food & Beverage Product Introductions by Selected U.S. and Global Measures: Three-Year Aggregate, 2006-2008 (percent)
  • Innovative International Marketing and New Product Launches
• Distribution and Retail
  • Warehouse vs. Direct Store Delivery
  • Smaller Marketers Work Through Brokers
  • Competitive Shifts in the Retail Landscape
  • Focus on Supermarkets
  • Focus on Natural Supermarkets
  • Table 2-19: Sales of Frozen and Refrigerated Products in Natural Supermarkets by Category, March 2006 - March 2008 (in millions of dollars)
  • Table 2-20: Sales of Frozen and Refrigerated Products in Natural Supermarkets by Leading Marketers and Brands, March 2006 - March 2008 (in millions of dollars)
  • Focus on Supercenters/Mass Merchandisers
  • Focus on Warehouse Clubs
  • Focus on Convenience Stores
  • Tesco Forging Ahead in U.S. Market
  • Focus on Specialty Stores
  • Focus on Drugstores
  • Trends in Other Retail Channels, at Home and Abroad
• Consumer Overview
  • Notes on Simmons Market Research Bureau Consumer Data
  • Overview of Simmons Data
  • Table 2-21: Frozen Food Purchasing Patterns by Type, 2004 vs. 2008 (percent of U.S. households)
  • Ore-Ida and Eggo the Most Popular Frozen Food Brands
  • Table 2-22: Top 10 Frozen Foods Products by Usage Rates, 2008 (percent of U.S. adults)
  • Table 2-23: Usage Rates for Selected Frozen Foods Types and Brands, 2008 (percent of U.S. adults)
  • Demographics of Users Vary by Product Category
  • Consumer Attitudes Toward Frozen Foods
  • Table 2-24: Top Demographic Indicators for Agreement with Statement: I Often Eat Frozen Dinners, 2008 (indices)
  • Table 2-25: Top Demographic Indicators for Agreement with Statement: Easy to Prepare Foods are My Favorite, 2008 (indices)
  • Table 2-26: Top Demographic Indicators for Agreement with Statement: Frozen Dinners Have Little Nutritional Value, 2008 (indices)
  • Frozen Breakfast Entrees are the Highest Indexing Category Among Prime Frozen Food Consumers
  • Figure 2-27: Leading Frozen Foods Products by Indexes of Prime Frozen Food Consumers, 2008 (indices)
  • Walmart Is Top Channel for Frozen Foods
  • Table 2-28: Frozen Food Chain Retail Patterns, 2008 (percent of U.S. adults)
  • Table 2-29: Frozen Food Chain Retail Patterns: By Age Bracket, 2008 (index and percent of U.S. adults)
  • Table 2-30: Frozen Food Expenditure Patterns, 2008 (percent of .S. adults)
  • Table 2-31: Frozen Food Expenditure Patterns: By Age Bracket, 2008 (index and percent of U.S. adults)
  • Table 2-32: Frozen Food Expenditure Patterns: By Retail Channel Most Often Shopped, 2008 (percent of U.S. adults)
  • Frozen Food Age 2008 Consumer Study

Chapter 3: Center-Plate Frozen Foods

• Market Trends
  • Market Definition: Main Courses
  • A $26 Billion Market
  • Table 3-1: U.S. Retail Sales of Frozen Center-Plate Foods, 2004-2008 (in millions of dollars)
  • Single-Serve Dinners/Entrees Comprise Largest Category
  • Table 3-2: Share of IRI-Tracked Dollar Sales of Frozen Center-Plate Foods by Product Category, 2004 vs. 2008 (percent)
  • Supermarket Retail Share 55%
  • Figure 3-1: Share of Frozen Center-Plate Foods by Retail Channel, 2008 (percent)
  • Seasonal Sales
• Market Outlook
  • Convenience and Value Are Prime Motivators
  • No-Mess Cooking, Easy Clean-Up
  • Consumers Stocking Up
• Projected Market Growth
  • Frozen Center-Plate Foods to Approach $33 Billion by 2013
  • Table 3-3: Projected U.S. Retail Sales of Frozen Center-Plate Foods, 2008-2013 (in millions of dollars)
• Competitive Overview
  • More than 300 Marketers
  • Market Leaders
  • Important Niche Marketers
  • Marketers of Mexican-Style Specialties
  • Marketers of Asian and Other International Specialties
  • Natural and Vegetarian Marketers
  • Some Marketers Focus on Non-Supermarket Channels
  • Private Label Big in Some Categories, Small in Others
• Marketing and New Product Trends
  • New Products Proliferate
  • Table 3-4: Number of U.S. Frozen Food Product Introductions in Center-Plate Categories, 2004-2008
• The Consumer
  • Frozen Pizza Enjoys Deepest Household Penetration
  • Figure 3-2: Frozen Center-Plate Foods Purchasing Patterns by Type, 2004 vs. 2008 (percent of U.S. households)
• Focus on Dinners/Entrees
• Competitive Overview
  • Frozen Dinners/Entrees Leaders
  • Regional and Niche Players
  • Ethnic Players
  • Natural and Organic Marketers
• Marketer and Brand Shares
  • Methodology
  • Single-Serve Dinners/Entrees the Largest Subcategory
  • Figure 3-3: Share of IRI-Tracked Dollar Sales of Frozen Dinners/Entrees Category by Type, 2008 (percent)
  • Nestle and ConAgra Control 61% of Frozen Dinners/Entrees Sales
  • Table 3-5: Marketer Share of Total Frozen Dinners/Entrees by IRI-Tracked Dollar Sales, 2008 (percent)
  • Nestle Leads Single-Serve Dinners/Entrees
  • Table 3-6: Top Marketers of Frozen Single-Serve Dinners by IRI-Tracked Sales and Market Share, 2007-2008 (in millions of dollars)
  • Nestle Controls Over Half of Hand-Held Non-Breakfast Entrees Market
  • Table 3-7: Top Marketers of Frozen Hand-Held Non-Breakfast Entrees by IRI-Tracked Sales and Market Share, 2007-2008 (in millions of dollars)
  • Nestle Also on Top in Frozen Multi-Serve Dinners/Entrees
  • Table 3-8: Top Marketers of Frozen Multi-Serve Dinners/Entrees by IRI-Tracked Sales and Market Share, 2007-2008 (in millions of dollars)
• Marketing and New Product Trends
  • Frozen Dinners/Entrees Require Constant Tweaking
  • Value vs. Premium Positioning Strategies
  • Restaurant Names and Restaurant Quality Meals at Home
  • Homemade-Style Foods
  • Marketing Health Benefits
  • Ethnic Foods Getting a Healthy Update
  • Natural and Organic Options Proliferating
  • Natural Foods for Kids, Too
  • Contessa Is Going Green
  • Steaming Hot Meals
  • Hand-Held Entrees: Panini and More
  • Meals for Two - Or More
• The Consumer
  • More than Half of U.S. Households Use Frozen Dinners
  • Banquet, Swanson the Most Popular Frozen Dinner Brands
  • Table 3-9: Frozen Dinners Purchasing Patterns by Brand, 2004 vs. 2008 (percent of U.S. households)
  • Stouffer' s and Banquet the Favorite Frozen Entrees
  • Table 3-10: Frozen Entrees Purchasing Patterns by Brand, 2004 vs. 2008 (percent of U.S. households)
  • Hot Pockets the Most Popular Brand of Frozen Hand-Held Entrees
  • Table 3-11: Frozen Hand-Held Entrees Purchasing Patterns by Brand, 2004 vs. 2008 (percent of U.S. households)
  • Demographics of Frozen Dinner Purchasers Differ by Brand
  • Table 3-12: Selected High-Indexing Demographics by Brand Line for Frozen Dinners, 2008 (U.S. households)
  • Frozen Entree Consumer Profiles
  • Table 3-13: Selected High-Indexing Demographics by Brand Line for Frozen Entrees, 2008 (U.S. households)
  • Frozen Hand-Held Entrees Hold Similar Draws
  • Table 3-14: Selected High-Indexing Demographics by Brand Line for Frozen Hand-Held Non-Breakfast Entrees, 2008 (U.S. households)
• Focus on Frozen Pizza
• Competitive Overview
  • Frozen Pizza Leaders
  • Regional Pizza Marketers Serve Regional Tastes
  • Midwest the Core Market for Frozen Pizza
  • Figure 3-4: Likelihood of Pizza Usage by Region, 2008 (index)
• Marketer and Brand Shares
  • Methodology
  • Kraft Leads Frozen Pizza with Multiple Brands and 39% Share
  • Table 3-15: Marketer Share of IRI-Tracked Dollar Sales of Frozen Pizza, 2008 (percent)
  • Table 3-16: Top Marketers of Frozen Pizza by IRI-Tracked Sales and Market Share, 2007-2008 (in millions of dollars)
• Marketing and New Product Trends
  • Plenty of Room to Grow
  • Upscale vs. Value Positioning Strategies
  • Even More Like Restaurant Style
  • Pizza That' s Good for You
  • Single-Serve Pizzas
  • Just for Kids
• The Consumer
  • Two Out of Three Homes Use Frozen Pizza
  • Table 3-17: Frozen Pizza Purchasing Patterns by Brand, 2004 vs. 2008 (percent of U.S. households)
  • Pizza a Youth- and Family-Oriented Product
  • Table 3-18: Selected High-Indexing Demographics by Brand Line for Frozen Pizza, 2008 (U.S. households)

Chapter 4: Frozen Vegetables, Appetizers/Snacks and Sides

• Market Trends
  • Market Definition: Frozen Vegetables, Appetizers/Snacks and Sides
  • Market Approaching $8.8 Billion
  • Table 4-1: U.S. Retail Sales of Frozen Vegetables, Appetizers/Snacks and Sides, 2004-2008 (in millions of dollars)
  • Frozen Plain Vegetables Account for 34% of Retail Sales
  • Table 4-2: Share of IRI-Tracked Retail Dollar Sales of Frozen Vegetables, Appetizers/Snacks and Sides by Product Category, 2004 vs. 2008 (percent)
  • Supermarkets Lead Retail Market with 70% of Sales
  • Figure 4-1: Share of Frozen Vegetables, Appetizers/Snacks and Sides by Retail Channel, 2008 (percent)
  • Seasons Dramatically Impact Sales
  • Sales to Reach $12 Billion by 2013
  • Table 4-3: Projected U.S. Retail Sales of Frozen Vegetables, Appetizers/Snacks and Sides, 2008-2013 (in millions of dollars)
  • New Product Counts
  • Table 4-4: Number of U.S. Frozen Food Product Introductions in Frozen Vegetable, Appetizer/Snack, and Sides Categories, 2004-2008
• Focus on Frozen Vegetables
• Market Outlook
  • Frozen Vegetables Suddenly a Hot Category
  • Frozen Vegetables Economically a Good Value
  • Consumers View Veggies as Healthy - But Don' t Eat Enough
  • Consumers Seek Easy Cooking and Clean-Up
  • Challenge from Fresh Counterparts
• Competitive Overview
  • A Short List of Market Leaders
• Marketer and Brand Shares
  • Methodology
  • Private Label Almost 43% of Frozen Vegetable Sales
  • Table 4-5: Top Marketers of Frozen Plain Vegetables by IRITracked Sales and Market Share, 2007-2008 (in millions of dollars)
  • Ore-Ida Rings Up More than Half of Frozen Potato Sales
  • Table 4-6: Top Marketers of Frozen Potatoes by IRI-Tracked Sales and Market Share, 2007-2008 (in millions of dollars)
• Marketing and New Product Trends
  • All Steamed Up
  • Steam Cooking Migrating to Other Product Categories
  • Functional Vegetables
  • Single-Serve Veggies
  • Getting Kids to Eat their Veggies
  • A New Bean
  • Encouraging Creative Cooking
  • Frozen Fresh Herbs
  • Potatoes Move Beyond French Fries
• The Consumer
  • Four in Five Households Use Frozen Vegetables
  • Table 4-7: Frozen Vegetables Purchasing Patterns by Type, 2004 vs. 2008 (percent of U.S. households)
  • Few Outstanding Demographic Indicators
  • Table 4-8: Selected High-Indexing Demographics by Brand Line for Frozen Vegetables, 2008 (U.S. households)
  • Three out of Five Households Use Frozen Potatoes
  • Table 4-9: Frozen Potatoes Purchasing Patterns by Type, 2004 vs. 2008 (percent of U.S. households)
  • Kids, Large Households Indicated for Frozen Potatoes
  • Table 4-10: Selected High-Indexing Demographics by Brand Line for Frozen Potatoes, 2008 (U.S. households)
• Focus on Frozen Appetizers/Snacks
• Market Outlook
  • Frozen Appetizers/Snacks Suit Multiple Eating Occasions
  • Meals Blurring, Snacks Rising
  • Perfect for Kids and Teens
  • Restaurants Exert a Powerful Influence
  • Ethnic-Style Appetizers/Snacks in High Demand
  • Health and Wellness Meet Snacks
• Competitive Overview
  • Only Two National Market Leaders
  • Mexican, Asian and Other Ethnic Specialties
  • Some Marketers Focus on Non-Supermarket Channels
• Marketer and Brand Shares
  • Methodology
  • Heinz Leads Frozen Appetizers/Snacks with Multiple Brands
  • Table 4-11: Top Marketers of Frozen Appetizers/Snacks by IRI-Tracked Sales and Market Share, 2007-2008 (in millions of dollars)
• Marketing and New Product Trends
  • New Lines from Established and New Players
  • New Stuff
  • Healthier Snacking Foods
  • Introducing Empanadas
  • Appetizers with Soul
  • Wegmans Adds Elegant Private-Label Hors d' Oeuvres
  • Frozen Bread Rising
• The Consumer
  • Almost Half of Households Use Frozen Appetizers/Snacks
  • Figure 4-2: Favorite Brands of Frozen Hot Snacks, 2008 (percent of U.S. households)
  • Households with Kids a Key Market
  • Table 4-12: Selected High-Indexing Demographics by Brand Line for Frozen Appetizers/Snacks, 2008 (U.S. households)

Chapter 5: Frozen Breakfast Foods

• Market Trends
  • Market Definition: Frozen Breakfast Foods
  • A $2.2 Billion Market
  • Table 5-1: U.S. Retail Sales of Frozen Breakfast Foods, 2004-2008 (in millions of dollars)
  • Waffles the Largest Category; Muffins Grow Fastest
  • Table 5-2: IRI-Tracked Retail Sales of Frozen Breakfast Foods by Product Category, 2004 vs. 2008 (in millions of dollars)
  • Waffles Slip to 37% Share of Frozen Breakfast Foods
  • Table 5-3: Share of IRI-Tracked Dollar Sales of Frozen Breakfast Foods by Product Category, 2004 vs. 2008 (percent)
  • Supermarkets Lead But Have Declined in Share
  • Figure 5-1: Share of Frozen Breakfast Food Sales by Retail Channel, 2008 (percent)
• Market Outlook
  • The Most Important Meal Consumers Skip
  • Convenience Is Primary Market Driver
  • Different Needs for Weekdays, Weekends
  • Not Just for Breakfast
  • Kid-Targeted Foods a Big Part of the Action
  • Competition from Other Breakfast Foods and Fast Foods
  • Product Innovation a Challenge
• Projected Market Growth
  • Frozen Breakfast Foods Will Approach $3.1 Billion by 2013
  • Table 5-4: Projected U.S. Retail Sales of Frozen Breakfast Foods, 2008-2013 (in millions of dollars)
• Competitive Overview
  • Short List of Leading Marketers
  • Licensing an Important Market Component
  • Marketers Buy Ideas from Outside Corporate Structure
• Marketer and Brand Shares
  • Methodology
  • Kellogg Claims One-Third of Frozen Breakfast Foods Market
  • Table 5-5: Marketer Share of IRI-Tracked Dollar Sales of Frozen Breakfast Foods, 2008 (percent)
  • Kellogg Dominates Frozen Waffles with a 73% Market Share
  • Table 5-6: Top Marketers of Frozen Waffles by IRI-Tracked Sales and Market Share, 2007-2008 (in millions of dollars)
  • Sara Lee Leads Frozen Hand-Held Breakfast Category
  • Table 5-7: Top Marketers of Frozen Hand-Held Breakfast Entrees by IRI-Tracked Sales and Market Share, 2007-2008 (in millions of dollars)
  • Sara Lee and Pinnacle on Top in Frozen Breakfast Meals
  • Table 5-8: Top Marketers of Frozen Breakfast Meals/Entrees by IRI-Tracked Sales and Market Share, 2007-2008 (in millions of dollars)
• Marketing and New Product Trends
  • Part of a Larger Category
  • Breakfast Fast...
  • ... and On-the-Go
  • Better-for-You Breakfasts
  • Hot Oatmeal from the Freezer
  • Products with a New Twist
  • Just for Kids
• The Consumer
  • More than Half of U.S. Households Use Frozen Waffles/Pancakes/French Toast
  • One out of Four Households Use Frozen Breakfast Sandwiches/Entrees
  • 9% Use Frozen Bagels
  • Table 5-9: Frozen Breakfast Foods Purchasing Patterns by Type, 2004 vs. 2008 (percent of U.S. households)
  • Frozen Waffles/Pancakes/French Toast Draw Kids, Large Families, Northeasterners
  • Table 5-10: Selected High-Indexing Demographics by Brand Line for Frozen Waffles/Pancakes/French Toast, 2008 (U.S. households)
  • African Americans, Families with Teens Choose Frozen Breakfast Entrees/Sandwiches
  • Table 5-11: Selected High-Indexing Demographics by Brand Line for Frozen Breakfast Entrees/Sandwiches, 2008 (U.S. households)