In short, like so many other things in this world, Millennials are to blame.
Frozen foods have been scoffed at for years, leading to a slump in sales, but apparently that’s rapidly changing.
Over in the U.S., sales are growing for the first time in five years, with market analysts Nielsen estimating the country’s annual sales at around $53 billion (R648 billion).
Moneyweb with the how and why of that:
The recent uptick in popularity stems in part from a record-high level of single Americans as millennials wait to form families. Frozen meals are an easy way to control portions, and there’s typically very little waste.
“There’s been a lot made of the death of frozen,” said Dewey Warner, an analyst at market researcher Euromonitor. “The average millennial doesn’t have time to make a full meal with fresh meat and produce. More and more they’re seeing these products as viable options.”
There’s that hot take, but then there is also another way to look at it. Either they already spent all their money on avocados, or they’re saving every penny to try and buy property because that’s now virtually impossible thanks to the behaviour of previous generations.
This is probably my favourite part of the entire analysis:
The unlikely comeback has lifted a number of companies. After a four-year slump, Kelloggs, maker of Special K and Frosted Flakes, has returned to growth in recent quarters. That’s thanks in part to a boost from Eggo, which benefited from its prominence in the hit Netflix series “Stranger Things” as the favourite food of a mysterious telekinetic girl named Eleven. The brand’s sales are up double digits in each of the last two quarters.
That’s right, Eleven ate some Eggos and now the company is flying.
It’s called being a real influencer, person with 265 followers on Instagram.
And just when you think the uptake is due to lazy, unhealthy Millennials, the vegans stop by:
Vegans have also gravitated to the freezer aisle, looking for products like meat-free burgers, according to Jordan Rost, vice president of consumer insights at Nielsen. Those products have helped fuel growth by driving up prices.
“Those are things people are willing to pay a premium for,” Rost said.
We go to a graph to drive home the point:
Perhaps the most incredible stat is the decline that other players in the packaged-food industry have seen. The 10 largest U.S. companies have actually seen close to $20 billion (R244 billion) in revenue disappear over the last three years.
Maybe they need Eleven to chomp on a packaged sarmie in the next season of Stranger Things? That might actually be a decent advertising investment.
Millennials – you just do you, guys.
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