The frozen aisles are big revenue sources for CPGs and grocery stores alike. Indeed, from June 2014 to June 2015, frozen foods accounted for nearly $50 billion in grocery store sales. However—largely due to the inability of current brands to keep their offerings in tune with consumer trends—the category has stagnated over the past few years, and overall unit sales of frozen foods have actually dropped each year since 2012.
This turmoil has led to early successes for new entrants, such as Luvo and Amy’s Kitchen, who are stealing market share from incumbents and bringing consumers and their dollars back to those cold corridors. But, current category leaders aren’t going down without a fight. A recent New York Times article highlighted the efforts large CPGs are making to save their frozen food brands: