U.S. Frozen Food Market Size, Share & Trends Analysis Report By Product (Frozen Fruits & Vegetables, Frozen Snacks), By Distribution Channel (Offline, Online), And Segment Forecasts, 2022 - 2030

Report Overview

The U.S. frozen food market size was valued at USD 55.80 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 4.7% from 2022 to 2030. Consumers are looking for convenient meal options including frozen food that require little or no preparation to overcome time constraints from work, childcare, and community. The rising dependence of consumers especially millennials on ready-to-cook foods due to time constraints would further drive the market during the forecast period. According to the U.S. Department of Agriculture April 2021, 72.0% of Americans purchase ready-to-eat food from full-service restaurants due to their busy life schedules. These facts are likely to bode well with the market growth. Increasing health and safety concerns amid rising COVID-19 cases obligated people to take fewer trips to stores for buying household items including food, and snacks.

This trend resulted in the need of stockpiling eatables in houses that lasted for a longer duration without spoilage, which further increased the sales of frozen food in the U.S. For instance, in February 2021, the American Frozen Food Institute (AFFI) reported that the sales of frozen meals such as seafood, and poultry were 21.0% higher as compared to the year 2019 with double-digit sales of all types of frigid/chilled meals. In continuation, retail demand for the above-mentioned products throughout the pandemic has been 15-20% higher than usual.

The growing popularity of frozen food as healthy and convenient for millennials along with Gen Z above fresh food will further increase the demand for the product in the coming years. According to an article published in Supermarket News, in October 2021, 57.0% of consumers in the age group of 18 to 34 years perceive frozen vegetables are just as good or better than their fresh counterparts, compared with 39.0% consumers aged 55 years and plus. Retention of vitamins and minerals in frozen vegetables, unlike their counterparts (fresh vegetables), which lose vitamins and other healthy ingredients over time, will further help increase the sales of earlier mentioned products.

Manufacturers in the market are ramping up their production to expand their operations by acquiring brands. For instance, in January 2022, Parkland acquired frozen food retailer M&M (Mars and Murrie) Food Market, a brand of Mars, for approximately USD 322.0 million. The acquisition would further help retailers to set up 300 standalone franchise and corporately owned stores, as well as 2,000 M&M Express locations. M&M will supply frozen food across various categories, including appetizers, prepared meals, seafood, meats and poultry, vegetables, sides, bakery items, and desserts. This initiative will further help both the companies expand their business in 25 countries and create various growth opportunities.

Similarly, in February 2020, B&G Foods acquired Farm-wise L.L.C, a U.S.-based producer of frozen veggie fries, veggie tots, and veggie rings. With the acquisition, Farm wise joins a portfolio of brands including Back to Nature, B&G, B&M, Cream of Wheat, Green Giant, Las Palmas, Maple’s Grove, and more. The company would further offer veggie snacks from cauliflower, navy beans, and onions. The products are claimed to be vegan, non-GMO Project verified and free of major allergens such as gluten, wheat, soy, dairy, tree nuts, and peanut. Such initiatives by well-established organizations will fit well with the growing market trend in the upcoming years.

Consumer preference has majorly shifted towards home cooking due to increasing cases of the COVID-19 virus among country residents. According to Supermarket News from March 2021, two-thirds of the consumers in the region reported a preference for cooking and eating meals at home since the coronavirus outbreak which has spurred the demand for frozen food products. Nearly a year into the COVID-19 pandemic the consumers are opting for the family easy-to-cook meals prepared at home, compared to the pre-pandemic years.

Many retailers in the U.S. market including pharmacies and drug stores are also expanding their product portfolio to frozen meals witnessing the consumption trends. For instance, in April 2021 CVS Pharmacy retail division of CVS Health expands its portfolio by launching a frozen snacks section. The new section would consist of 250 products including Beyond Meat, Bird’s Eye Vegetables and more.

Product Insights

The ready meals segment held the largest market share of 40.7% in 2021 and is expected to maintain dominance in the forecast period. The segment for ready meals is developing rapidly due to the factors such as the prevalence of a fast-paced lifestyle, especially in urban areas, which is leading to increased demand for precooked foods including frigid foods, among consumers, to save time.

According to an article published in Pew Research Centre in February 2020, 11.0% of Americans stated that they live a fast-paced life and have no time for other activities while working. Hence, in wake of this trend companies are investing in these products to further bolster the market growth. For instance, in March 2022 Maruha Nichiro, Japan’s largest seafood company invested US-based frozen startup Happi Foodi to support market growth for the latter.

However, frozen baked products are projected to register the fastest growth during the forecast period with a CAGR of 5.8% from 2022 to 2030. According to a survey conducted in October 2021 by American Frozen Food Institute (AFFI), stated that bakery category is increasingly attracting new and returning customers to bakery stores and other retailers, demonstrating a high degree of customer satisfaction which will further make the market’s medium- and long-term forecasts very optimistic.

Moreover, product launches in this segment are likely to bode well with future segment growth. For instance, in September 2020 Levain’s-NewYork-based bakery shop announced the launch of frozen cookies in supermarkets. The product line includes Levain’s signature chocolate-walnut, variations of its two-chip and dark chocolate chip.

Distribution Channel Insights

Offline was a larger distribution channel with a market share of around 87.2% in the regional revenue during 2021. This distribution channel includes supermarket/hypermarkets, convenience stores, grocery stores, and local shops. The availability of a wide range of chilled foods such as peas, chips, fish fillets, bread, pizza sausages, and chicken in such stores also plays a key role in driving this segment’s growth. According to an article published by QUARTZ in March 2022 sale of frozen food at U.S. supermarkets and other stores unfolded to more than 50.0% in March 2020, as compared to the year 2019.

The online distribution channel is anticipated to register faster growth during forecast years with a CAGR of 5.1% from 2022 to 2030. The rising preference of consumers toward online grocery shopping and demand for user-friendly interfaces and additional discounts has been fueling the demand for this segment. According to an article published by American Frozen Food Institute in February 2021, 42.0% of households in 2020 that buy chilled foods have bought these products online. This is up by 23.0% as compared to 2018. Furthermore, online sales of these products increased by 75.0% in 2020, with frigid dinners/entrees, meat, poultry, and seafood being the biggest online sellers.

Key Companies & Market Share Insights

The U.S. frozen food market is highly fragmented with the presence of a large number of regional and local players. Companies have been implementing various expansion strategies, such as partnerships and new product launches, to stay ahead in the game.

• For instance, in February 2021, CJCJ Food, Americas announced its investment in the frozen Asian meals category, which represents an estimated USD 3.2 billion opportunities for food retailers in the United States. Among its U.S.-based affiliates, recent activities include launching a new merchandising model in the respective aisle, establishing one portfolio of leading Asian food brands for retailers, introducing new products, and investing in long-term manufacturing capacity and capabilities.

• In November 2021, Spot See a US-based logistics and cold chain risk management system provider introduced a heat-sensitive label as part of its temperature monitoring solution portfolio for frigid/chilled meals products.

• In October 2019, Bell & Evans launched a line of uncooked, frozen chicken meatballs. Flavors include parmesan breaded with mozzarella, buffalo seasoned, and a traditional, savory chicken meatball. All three varieties are made from a blend of dark meat chicken and skin for full flavor and are uncooked and nitrogen chilled to lock in freshness and natural juices.

Some prominent players in the U.S. frozen food market include:  

• Cargill, Incorporated

• Nestlé S.A.

• Kraft Heinz Company

• General Mills, Inc.

• ConAgra Foods, Inc.

• Ajinomoto Co., Inc.

• McCain Foods

• Nomad Foods Ltd.

• Bellisio Foods

• Wawona Frozen Foods

U.S. Frozen Food Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at country level and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the U.S. frozen food market report based on the product and distribution channel.

• Product Outlook (Revenue, USD Million; 2017 - 2030)

  • Frozen Fruits & Vegetables

  • Frozen Snacks

  • Frozen Baked Products

  • Meat & Seafood Products

  • Ready Meals

  • Others

• Distribution channel Outlook (Revenue, USD Million; 2017 - 2030)

  • Offline

  • Online