Keeping frozen in motion

The frozen food category continues to offer consumers convenient and often reasonably priced meals.

In recent months, according to IBISWorld Senior Industry Analyst Blair Li, supermarkets and grocery stores in Australia experienced “surging demand” for frozen food in response to COVID-19 stay-at-home restrictions.

Such demand isn’t expected to be maintained, however, Ms Li says.

“The substantial rise in [the] March-April quarter can result in a weaker outcome in June-July, given COVID-19 has been well controlled in Australia and fridges are full,” she says.

With this in mind, she offers retailers some advice when it comes to nurturing the category’s potential.

“As young professionals return to work with less time to prepare for meals and purchasing frozen food for their convenience, retailers should focus on providing healthier varieties of existing products and premium goods [such as superfood and seafood] which will keep supporting demand for frozen food,” Ms Li says.

“In general, price-based competition still dominates the industry. Retailers are expected to keep providing specials and promotions and maintain a price-sensitive client base.”

In the June issue of Retail World, we find out from frozen food brands how retailers can retain the category’s potential post-coronavirus.

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