ROCKVILLE, MD--(Marketwire - Oct 2, 2012) - How can marketers and retailers reinvent frozen foods to re-attract consumers to this core center-store category? "Frozen Foods in the U.S.," a just-released study from Packaged Facts, reports that sales in the $44 billion U.S. retail market for frozen foods have been flat to declining, with nearly all dollar sales gains attributable to inflation or new products -- not to increased consumer demand.
Contributing to this stagnation are the nation's slow economic recovery; changing consumer eating patterns, shopping patterns and demographics; lack of excitement in frozen foods categories and merchandising; retailers' increased focus on the fresh foods perimeter to the detriment of center store categories; and competition from fresh foods (including prepared fresh foods), shelf-stable foods, and restaurants.
This situation presents huge challenges and opportunities for marketers and retailers. Major marketers such as ConAgra, Heinz, and Unilever are already slimming down and refocusing their brand portfolios.
One way that frozen food marketers are stepping up to the plate is by emphasizing freshness, according to David Sprinkle, publisher of Packaged Facts. Although "fresh" would seem to be an oxymoron in frozen foods, frozen food marketers are increasingly squaring off against fresh foods head on, for example by citing research studies which show that frozen produce is as nutritious, and in some cases even more nutritious, than fresh produce.
The emphasis on freshness responds to shifting consumer priorities. According to an August 2012 national online survey by Packaged Facts, a preference for fresh foods is the top reason (57%) shoppers cite for not buying frozen foods in the last three months, followed by a preference for home-cooked foods (35%). In comparison, fewer than one in five shoppers say they have not bought frozen foods because they don't like the taste, don't have enough freezer space at home, are not confident in frozen foods' nutrition, or are not confident in frozen foods' quality (a concern that is, nonetheless, notably more prevalent among women).
For more information, please visit http://www.packagedfacts.com/Frozen-Foods-Edition-6855329/ or http://www.marketresearch.com/.
About Packaged Facts - Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods (including foods and beverages, health and beauty care, and household products), and pet products and services. Packaged Facts also offers a full range of custom research services. To learn more, visit: www.packagedfacts.com. Follow us on Facebook, LinkedIn, Twitter, and http://packagedfacts.blogspot.com/