Consumers have always enjoyed pizza rolls, frozen ethnic foods, and frozen pretzels, and that’s not likely to change anytime soon. However, due to inflation, some are shifting their spending habits—including opting for smaller amounts of frozen appetizers, switching to private label from national brands, and waiting for products to go on sale before buying.

Market data

The frozen appetizers/snack rolls category has shown a very slight uptick in sales over the past year, according to Circana (Chicago) data from the 52-week period ending April 21, 2024. The category as a whole (appetizers/snack rolls) brought in $4.1 billion, a 0.2% increase; the frozen appetizers/snack rolls subcategory was responsible for $3.9 billion of that, a 0.4% uptick. The frozen pretzels subcategory included the remaining $115.2 million, a 0.7% upturn.

Totino’s (a General Mills brand) led the frozen appetizer/snack rolls category leader, with $811 million in sales (a 4.4% decrease). Private label took in $643 million, a healthy growth of 5.8%; El Monterey (Ruiz Foods) garnered $393.3 million, a 12.3% increase. A company to watch is CJ Foods (parent company of Bibigo), which brought in $159 million but had a fantastic 46.2% uptick in sales.

In the frozen pretzels category, Superpretzel a (J&J Snack Foods brand) took first place, with $80 million in sales (a 4.5% increase), and private label brands garnered $14.5 million, a 4.5% upturn. J&J Snack Foods’ other brands (including Auntie Anne’s) came close on its heels, with $12.6 million in sales, a 0.9% decrease. Companies to keep tabs on include Eastern Standard Provisions Co. , with $364,000 in sales (constituting an 117.8% increase).

Looking back

“While total frozen snacks and appetizers are relatively flat over the last 52-week time period, our category of ‘better-for-you’ frozen pizza snacks is up 15%, showing consumers are drawn to healthier choices of their favorite comfort foods,” says Gail Becker, founder, Caulipower. “We know that consumers no longer want to choose between healthy and tasty foods and are reaching for options that allow them to indulge while still feeling good.”

Becker notes inflation across food and beverage remains a challenge for consumers, and the company strives to continually offer a balanced price/value proposition and make sure its products are accessible to all.

“In October 2023, Caulipower announced our largest innovation launch with seven new pizza products, including baked (not fried) cauliflower crust pizza bites. Our pizza bites are continuing to gain momentum in market, and our first read is showing incredible incrementality to the category—nearly 60% of consumers who purchased Caulipower Pizza Bites have not purchased [other frozen pizza bites/rolls] in the latest 52 weeks,” she shares.

Michelle Hwang, senior marketing manager, Bibigo, says many consumers are looking for friendlier price points, with 42.7% seeking items within the $3 to $6 range.

“With inflation, we are also seeing this cause a change in purchasing behavior with three in four (74%) consumers ‘trading down’ in their purchases through actions like adjusting quantity/pack size (60%), delaying purchase (44%), changing retailers for a lower price/discount (37%), changing brand to lower price/private label (26%), and/or using a ‘buy now/pay later’ program (21%),” she notes.

“Approximately 80% of households purchase Asian food. In fact, the growth rates of Asian food (16%) doubles total food (8%) according to a 4-year CGR. However, Asian foods remain under-developed within the total food industry,” Hwang adds. “Bibigo is responding to these challenges by continuing to lean into and support one of the few categories growing in buyers and trips—frozen Asian—by ensuring a range of price points and pack sizes to drive trial and awareness, leveraging known forms and flavors from restaurants to capture out-of-home eating occasions and trips, and pulling like-items together and simplifying the shopping experience.”

Jenna Behrer, vice president, marketing and innovation, Dr. Praeger’s, says she continues to see strength across all areas of snackable frozen foods. “The frozen snack category, now a $7 billion industry, has grown by 15% year-over-year (according to Circana). Consumers are increasingly turning to frozen options for their convenience and taste. Our Littles line has seen a compound annual growth rate of 25% since 2017 because it delivers vegetables that kids will actually eat,” she comments.

“Indulgence continues to dominate consumer preferences. Gen Z, in particular, is redefining snacking. They're moving away from the traditional three meals a day and looking for snacks that offer more—nutrients, full servings of vegetables, protein, etc. However, the category hasn't fully addressed these needs yet, pushing this generation towards more shelf-stable and refrigerated solutions,” Behrer adds. “Gen Z is looking for clean ingredients, but much of what's available doesn't meet these expectations.”

Looking forward

Behrer says she is starting to see growth-centric retailers focus more on kids' snacking, recognizing children are the fastest growing consumer base yet are underrepresented in the frozen section. “This trend is likely to continue, driving innovation and growth in this space.”

“Producers will need to evolve to stay true to their values while adapting to the desires of the next generation. We believe that our 'Tasty Meets Veggie' philosophy can appeal to a broader audience, including Gen Z, who are looking for clean, nutritious, and convenient food options. The challenge lies in balancing our core principles with innovative approaches to meet these evolving consumer preferences,” she elaborates.

“We are continuously working to attract more kids with our taste-driven Littles line. We’re also diving deeper into all-family snacking solutions,” Behrer finishes.
 Becker says Caulipower expects the frozen snacks category will regain momentum throughout the rest of 2024, with innovation continuing to give consumers options to eat snacks throughout their day.

“Supply chains continue to be a challenge for some companies as the market recalibrates from the last few unprecedented years. The COVID-19 pandemic highlighted vulnerabilities in global supply chains, and producers will need to ensure the smooth flow of materials and ingredient components,” she advises.