U.S. frozen convenience foods market to grow 2% to sales of US$17B in 2010; frozen pizza, breakfast fare and vegetables to drive sector, possibly growing 10% to US$19B in retail sales by 2015: Packaged Facts

NEW YORK , November 9, 2010 (press release) – The market for frozen convenience foods will grow 2% by year-end to reach sales of $17 billion in 2010, fueled by a trio of strong performing categories that have offered products able to compete on the basis of freshness and quality with fresh convenience food, according to Frozen Convenience Foods in the U.S. by market research publisher Packaged Facts.

These three categories -- frozen pizza, handheld breakfast food, and prepared vegetables -- have infused the otherwise ambivalent market with the potential to increase 10% and approach $19 billion in retail sales by 2015. Packaged Facts predicts the sales of frozen foods will thrive as marketers in other categories adopt similar strategies to compete with the parallel fresh convenience food market, restaurant takeout, and meals prepared from scratch by consumers.

"There is considerable activity in the frozen convenience food market and ample opportunities for growth within certain retail sectors and market niches," says Don Montuori, publisher of Packaged Facts. "So while we do not anticipate substantial overall growth, we do expect some segments and individual marketers to grow considerably over the next five years."

During the 2005-2010 period, increased competition from fresh prepared food -- whose marketers pushed forward with a wide variety of new menu items and merchandising strategies that dimmed frozen convenience foods' appeal -- was a primary reason why sales growth was driven down. The frozen food categories and individual products that have suffered the most recently have lost out because they are seen as less fresh and more expensive alternatives to cooking from scratch. Packaged Facts forecasts a tough competitive situation involving an increasing onslaught from fresh prepared food will persist.

Conversely, the colossal frozen pizza category and the burgeoning handheld breakfast category thrived when going head-to-head with restaurants and other foodservice outlets in the fight for customer dollars. In addition to their perceived quality and freshness, both categories benefitted from marketer positioning that created an identity as products that were lower-cost alternatives to dining out. Similarly, the prepared vegetable category has triumphed on the freshness front via the development of steaming techniques.

Beyond freshness and quality, Packaged Facts identities several diverse influences affecting the frozen convenience food market, including consumer lifestyles, Americans' growing concern with health and wellness and higher nutritional demands, demographic shifts, growing interest in world cuisines, and the recession. For example, due to packaging that serves as an excellent canvas for information about nutrition and ingredients, frozen convenience food marketers have an advantage over their competitors in the fresh convenience food sector and foodservice outlets. Likewise, as ethnic foods become more accepted by the general public, frozen food marketers have been expanding their base by further tapping the diversity of America's ethnic cuisines with new Indian, Japanese and Middle Eastern flavors, among others, while expanding their product range to encompass fusion flavors like Mexican-style, Thai-topped, and Jamaican Jerk pizzas.

Frozen Convenience Foods in the U.S. offers a comprehensive look at this complex market in the context of how it competes while inextricably bound in a cross-competitive situation with fresh convenience food, meals from scratch, and restaurant fare. It contains in-depth analysis of Internet marketing, including detailed accounts of marketing on social networking sites like Facebook. The report also details the complex changes that have taken place in the market since the previous edition, with new attention to competition by retail sector, including supermarkets, supercenters/mass merchandisers, warehouse clubs, small marts and Internet. For further information, please visit: http://www.packagedfacts.com/Frozen-Convenience-Foods-2740332/.

About Packaged Facts -- Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer goods and retailing, foods and beverages, demographics, pet products and services, and financial products. Packaged Facts also offers a full range of custom research services. To learn more, visit: www.packagedfacts.com. Follow us on Facebook, LinkedIn and Twitter.

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