Author: Mintel Group Ltd.
Last saved by: HTTP server

Frozen Snacks - US - October 2010

SCOPE AND THEMES
What you need to know
Definition
Data sources
Market data
Consumer survey data
Video Advertising Creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Market size and forecast
Market drivers
Competitive context
Segment performance—frozen handheld entrées
Segment performance—frozen appetizers/snack rolls
Segment performance—frozen pretzels
Retail channels
Leading companies
Incidence of eating frozen snacks
Types and frequency of frozen snacks eaten
Impact of recession on consumption of frozen snacks
Interest in different types of frozen snacks
Source of frozen snacks—type of retailer
Attitudes and opinions related to frozen snacks
Impact of race and Hispanic origin
INSIGHTS AND OPPORTUNITIES
Possibility for gain with new vegetable-based, BFY options
Exploring customizable family variety packs
INSPIRE INSIGHTS—TREND: DIVERSITY IS ALL
MARKET SIZE AND FORECAST
Key points
Weak economy and slowdown in new product launches drive sales decline
Sales and forecast of frozen snacks
Figure 1: FDMx sales and forecast of frozen snacks, at current prices, 2005-15
Figure 2: FDMx sales and forecast of frozen snacks, at inflation-adjusted prices, 2005-15
Walmart sales
MARKET DRIVERS
Key points
Economy continues to drive many to cook and entertain more at home
Figure 3: Strategies for dealing with recessionary pressures, by household income, October 2009
Growth of young adult and kid segments will contribute to demand
Figure 4: Population, by age, 2005-15
Slow growth of high-demand segment could curtail long-term sales growth
Figure 5: Types of international frozen snacks people would like to see more of, by race/Hispanic origin, July 2010
Figure 6: Population, by race and Hispanic origin, 2005-15
Slow decline in number of households with children could limit demand
Figure 7: Households, by presence of children, 1999-2009
Most American adults overweight or obese and most report watching their diet
Figure 8: Percentage of population aged 20 and over who are overweight or obese or extremely obese, 1988-2008
Figure 9: Incidence of presently watching/controlling diet, 2004/05-2008/09
Figure 10: Changes in healthy eating habits, by household income, October 2009
Low fat, high fiber, low calorie and low sodium could help drive future growth
Figure 11: Attributes that diet watchers look for in food, 2006/07 and 2008/09
COMPETITIVE CONTEXT
Key points
Inexpensive hot snacks and BFY options at QSRs could undermine growth
Salty snacks represent primary competitive threat
SEGMENT PERFORMANCE
Key point
Declines in the sales of frozen entrées driving overall category declines
Figure 12: FDMx sales and forecast of frozen snacks, at current prices, by segment, 2005-15
Figure 13: FDMx frozen snack sales, by type, 2008 and 2010
SEGMENT PERFORMANCE—FROZEN HANDHELD ENTRÉES
Key points
Frozen entrée declines signal overall threat to category sales and need for innovation
FDMx sales and forecast of frozen handheld entrées
Figure 14: FDMx and forecast of frozen handheld entrées, at current prices, 2005-15
SEGMENT PERFORMANCE—FROZEN APPETIZERS/SNACK ROLLS
Key points
FDMx sales of frozen appetizers cool but many bargain-priced options remain popular
FDMx sales and forecast of frozen appetizers/snack rolls
Figure 15: FDMx sales and forecast of frozen appetizers/snack rolls, 2005-15
SEGMENT PERFORMANCE—FROZEN PRETZELS
Key points
Frozen pretzel sales grow and more premium ethnic varieties come online
FDMx sales and forecast of frozen pretzels
Figure 16: FDMx sales and forecast of frozen pretzels, at current prices, 2005-15
RETAIL CHANNELS
Key points
Growth of mass share contributes to pricing pressure
Figure 17: FDMx sales of frozen snacks, by retail channel, 2008 and 2010
RETAIL CHANNELS—SUPERMARKETS
Key points
Supermarket sales decline as some turn to mass merchandisers and club stores for bargains
Figure 18: U.S. sales of frozen snacks at supermarkets, 2005-10
RETAIL CHANNELS—DRUG AND MASS
Key points
Economic conditions optimize positioning in mass merchandisers
Figure 19: U.S. sales of frozen snacks at drug stores and mass merchandisers, 2005-10
RETAIL CHANNELS—NATURAL
Key points
Sales of frozen snacks in the natural channel
Figure 20: Natural supermarket sales of frozen snacks, at current prices, 2008-10
Figure 21: Natural supermarket sales of frozen snacks, at inflation-adjusted prices, 2008-10
Implications
Natural channel sales by segment
Figure 22: Natural supermarket sales of frozen snacks, by segment, 2008 and 2010
Leading brands
Natural channel sales of frozen organic snacks
Figure 23: Natural supermarket sales of frozen snacks, by organic vs. non-organic, 2008 and 2010
LEADING COMPANIES
Key points
Nestlé remains dominant but Ruiz and private label report stronger gains
Ruiz Foods posts strong gains with Mexican offering
Figure 24: FDMx sales of frozen snacks, by leading companies, 2009 and 2010
BRAND SHARE—FROZEN HANDHELD ENTRÉES
Key points
Nestlé’s Hot Pockets remains dominant but susceptible to cannibalization and other competitive threats
FDMx brand sales of frozen handheld entrées
Figure 25: FDMx brand sales of frozen handheld entrées in the U.S., 2009 and 2010
BRAND SHARE—FROZEN APPETIZERS/SNACK ROLLS
Key points
General Mills and Ruiz Foods win with minis
FDMx brand sales of frozen appetizers/snack rolls
Figure 26: FDMx brand sales of frozen appetizers/snack rolls in the U.S., 2009 and 2010
BRAND SHARE—FROZEN PRETZELS
Key points
Pretzels less popular but hold some growth potential
FDMx brand sales of frozen pretzels
Figure 27: FDMx brand sales of frozen pretzels in the U.S., 2009 and 2010
INNOVATIONS AND INNOVATORS
Key points
BFY joins convenience as promoted claims
Figure 28: Top 10 product claims in frozen snack launches, 2004-10
Microwaveable and fast, but premium
Ethnic innovations
Natural and wholegrain innovations could drive future growth
MARKETING STRATEGIES
 OVERVIEW
In-store merchandising and displays
Hot Pockets
Figure 29: Hot pockets coupon from Safeway circular, 2010
El Monterey
José Olé
Totino’s
Figure 30: Totino’s Pizza Rolls in-store coupon from Safeway, 2010
Television advertising
Figure 31: Hot Pockets SideShots, TV ad, 2010
Figure 32: Totino's Pizza Rolls TV ad, 2010
Online initiatives
Hot Pockets
Figure 33: Website traffic estimates for hotpockets.com, February-July 2010
El Monterey
Figure 34: Website traffic estimates for elmonterey.com, February-July 2010
Totino’s
Figure 35: Website traffic estimates for totinos.com, March-July 2010
José Olé
Figure 36: Website traffic estimates for joseole.com, February-July 2010
Social media
Hot Pockets
El Monterey
Totino’s
José Olé
INCIDENCE OF EATING FROZEN SNACKS
Key points
Key segments for frozen snack manufacturers
Figure 37: Household use of frozen snacks, by key demographics, February 2009-March 2010
Hot Pockets dominates with portability and a range of popular flavor profiles
Figure 38: Brands of frozen snacks eaten, by age, February 2009-March 2010
Most teens use frozen snacks
Figure 39: Teen consumption of frozen snacks eaten, by key demographics, November 2008-December 2009
Hot Pockets and Bagel Bites especially popular with teens
Figure 40: Brands of frozen snacks eaten by teens, by age and gender, November 2008-December 2009
TYPES OF FROZEN SNACKS EATEN
Key points
Pizza/bagel-style snacks most popular with adults and teens
Figure 41: Types of frozen snacks eaten, by family member, July 2010
Pizza/bagel-style snacks especially popular with young adults
Figure 42: Who in household eats pizza/bagel-style frozen snacks, by age, July 2010
Sandwich/wrap-style snacks especially popular with 35-44s
Figure 43: Who in household eats sandwich/wrap-style frozen snacks, by age, July 2010
Asian snacks somewhat more popular with affluents
Figure 44: Who in household eats Asian-style frozen snacks, by household income, July 2010
Figure 45: Who in household eats Asian-style frozen snacks, by age, July 2010
Who eats Hispanic-style snacks?
Figure 46: Who in household eats Hispanic-style frozen snacks, by age, July 2010
FREQUENCY OF EATING FROZEN SNACKS
Key points
Pizza/bagel and sandwich/wrap-style frozen snacks are the most popular
Figure 47: How often people in household eat frozen snacks, by type of snack, July 2010
Asian-style frozen snacks are most popular among younger adults and the affluent
Figure 48: How often people in household eat Asian-style frozen snacks, by age, July 2010
Figure 49: How often people in household eat Asian-style frozen snacks, by household income, July 2010
Young adults are more likely to eat Hispanic-style frozen snacks
Figure 50: How often people in household eat Hispanic-style frozen snacks, by age, July 2010
Pizza/bagel style among the most popular options
Figure 51: How often people in household eat pizza/bagel-style frozen snacks, by household income, July 2010
Young adults eat sandwich/wrap-style frozen snacks more frequently than older adults
Figure 52: How often people in household eat sandwich/wrap-style frozen snacks, by age, July 2010
IMPACT OF RECESSION ON CONSUMPTION OF FROZEN SNACKS
Key points
Some eating fewer frozen snacks due to the recession but most using about the same amount
Figure 53: Impact of recession on consumption of frozen snacks, by type of snack, July 2010
Much of the decline driven by reductions in households with incomes of less than $50K
Figure 54: Impact of recession on consumption of frozen snacks, by household income, July 2010
INTEREST IN DIFFERENT TYPES OF FROZEN SNACKS
Key points
Most are interested in higher-fiber options made with vegetables
Figure 55: Types of frozen snacks people would like to see more of, by level of interest, July 2010
Women more interested in BFY frozen snack options than are men
Figure 56: Types of frozen snacks people would be interested in seeing more of, by gender, July 2010
Affluents more likely than low-income consumers to want BFY and premium options
Figure 57: Willingness to pay more for types of frozen snacks interested in seeing more of, by household income, July 2010
Young people have a greater interest in certain international frozen snacks
Figure 58: Types of international frozen snacks people would like to see more of, by age, July 2010
Highly educated consumers express greater interest in Thai and other less common ethnic cuisines
Figure 59: Types of international frozen snacks people would like to see more of, by level of education, July 2010
SOURCE OF FROZEN SNACKS—TYPE OF RETAILER
Key points
Grocery and mass primary channels
Figure 60: Channels shopped for frozen snacks, by household income, July 2010
Use family packs to target households with kids in grocery, mass, and club
Figure 61: Channels shopped for frozen snacks, by presence and number of children, July 2010
ATTITUDES AND OPINIONS RELATED TO FROZEN SNACKS
Key points
Variety packs could be useful when targeting families
Figure 62: Parents’ view of kids’ involvement in cooking and eating frozen snacks, July 2010
Speed, innovation, and quality are all key decision-making drivers
Figure 63: Attitudes toward purchase and consumption of frozen snacks, July 2010
Affluents and middle-income users less price-conscious and more open to new brands and flavors
Figure 64: Attitudes toward purchase and consumption of frozen snacks, by household income, July 2010
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Minorities somewhat more likely to report changes in consumption patterns
Figure 65: Impact of recession on consumption of frozen snacks, by race/Hispanic origin, July 2010
For many brands, blacks are a high-value segment
Figure 66: Brands of frozen snacks eaten, by race/Hispanic origin, February 2009-March 2010
Asians are by far the largest consumers of Asian-style frozen snacks
Figure 67: Who in household eats Asian-style frozen snacks, by race/Hispanic origin, July 2010
Hispanics are by far the biggest consumers of Hispanic-style frozen snacks
Figure 68: Who in household eats Hispanic-style frozen snacks, by race/Hispanic origin, July 2010
Asians and Hispanics are more likely to be interested in BFY frozen snacks
Figure 69: Types of frozen snacks people would be interested in seeing more of, by race/Hispanic origin, July 2010
CLUSTER ANALYSIS
Developers
Demographics
Characteristics
Opportunity
Modifiers
Demographics
Characteristics
Opportunity
Traditionalists
Demographics
Characteristics
Opportunity
Cluster characteristics
Figure 70: Frozen snack clusters, July 2010
Figure 71: Incidence of using various types of frozen snacks, by frozen snack clusters, July 2010
Figure 72: Interest in premium, BFY and other value-added snack options, by frozen snack clusters, July 2010
Figure 73: Frozen snack attitudes, by frozen snack clusters, July 2010
Cluster demographics
Figure 74: Frozen snack clusters, by gender, July 2010
Figure 75: Frozen snack clusters, by age, July 2010
Figure 76: Frozen snack clusters, by household income, July 2010
Figure 77: Frozen snack clusters, by race, July 2010
Figure 78: Frozen snack clusters, by Hispanic origin, July 2010
Cluster methodology
CUSTOM CONSUMER GROUPS
Mass and club could benefit by targeting affluent blacks
Figure 79: Incidence of channel use, by race/Hispanic origin and household income, July 2010
Affluent blacks more likely than most others to report increase in snack spending
Figure 80: Incidence of using various types of frozen snacks, by race/Hispanic origin and household income, July 2010
Emphasize BFY options when targeting affluent blacks and Hispanics
Figure 81: Interest in value-added options, by race/Hispanic origin and household income, July 2010
Affluent blacks tend to hold unique attitudes that can be leveraged to create promotional materials
Figure 82: Frozen snack attitudes, by race/Hispanic origin and household income, July 2010
IRI/BUILDERS—KEY HOUSEHOLD PURCHASE MEASURES
 OVERVIEW OF FROZEN APPETIZERS/SNACK ROLLS (CATEGORY)
 FROZEN APPETIZERS/SNACK ROLLS (SEGMENT)
Consumer insights on key purchase measures—frozen appetizers/snack rolls
Brand map
Figure 83: Brand map, selected brands of frozen appetizers/snack rolls buying rate, by household penetration, 2009*
Brand leader characteristics
Key purchase measures
Figure 84: Key purchase measures for the top brands of frozen appetizers/snack rolls, by household penetration, 2009*
 FROZEN PRETZELS
Consumer insights on key purchase measures—frozen pretzels
Brand map
Figure 85: Brand map, selected brands of frozen pretzels buying rate, by household penetration, 2009*
Brand leader characteristics
Key purchase measures
Figure 86: Key purchase measures for the top brands of frozen pretzels, by household penetration, 2009*
APPENDIX A: IRI/BUILDERS PANEL DATA DEFINITIONS
APPENDIX B: TABLE BASES
Figure 87: Summary of base table 1, by age, July 2010
Figure 88: Summary of base table 1, by household income, July 2010
Figure 89: Summary of base table 1, by race/Hispanic origin, July 2010
Figure 90: Summary of base table 2, by age, July 2010
Figure 91: Summary of base table 2, by household income, July 2010
Figure 92: Summary of base table 2, by race/Hispanic origin and household income, July 2010
Figure 93: Summary of base table 2, by race/Hispanic origin, July 2010
Figure 94: Summary of base table 3, by gender, July 2010
Figure 95: Summary of base table 3, by age, July 2010
Figure 96: Summary of base table 3, by household income, July 2010
Figure 97: Summary of base table 3, by race/Hispanic origin, July 2010
APPENDIX C: TRADE ASSOCIATIONS

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.