Frozen Meals - US - April 2006

INTRODUCTION AND ABBREVIATIONS
Introduction
Other relevant reports
Definition
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Market sales challenged by heightened competition
Americans’ time limitations set platform for growth
Meal preparation influenced by demographic factors
Multi-serve frozen entrées fuel market growth during 2003-05
Two leading suppliers support frozen meals market
In-store promotions are key to bringing consumers to the freezer section
Supermarkets have a grip on distribution
Consumer findings reveal market opportunities
Forecast: inflation-adjusted sales will decrease through 2010
MARKET DRIVERS
Americans more time-pressed than ever
Figure 1: Hours worked vs per capita frozen meal consumption in the U.S., 1992-2006
Majority of meals are still eaten at home
Time is of the essence in meals prepared at home
Figure 2: Time and cooking from scratch, April 2005
Cooking and meal preparation influenced by demographic factors
Size of household impacts need for value-added meal solutions
Figure 3: Average size of household, 1995-2005
Ethnicity relates to importance of family dining and flavor trends
Figure 4: U.S. population, by race and Hispanic origin, 2000-10
Competition from other channels challenges frozen meals market
Figure 5: Convenience food purchases, February 2006
Alternative products—increased offerings in shelf-stable, freezer & refrigerated sections
In-store delis—increased sales of prepared meals
Restaurants—increased carryout and drive-thru
Health and diet influence market
Government influences
Going natural or organic
MARKET SIZE AND TRENDS
 MARKET SIZE
Figure 6: U.S. sales of frozen meals, at current and constant prices, 2000-05
Figure 7: Graph: U.S. sales of frozen meals, at current and constant prices, 2000-05
Wal-Mart estimate
 MARKET TRENDS
Figure 8: Number of new frozen meals released, 2000-06
Flavor and health
Natural food stores
Figure 9: Total U.S. sales of frozen meals in natural food stores segmented by type of
MARKET SEGMENTATION
Overview
Figure 10: FDM sales of frozen meals segmented by product type, 2003 and 2005
Figure 11: Graph: FDM sales of frozen meals segmented by product type, 2003 and 2005
Single-serve frozen entrées/dinners
Figure 12: FDM sales of single-serve frozen entrées, at current and constant prices, 2000-05
Multi-serve frozen entrées/dinners
Figure 13: FDM sales of multi-serve frozen entrées, at current and constant prices, 2000-05
Frozen pot pies
Figure 14: FDM sales of frozen pot pies, at current and constant prices, 2000-05
SUPPLY STRUCTURE
 OVERVIEW
Figure 15: FDM manufacturer sales of frozen meals in the U.S., 2003 and 2005
Brand sales by segment
Single-serve frozen entrées/dinners
Figure 16: FDM manufacturer brand sales of single-serve frozen entrées in the U.S., 2003 and 2005
Multi-serve frozen entrées/dinners
Figure 17: FDM manufacturer brand sales of multi-serve frozen entrées in the U.S., 2003 and 2005
Frozen pot pies
Figure 18: FDM manufacturer brand sales of frozen pot pies in the U.S., 2003 and 2005
Companies and brands
Nestlé USA
ConAgra
Heinz Foods
Pinnacle Foods Group
Luigino’s Inc.
Private label products
Figure 19: FDM sales of private label frozen meals segmented by type of product, 2003 and 2005
ADVERTISING AND PROMOTION
 INTRODUCTION
 COMPANIES & BRANDS
Nestlé USA
ConAgra
H.J. Heinz Company
Unilever
RETAIL DISTRIBUTION
Introduction
Figure 20: U.S. retail sales of frozen meals, by channel, 2003 and 2005
Supermarkets
Figure 21: FDM sales of frozen meals at supermarkets, at current and constant prices, 2000-05
THE CONSUMER
Introduction
Household consumption of frozen meals
Figure 22: Household consumption of frozen meals, 2002-05
Cross-tabulation of frozen dinner and main course consumption
Figure 23: Household consumption of frozen meals, cross-tabulation of complete dinner and
Figure 24: Household consumption of frozen meals, by age, May 2004-May 2005
Figure 25: Household consumption of frozen meals, by race/ethnicity, May 2004-May 2005
Figure 26: Household consumption of frozen meals, by size of household, May 2004-May 2005
Brands of frozen complete dinners consumed
Figure 27: Household consumption of frozen meals, by brand, May 2004-May 2005
Figure 28: Household consumption of frozen meals, by brand, by age, May 2004-May 2005
Figure 29: Household consumption of frozen meals, by brand, by ethnicity/race, May 2004-May 2005
Brands of frozen main courses consumed
Figure 30: Household consumption of frozen main courses, by brand, May 2004-May 2005
Figure 31: Household consumption of frozen main courses, by brand, by age, May 2004-May 2005
Figure 32: Household consumption of frozen main courses, by brand, by ethnicity/race,
Frequency of frozen meal consumption
Figure 33: Frequency of frozen meal consumption, May 2004-May 2005
Frozen complete dinners
Figure 34: Frequency of frozen complete dinner consumption, by race/ethnicity, May 2004-May 2005
Figure 35: Frequency of frozen complete dinner consumption, by age, May 2004-May 2005
Figure 36: Frequency of frozen complete dinner consumption, by household size, May 2004-May 2005
Frozen main courses
Figure 37: Frequency of frozen main course consumption, by race/ethnicity, May 2004-May 2005
Figure 38: Frequency of frozen main course consumption, by household size, May 2004-May 2005
Alternative convenience food purchases for frozen meals
Figure 39: Types of convenience food purchased, February 2006
Figure 40: Types of convenience food purchased, by gender, February 2006
Figure 41: Types of convenience food purchased, by age, February 2006
Figure 42: Types of convenience food purchased, by household income, February 2006
Figure 43: Types of convenience food purchased, by presence of children, February 2006
Figure 44: Types of convenience food purchased, by marital status, February 2006
Factors that influence the purchase of frozen meals
Figure 45: Factors influencing purchase of frozen meals from the supermarket, February 2006
Figure 46: Factors influencing purchase of frozen meals from the supermarket, by gender, February 2006
Figure 47: Factors influencing purchase of frozen meals from the supermarket, by age, February 2006
Figure 48: Factors influencing purchase of frozen meals from the supermarket, by household
Figure 49: Factors influencing purchase of frozen meals from the supermarket, by presence of children, February 2006
Attitudes towards frozen meals
Figure 50: Attitudes towards frozen meals, February 2006
Figure 51: Attitudes towards frozen meals, by age, February 2006
Figure 52: Attitudes towards frozen meals, by presence of children, February 2006
Summary
FUTURE AND FORECAST
 FUTURE TRENDS
Americans’ demand for convenience foods continues to grow
Positive future trends as a result of the convenience demand
Challenges for the market as a result of demands for convenience
Driving growth by targeting demographics
Figure 53: U.S. population, by age, 2005-10
Ethnic-inspired
Figure 54: U.S. population by race and Hispanic origin, 2005-10
 MARKET FORECAST
Frozen meals
Figure 55: Forecast of total U.S. sales of frozen meals, at current and constant prices, 2005-10
Figure 56: Graph: Forecast of total U.S. sales of frozen meals, at current and constant prices, 2005-10
Single-serve frozen entrées
Figure 57: Forecast of U.S. FDM sales of single-serve frozen entrées, at current and constant prices,
Multi-serve frozen entrées
Figure 58: Forecast of U.S. FDM sales of multi-serve frozen entrées, at current and constant prices,
Frozen pot pies
Figure 59: Forecast of U.S. FDM sales of frozen pot pies, at current and constant prices, 2005-10
Forecast factors
APPENDIX: TRADE ASSOCIATIONS
APPENDIX: NEW PRODUCT DEVELOPMENTS
 NEW PRODUCT BRIEFS
Healthy Choice Flavor Adventures
Wegman’s Cheese Lasagna
Weight Watchers Chicken Enchiladas Monterey
Swanson Hungry-Man Sports Grill Beef Quesadilla with Potato Skins
Safeway Black Peppered Chicken
Campbell’s Mexican Style Lasagna with Meat