Frozen Desserts - US - June 2007

SUMMARY

Abstract

This report will help you tailor frozen dessert marketing to various consumers, launching new products that are timely and on trend, and identifying retail strategies that will stimulate interest and sustain current sales. Some issues discussed in this report include:

• The declining number of new product releases in relationship to positioning claims
• Competition from in-store bakeries
• Leveraging on-hand convenience to maximize sales
• Product trends
• Segmentation and brand sales
• Marketing and promotional efforts of leading suppliers
• Usage, brand, and frequency comparisons by demographic profiles
• Attitudes and opinions of frozen dessert consumers

When accounting for inflation, sales in the U.S. frozen dessert market dropped 11% since 2001. Product launches have also dropped-42.2% since 2004. In particular, innovations lack flavor variations that could cater to consumer demand for sophisticated, indulgent desserts. This has led consumers to satisfy their sweet tooth from competitive categories and foodservice establishments. This report discusses strategies for answering current consumer demands and increasing market share in this competitive category.

For the purposes of this report, frozen desserts are defined as:

• Frozen pies
• Frozen whipped toppings
• Frozen sweet goods
• Frozen cheesecake
• Miscellaneous other frozen desserts (frozen pudding, mousse, and cookies)

This report excludes ice cream, ice milk, sorbet, frozen yogurt, and any products made of ice cream (these products are covered in Mintel

TABLE OF CONTENTS

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Incremental declines in usage and innovation are reflected in market sales
• Competition from ISBs: advantages in freshness and gourmet products
• Market sales are flat but inflation negatively impacts total performance
• Marginal gains in frozen pie sales offset deep declines in other segments
• Five suppliers command nearly three quarters of FDM sales
• Supermarkets account for near total frozen dessert sales
• The frozen dessert consumer
• Usage profile
• Usage by type
• Usage by brand
• Whipped topping usage
• Dessert purchases
• Frozen dessert purchases
• Health criteria in frozen desserts
• Reasons consumers buy frozen desserts
• Habits of frozen dessert consumers
• The future of the frozen dessert market
• Market Drivers
• Usage and frequency trends underscore static market
  • Figure 1: Incidence of usage of frozen pies/cakes/pastries, 2001-06
• Losing the battle with the in-store bakery
  • Figure 2: Sales of in-store bakery items, segmented by product, 2004 and 2006
  • Figure 3: Consumer cake, pie, cheesecake, and pastry choices at the supermarket, April 2007
• ISB advantage: Array of gourmet offerings
• ISB advantage: Freshness
• Frozen desserts provide on-hand convenience
  • Figure 4: Reasons for purchasing a frozen dessert, April 2007
• Lowered product innovation--focus on convenience, not on premium claims
  • Figure 5: New product releases, 2001-07*
  • Figure 6: New product claims, 2001-07*
• Market Size and Trends
• Market size
  • Figure 7: U.S. FDM sales of frozen desserts, at current and constant prices, 2001-06
• Wal-Mart estimate
• Market trends
• New product launches in frozen desserts
  • Figure 8: Graph: product releases in frozen desserts by subcategory, 2001-07*
• Market Segmentation
• Introduction
• Overview
  • Figure 9: Sales of frozen desserts, segmented by type, 2004 and 2006
• Frozen pies
  • Figure 10: Sales of frozen pies, at current and constant prices, 2001-06
• Frozen whipped topping
  • Figure 11: Sales of frozen whipped topping, at current and constant prices, 2001-06
• Frozen sweet goods
  • Figure 12: Sales of frozen sweet goods, at current and constant prices, 2001-06
• Miscellaneous frozen desserts
  • Figure 13: Sales of misc. frozen desserts, at current and constant prices, 2001-06
• Frozen cheesecakes
  • Figure 14: Sales of frozen cheesecakes, at current and constant prices, 2001-06
• Supply Structure
• Companies and brands
  • Figure 15: Manufacturer FDM sales of frozen desserts in the U.S., 2004 and 2006
• Frozen pies
  • Figure 16: Manufacturer brand sales of frozen pies in the U.S., 2004 and 2006
• Frozen whipped topping
  • Figure 17: Manufacturer brand sales of frozen whipped topping in the U.S., 2004 and 2006
• Frozen sweet goods
  • Figure 18: Manufacturer brand sales of frozen sweet goods in the U.S., 2004 and 2006
• Miscellaneous frozen desserts
  • Figure 19: Manufacturer brand sales of misc. frozen desserts in the U.S., 2004 and 2006
• Frozen cheesecake
  • Figure 20: Manufacturer brand sales of frozen cheesecake in the U.S., 2004 and 2006
• Private label
  • Figure 21: Sales of private label frozen desserts, at current and constant prices, 2001-06
  • Figure 22: Private label sales of frozen desserts, segmented by type, 2004 and 2006
• Advertising and Promotion
• Schwan Foods
• Kraft Foods
• Sara Lee
• Retail Distribution
• Introduction
  • Figure 23: U.S. retail sales of frozen desserts, by channel, 2004 and 2006
• Supermarkets
  • Figure 24: U.S. supermarket sales of frozen desserts, at current and constant prices, 2001-06
• The Consumer: Usage, Type, Brand and Frequency
• Introduction
• Summary
• Household use of frozen pies/cakes/pastries
• Household usage of whipped topping
• Household usage of frozen desserts
  • Figure 25: Incidence of household consumption of frozen desserts, trended data 2001-06
  • Figure 26: Incidence of household consumption of frozen desserts, summary table, January-October 2006
• Types of frozen desserts
  • Figure 27: Household consumption of frozen desserts, by type, trended data 2001-06
  • Figure 28: Household consumption of frozen desserts, by type, summary table, January-October 2006
• Brand usage of frozen pies, cakes or pastries
  • Figure 29: Frozen dessert brand usage, trended data, 2001-06
  • Figure 30: Frozen dessert brand usage, by ethnicity/race, January-October 2006
• Household usage of whipped topping
  • Figure 31: Incidence of household consumption of whipped topping, summary table, January-October 2006
• Types of whipped topping
  • Figure 32: Types of whipped topping used, January-October 2006
  • Figure 33: Types of whipped topping used, by ethnicity/race, January-October 2006
• Brand usage of whipped topping
  • Figure 34: Whipped topping brand usage, by ethnicity/race, January-October 2006
• Frequency of whipped topping usage
  • Figure 35: Amount of whipped topping usage, January-October 2006
• The Consumer: Attitudes and Preferences
• Introduction
• Summary
• Dessert purchases
  • Figure 36: Dessert purchases, by gender, April 2007
  • Figure 37: Dessert purchases, by age, April 2007
• Preferred types of frozen desserts
  • Figure 38: Types of frozen desserts preferred, by gender, April 2007
  • Figure 39: Types of frozen desserts preferred, by age, April 2007
  • Figure 40: Types of frozen desserts preferred, by size of household, April 2007
• Preparation characteristics by type of frozen dessert bought
  • Figure 41: Preparation characteristics by type of frozen dessert, April 2007
• Health claims and frozen desserts
  • Figure 42: Frozen dessert attributes, by gender, April 2007
  • Figure 43: Frozen dessert attributes, by age, April 2007
• Reasons for buying frozen dessert
  • Figure 44: Reasons for buying frozen dessert, by gender, April 2007
  • Figure 45: Reasons for buying frozen desserts, by size of household, April 2007
• Attitudes and opinions of the frozen dessert consumer
  • Figure 46: Attitudes and opinions, by gender, April 2007
  • Figure 47: Attitudes and opinions, by age, April 2007
  • Figure 48: Attitudes and opinions, by size of household, April 2007
• Future and Forecast
• Future trends
• Americans demand decadent desserts despite diet and health trends
• Building on premium offerings
• Co-branding initiatives
• Leverage storage convenience--but emphasize taste
• Trends in portion control
• Trends in health
• Figure 49: Interest in diet trends*, by gender, February 2007
• Natural, organic and kosher offerings pose opportunity for premium status
• Market forecast
• Frozen desserts
  • Figure 50: Forecast of total U.S. FDM sales of frozen desserts, at current and constant prices, 2006-11
• Frozen pies
  • Figure 51: Forecast of U.S. FDM sales of frozen pies, at current and constant prices, 2006-11
• Frozen whipped topping
  • Figure 52: Forecast of U.S. FDM sales of frozen whipped topping, at current and constant prices, 2006-11
• Frozen sweet goods
  • Figure 53: Forecast of U.S. FDM sales of frozen sweet goods, at current and constant prices, 2006-11
• Other frozen desserts
  • Figure 54: Forecast of U.S. FDM sales of other frozen desserts, at current and constant prices, 2006-11
• Frozen cheesecake
  • Figure 55: Forecast of U.S. FDM sales of frozen cheesecake, at current and constant prices, 2006-11
• Forecast factors
• Appendix: Trade Associations