Even — perhaps especially — in tough times, simple pleasures such as pizza offer a taste of happier days. Yet, while the past couple of years have been tough, indeed, they’ve also been a boon to the frozen-pizza sector. As we enter a new normal, retailers can keep the party going by shaping their product mix to match what today’s shoppers want.
The past couple of years have been challenging for everyone. But as businesses and individuals begin to get back on their feet, they may take a lesson in resiliency from — perhaps an unexpected place — the frozen-pizza sector.
Why? For one, 28% of consumers purchased more frozen pizza during the pandemic than they were purchasing before, per Acosta research — reflecting just the sort of “sticky” appeal that every CPG category seeks.
Beyond that, it’s hard to imagine a product better positioned to fill the gaps that pandemic living opened. Frozen pizzas offered consumers comfort in the form of familiar, family-friendly fare that helped them re-create the pizzeria experience even in the shelter of their own homes.
But consumers weren’t alone in finding comfort in frozen pizza’s perennial popularity. Retailers, too, benefited from the revenue that rolled in as traffic in the freezer aisle heated up.
So as pizza shops reopen and society embraces a new normal, can retailers keep the frozen-pizza party going?
They sure can — if they stock pizzas that bring shoppers back for more.
It’s hard to underestimate just how important the frozen-pizza sector is to retailers — and to their shoppers. Some estimates go so far as to place the proportion of U.S. consumers who eat frozen pizza at well above half the population.
COVID-19 only intensified that demand, shared Ritu Mathur, VP of Marketing at Amy’s Kitchen, with predictions suggesting it’ll still be here even when COVID-19 isn’t. “We’ve seen forecasts indicating that the frozen-pizza category will extend its relevance at least into the 2021-to-2025 term,” Mathur said.
But pizzas weren’t the only SKUs that enjoyed a COVID bounce. In fact, the entire supermarket frozen department became something of a safe harbor during the pandemic’s storm.
It makes sense, Ritu surmised. “It’s common knowledge that COVID got consumers cooking from home, but after a while, cooking fatigue set in, and frozen became the go-to solution for flavor and convenience.”
The upshot: Frozen-food sales grew 20.6% from 2019 to 2020, according to Acosta, compared with 13.5% growth for total-store food sales. And fully a year after the stockpiling started, freezer aisles still outpaced total-store sales, with the frozen till up 2.6% through April 3, 2021, while overall food sales grew only 1.2%.
“Frozen pizzas contributed mightily to that growth,” Mathur pointed out. “They save the day by being a go-to solution that brings families together, lets homebound consumers shake things up and experience new flavors and provides the comfort consumers are seeking now.”
That power has lasting appeal, even without a pandemic in the background. And savvy retailers will exit today’s still-tentative climate understanding that by curating a frozen-pizza mix that speaks to consumers’ needs, they’ll maintain a sturdy level of engagement over the long term.
But consumers’ needs — and, by extension, their frozen-pizza priorities — are in flux and have been since before COVID-19 kicked the category into high gear. This is especially true in the natural and specialty sectors, where consumers bring heightened expectations to the table.
As Ritu observed, “We see a handful of macro and emerging trends driving these core need states” — among them what Mathur described as classic comfort, plant-based eating and global exploration. “And frozen pizzas is a category that can bring them to life.”
For a case in point, look no further than Amy’s vegan Margherita pizza.
“The tomato-basil-mozzarella concept is already a comfort classic,” Ritu explained, “but it carries a touch of elevation, too, with its fragrant basil and our thinner, hand-stretched crust. Then we take things a step further by replacing the traditional shredded mozzarella with a vegan mozzarella-style cheese that stretches, melts and tastes like the original. And because it’s Amy’s, it’s made with organic ingredients.”
Not only does the pie tick those comfort, plant-based and international boxes mentioned above, but when offered alongside the brand’s classic Margherita made with dairy cheese, it also helps retailers cover their bases around both plant-based and traditional frozen-pizza demand.
“One thing we’ve noticed is that our vegan Margherita has a higher repeat-purchase rate than its competitors,” Mathur noted. “But maybe even more important is that we’ve noticed our shoppers displaying a high degree of exclusive purchasing behavior between vegan and dairy pizza offerings. So the lesson for retailers, particularly in the specialty and natural markets, is to give their shoppers both. No one wants to be left out, right?”
Amy’s has tracked similar purchasing pattern vis-à-vis their gluten-free pizzas, Mathur added — proving that “consumers have gotten used to having both brands and grocers cater to their lifestyle needs, no matter how niche they may seem. As everywhere else, they want equity in the supermarket, too.”
But whether consumers follow special diets or eat omnivorously, Mathur continued, they tend to base their pizza purchase decisions on topping, crust type and price above all else. “So retailers should select their product mix with an eye to those factors.”
On the matter of price, though, Mathur noted that Gen Z and millennials spend more on the frozen-pizza category than do other generations — “and they choose Amy’s. In other words, if a pizza measures up to their quality criteria and values, they’ll pay the price.”
And values count, Ritu emphasized. “We’re committed to transparency about where our ingredients come from, how our products are made and our impact on people and the world, and consumers are taking note. They’re taking company values into consideration when making purchasing decisions.”
The bottom line is that specialty- and natural-channel shoppers have priorities that parallel those of brands like Amy’s, Ritu said. “Mirroring those priorities is how we’ve stayed steps ahead of pizza trends and drivers — and held the natural channel’s top pizza spot in the process.” Adding that Amy’s makes two of the channel’s top-five bestselling pizzas and beats the competition with faster-moving product and higher repeat rates.
By reflecting those priorities in their own product mixes, grocers can build customer loyalty, increase basket size and spend, and encourage higher purchase frequency and repetition, Ritu said. “Converting more shoppers into Amy’s shoppers will accelerate sales and margin across the pizza category — even in a world post-pandemic.”
]]>American households are changing—and so is their approach to shopping the frozen aisle. How so? Nontraditional families and “live-alones” are making jumbo-sized frozen SKUs less relevant than handheld options that let consumers savor global flavors in fun, single-serving form. So retailers take note: Changing times mean changing your freezer mix!
The American family sure doesn’t look like it used to. Case in point: The share of one-person households more than doubled from 13% in 1960 to 28% in 2020, according to a report from the Population Reference Bureau (PRB).
And when you account for how younger Americans are redefining what constitutes a “household,” the changing face of the family comes into even starker focus. Consider that among households headed by adults younger than 25, fully 33% consist of unrelated roommates—not blood relatives—while an additional 28% of under-25 householders live alone.
So it should come as no surprise that when these “fluid” families steer their shopping carts to the freezer aisle, they’re not looking for extra-large lasagnas or a stack of T.V. dinners tall enough to feed a family of six. (Although they are still looking for ice cream.)
Rather, contemporary households are in the market for handheld frozen foods that deliver single-servings of convenience and snackability. And if those snacky selections can sport a global culinary pedigree and recognizable, “clean” ingredients, too—does a bean-and-cheese burrito really need microcrystalline cellulose anyway?—more’s the better.
So the message to retailers is this: Just like the American family, your frozen-food selection is due for an update.
It’s difficult to overstate how much American family dynamics are evolving. And it’s equally difficult to overstate the role that younger generations play in this evolution.
Millennials and Gen Zers aren’t like their forebears. Even as they age, have children and build families of their own, they maintain their inimitable capacity to “disrupt”—a capacity that applies as much to how they shop for groceries as it does to how they communicate, consume media and approach the world around them.
“These younger consumers really are rewriting the rulebook,” says, Karen Jobb, Chief Customer and Consumer Officer at Amy’s Kitchen. “They’ve grown up expecting—and receiving—‘optionality’ everywhere, especially in the supermarket. So if you offer them three flavors of something, I can promise you that won’t be enough.”
And why should it? Given their lifelong immersion in cultural and commercial diversity, younger consumers don’t have to settle for the factory model, so to speak. And they know how to locate alternatives when a first choice falls short.
“The upshot,” Karen concludes, “is that their maturation as consumers just amplifies their spending power. So it’s important for brands and retailers to understand inside and out what makes them such a force for change in the supermarket, and beyond.”
But Millennial and Gen Z consumers aren’t the only forces changing how American families eat and shop. The events of the past few years also amplified an evolution that was already moving toward less structured, more snack-centered eating.
“During the pandemic, it was sometimes hard to tell what time of day it was,” Karen observes. “And obviously, the eat-at-home occasion became much more prevalent. So with pandemic-related habits and disrupted schedules likely to stick around in the ‘new’ normal, consumers will be looking for quick, convenient at-home solutions that they can feel good about eating.”
Ritu Mathur, VP of Marketing at Amy’s Kitchen, agrees, adding that the trend merely underscores the fact that we’re officially living in the era of the snack.
“The pandemic’s changed the way people eat in so many ways,” Ritu says, “and one way we’ve noticed is the blurring of boundaries between mealtime and snacking, especially among younger consumers.”
Whether it’s thanks to shifting schedules, cooking fatigue or the relentless pursuit of variety, “The result is that easy-to-eat snacks, like frozen burritos and wraps, are getting a real boost.”
Snackable options also offer a “commitment-lite” vehicle for satisfying younger consumers’ appetites for global flavor exploration, Jobb adds. “So by making sure the freezer case also carries handheld SKUs with bold flavors and international roots, retailers can keep Millennial and Gen Z shoppers coming back to the frozen aisle.”
And coming back to the frozen aisle is exactly what they’ve been doing. “The frozen category is on fire,” Jobb says, “and frozen snacks are helping fuel that growth.”
All of which is another reminder that COVID-19 reawakened consumers to the freezer case—a renaissance that Amy’s sees as a cross-section of two trends.
One centers on the innovation and improvement within the category itself, where SKUs are increasingly sophisticated, culinary-driven and formulated “with higher-quality, ‘real’ ingredients,” Jobb says.
“And the other trend,” Jobb continues, “is that consumers especially in these younger demographics demand convenience—but not at the expense of quality or flavor. Just because they may not be dining out as much as they used to doesn’t mean they don’t crave the adventure of trying something new, like a global street snack. The way we see it, a strategically built freezer mix can provide that adventure.”
A strategically built freezer mix will also provide products that reflect younger households’ values around real, organic, sustainable and often plant-based ingredients.
“In the frozen section, ingredients are really important,” says Ritu Mathur. “And savvy consumers are doing their research and asking questions to understand what they’re getting.”
“We see this a lot with plant-based products,” Ritu continues, “where consumers are reading labels on more recent innovations and questioning what’s in there, why it’s in there and what kind of processing it went through.”
After all, frozen snacks don’t need extensive processing or ingredient-based preservation and stabilization—because freezing preserves and stabilizes the product itself.
“So by filling products with all those ingredients, a brand is essentially cutting corners and saving costs,” Ritu says. “And consumers know that. That’s why we’ve always gone a different route at Amy’s. We make our foods the way consumers would. We cook them with real ingredients and then pop them in the freezer. The only real difference is that we do it on a larger scale.”
And if such products cost a little more, so be it. Studies show that younger consumers put their grocery budgets where their values are. “Nine in 10 Gen Z consumers would switch brands associated with an important cause,” Mathur says, “and 73% percent of Gen Zers would pay more for sustainable items. So we’re seeing the data to back that up.”
That spells an opportunity retailers can ill-afford to miss. In fact, Karen says, “Retailers have a huge opportunity now that there’s more traffic in the frozen aisle than possibly ever—and consumers are repeating purchases.”
By increasing variety, tapping into global influences, keeping labels clean and delivering it all in a no-stress, handheld package, “Retailers play into just what consumers are looking for across the store—while playing to the freezer section’s advantage, and that’s smart both now and for the future.”
]]>Consumers of all stripes are giving plant-based eating a go. But when retailers view the category exclusively through the lens of meat mimics and dairy alternatives, they limit consumers’ choices — and their profit potential. The upshot: The smartest plant-based product mix celebrates the full spectrum of the sector.
Plant-based innovation is on a tear — which is fantastic, given that more innovation generates more interest, more interest generates more purchases, and more purchases generate more consumption. And the more we make plant-based consumption the norm, the more everybody wins: retailers, public health and the planet as a whole.
The catch: Plant-based opportunities come in different shapes and sizes.
“Edgy” innovations make waves, but even in this era of meat mimics and alt-dairy, it’s just as revolutionary to innovate in the opposite direction — to bring plant-based eating back to earth, centering diets on vegetables, pulses, whole grains and other “good stuff.”
Not only do retailers who honor these roots elevate plant-based first principles, but they also generate broader loyalty and greater shopper traffic in the long run.
The shopper traffic already navigating plant-based selections would be unimaginable — if it weren’t happening, and in a big way.
Data from the Plant Based Foods Association (PBFA) and Good Food Institute show that U.S. retail sales of plant-based foods grew 27% in 2020, raising the total plant-based market to a value of $7 billion. Over the past two years, plant-based sales even rose nine times faster than food sales overall.
“Plant-based really has exploded,” said Karen Jobb, chief customer and consumer officer, Amy’s Kitchen. “And though it was picking up steam as a trend pre-pandemic, the pandemic accelerated plant-based popularity tremendously — propelling it even further into the mainstream.”
Indeed, fully 77% of U.S. shoppers reported purchasing a plant-based product during the first six months of 2020, per Cypress Research Group, with 30% claiming that their consumption stemmed directly from COVID-19. Even more notable: Nearly 90% of respondents plan to make their changes permanent.
“Now that plant-based eating is no longer on the fringe,” Jobb said, “shoppers of all ages, backgrounds and demographics — and not just vegetarians — are seeking plant-based ingredients, prepared meals, snacks and other items.”
Data reveals the power younger consumers have to make plant-based eating not just a trend but a way of life. Aramark research from 2018 shows that 30% of millennials are trying to eat more plant-based foods; that same year, Acosta researchers found that 60% of Gen Zers also want to eat more, while 79% of them already eat plant-based foods one or two times per week.
“What this tells me is that although today’s plant-based consumers run the gamut from long-time fans to flexitarians to those just trying the category out, younger consumers hold so much promise for the sector’s future—and even better, their interest is sustainable,” Jobb said. “That presents golden opportunities for retailers to attract young shoppers and keep them through the years.”
The trick lies in offering plant-based products that appeal to these and other consumers — a task complicated by the fact that both plant-based products and their fans are remarkably diverse.
On one hand we have cutting-edge meat and dairy alternatives that let shoppers dial back their reliance on animal foods without forgoing the burgers, nuggets, lattes, ice creams and fully loaded pizzas they’ve always craved.
These items are changing what plant-based products look like. The PBFA reports that plant-based milks now account for 15% of the milk category (45% at natural food stores), representing the largest plant-based category overall at $2.5 billion in sales. Meanwhile, the market value for plant-based meat alternatives hit $1.4 billion in 2020, with sales growing 45% over the year before.
“Plant-based meat and dairy brands are making headlines and forming partnerships with major mainstream brands,” Jobb observed, “and this is a boon to everyone because it builds awareness for the whole category.”
But meat and dairy mimicry isn’t the only way forward.
“As this category keeps growing and evolving,” Jobb said, “consumers are evolving along with it.” That evolution has led consumers to “become more discerning about the ingredients that go into products and the processing they go through,” she said.
And that could land meat and dairy alternatives, which undergo quite a bit of processing and bear ingredient statements that can run to dozens of ingredients, in an unflattering spotlight.
The predilection for “clean” labels and minimal processing has been trending for so long that it’s more accurate to consider it a permanent change in how consumers approach food. As Jobb says, “The fact that consumers desire real, recognizable food, and that that desire underscores a lot of eating habits today is now established as a core consumer belief.”
So while tipping her hat to the food-tech ingenuity that goes into meat and dairy mimics Jobb emphasizes that consumers are thinking more mindfully about the future of food, filtering labels for recognizable, nutrient-dense, organic ingredients — “and demanding that those ingredients to be as close to nature as possible.”
But beyond burgers, Jobb emphasized that the plant-based category is a big tent and that consumers want options in every aisle.
“Consider frozen foods,” she said. “The Plant Based Foods Association says that plant-based frozen meals grew 29% in the past year, outpacing overall frozen-food growth by 8%. It’s now a $520 million category.”
Amy’s catalog of frozen SKUs comprises fan favorites such as pizza, macaroni and cheese, lasagna, pizzas — always plant-based and made with clean, organic ingredients. “And this is important,” Jobb said. “Younger shoppers especially are busy enough; they don’t want to research labels to know what they’re getting. And I know this because I am a busy shopper, and I trust our foods!”
Jobb added that busy consumers want convenience, too, and that products as familiar as canned soup can supply it. “Canned soup offers the ultimate in convenience but also packs in nutrition with lots of veggies, whole grains and — big with us — organic ingredients,” she said. “People who may not know how to approach plant-based cooking at home can find an entire meal in the canned-soup aisle.”
Finally, they don’t skimp on variety — “variety in ingredients, in tastes, in cuisines.” Millennials and Gen Z shoppers are open to internationally influenced foods, and if they’re plant-based — even better. “That’s why it’s great that so many global cuisines are grounded in plant-based principles,” Jobb said.
Her take-home lesson for retailers: “You risk marginalizing your customers — and shortchanging your own bottom line — when you build a plant-based product mix that elevates ‘alt-foods’ at the expense of inherently plant-based foods that consumers also love. There’s room for both.”
“The way we see it,” Jobb concluded, “anything that makes the plant-based choice the easy choice advances the movement.”
And advancing movements has been Amy’s mission from the start. “The very reason that our founders Rachel and Andy started the company was to make delicious organic, vegetarian and plant-based products accessible to shoppers everywhere. And that’s still why we’re here.”
Yet Amy’s mission-driven spoon stirs many pots, from improving their workers’ communities and reducing their environmental impact to supporting organic agriculture and more. “We recently got certified as a B Corp,” Jobb added, “to underscore our commitment to using our business as a force for good.”
And make no mistake: Mindful consumers notice. According to Mintel, 61% of adults prefer to associate with brands that share their core values.
“Retailers have a role here,” Jobb said. “The more people we get eating plant-based, the better off we’ll all be — including our planet. And despite the differences in products, we all believe in plant-based for the planet’s health.”
]]>Millennial and Gen Z consumers are changing their eating habits, placing a growing importance on healthy, sustainable options.
For some millennials, the main driver in this shift in spending behavior is the desire to accommodate a healthier lifestyle for both themselves and their growing families, which often manifests as increased interest in plant-based options. According to Technomic’s 2020 Generational Consumer Trend Report, 33% of millennial consumers (compared to just 23% of consumers overall) say they’ve adopted semi-vegetarian, flexitarian or vegan diets and are integrating plant-based foods and beverages into their meals more routinely now than they were two years ago.
“Millennials have entered into a new life stage where health becomes more of a priority,” says Robert Byrne, Director of Consumer & Industry Insights at Technomic. “Having kids will certainly push an individual to rethink their daily habits and routines, and COVID-19 handed millennials what may have been their first true ‘mid-life crisis’ event in the form of a health-threatening pandemic.”
“They not only express above-average interest in healthy eating, but they are also more likely than all other cohorts to invest in name-brand products, with 66% of millennials saying that it is worth it to pay more for brand-name food & beverages compared to the overall consumer average of 57%,” says Byrne, citing Technomic Ignite Consumer data.
Similar shifts in behavior affect other demographic groups as well. For example, Gen Z places less importance on personal wellness, focusing instead on the wellness of the planet. Many are interested in plant-based and alternative proteins, with sustainability playing a large role in these purchasing decisions. Gen Z consumers also sit ahead of the pack when it comes to routine consumption of vegetarian and vegan options, with 63% consuming vegetarian or vegan dishes at least once per month, and 44% doing so once or more a week, according to Technomic’s 2020 Center of the Plate: Seafood and Vegetarian Consumer Trend Report.
Gen Z is also more reliant on convenient food options than any other generation. With many unable or unwilling to cook traditional meals at home, prepared meal options are crucial to their grocery shopping experience. According to Technomic’s December 2019 Gen Z Deep Dive, 28% of Gen Z consumers say they are buying prepared foods more than in the past, with 44% saying they would like to eat home-cooked food more often, but just don’t have time.
Though their reasons my differ slightly, millennial and Gen Z consumers are driving a market that saw retail sales of plant-based foods increase by 27% in 2020, bringing the total plant-based market value to $7 billion, according to the Plant Based Foods Association and The Good Food Institute. The plant-based food market grew at almost double the rate of the total U.S. retail food market, raising the total number of households who now purchase plant-based foods to 57%, up from 53% in 2019, the same report found.
Grocery retailers can translate these changing consumer habits into opportunities by offering plant-based choices from trusted brands like Amy’s Kitchen. Family-owned and sustainably-minded, Amy’s aligns with the values of the younger generations and also offers a variety of great-tasting, convenient organic, vegetarian & vegan meal options.
“For younger cohorts, evolving ideas of healthy lifestyles and healthy eating are merging with traditional ideas of global sustainability and responsible consumerism,” says Byrne. “Going forward, products that truly work alongside consumers in their quest to be better, healthier global citizens are likely to have an edge with both Gen Z and millennials.”
]]>The COVID-19 pandemic changed how consumers behave in many ways, from increasing dependence on e-commerce to turning homes into schools and offices to altering how consumers eat and shop.
When it came to feeding their families, the pandemic led more people to eat at home much more, causing a spike in grocery store spending. According to the research firm NCSolutions, the average household spent 19% more on groceries in 2020 than in 2019, and 88% of consumers said that going forward, they planned to cook at home equally or more frequently than they did before the pandemic, indicating a likelihood for grocery spend to remain elevated.
Some of these changes might have permanently altered the food landscape, with consumers cutting back on restaurant spending and switching to higher quality meals they can have at home.
“The pandemic has changed the current balance between food retail and foodservice. That is because changes in daily routines, lifestyles, and needs have led to more at-home preparation. More consumers came back to cooking—or tried it for the first time—and liked the results,” said Wade Hanson, Principal, Advisory Practice at Technomic.
As consumers have shifted to making more meals at home, they have increasingly become concerned with premium, quality products. According to IRI research, consumers traded up for more premium CPG items, with the biggest growth category being premium canned soups. As for why, it’s sensible to point to a shift in consumer knowledge of and preference toward premium options and a desire for homestyle taste without having to make dishes from scratch for every meal. And as consumers head back to pre-pandemic routines, this inclination toward convenient yet high quality foods is likely to stay.
“Number one, consumers have consistently shown they can distinguish between premium brands and conventional or value brands. And number two: Unlike in the past when consumers had been known to request ‘premium’ but ultimately refused to pay more, consumers are now showing a willingness to spend more on quality,” Hanson said.
The bottom line is that consumers are increasingly mindful of their health and wellness, and they are willing to spend their dollars accordingly. According to FMI, 44% of consumers point to health and nutrition concerns as factors that drive their food choices and meal ideas. For retailers, though, knowing what consumers consider to be indicators of premium status is crucial.
“When asked to define ‘premium’ products in a discrete choice analysis, the top five descriptors historically cited by consumers include organic, grass-fed and free-range. Over the past two years, Technomic has seen a significant increase in consumers who feel it is worth it to pay more for name-brand products while voicing a significant decrease in price sensitivity,” said Robert Byrne, Director of Consumer & Industry Insights at Technomic.
The pandemic helped highlight changes that were already occurring throughout our culture. Shopping apps already were allowing people to complete their grocery orders from home and have them delivered. The pandemic accelerated the number of consumers introduced to these services and increased those who were comfortable using the technology regularly.
Likewise, healthy eating and a focus on quality, sustainable and organic products had long been a trend. The pandemic accelerated this trend as well. Consumers wanted high-quality meals at home, but they didn’t all become chefs overnight. In most cases, consumers simply began searching for quality products they could have at home, but that wasn’t overly complicated to make—which explains why canned soups were the biggest growth category for premium.
For shoppers looking for premium, healthy options, vegetable-full, delicious, all-natural and organic ingredients are key—and for some brands such as Amy’s Kitchen, including those ingredients is part of their DNA. What’s more, it’s the brand’s prioritization of quality and homemade taste that sets them apart and what has encouraged so many consumers to make the switch.
“Putting together these important consumer motivations supports the growing appeal of premium brands, as consumers gravitate toward what we refer to as ‘impact purchases,'” Byrne said.
]]>At the onset of COVID-19, many people grew tired of cooking every single meal at home and missed the global flavors they would typically experience eating out. As a result, they turned to prepared and frozen foods to bridge the gap between home-cooked meals and takeout. And based on the continued growth within the frozen food aisle, they’ve enjoyed the experience—authentic recipes, great flavor, and quality ingredients— and have continued to return for more.
Global foods on the rise
Globally influenced foods were extremely popular in 2020, according to Technomic’s 2020 Global Food and Beverage Consumer Trend Report. Before the COVID-19 pandemic, 80% of consumers said they ordered global foods from foodservice at least once a month—up from 65% in 2018. What’s more, 55% said they bought global foods from grocery stores’ prepared-foods sections at least once a month, up from 47% in 2018.
In conjunction with this trend, Technomic found that many consumers favor plant-based choices when they opt for global foods. Specifically, 30% of surveyed respondents said they prefer global flavors over traditional flavors in plant-based foods, and 28% expressed interest in trying global foods that use alternative proteins, including chickpeas.
Which flavors and foods are hottest?
Of course, global cuisines vary greatly, as do consumer preferences. Those preferences, in turn, affect what sells in grocery stores, so operators should keep up with what shoppers are interested in eating—and stock accordingly.
Turkish, regional Asian, African, and regional Italian flavors are appearing on restaurant menus and on store shelves with greater frequency. And while consumer interest in them is up at both places, many consumers are still gravitating to familiar options, including Chinese, Italian and Mexican cuisines. For grocery retailers, this means it’s crucial to make sure both options—familiar favorite foods, as well as exciting and unfamiliar choices—are available.
Consumers craving global flavors tend to seek them out in a variety of formats, including pasta, rice, pizza, salads, soups, sandwiches or wraps, and grain-based bowls. Lesser-known global foods, such as risotto, pierogi, and tabbouleh—are also growing in popularity.
This shift is readily apparent in both center store and frozen aisle grocery offerings. New options available for consumers include, but are not limited to, prepared foods and sauces, as well as spices and other ingredients with which they can create their own meals. For example, shoppers can now find African- and Middle Eastern-influenced options such as jollof rice, a dish made with long-grain rice, tomatoes, onions, spices, vegetables and other ingredients; cassava leaf soup (also known as saka saka or pondu); and global spices and spice blends like harissa and za’atar. Portuguese piri piri sauce—a perfectly spicy, flavorful addition to proteins and veggies—is also finding its way onto shelves.
As consumers show interest in newer, less familiar options—in addition to their tried-and-true favorites, the opportunity for grocers is rich. It’ll be key going forward to offer not just one or the other, but rather a mix of both the classics and new, exciting ingredients and prepared options.
Choosing the right brand and product mix
Stocking foods that reflect these trends is crucial to sales success. Amy’s Kitchen, a longtime leader in organic frozen meals and canned soups, has a deep portfolio of products that not only satisfy consumers’ desire for convenient, flavorful, globally influenced cuisine but also suit their dietary restrictions and preferences. The Amy’s lineup includes, among other things, a vegan Mexican casserole made with organic corn and black beans, a vegan cheese and spinach ravioli, and a sweet and sour grain bowl with a spicy Szechuan sauce. And later this year, Amy’s will be adding to their soup line with three new plant-based offerings, including two East-African inspired.
Industry experts expect plant-based options featuring global flavors to continue their upward trajectory this year. Make sure shoppers can find the foods and flavors they’re looking for—from familiar classics to adventurous new dishes—by stocking shelves with brands and products consumers know, love and trust. To learn more about the growing global flavors trend and what it means for retailers, visit tradeinsights.amys.com.
]]>In 2020, Americans’ busy schedules got even busier as much of the country shifted to working from home indefinitely. Consumers traded office lunch dates for leftovers at home in between calls, and dinnertime became a juggling act of getting food on the table while helping kids with homework or finishing up work. As a result, convenience foods are more of a staple than ever before.
According to Power of Frozen in Retail, a 2021 report from the American Frozen Food Institute and FMI–The Food Industry Association, the frozen category generated $65.1 billion in retail sales in 2020, a year-over-year increase of 21%. What’s more, online purchases of frozen foods jumped an astounding 75%, “with frozen dinners and entrées, meat, poultry, and seafood leading the way.”
Throughout the past year, “the frozen food aisle saw a huge resurgence,” says Karen Jobb, Chief Customer Officer at Amy’s Kitchen. “Frozen food was already on a growth trajectory leading up to the pandemic, but once COVID-19 hit and shoppers began stocking up, the frozen food category saw unprecedented and unrelenting demand. And since then, growth has continued, telling us that people who may not have purchased frozen in a while came back, liked what they tried and are continuing to come back for more.”
These trends are likely to continue for the foreseeable future, with consumers as busy as ever and looking for quick, satisfying meals that don’t require hours in the kitchen.
For grocery retailers, the opportunity is huge. Fluctuating stay-at-home orders and restaurant closures over the past year have forced consumers to eat at home far more often, but many of them don’t have the time or desire to create gourmet from-scratch meals multiple times a day. For these shoppers, frozen foods that offer the nutrients and flavors they want are highly appealing. Plant-based foods also do especially well with consumers seeking better-for-you options. Plant-based pizza and macaroni and cheese, for example, have proved to be big sellers.
“Grocers are looking to meet the growing demand for convenient, wholesome prepared meals,” Jobb says. “Retailers are also expanding plant-based offerings and looking for more variety, flavors and options that are meatless and also cater to other dietary needs like gluten free.”
Retailers should therefore stock a wide variety of frozen options to ensure every shopper can find something they’ll like. Think items “that taste great and are also made with quality ingredients, so shoppers can feel good about what they’re buying and consuming,” Jobb says.
“There’s also a growing interest in global flavors, especially as consumers continue to eat the majority of their meals at home and are looking for more variety,” she adds.
Comfort food favorites for the whole family
During the pandemic, comfort foods have reigned supreme. Market research company OnePoll found, in fact, that the average person is consuming comfort foods at least five times a week and snacks six times a week. Nearly 7 in 10 of survey respondents said they’ll continue to turn to comfort foods with the same frequency once the crisis subsides.
Notably, many of the “most devoured” comfort foods revealed in OnePoll’s research can be found in the frozen food aisle—and in Amy’s Kitchen’s lineup of easy-to-prepare foods, which are made with organic, high-quality ingredients. Options such as pizza, which 55% of survey respondents said they are eating during the pandemic, and macaroni and cheese, which 39% said they are eating, provide nourishment and indulgence.
Family-size portions of classic comfort foods also sell well. With consumers turning to comfort foods frequently, it follows that they’d be looking for comfort foods for the whole family. Retailers can satisfy this need by offering family-size options of comfort foods in the frozen aisle.
Flavorful plant-based options
While plant-based meats and cheese ingredients are enjoying a turn in the spotlight, they’re not the only plant-based options in which consumers are interested. According to Technomic’s 2019 Center of the Plate: Seafood & Vegetarian Consumer Trend Report, a pre-pandemic survey, only about 6% of consumers said they followed a vegetarian or vegan diet, but 34% of consumers say they were eating a vegetarian or vegan dish at least once a week. These numbers are sure to increase post-pandemic.
What’s more, 16% said they were eating more vegetarian options than they were two years prior, and 12% say they were eating more vegan options. For shoppers who just want a meatless meal every now and then, being able to find familiar, flavorful, convenient frozen meals will be key to increasing their interest in trying something new.
Retailers can capitalize on consumers’ growing interest in plant-based foods—and their need for convenience—by stocking complete plant-based meals that can be prepared quickly and provide the great taste and wholesome ingredients shoppers are seeking.
“Life has changed a lot since the pandemic, and a lot of our habits—especially work-life balance—will look different post-pandemic,” Jobb says. “With that, we don’t see demand for frozen food waning anytime soon. Long gone are the days when frozen food was considered bland or unhealthy. Now consumers are turning to frozen as a destination for high-quality, flavorful food that’s easy to prepare.”
A plant-based pioneer with more than 30 years of expertise across the frozen and canned soup categories, Amy’s has among the highest repeat purchase rates across the category. To read more about current consumer trends and category insights, visit tradeinsights.amys.com.
]]>U.S. grocery-sector revenue rose by as much as 10% year-over-year in 2020, according to a Bain & Co. report published last November. As the country settles into a new year, savvy grocers will understand how the trends of 2020—plus others percolating long before—continue to shape shoppers’ choices. And that should help them shape their product selections to match.
Shelley Balanko, Ph.D., senior vice president of The Hartman Group, keeps a close eye on supermarket trends. She sees “positive signs all around—for grocery in general, and in particular for natural and specialty outlets” because consumers continue to buy most of their food from retail stores, she says. Although the consultancy’s Compass Database showed a year-over-year decline in the proportion of eating occasions sourced from foodservice in 2020 (from 21% to 19%), its recent Food Sourcing in America 2020 study showed that retail, natural and specialty grocers enjoyed especially robust growth as the year progressed.
Change for the better
The key theme animating consumers’ grocery purchases in the last year is a renewed focus on health and wellness.
“With so much still uncertain, prioritizing health and wellness remains a mission with shoppers,” says Jeffrey Crumpton, a retail business consultant with SPINS. “Retailers are picking up on that, as we continue to see natural, wellness-oriented products outperforming their more conventional counterparts across channels.”
Among the pandemic’s long-term effects on food retailing might be a sustained change in category focus. Consumers continue to demand more items that they believe will improve their health and hygiene, according to Deloitte’s “Understanding the Impact of COVID-19 – Grocery & Food Retail” report.
Balanko believes this shift will persist. “The pandemic has been a lesson in prevention and resilience,” she says. “At [its] onset, 30% of consumers told us that immunity had become a greater concern. As we move further into 2021, we anticipate seeing strong continued interest in eating with immunity in mind—a prevention mindset.”
Conscious consumption
When today’s consumers purchase better-for-you products, they’re not just thinking about their own health; they’re acting in the interest of the planet’s as well. “Making environmentally friendly choices is likely to prevail even when shopping behaviors return to normal, as the lockdown and the pandemic have given many consumers a chance to pause and rethink their own consumption patterns,” Deloitte reports.
Yet conscious consumption “is about more than a price-quantity calculus,” Balanko says. “Our Food Sourcing in America 2020 study shows that community-oriented considerations have risen in importance since 2017, with 8% of shoppers listing ‘environmental/ethical concerns’ and 6% including ‘social justice’ among their top five purchase influencers.” Subjective elements of value, such as experience and relevance” are becoming priorities for consumers, she adds.
Plant-based exploration
Closely allied with sustainable shopping is the trend among consumers—including omnivores—of putting more plant-based products in their baskets. “As consumers become more health conscious and turn to foods with wellness benefits, they’re choosing vegetarian and plant-based foods at higher rates than ever before,” says Xavier Unkovic, president and CEO of Amy’s. “What was once fringe is now mainstream.”
“While plant-based eating appeals to consumers up and down the age scale, it’s a veritable movement among younger consumers, millennials and even GenXers,” Unkovic adds.
None of which comes as a surprise to Crumpton. “We continue to see innovation in response to how consumers prioritize food,” he says. “They’re becoming educated about plant-based and understand its benefits. As a result, we’re looking at 20% to 30% growth within the plant-based space.”
As the category matures, “consumers will be savvier shoppers of plant-based meat and dairy analogs,” Balanko says, “and will look for sustainably and ethically sourced ingredients, minimal processing and products that meet their needs for exploration and discovery.”
That translates into “more-authentic offerings” that reflect cultures where plant-based eating is de rigueur. “Southeast Asian cuisines, for example, traditionally deliver highly in that regard,” she explains. “As plant-based mainstreams and consumer preferences evolve, the offerings must evolve accordingly.”
Amy’s plant-based products “have always reflected flavors and cuisines from around the world,” Unkovic points out. “Many of our dishes are inspired by our founders’ travels to places like Mexico and India. We also collaborate with local chefs and cooks to come up with our recipes and ensure that authenticity. This year, we’re exploring more international offerings and looking to regions across Asia, South America and Africa for inspiration.”
Enabling smart choices
Grocers can stock products in a way to reflect these and other prevailing trends.
For one, they can turn to convenient, sustainably produced frozen options that meet consumers’ needs on all fronts.
Crumpton calls the frozen sector a “bright spot” in supermarket sales, noting that frozen options offer consumers an easy way to eat healthfully, mindfully and without much prep. “You can pick them up, put them in the freezer and source them for a quick, nutritious dinner.”
Balanko agrees, noting that the pandemic helped consumers “rediscover and experience the frozen aisle in a new way, with many of the innovations that occurred in the space over the past few years really resonating,” she adds.
Retailers can also point consumers toward products and brands that share their values by leveraging in-store communication and building end caps that promote those brands. “This makes the shopping process easier and clearer for this growing conscious consumer base,” Unkovic says.
Leveraging the reputation of B Corp certification is “another great indicator for consumers seeking socially responsible and ethical companies,” he continues. “We’ve seen some early success with retailers who call out B Corps among their selection. By curating this excitement within a routine shopping aisle, retailers not only simplify mindful shopping but enable the discovery of other like-minded brands and products.”
The lesson: There’s no reason for grocers to let this moment pass. “Retailers are one step closer to consumers than brands are,” Balanko says, “Retailers can be trusted partners in consumers’ lives if they demonstrate that they share consumers’ values.”
And if they stock their shelves accordingly. Convenient, sustainable, nutrient-rich options from Amy’s Kitchen check conscious consumers’ most important boxes across dayparts. From vegan and kosher to gluten-, dairy- and soy-free, Amy’s Kitchen has offerings to suit a variety of needs and preferences—and the flavor and quality that keeps shoppers coming back for more with some of the highest repeat purchase rates across the category. To learn more about Amy’s offerings, current trends and opportunities for category growth, visit tradeinsights.amys.com
]]>Eating for Wellness
The last year has trained consumers’ attention on the vulnerability of their health—and how inextricably linked it is to their environment, including the foods they eat.
“Eating for wellness means the same thing to us as it does to our consumers and to a lot of people generally,” says Xavier Unkovic, President and CEO of Amy’s Kitchen. “These are foods that are made with care and purpose—and with whole, natural and organic ingredients you can pronounce. And we put vegetables, whole grains and legumes at the center.”
This approach aligns with the values consumers shared in a survey conducted by The Hartman Group in April 2020. According to the study, 41% of functional food and beverage consumers polled said “natural” is a desired attribute in their product choices, 32% said they prefer to avoid artificial ingredients, and 19% said they specifically seek organic options.
Convenience Without Compromise
No matter what kind of flavors and foods shoppers are interested in, one thing is consistent: they want convenient, great-tasting, wholesome meal solutions.
According to a survey of 1,000 adults conducted by International Food Information Council in December, 32% of respondents were more likely to cook semi-prepared meals, and 36% cooked more simple, easy-to-prepare foods In 2020.
With many people working from home, dealing with schedule changes and school disruptions, consumers see meals as an opportunity to take a break or regroup and don’t want to spend their limited time cooking and cleaning up. By offering more variety, higher-quality frozen meals and vegetarian and vegan options, grocery stores can outshine their competitors and create loyal shoppers.
Plant Based Popularity
“Plant-based diets have been on a multi-year growth trajectory, and this year looks like the perfect setting for more upward growth thanks to shoppers appreciating the health and environmental benefits of plant-based items and the industry’s many innovations,” says Jacob Knepper, Retail Solutions Manager at SPINS.
While a majority of consumers don’t follow strict vegetarian or vegan diets, a growing number are incorporating plant based into their diet in some way. According to Technomic’s 2019 Center of the Plate: Seafood & Vegetarian Consumer Trend Report, 34% of consumers eat a vegetarian or vegan meal at least once a week; 14% say they are eating more vegetarian or vegan meals now than they were two years ago.
Globally Inspired Eats
Flavors and ingredients found in global cuisine continue to trend. As consumers eat out less and are craving adventurous flavors to break up the monotony, they are seeking out prepared global favorites—from Mexican to Asian to Indian—as recipes are often too sophisticated to make at home. To feed the need, shoppers are heading to the frozen food aisle.
By offering high-quality, convenient, heat-and-eat foods for shoppers craving something globally inspired, retailers position themselves as the go-to for quick and delicious options.
Feeding the Need
Amy’s has been producing delicious meals made with whole, organic ingredients for decades. And with some of the highest repeat purchase rates across the category, Amy’s offers consumers (vegetarian, vegan and otherwise) the taste and quality they are seeking.
For more about today’s consumer trends and the opportunity at retail, visit tradeinsights.amys.com.
]]>But if early analyses are accurate, the upheavals of the past year didn’t relegate sustainability to the back burner. Instead, they revealed that we’re more connected to the planet than ever—and that the foods we choose (and how they’re produced) affect its health as much as they do our own.
That may be one of the shiniest silver linings to come out of a dark year, says Paul Schiefer, Senior Director of Sustainability at Amy’s Kitchen. “If we take any lesson from COVID-19— and there are so many to take—one of the most important is our vulnerability to a crisis. Every dollar spent is a vote for the type of future we’ll have,” he explains. “Food is as precious a resource as the land it comes from. And everyone—consumers, retailers, brands—need to work together to preserve and ultimately heal our planet.”
No longer a luxury
The beginning of a potentially devastating recession may seem like an odd time to start thinking about food more sustainably. But even as consumers tighten their belts—69% of Americans surveyed by the Pew Research Center characterized the country’s economic situation as “bad”—many still aim to eat, and shop, more mindfully.
That continued dedication tracks with what Jeffrey Crumpton, retail business consultant for the wellness-focused market research firm SPINS, has observed during previous recessions. “Even with economic insecurity, sustainability is still something people are concerned about,” he says. “They didn’t abandon their values in the recessions of 2007 and 2008, and they’re not abandoning them now.”
The lesson: Sustainable shopping should not be considered a luxury, and grocers should stock their shelves accordingly. “The case really has been made that retailers have to be mindful of the products they carry in-store,” Crumpton notes. “If they’re clued in and connected to their consumers, they understand that, and they’re prioritizing sustainability in response.”
Big-tent sustainability
Amy’s Kitchen is among the brands that’s working with retailer partners to collaborate on promoting organic and regenerative agriculture, renewable energy, elimination of food waste, fair labor practices and more. “I think it’s exciting and promising that we’re having these broad conversations,” Schiefer says. “It proves we can have an even bigger impact together as an industry than anything we can accomplish alone.”
Crumpton agrees. In reviewing SPINS data collected over the past year alone, he sees views of sustainability expanding beyond simple “paper-or-plastic” debates to plant-based eating, third-party certifications and even holistic health, in addition to the concerns Schiefer identified. “It’s telling that when people think about their own wellness, they’re taking sustainability into consideration too,” Crumpton says.
Planting roots
Perhaps that explains why plant-based diets, which were going strong heading into the pandemic, continued to strengthen in the midst of the crisis.
Data from SPINS and the Plant Based Foods Association show that plant-based food sales grew an astounding 90% year over year during the week of March 8–15. In the four weeks after COVID-related panic-buying peaked (March 16–April 19), total plant-based food sales continued growing at a rate of 27%—35% faster than total retail food sales.
Such numbers are a good sign to Schiefer—and not just because many of the plant-based products flying off shelves were likely Amy’s-branded. (All of the company’s 260-plus SKUs are vegetarian, and more than 120 are vegan.) Rather, he says, “If you’re trying to shrink your global footprint, one of the best ways is to eat plants. They require fewer resources to produce and generate less greenhouse gas emissions, in that sense, are truly sustainable.”
Pioneering access
So too is organic farming, which Amy’s Kitchen has encouraged since its founding in 1987. “When Amy’s began, there was no national certification program for organics, and organic foods were hard to find,” Schiefer recalls. “So we supported small, local farms growing the organic ingredients we needed—and as we grew, so did they.”
Three decades later, the company is purchasing over 100 million pounds of organic produce annually. “We like to think that by doing so, we not only help keep the organic engine going but make organic foods accessible to more consumers,” Schiefer says.
Putting people first
While organic certification may be table stakes in today’s sustainability discussion, Crumpton says its move to the mainstream has opened the door to “so many other sustainability-driven certifications like cruelty-free, cage-free, non-GMO and Certified B Corporation status, which means that your business model benefits your employees as well as other social and transparency goals,” he notes.
Schiefer sees organics as contributing to those benefits. After all, he says, “Organic farming isn’t just better for the earth; it’s better for the people working the fields. A commitment to organic ensures that farmers aren’t exposed to harmful chemicals or pesticides.”
Amy’s Kitchen, which currently achieved B Corp certification, commits to its employees in other ways, offering college scholarships to employees’ children and running on-site health centers, where bilingual doctors make it easy for the company’s workers—as essential now as ever—to access equally essential care. Asked what providing health care has to do with sustainability, Schiefer responds: “In order to heal the planet, we must also heal our people and communities, as one goal cannot be achieved without the other.”
“Our goal is to do things the right way,” he continues. “And that means doing right by our consumers, our farmers, our employees and our planet. The right way isn’t always the easy way, but it’s the only way we’re interested in.”
Get the word out
That’s an impressive goal—and one that consumers need to know about if they wish to shop sustainably and reward the brands and retailers that make it possible for them to do so.
Crumpton advises retailers to tout their sustainability efforts via shelf tags signaling local produce or plant-based items in the center store, for example. “It’s about demonstrating to consumers the care that goes into curating the product mix, and the collaborations with brands that also hold sustainability at their core,” he says. “We see all the time in the data that brands and retailers that keep this core to their business are the ones that succeed.”
“Brands and retailers alike have to keep the conversation going—both with each other and with the public,” he adds. “It keeps us all honest. And it keeps our missions aligned. That way, we speak to consumers with one voice—the sustainable one they want to hear.”
Convenient, plant-based options from Amy’s Kitchen provide sustainability-minded consumers what they’re looking for, across all dayparts. From vegan and kosher to gluten-, dairy-, and soy-free, Amy’s Kitchen has a variety of options. For more insights and trends relevant to today’s consumer, visit tradeinsights.amys.com.
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