Frozen Meals - US - September 2007

SCOPE AND THEMES
What you need to know
Definition
Details regarding sources of consumer data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The bottom line
How to build sales with new product development
Category players need to focus on markets with low penetration
Of three segments, multi-serve shows most growth
Market led by Nestlé and ConAgra
Supermarkets account for majority of frozen meal sales
Wanted: New twists on old Chinese, Mexican and Italian favorites
The future: Self-cooking frozen meals?
Mintel expects category to reach $5.4 billion by 2012
MARKET DRIVERS
 THE FAMILY FACTOR
Figure 1: Households by presence of children, 1995-2005
Figure 2: Households by size, 1995 and 2005
 COMPETITION THWARTS SALES GROWTH
Figure 3: Sources of evening meals, June 2006
Figure 4: Sales (current prices) in fast casual and family/mid-scale restaurants in the U.S., 2004-06
 DIET MEALS ARE A CORNERSTONE IN THE MARKET
Increasingly overweight American population provides opportunity
Figure 5: Percentage of population who are overweight or obese, 20-74 years of age, 1988-2004
Americans are receptive to healthier lifestyles
Figure 6: Attitudes regarding healthy eating, 2002-05
Figure 7: South Beach Diet Frozen Meals TV ad, 2007
Increased demand for natural, organic and wholesome meals
Women are prime targets for slimming frozen meals
 GROWING DIVERSITY OF U.S. POPULATION INFLUENCES MARKET
Figure 8: Population by race and Hispanic origin, 2002-12
Approaching the Hispanic market
 CONTINUOUS INNOVATION KEEPING CONSUMERS INTERESTED
Ultra-convenient proposition
Ethnic flavors
Premium stance
MARKET SIZE AND TRENDS
 MARKET SIZE
Figure 9: U.S. FDM retail sales of frozen meals, at current and constant prices, 2002-07
Wal-Mart estimate
 MARKET TRENDS
New product launches in frozen meals
Figure 10: New product releases in U.S. in frozen meals and frozen side dishes, 2002-07
Popular product claims
Figure 11: Top ten positioning claims of new frozen meal products, January 2007-August 2007
MARKET SEGMENTATION
Introduction
Overview
Figure 12: FDM sales of frozen meals segmented by type, 2005 and 2007
Single-serve frozen entrées/dinners
Figure 13: FDM sales of single-serve frozen entrées/dinners, at current and constant prices, 2002-07
Multi-serve frozen entrées/dinners
Figure 14: FDM sales of multi-serve frozen entrées/dinners, at current and constant prices, 2002-07
Frozen pot pies
Figure 15: FDM sales of frozen pot pies, at current and constant prices, 2002-07
SUPPLY STRUCTURE
 COMPANIES AND BRANDS
Figure 16: FDM manufacturer sales of frozen meals in the U.S., 2004 and 2006
Single-serve frozen entrées/dinners
Figure 17: FDM manufacturer brand sales of single-serve frozen entrées/dinners in the U.S., 2004 and 2006
Multi-serve frozen entrées/dinners
Figure 18: FDM manufacturer brand sales of multi-serve frozen entrées/dinners in the U.S., 2004 and 2006
Frozen pot pies
Figure 19: FDM manufacturer brand sales of frozen pot pies in the U.S., 2004 and 2006
ADVERTISING AND PROMOTION
Nestlé USA
Figure 20: The Lean Scene SPA Cuisine TV ad, Spa Mean with twice the veggies, 2007
Figure 21: The Lean Scene SPA Cuisine TV ad, Panini, 2007
ConAgra Foods
Figure 22: Banquet NASCAR TV ad, 2007
Figure 23: Marie Callender’s Chicken Pot Pie TV ad, 2007
Figure 24: Marie Callender’s Crock Pot Meals ad, 2007
Figure 25: Start Making Healthy Choices TV ad, Partnership with American Heart Association, 2007
Figure 26: Healthy Choice Executive Chefs TV ad, 2007
Figure 27: Kid Cuisine TV ad, Spy Gear, 2007
Figure 28: Kid Cuisine TV ad, Pizza, 2007
RETAIL DISTRIBUTION
Introduction
Figure 29: U.S. FDM* sales of frozen meals, by channel, 2005 and 2007
Supermarkets
Figure 30: U.S. supermarket sales of frozen meals, at current and constant prices, 2002-07
THE CONSUMER: PERSONAL AND HOUSEHOLD USAGE OF FROZEN MEALS
Summary of section
Personal consumption of frozen meals
Figure 31: Personal consumption of individual frozen meals and family size frozen meals, June 2007
Household consumption of frozen meals
Figure 32: Household consumption of frozen meals, 2002-06
Figure 33: Household usage of frozen complete (TV) dinners, by key demographics, January-October 2006
Figure 34: Household usage of frozen complete (TV) dinners, by key cohorts, January-October 2006
Figure 35: Household usage of frozen main courses, by race/Hispanic origin, January-October 2006
Brands of frozen meals used
Figure 36: Brands of frozen complete dinners used in household, January-October 2006
Figure 37: Brands of frozen main courses used in household, January-October 2006
Number of frozen meals eaten in past month
Figure 38: Number of frozen meals consumed in last month, January-October 2006
THE CONSUMER: ATTITUDES AND BEHAVIORS REGARDING FROZEN MEALS
Summary of section
Reasons for eating individual frozen meals
Figure 39: Reasons for eating individual frozen meals, by gender, June 2007
Figure 40: Reasons for eating individual frozen meals, by age, June 2007
Figure 41: Reasons for eating individual frozen meals, by household income, June 2007
Retail channels from which frozen meals are bought
Figure 42: Where frozen meals are bought, by number of people in the household, June 2007
Preparation of frozen meals
Figure 43: How frozen meals are prepared, June 2007
Figure 44: How frozen meals are prepared, by number of people in the household, June 2007
Types of frozen meals of which users want more
Individual frozen meals
Figure 45: Types of individual frozen meals users would like to see more of, by gender, June 2007
Figure 46: Types of individual frozen meals users would like to see more of, by age of respondent, June 2007
Figure 47: Types of individual frozen meals users would like to see more of, by household income, June 2007
Figure 48: Types of individual frozen meals users would like to see more of, by race/Hispanic origin, June 2007
Family size frozen meals
Figure 49: Types of family size frozen meals users would like to see more of, by gender, June 2007
Figure 50: Types of family size frozen meals users would like to see more of, by number of people in the household, June 2007
Figure 51: Types of ethnic food you would like to see more of in frozen meal choices, June 2007
Figure 52: Types of ethnic food you would like to see more of in frozen meal choices, by household income, June 2007
Figure 53: Types of ethnic food you would like to see more of in frozen meal choices, by race/Hispanic origin, June 2007
Specific behaviors regarding use of family size frozen meals
Figure 54: Purchasing and serving behaviors among those who use family size frozen meals, June 2007
Opinions of specific brands of frozen meals
Figure 55: Opinions of specific frozen meal brands, part one, June 2007
Figure 56: Hungry-Man TV ad, 2007
Figure 57: Opinions of specific frozen meal brands, part two, June 2007
THE CONSUMER: TEEN USAGE OF FROZEN DINNERS
Summary of section
Teen consumption of frozen dinners
Figure 58: Teen consumption of frozen complete dinners, by key demographics, January-October 2006
Brands of frozen meals eaten among teens
Figure 59: Brands of frozen dinners eaten by teens, January-October 2006
Number of frozen meals eaten by teens in past month
Figure 60: Number of frozen dinners consumed in last month among teens, January-October 2006
FUTURE AND FORECAST
 FUTURE TRENDS
Preparing for the polarized market: Meeting the needs of families and aging consumers
Frozen food and food service
Hispanic opportunity
Frozen meals to move into NutriSystem space?
Figure 61: Eating patterns and self-assessed weight situation, April-May 2006
“Un-processing” frozen meals
Technology advancements to focus on portability and more convenience
Figure 62: Wolfgang Puck dulce de leche latte in self-heating can
 MARKET FORECAST
Frozen meals market
Figure 63: Forecast of total U.S. FDM sales of frozen meals, at current and constant prices, 2007-12
Single-serve frozen entrées/dinners
Figure 64: Forecast of U.S. FDM sales of single-serve frozen entrées/dinners, at current and constant prices, 2007-12
Multi-serve frozen entrées/dinners
Figure 65: Forecast of U.S. FDM sales of multi-serve frozen entrées/dinners, at current and constant prices, 2007-12
Frozen pot pies
Figure 66: Forecast of U.S. FDM sales of frozen pot pies, at current and constant prices, 2007-12
Forecast factors
APPENDIX: TRADE ASSOCIATIONS