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Frozen Food Production in the US Industry Market Research Report from IBISWorld has Been Updated
Date:3/27/2013

Los Angeles, CA (PRWEB) March 27, 2013

Revenue for the Frozen Food Production industry has grown slowly over the past five years. The industry grew strongly in 2009 as a dip in disposable incomes spurred customers to opt for the inexpensive products the industry provides. However, sales soon declined once unemployment fell and disposable incomes ticked upward. “With more money to spend, consumers preferred fresh produce to frozen,” says IBISWorld industry analyst Natalie Everett. “Operators responded to this shift in consumer preferences through product innovation that focused on higher quality and healthier ingredients.” As a result, revenue is anticipated to grow at an annualized rate of 2.6% to $28.4 billion over the five years to 2013. In 2013 alone, revenue is expected to grow an estimated 2.0% as frozen meals will remain attractive to time-poor individuals. In addition, the industry will benefit from successful marketing aimed at its products' healthfulness.

Despite revenue growth in the past five years, Frozen Food Production industry profit suffered due to rising commodity prices and the cost of sweeping marketing campaigns convincing consumers that its products were healthful even compared with fresh food, the industry's main competition. “Complicating the matter, operators were unable to pass on the input cost increases through higher prices because consumers were more price-sensitive during the recession, which caused profit to fall,” adds Everett. As the economy recovers, disposable income increases and quality becomes a larger demand factor, companies will have more leverage to raise
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