Frozen Food Packaging Demand to Reach $6.8 Billion in 2013

Demand for frozen food packaging is projected to climb 3.7 percent per year to $6.8 billion in 2013, driven by the popularity of convenience-type foods, both among consumers and foodservice establishments; the prevalence of microwave ovens; and technological advances in packaging.  Revenue growth in the foodservice industry, which relies heavily on frozen foods, will also bode well for packaging.  Additional factors supporting growth will include greater use of value-added components such as susceptors and the use of high-quality graphics for enhanced visual appeal and to convey a premium image.  Preventing faster growth will be competition from prepared refrigerated food alternatives that are increasingly available in supermarkets and other retail food stores.  These and other trends, including market share and product segmentation, are presented in Frozen Food Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Packaging for frozen specialties and for meat, poultry and seafood are expected to post the fastest gains among major frozen food applications.  Demand for frozen specialties packaging is projected to expand 4.4 percent annually to $2 billion in 2013, propelled by consumer demand for foods offering convenience and value along with quality improvements resulting from packaging innovations.  In addition, solid prospects for frozen dinner packaging will reflect the growing presence of items incorporating premium ingredients and those positioned as being healthier through reduced calories or the presence of whole-grain ingredients.  Meat, poultry and seafood applications will be aided by increased production volume, the popularity of products that offer convenience in meal preparation, and the promotion of frozen meat, poultry and seafood as economical protein options.  In addition, gains will be helped by continued high-volume requirements in the foodservice sector.

Rigid packaging -- such as boxes, tubs and cups, trays, and foil containers -- accounts for the majority of frozen food packaging demand and will remain dominant.  However, flexible packaging will log faster gains based on advantages of greater cost effectiveness, space savings capability, lighter weight and overall source reduction capabilities.  Performance improvements like self-venting films and consumer convenience features such as resealable pouches and bags will also stimulate advances. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.