Why Americans Love Frozen Food

Bull & Bear

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Today, we’ll discuss a renaissance in the frozen food industry, all thanks to the pandemic.

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WHY AMERICANS LOVE FROZEN FOOD

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Frozen Food to the rescue

Balancing work and life can be challenging, especially for those on the go or parents juggling multiple responsibilities. That’s where frozen food steps in.

Like many other inventions, frozen food emerged as a novelty at first, only to eventually become a necessity. But frozen food is controversial, with both passionate supporters and critics.

It’s affordable, easy to make, and doesn’t require spending hours in the kitchen.

About 94% of Americans seek food with a longer shelf life for convenience. And frozen foods rescue almost four in five (77%) households during last-minute “what’s for dinner” conversations at least once a week.

We’ve all been there.

Picture this, you’re constantly shuffling between work or school, doing chores, hanging out with friends and family, and trying to squeeze in some hobbies if you’re lucky, but you still gotta eat. Planning and prepping food can be overwhelming!

That’s when you end up ordering takeout or, for a more budget-friendly option, raiding your freezer. Similarly, some families frequently choose fast food over cooking dinner from scratch because it’s way cheaper to feed the whole family this way.

About 62% of consumers believe fresh food is more expensive than frozen alternatives, and nine out of ten consumers prioritize price as the most crucial factor when purchasing fresh items.

Ultimately, the price gap opens the door for frozen food. Plus, it’s typically a healthier alternative to fast food.

 

Market evolution

In the 1920s, frozen food became popular in the U.S. thanks to Clarence Birdseye, a former biology student who pioneered a fast-freezing method for fish, making it commercially viable.

While working for the U.S. government in Labrador, Canada, he noticed that fish caught by Inuit people froze instantly in the frigid Arctic temperatures and retained their flavor when thawed and cooked later.

The real mass market breakthrough happened in 1944 when W.L. Maxson introduced the first frozen dinner called “Strato-Plates,” selling them to the Navy and airlines.

Since then, frozen food has steadily become a popular food choice in our homes, but it was during the pandemic that it truly became a thing. Grocery shopping wasn’t as frequent and easy anymore, so consumers had to think about products lasting longer than usual.

Consequently, analysts say seven in ten Americans bought more frozen food during the pandemic than before. At the time, the market for frozen foods saw a double-digit spike.

By 2022, frozen food sales in the U.S. reached over $71 billion. And the domestic results have mirrored worldwide trends, with the global market expected to grow by more than 5% per year after hitting $269.1 billion last year.

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Millennials and Gen Z’s

For many years, the price and the time costs of meal-prepping for families underpinned frozen food’s appeal to consumers.

But the recent increases in frozen food consumption reflect growing popularity among younger generations like Millennials and Gen Z (18-34 year olds).

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Consumer awareness

While the demand for ready-packed, easy-to-cook, and ready-to-eat products has skyrocketed, the reasons for choosing frozen over fresh food have evolved beyond affordability, convenience, or time to prep.

Many customers have become more mindful of how their choices influence their health and the environment. Such as:

Food waste

Fresh food has a limited shelf life, and that looming perishability results in a lot of food being thrown out — almost 40% of all food in America goes to waste.

Americans spend roughly $1,300 on wasted food each year, though a study by Cornell University found that frozen foods can significantly reduce food waste in most households.

Convenient door-to-door delivery

The rise of online grocery shopping has also boosted frozen foods. Consumers feel more comfortable having a stranger pick out frozen veggies than a fresh apple.

Mixing elements

Many opt to blend frozen foods with fresher options rather than solely relying on fresh or frozen foods for their regular diet.

Some 72% of consumers claim they mix fresh and frozen products in their meal preparation.

Nutritious ingredients

For decades frozen meals had a lousy reputation, especially among health-conscious individuals who prioritize a nutritious diet.

They used to be mainly processed foods, often high in sodium, added sugars, and saturated fats. But frozen food has improved substantially, and today, there’s a wider range of healthy options.

 

Frozen renaissance

The days of your grandparents’ frozen food are gone, and frozen TV dinners are not the only options that can serve your family.

A report analyzing U.S. frozen food sales from 2004 through 2018 stated Americans’ top frozen food choices were pizza, vegetables, and spinach.

But other categories, like fruits, are increasingly popular.

Since frozen meals have never been more appealing, it’s not a surprise the frozen food market is experiencing a renaissance.

 

Dive deeper

To learn more about the frozen food market, watch this video from CNBC.

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