U.S. Enters 'Cool Down' Period for Refrigerated and Frozen Food Purchases as Stockpiling Decreases
Sales numbers down across the board, but still significantly higher compared to last year.
The latest data from research firm IRI (Information Resources Inc.) and BCG (Boston Consulting Group) shows frozen and refrigerated food sales leveling off after a sharp sales spike in March due to COVID-19 stockpiling by consumers.
Metrics for the week ending March 29 show frozen food sales are still up +31.3% compared to last year, but that number dropped significantly from +78.8% in mid-March. Dairy sales also saw a decline, dropping to +20.9% from +57.8%. Dry/refrigerated yeast, and refrigerated canned ham are the only two perishable item to place in the top ten of all edible/non-edible products in terms of sales growth, at +282.3% and +130.0%, respectively, compared to last year.
A deeper dive into the current metrics show sales declines across the board for frozen items like:
- Frozen pizza = +52.4% (down from +117.2%)
- Ice cream = +28.8% (down from +33.5%)
- Frozen novelties = +14.7% (down from +31.6%)
Refrigerated items slowing in sales include:
- Uncooked meats, excluding poultry = +46.3% (down from +82.0%)
- Shredded cheese = +46.1% (down from +77.0%)
- Fresh eggs = +38.0% (down from +70.7%)
- Sliced lunchmeat = +21.4% (down from +78.1%)
- Whole milk = +15.4% (down from +47.2%)
- Skim milk = +8.8% (down from +46.7%)
Meanwhile, yogurt actually saw a year-over-year decline in sales, with -6.9% compared to this time last year, and +41.7% in mid-March. Also dropping from the mid-March numbers is frozen cookie dough, which didn't place at all in the current report, but was up a staggering +574% year-over-year a few weeks ago.
Overall, these are still impactful sales increases year-over-year, but it appears panic buying and hoarding of F&B by the public has settled down. Consumers are focusing more on buying/storing non-edible items like personal care products, and they're relying more on e-commerce and delivery as they settle into shelter-in-place lifestyles. For a complete overview of the current statistics, you can download the report here.
Click here for more COVID-19 coverage and how it is affecting the refrigerated and frozen foods industry.
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