Be prepared for change

Time-pressed consumers are quite fond of the convenience that frozen and refrigerated prepared meals, entrées and desserts offer, but they want options that are nutritious, minimally processed and made from high-quality ingredients. They like controlled portions, enjoy expanding their culinary horizons and want their prepared food to more closely resemble something made at home or in a restaurant, states global market research firm Mintel in its November 2015 report, “Prepared Meals and Sides — US.”

Similarly, Mintel’s “Ice Cream and Frozen Novelties — U.S.,” published in July 2015, reports that a Mintel/Lightspeed GMI survey found that 19 percent of adult consumers reported buying fewer frozen treats “because they are unhealthy.” In the same survey, 11 percent said they avoid healthful versions of frozen treats because they are “meant to be treats.”

Therefore, treats made from high-quality locally sourced ingredients, with healthful mix-ins and dairy alternatives, might attract more consumers to the category.

Clean it up

Think “clean” when it comes to product development, say category experts.

“There is an increased movement by consumers toward cleaner labels, ‘fresh,’ convenient, premium-perceived products that provide the halo of better-for-you,” says Patrick O’Ray CEO of Arlington, Texas-based Double B Foods Inc., makers of handcrafted hand-held appetizers, entrées, desserts and dips.

Convenience is an essential ingredient in this category, combined with products that provide a reward for both the consumers’ palate and psyche, O’Ray adds. Ethnic foods will continue to diversify and expand in both the frozen and refrigerated space, he forecasts.

More consumers are moving toward refrigerated options, agrees Nancy Ragozzino, president of Meriden, Conn.-based Ragozzino Foods, which creates custom food solutions for private labels, restaurants and co-packers.

“We’re trying to keep up with the trends by now offering HPP (high pressure processing) on many of our items that we’ve sold in the frozen category,” she says.

In an effort to clean up their labels and make better-for-you offerings, manufacturers also are revising formulas and recipes. They are removing artificial colors, artificial flavors and preservatives from their products, reports Chris Carpenter, vice president of sales and marketing for Kennesaw, Ga.-based Panarama Inc., the parent company of the Atlanta Cheesecake Co., makers of frozen gourmet cheesecakes, mousse cakes, pies and dessert bars.

“Consumers are looking for cleaner labels. They want shorter ingredient statements with words they can understand. The removal of partially hydrogenated oils has been a focus for our team,” reports Jeff Gehres, senior director of sales and product development for Holland, Mich.-based Request Foods Inc., producer of frozen entrées, skillet meals, side dishes, sauces and more.

New discoveries

A multicultural flavor awakening, heavily influenced by American regional, Latin and Asian cuisines, is a major emerging trend in the category, O’Ray observes.

“New products are increasingly reflecting consumers’ changing palates. For example, Korean BBQ street tacos with kimchi, beef brisket and Asiago cheese flautas, and fusion/street foods are hot,” O’Ray declares.

O’Ray advises retailers to align themselves with manufacturers that focus their primary product development efforts on store brands and provide mindful innovation as consumers migrate to more adventurous foods.

The single-serve category is poised for prominence, Gehres says.

“We have seen growth in the single-serve frozen category over the last quarter,” he notes. “Consumers are finding out that there are high-quality frozen single-serve items available. The variety has never been more diverse. You have the healthy meals, diet plan meals, vegetarian, gluten-free and the old standards: meat lasagna, Salisbury steak and macaroni and cheese.”

And as is the case in many other food categories, consumers are clamoring for products with non-GMO ingredients, Carpenter says, adding, “Non-GMO will soon become a bigger marketing tactic.”

Packaging developments

Modified Atmosphere Packaging (MAP) for freeze-and-thaw products will become more widely employed, O’Ray says. MAP allows a frozen product, with locked-in freshness at production, to be merchandised on the refrigerated shelf.

Portion control packaging “has been hot and will remain hot,” Carpenter says.

“Packaging that is recyclable and is made from recyclables is emerging more quickly as well,” he adds.

Elevate the category

Retailers have an opportunity to redefine and own these respective categories through targeted in-store communications, social media and loyalty programs that elevate their frozen and refrigerated product offerings in their customers’ eyes, O’Ray declares.

“Inform and educate consumers of the benefits of these product categories: quick or limited preparation, flavorful food offerings and good consumer value,” he says.

In addition, in-store sampling will reassure consumers that they are spending their money wisely, Ragozzino points out.

“We encourage our customers to do in-store sampling,” she says. “So many consumers aren’t in a position financially to gamble on another pretty package. Once someone tastes [the product], they’re confident in their purchase.”

And retailers should continue to improve the quality of store brand offerings to meet the expectations of not only value shoppers, but also shoppers looking for upscale items at a better price, Carpenter advises. Retailers also should promote the “clean label” attributes in own-brand products, he suggests.

Draw attention to new items and items that capitalize on emerging food trends with an “innovation” shelf or shelves and in-store signage, O’Ray advises.

Finally, retailers will want to emphasize the savings consumers can score with own brands by employing comparative-type marketing and money-back guarantees, Carpenter says.

Do consider reformulating ingredient statements to be shorter.

Don’t overlook the lure and power of convenient meal options.

Do draw attention to store brand items with in- store signage.

Don’t ignore the trend for high-quality ethnic frozen food options.