Packaging study suggests how frozen food will gain
February 3, 2010
Some economic observes believe that one way to gauge consumer packaged goods markets is to look at where packaging is heading, and it is heading up for frozen food, with improving quality one of the factors behind the advance.
The Freedonia Group, Cleveland, projects that revenues associated with frozen food packaging will climb 3.7% per year and reach $6.8 billion in 2013, driven largely by the popularity of convenience foods. Other factors that will promote the advance include the prevalence of microwave ovens and technological advances in packaging.
Greater use of value-added components such as heat-radiating susceptors and the application of high-quality graphics to enhance visual appeal and to convey a premium image also will encourage growth. Competition from prepared refrigerated food alternatives, increasingly available in supermarkets and other retail food stores, will be a prime factor inhibiting the growth of frozen food packaging, the research firm noted.
Demand for frozen specialties and in the meat/poultry/seafood segment should speed growth among major frozen food applications, Freedonia indicated. Meat, poultry and seafood applications should experience increased production volume and get a boost from the popularity of products that offer convenience in meal preparation. Promotion of frozen meat, poultry and seafood as economical protein options also should weigh in the segment’s favor. Freedonia projects the demand for frozen specialties packaging to expand by 4.4% annually to $2 billion in 2013. The increase will be propelled by consumer preference for foods offering convenience and value, and by quality improvements due to packaging innovations. Prospects for frozen dinner packaging will reflect the growth of items incorporating premium ingredients and those positioned as healthier because of reduced calories or the presence of whole-grain ingredients.
Notably, Freedonia also expects restaurant demand to drive packaging growth. High-volume requirements in the foodservice sector and general revenue growth in the foodservice industry, which relies heavily on frozen foods, are other prospects that suggest gains on the packaging front.
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