Frozen Snacks - US - April 2017

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Sales remain at just under $5 billion
Figure 1: Total US sales and fan chart forecast of frozen snacks, at current prices, 2010-20
Snack competition from foodservice
Figure 2: Food sales at home and away from home, January 2003-December 2016
Growth of grazing
Figure 3: Daily snacking frequency, by generation, March 2017
Number of households with children continues to shrink
Figure 4: Households, by presence of own children, 2006-16
The opportunities
Hispanic consumers likely to turn to trusted brands
Figure 5: Purchase factors, by Hispanic origin, February 2017
Potential among growing Hispanic, Asian demographics
Figure 6: Population by race and Hispanic origin, in millions, 2012-22
Shifting notions of convenience bring new demands – and opportunities
Figure 7: Purchase factors, February 2017
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Frozen snack sales remain largely frozen
Value options stealing share from brands
Restaurants add snackable options
Competition strong in the snacking space
MARKET SIZE AND FORECAST
Historic and projected sales performance
Figure 8: Total US sales and fan chart forecast of frozen snacks, at current prices, 2010-20
Figure 9: Total US sales and forecast of frozen snacks, at current prices, 2011-21
MARKET BREAKDOWN
Frozen snack segments largely stagnant
Figure 10: Sales of frozen snacks, by segment, current year, 2011-21
Consumer attention shifts to other channels
Figure 11: Total US retail sales of frozen snacks, by channel, at current prices, 2011-16
MARKET PERSPECTIVE
Diversity of snack options impact frozen
Figure 12: Total US sales of various snack categories, at current prices, 2010-15
Foodservice operators focus on snack opportunities
Figure 13: Food sales at home and away from home, January 2003-December 2016
MARKET FACTORS 
Grazing grows
Figure 14: Daily snacking frequency, by generation, March 2017
Households with children more likely to consume frozen snacks
Figure 15: Households, by presence of own children, 2006-16
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Few success stories in a category steeped in stagnation
Free-from rings
Food truck appeal doesn’t transcend to frozen
Genetic modification labels appear
COMPANY AND BRAND SALES OF FROZEN SNACKS
Pockets of brand growth in a largely stagnant category
Sales of frozen snacks by company
Figure 16: MULO sales of frozen snacks, by leading companies, rolling 52 weeks 2015 and 2016
WHAT’S WORKING?
Flavorful, free-from
Figure 17: Frozen snack launches with free-from claims, 2016
Figure 18: Frozen snack launches, by claim, 2014-17*
Restaurant inspiration fuels apps and handheld options
Figure 19: Frozen snack launches with foodservice inspiration, 2016
Private label frozen snacks surge
Novel ingredients/flavors in store-brand frozen snacks
Private label options embrace packaging innovation
Figure 20: Branded versus private label frozen snack launches, 2013-17
Figure 21: Frozen snack launches under private label brands, 2016
WHAT’S STRUGGLING?
TGI Friday’s focus shifts from frozen
Figure 22: TGI Friday’s sole frozen snack launch, 2016
Food truck appreciation far from universal
Figure 23: Hot Pockets inspired by food truck brands, 2016
Figure 24: Purchase intent, Hot Pockets sandwiches, versus Hot Pockets Food Truck Bites
WHAT’S NEXT?
Genetically modified labels begin to appear
Figure 25: Genetic modification and frozen snack launches, 2016
Figure 26: GMO-free claims among frozen snack launches, 2013-16
THE CONSUMER – WHAT YOU NEED TO KNOW 
Frozen snack consumption strong among young men
Handhelds fall short of frozen snack penetration
Kid friendly could be a blessing and a curse
Snacking in place of a meal
More-convenient snacks may encroach on frozen snack’s consumer base
Flavor, not health, the route to category growth
Fathers factoring quality into their frozen snack purchase
Frozen stigma tough to overcome
FROZEN SNACK CONSUMPTION 
Internationally inspired options failing to resonate
Figure 27: Consumption, February 2017
Consumption lags among women and older demographics
Figure 28: Consumption of frozen snacks, any eaten, by gender and age, February 2017
Dads likely to turn to frozen snacks
Figure 29: Consumption of frozen snacks, any eaten, by parental status by gender, February 2017
Consumption stronger among urban consumers, particularly parents
Figure 30: Consumption of frozen snacks, any eaten, by area, February 2017
Figure 31: Consumption of frozen snacks, any eaten, by area and presence of children in household, February 2017
Strong consumption among Hispanic Millennials
Figure 32: Consumption of frozen snacks, any eaten, by Hispanic origin, February 2017
FROZEN HANDHELD SANDWICH PURCHASE
Handhelds underperform snacks
Figure 33: Purchase of frozen handheld snacks, February 2017
Handheld consumption largely among the young
Figure 34: Purchase of frozen handheld snacks, by gender and age, February 2017
Regardless of income, handheld consumption skews younger
Figure 35: Purchase of frozen handheld snacks, by household income, February 2017
Hispanic Millennials more likely to eat frozen handhelds
Figure 36: Purchase of frozen handheld snacks, by Hispanic origin, February 2017
OCCASIONS FOR CONSUMPTION
Snacking all the time
Figure 37: Occasions for eating frozen snacks, February 2017
Most frequent snackers more likely to eat frozen snacks in the morning
Figure 38: Consumption frequency, by occasions for eating frozen snacks, February 2017
Parents and the morning snack
Figure 39: Occasions for eating frozen snacks, by parental status, February 2017
Frozen snack party
Figure 40: Occasions for eating frozen snacks, by gender and age, February 2017
ATTRIBUTES OF FROZEN SNACKS
Convenience leads among consumer descriptions
Figure 41: Attributes of frozen snacks, February 2017
Frozen snacks largely regarded as kid friendly
Figure 42: Attributes of frozen snacks, by parental status, February 2017
Convenience, taste matter strongly to urban consumers of frozen snacks
Figure 43: Attributes of frozen snacks, by area, February 2017
PURCHASE FACTORS FOR FROZEN SNACKS
Brand, satiety factor strongly in purchase behavior
Figure 44: Frozen snack brand consumption, by age, Spring 2016
Figure 45: Purchase factors, February 2017
Parents seeking variety
Figure 46: Purchase factors, by parental status, February 2017
Brand weighs more heavily on Hispanic purchase
Figure 47: Purchase factors, by Hispanic origin, February 2017
Meal replacers seeking satiety
Figure 48: Consumption occasions, by purchase factors, February 2017
Brand factors for party appetizers
Figure 49: Consumption occasions, by purchase factors, February 2017
USAGE OF FROZEN SNACKS
Frozen snacks may lose ground to more-convenient options
Figure 50: Opinions of usage of frozen snacks, February 2017
Frozen snacks not easy to prepare, say young consumers
Figure 51: Opinions of usage of frozen snacks, by gender and age, February 2017
Parents appear to be seeking easier snacks
Figure 52: Opinions of usage of frozen snacks, by parental status (presence of children under 18) by gender, February 2017
Other snacks may be easier, even for frequent frozen snackers
Figure 53: Consumption frequency, by opinions of usage of frozen snacks, February 2017
Parties of opportunity for frozen snacks
Figure 54: Consumption occasions, by opinions of usage of frozen snacks, February 2017
Shifting notions of convenience bring new demands
Figure 55: Consumption occasions, by opinions of usage of frozen snacks, February 2017
OPINIONS OF HEALTH AND FROZEN SNACKS
Healthful challenges for frozen snacks
Figure 56: Opinions of health and frozen snacks, by generation, February 2017
Healthier options not likely to lure more consumers
Figure 57: Consumption frequency, by opinions of health and frozen snacks, February 2017
FROZEN SNACK QUALITY
Snacking in place of meals
Figure 58: Opinions of frozen snack quality, February 2017
High-quality options of greater importance to fathers
Figure 59: Opinions of frozen snack quality, by parental status (presence of children under 18) by gender, February 2017
Income strongly impacts quality, brand choices
Figure 60: Opinions of frozen snack quality, by household income, February 2017
DETERRENTS TO PURCHASING FROZEN SNACKS
Health, freshness deterring frozen snack consumption
Figure 61: Purchase deterrents, February 2017
Sodium levels deterring even younger consumers
Figure 62: Purchase deterrents, by gender and age, February 2017
Hispanic Millennials favor homemade over frozen
Figure 63: Purchase deterrents, by Hispanic origin, February 2017
Sodium factoring even into party appetizer choice
Figure 64: Occasions, by purchase deterrents, February 2017
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations
Abbreviations
APPENDIX – MARKET 
Figure 65: Total US sales and forecast of market, at inflation-adjusted prices, 2011-21
Figure 66: Total US retail sales and forecast of frozen snacks, by segment, at current prices, 2011-21
Figure 67: Total US retail sales of frozen snacks, by segment, at current prices, 2014 and 2016
Figure 68: Total US retail sales and forecast of frozen appetizers/snack rolls/pretzels, at current prices, 2011-21
Figure 69: Total US retail sales and forecast of frozen appetizers/snack rolls/pretzels, at inflation-adjusted prices, 2011-21
Figure 70: Total US retail sales and forecast of frozen handheld entrees, at current prices, 2011-21
Figure 71: Total US retail sales and forecast of frozen handheld entrees, at inflation-adjusted prices, 2011-21
Figure 72: Total US retail sales of frozen snacks, by channel, at current prices, 2014 and 2016
Figure 73: US supermarket sales of frozen snacks, at current prices, 2011-16
Figure 74: US sales of frozen snacks through other retail channels, at current prices, 2011-16
APPENDIX – KEY PLAYERS 
Figure 75: MULO sales of frozen appetizers/snack rolls/pretzels, by leading companies and brands, rolling 52 weeks 2015 and 2016
Figure 76: MULO sales of frozen handheld entrees, by leading companies and brands, rolling 52 weeks 2015 and 2016
APPENDIX – CONSUMER 
Figure 77: Frozen snack brand consumption, by gender, spring 2016
Figure 78: Frozen snack brand consumption, by Hispanic origin, spring 2016
Figure 79: Frozen snack brand consumption, by household income, spring 2016
Figure 80: Frozen snack brand consumption, by region, spring 2016
Figure 81: Frozen snack statement agreement, any agree, by gender, spring 2016
Figure 82: Frozen snack statement agreement, any agree, by age, spring 2016
Figure 83: Frozen snack statement agreement, any agree, by race, spring 2016
Figure 84: Frozen snack statement agreement, any agree, by Hispanic origin, spring 2016
Figure 85: Frozen snack statement agreement, any agree, by household income, spring 2016
Figure 86: Frozen snack statement agreement, any agree, by education, spring 2016
Figure 87: Frozen snack statement agreement, any agree, by region, spring 2016