Frozen Food Sales in the United States

Update as of November 23, 2023

How 2022 went and what the predictions and trends are for the coming years

According to Nielsen data, in 2022, frozen food sales in the United States reached $72.1 billion, marking an increase of 11.4% compared to 2021.

This rise is attributed to several reasons, including the growing interest in convenient and healthy foods, increased demand for ready meals, and greater awareness of the benefits of frozen foods among consumers.

The most popular frozen products in the USA are ready meals, vegetables, and frozen pizza. Ready meals dominate the market with a 30% share, followed by vegetables at 25% and pizza at 20%.

The frozen food market is continuously evolving, with a clear trend towards healthier and customized products, such as gluten-free or lactose-free, in response to individual consumer needs.

Frozen food sales in the USA in 2022:

• Ready meals: $21.6 billion (30%)
• Vegetables: $18.0 billion (25%)
• Pizza: $14.5 billion (20%)
• Other products: $18.0 billion (25%)

According to Global Market Insights and Nielsen, the frozen market in the United States is expected to reach $80 billion by 2025.

Urbanization, with 78.1% of the U.S. population living in urban areas, is a key factor that could further boost the frozen food market, according to the United Nations World Urbanization Report.

The United States shows significant growth in the demand for ready meals, a phenomenon driven by lifestyle changes, the increase in single-parent families, and the rise of fast-paced work environments.

Additionally, according to Nielsen data, the five states where frozen foods are consumed the most are:

• California: $11.9 billion
• Florida: $6.4 billion
• New York: $5.9 billion
• Pennsylvania: $4.9 billion
• Illinois: $4.8 billion

California leads in frozen food consumption, thanks to its large population and cultural diversity. Florida follows closely, due to demographic growth and tourist appeal that boosts the demand for frozen foods.

How big is the American frozen food market?

In 2022, frozen food sales in America were $72.1 billion, with an increase of 11.4% compared to 2021.

What are the growth prospects for the frozen food market in the United States?

The frozen food market in the United States is expected to grow at a compound annual growth rate of 4.7% from 2022 to 2030, reaching $84.58 billion by 2030.

What are the best-selling frozen products in the United States?

Ready meals dominated the frozen food market in the United States with a share exceeding 40.73% in 2021.

What are the opportunities for Italian frozen products to enter the American market?

An initiative where Italian entrepreneurs in the agri-food and wine sectors had the opportunity to meet representatives of major independent American supermarket chains was held from October 3 to October 5, 2023, in Rezzato (Brescia) during the second edition of "America Buys Italian", organized by the Italy-America Chamber of Commerce (main office in New York) and Export USA.
 

Previous update as of December 28, 2018:

The latest Nielsen research on the evolving scenario of organized retail in America sees frozen foods and beverages in general soaring

The data from Nielsen's report shows a boom in sales in some product categories and a sharp decline in others. By monitoring sales trends, one can identify trends in American consumers' lifestyles and purchasing habits. Beverage sales in the United States are growing, a category that, along with frozen foods, drives the growth of food sales in the U.S. retail sector in 2018. Overall, American retail products recorded flat growth during 2018, except for the beverage sector, which saw a strong rise in sales.

Analysis of sales performance in different food product categories in U.S. retail
 

Frozen Products

Positive shift for frozen food products, which reported the highest sales growth rate in America with a 2% increase in value and a 1% increase in volume.

Much of the increase in frozen sales in America is likely due to the strengthening and repositioning of "frozen food", which has appealed to increasingly wider segments of the population, in terms of age and lifestyles.
 

Beverage Consumption and Sales in America

Today beverages are the in-store growth drivers: a market segment where consumer demand has literally exploded.
In the past year, major retail stores in the United States sold over $56 billion worth of beverages, with a year-over-year growth trend of $1.8 billion (+3%) and a 2% increase in volumes.
 

How American consumers' tastes are changing in the beverage segment: now functional beverages reign supreme

Sales of Kombucha and coffee beverages are rising while sales of smoothies and coconut water are falling

• And kombucha, a fermented tea touted for its probiotic and health benefits, is leading the pack. Such beverages have seen a high growth rate compared to other categories, registering a trend of +43% in business and +42% in volumes year over year.
• Another popular beverage in 2018 was ready-to-drink coffee, which many enjoyed as a ready-to-drink energy boost. Many beverages in the United States are considered the equivalent of a snack in every respect, as Americans seek not only to eat but also to drink between main meals of the day.
• Smoothies and mixed fruit and vegetable drinks have fallen out of favor this year, highlighting the changing tastes of American consumers in terms of beverages. Even coconut water, which was a top growth driver until a couple of years ago, has been negatively affected by American consumers, who have chosen enhanced waters to meet their hydration needs.
• Comparing what's trending and what's not, calming beverages that tend to fill and nourish are out of the top list, while pleasant-tasting beverages that are light and sparkling are in.

Water is a category that seems to satisfy all three of these criteria and is bringing new energy to the beverage sales category in America