Market Trends of Frozen Snacks Industry
This section covers the major market trends shaping the Frozen Snacks Market according to our research experts:
Rising Consumer Expenditure on Convenience Food Products
The market is primarily driven by rising expenditure on food and beverages, introducing products with longer shelf lives, increasing impulse purchasing, and growing demand for convenience foods that can be prepared quickly and are fresh to eat, such as fries, frozen pizza, and other products. 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 than in the year 2019, with double-digit sales of all types of frozen and chilled meals. The main advantage of these products is their comforting familiarity as snack foods among consumers, especially for families, where stressed parents turn to frozen pizza as something that appeals to even the pickiest eaters. Due to fast-paced lifestyles and the need for a quick snack among adults, there has been a growing demand for healthy and convenient foods that can be consumed instantly. These products are considered beneficial as most of them can be cooked within a short period of time for consumption. These factors have been propelling the market's growth. Moreover, manufacturers have provided consumers with more foods, for which much of the preparation work has been done outside the home. This development has been facilitated by technological innovations in preservation, packaging, freezing, artificial flavorings and ingredients, and by using microwaves.
North America Holds Major Share
Keeping up with the changing consumer demand, restaurants are providing food items in line with the need and convenience of consumers. Moreover, other lifestyle changes among North American consumers are expected to propel the growth of the frozen snack market. According to the US Department of Agriculture, 72% of Americans purchased frozen food due to their busy schedules during the previous year. Moreover, the growing preference for healthier food options, concerns over environmental sustainability, increased competition from grocery stores, heightened consumer expectations, and rapidly advancing technology is reinventing the traditional dining experience and forcing changes in the way restaurants and cafes operate. However, restaurant operators in North America are optimistic about their businesses, where the competition is more in product offerings and dining experiences, which are expected to drive positive sales in line with the time spent at the restaurants. Further, the demand for frozen pizza, fries, nuggets, wedges, rolls, baguettes, fish fingers, fish sticks, pretzels, croissants, fish cakes, squid rings, frozen momos, frozen burgers, sausages, cutlets, chicken fingers, dippers, and many more is booming in the region. Several restaurants offer the convenience of take-out and delivery options. Therefore, to meet the increased demand, restaurants keep larger stocks of frozen snack products to facilitate growth in their sales.
