Retail sales reached $65.1 billion! The US frozen food industry is growing rapidly

During the pandemic, many shoppers were looking for low-priced items with a long shelf life, so frozen foods became a top choice for consumers.

According to the "Power of Frozen 2021" report released by AFFI (American Frozen Food Institute) and FMI (Frozen Food Industry Association), in 2020, both sales (up 21%) and sales volume (up 13.3%) of frozen foods increased, and sales of almost all types of frozen foods showed double-digit growth.

Online frozen food sales up 75%

“ Frozen food retail sales reached $65.1 billion in 2020, up 21% year-over-year , ” said Alison Bodor, president and CEO of AFFI.

The sales surge was helped by shoppers turning to e-commerce at a record pace, with consumers adding more frozen foods to their shopping carts, and online frozen food dollar sales increasing 75%. In the past year, 42% of households that bought frozen foods did so online, up from 23% in 2018.

Online retailers in the frozen dinners/entrées, meat, poultry and seafood categories proved to be big winners.

The health craze has also trickled down to the frozen food sector, with consumers most likely to be interested in real ingredients, followed by fresh frozen foods and no artificial colors.

Doug Baker, FMI’s vice president of industry relations, added: “Almost a year into the pandemic, shoppers are dining at home more than ever before. They are looking for meal planning, cooking ideas and convenient, cost-effective solutions. The frozen food category offers these benefits to shoppers, which is why we are seeing new audiences and increased purchases across all categories, from meal ingredients to meal solutions.”

Poultry and seafood both saw above-average growth in the frozen foods sector, with Chicago-based IRI data showing the three frozen foods with the highest dollar growth rates in 2020 were seafood (+35.3%), poultry (+34.7%), and appetizers (+28.9%) .

As the epidemic is still not over, frozen food may continue to be one of consumers' favorite products.

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