Frozen Consolidation Gains Popularity in Evolving Retail World
Food & Beverages Processing|July 2020
Frozen Consolidation Gains Popularity in Evolving Retail World
The world of frozen food shipping has shifted significantly over the last few years, as many frozen food companies look to inventory consolidation to help gain an advantage in a growing but changing market.

A study by Grand View Research estimates that the frozen food market will reach $72.98 billion by 2024, and yet, while the market for frozen foods is growing, order sizes aren’t. There are several contributing factors to this trend, including changing consumer demands and e-commerce’s growing presence, in addition to greater retail restriction and harsher penalties. However, the right consolidation model can help shippers achieve greater supply chain efficiency and, ultimately, reduce costs and improve service.

Changing Consumer Demands

Even as recently as five years ago, people turned to frozen foods for many meals— frozen waffles for breakfast, microwave meals for a quick office lunch, even pre-mixed meals for family dinner. But that’s changing. Today, convenience is king, and healthy options aren’t far behind on consumers’ wish lists.

On-the-go packaging has never been more popular. Millennials and young families have jam-packed schedules, which means food needs to be ready fast. But unlike previous generations, today’s consumers still expect their grab-and-go options to be healthy ones. More than ever before, consumers are making thoughtful food choices based on ingredients, source, company story and perceived health benefits. And frozen foods that are capitalizing on this trend—especially disruptors—are seeing growth.

Meatless meats, gluten-free bread and low-calorie ice cream are just a few of the products that are gaining popularity across the United States—due in large part because they fit into the healthy options that consumers crave.

E-commerce Drives Competitors

Startup companies trying to meet the need for healthy, convenient foods are sprouting up and taking their fair share of the market every day. And these disruptors can quickly gain regional and national footholds, thanks to the rising popularity of e-commerce.

Online shopping that comes with two-hour delivery windows has blown apart old expectations of shopping. When you can sit on your couch and pick out a specialty brand of ice cream to have delivered, why would you drive to the store only to be able to pick from one or two brands?


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July 2020