RBC
CANADA, Toronto. Frozen foods are making a comeback and millennials are largely responsible for this, spending 9% more per shopping trip for frozen foods last year than other groups, according to an RBC Capital Markets report.
Millennials, who are tipped as a “foodie generation,” are increasingly purchasing frozen foods and the growth of veganism has also helped boost sales of frozen goods, with people spending increasing amounts of money on products such as meat-free burgers and sausages. With BBQ season just beginning and consumers working more hours and having less time to eat, frozen foods are becoming the go-to option.
Meat, fish and eggs are the leading products in the frozen aisle. And fruits and vegetables have experienced the most growth in the space, with 4% growth monitored in 2017 compared to 2013.
A product analysis found that vitamin, antioxidant and other nutrient-related claim penetration is significantly higher for frozen vegetables compared to fruit and vegetables in cans and jars, dried and fresh fruit and vegetables. “Fresh” claims appeared on 19.1% of new frozen fruit and vegetable products, while 14.3% of this category of products featured vitamin, antioxidant and nutrient-related claims.
The interesting recent rise in frozen foods innovation is partly being driven by its emergence in new market categories, where it functions for natural preservation and convenience.
More premium, frozen ready meals available on-hand from the freezer at home represents a significant market opportunity for today’s consumers with extremely busy lifestyles. Convenience is key in frozen ready meals, with one in two frozen ready meals featuring time-saving claims, appealing to a busy generation of consumers and fiber inclusion is also gaining traction.
Source: RBC Capital Markets