Why Americans Love Frozen Food

CNBC
18 Jul 202313:08

Summary

TLDRThe U.S. frozen food market, valued at over $72 billion in 2022, has experienced a surge in demand, especially during the COVID-19 pandemic. The industry faces challenges in cold storage logistics, with outdated technology contributing to food waste. Innovations in freezing techniques, such as cryogenic freezing and data-driven optimizations, aim to improve efficiency and reduce costs. Companies like Lineage Logistics and Phononic are leading efforts to enhance the supply chain and minimize food waste. The trend towards online grocery shopping continues, as consumers seek convenient meal solutions, ensuring a strong future for frozen food sales.

Takeaways

  • 📈 The U.S. frozen food market reached over $72 billion in 2022, with demand spiking during the COVID-19 pandemic.
  • 🥶 Maintaining proper cold storage is critical in the supply chain to ensure food safety and quality.
  • ⚠️ Outdated refrigeration technology contributes to significant food waste, with around 13% of globally produced food lost due to poor cold storage.
  • 🔍 A study found that frozen food reduces in-home waste by five times compared to fresh food.
  • 💰 Consumers are increasingly driven by cost-effectiveness when purchasing frozen foods, which helps save money and reduce waste.
  • 🌍 Major players in the frozen food market include Cargill, Conagra, Nestlé, General Mills, and Unilever.
  • 🚚 The pandemic highlighted vulnerabilities in the food supply chain, emphasizing the need for a resilient infrastructure.
  • 🧊 Flash freezing and cryogenic freezing technologies improve food quality by preserving the integrity of products.
  • 🏬 E-commerce for frozen food saw a 75% increase in 2020, although it poses challenges for maintaining the cold chain during deliveries.
  • ⚡ Companies like Phononic are innovating in cold storage solutions, aiming to improve energy efficiency and reduce operational costs.

Q & A

  • What was the sales figure for frozen food in the U.S. in 2022?

    -In 2022, frozen food sales in the U.S. reached over $72 billion.

  • How has the demand for frozen food changed during the COVID-19 pandemic?

    -The demand for frozen food significantly increased during the pandemic, with sales spiking by 30% to 50% year over year in some cases.

  • What are some challenges faced by the cold chain logistics in the frozen food industry?

    -Challenges include outdated refrigeration technology, the need to maintain proper temperatures throughout the supply chain, and issues with labor and supply chain resilience.

  • What percentage of consumers are looking to frozen foods to reduce food waste?

    -Over 80% of consumers surveyed indicated that they look to frozen foods to reduce in-home food waste.

  • What freezing technique was pioneered by Clarence Birdseye?

    -Clarence Birdseye pioneered the flash freezing technique, which better preserved foods compared to earlier methods.

  • What are the benefits of using individual quick freezing (IQF) technology?

    -IQF technology freezes individual pieces of food quickly, reducing the size of ice crystals and preserving the food's integrity when thawed or cooked.

  • What are the two main freezing methods mentioned in the script?

    -The two main freezing methods mentioned are mechanical freezing and cryogenic freezing, with cryogenic freezing being faster and more efficient.

  • How much food is lost globally each year due to poor cold storage?

    -Approximately 13% of all food produced globally is lost each year due to poor cold storage, which could have fed an estimated 950 million people.

  • What role does Lineage Logistics play in the cold storage supply chain?

    -Lineage Logistics focuses on improving the food supply chain to prevent waste and provides frozen and chilled warehousing with over 450 warehouses across 20 countries.

  • How has e-commerce impacted the frozen food market?

    -E-commerce has significantly increased frozen food sales, with a 75% increase in online grocery sales in 2020, though shipping costs for frozen products remain high.

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Etiquetas Relacionadas
Frozen FoodsMarket GrowthSupply ChainConsumer TrendsFood WasteE-CommerceRefrigeration TechInnovationFood IndustrySustainability
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