Milling & Baking News Corporate Profiles - 2019 - 24

INDUSTRY REVIEW: PACKAGED FOODS

Packaged foods
Convenience and nutrition appeal to younger generations
illennials and Generation Z, seeking convenience as well as health,
have become a promising market for the packaged foods industry,
particularly the frozen foods industry.
Households headed by adults under age 25 are 29% more likely to eat
shelf-to-microwave dinners and 26% more likely to eat frozen breakfast
entrees/sandwiches, according to the report "Looking ahead to Gen Z: Demographic patterns and spending trends" released in February by Packaged
Facts, Rockville, Md. These adults have a 23% greater likelihood of eating
frozen TV dinners. They are 10% more likely to eat dry packaged dinners,
dinner mixes and kits.
"Seemingly perpetually in motion, ubiquitously surrounded by limitless
smartphone entertainment options and frequently willing to work multiple
jobs or side gigs, many Gen Z young adults are attracted to easy-to-prepare
meals as well as snacking," said David Sprinkle, research director for Packaged
Facts. "Therefore, there exists ample opportunity for food marketers of frozen
prepared meals, canned soups, potato chips, and other canned and packaged
prepared food such as salads and desserts to convert adults under the age of
25 into loyal lifelong customers."
New York-based CB Insights, a tech market intelligence platform, listed
frozen foods as one of 12 industries that will thrive thanks to millennials. In
2017, millennials spent an average of 9% more on frozen foods per trip to
the grocery store than households of other demographics, according to CB
Insights. In 2018, the total volume of frozen foods sold in the United States
increased for the first time in five years, driven largely by millennials and
people with children.
Millennials appreciate convenience as they often eat on the go, according to
CB Insights.They seek healthy frozen food and are more likely to prefer organic
food and plant-based food.
David Portalatin, vice-president and industry adviser for The NPD Group,

LEADING SINGLE-SERVE FROZEN

Nestle USA, Inc.
Conagra Brands, Inc.
Bellisio Foods
Kraft Heinz Co.
Amy's Kitchen, Inc.
Pinnacle Foods, Inc.
Ajinomoto Foods North America
Phil's Fresh Foods, L.L.C.
InnovAsian Cuisine Enterprises, Inc.
Private label
Total

Dollar sales
$1,325,712,574
$1,325,036,823
$402,453,282
$316,857,521
$310,813,280
$194,221,322
$82,097,557
$59,498,765
$46,085,090
$97,014,388
$4,473,446,669

Inc., Port Washington, N.Y., said frozen food is gaining relevance among younger people who are career-minded and forming families.
"They value convenience, but they also value purity in the food supply, and
they are increasingly seeing frozen as a pathway to that purity," he said March
28 in Chicago at the inaugural Trends and Innovations Seminar, sponsored by
Sosland Publishing Company and presented by Food Business News.
U.S. frozen food sales grew in dollar sales, up 2.6%, and units, up 2.3%,
in 2018, according to the report "The power of frozen 2019" released by the
American Frozen Food Institute, Arlington, Va., and the Food Marketing Institute, Washington. This year looks promising as well.

Vegetables in frozen food
Vegetables were part of innovative efforts in 2019 among brands such as
Birds Eye and Green Giant.
U.S. retail sales of single-serve, frozen dinners/entrees reached $4,473.4
million in the 52 weeks ended Aug. 11, up 2.9% from the previous 52-week
period, according to Information Resources, Inc., a Chicago-based market research firm. Sales of Stouffer's, the top brand in the category, increased 9% to

LEADING SINGLE-SERVE FROZEN

dinner/entree vendors
1
2
3
4
5
6
7
8
9

STOUFFER'S FACEBOOK

dinner/entree brands
% change
from
year ago
-1.5%
10.3%
-4.5%
-0.7%
-1.9%
-4.1%
14.2%
-8.6%
54.9%
-4.5%
2.9%

1 Stouffer's
2 Marie Callender's
3 Banquet
4 Lean Cuisine Marketplace
5 Lean Cuisine Comfort
6 Lean Cuisine Favorites
7 Weight Watchers Smart Ones
8 Healthy Choice Café Steamers
9 Healthy Choice Top Chef Café Steamers
10 Amy's Bowls
Total

Dollar sales
$578,287,139
$427,168,294
$286,182,221
$201,134,861
$191,946,923
$186,974,821
$142,538,301
$138,705,137
$128,516,477
$115,050,633
$4,473,446,669

% change
from
year ago
9.3%
2.0%
16.2%
-20.8%
-8.0%
-2.0%
-8.2%
-0.1%
1.5%
-1.7%
2.9%

Data for 52 weeks ended Aug. 11, 2019
Total U.S. - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains)
Source: Information Resources, Inc.

24 \ November 2019

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