U.S. Frozen Food Production Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

U.S. Frozen Food Production Market Trends & Drivers

Rise of Healthy Labels Is Major Trend

• Healthy labels mean food with no artificial colors or preservatives, and the packages often list organic or no added sugar.
• Consumers now study the food labels before buying, as they are much more careful about what they consume.
• According to the USDA’s Flexible Consumer Behavior Survey (FCBS), 79% regularly use the Nutrition Facts panel when deciding to buy a food product.
• This is due to the rising awareness of diseases such as obesity, diabetes, and heart problems, which often emerge from sugary and highly salty frozen items.
• As per the NIH, almost 40 million people in the U.S. have diabetes, and over 30% are obese.
• The Centers for Disease Control and Prevention says that 805,000 people in the country have a heart attack.
• Many people follow special diets, such as vegan and keto; so, they look for items that are plant-based and dairy-free.
• The FDA’s Food Safety and Nutrition Survey found that 80% of the consumers notice health-related labels, such as organic and no artificial preservatives, on food packages.

Increasing Demand for Convenience Foods Is Biggest Growth Driver

• As per the Bureau of Labor Statistics, over 60% of the country’s population is employed.
• The working lifestyle, especially in cities, leads to a lack of time for cooking.
• Frozen meals are an easy option here as they can be made in minutes and are available 24/7.
• As per studies, over half the country’s population eats out up to thrice a week, while only 49% regularly cooks at home.
• The USDA’s Economic Research highlights the time constraints for people due to their employment, because of which they prefer convenience foods.
• Such products reduce wastage and can be kept in the fridge for weeks.
• The availability of single servings makes frozen food ideal for people living alone, such as remotely working employees, temporary migrants, and students.
• Households with children are also more dependent on these foods due to busy schedules.
• As per Johns Hopkins University, ultra-processed food gives Americans over half their calories at home.

U.S. Frozen Food Production Market Segmentation and Category Analysis

Product Analysis

The fruits & vegetables category held the largest market share, of 25%, in 2024. Due to the rising health consciousness, consumers pick up frozen fruits and packed vegetables as they have a longer shelf life. They can be added to soups, pastas, fries, and desserts.

The snacks & appetizers category will grow at the highest CAGR, of 9%, during the forecast period. This is because people are addicted to snacking as these quick bites are quick to make. This is why people prefer snacks instead of full meals. They also come in a wide variety, such as pizza rolls, dumplings, and spicy bites, which also makes them popular for small get-togethers and parties.

The products analyzed here are:

• Ready Meals
• Meat & Poultry
• Seafood
• Fruits & Vegetables (Largest Category)
• Dairy & Desserts
• Snacks & Appetizers (Fastest-Growing Category)
• Bakery Products

Consumer Type Analysis

The retail consumers category held the larger market share, of 65%, in 2024. This is because of the busy lives of working professionals and students, which leave them with little time to buy fresh groceries and properly cook at home every day. Hence, many buy frozen foods with long shelf lives and those that are easy to prepare and cook.

The food service industry category will grow at the highest CAGR, of 9.5%, during the forecast period. This is because of the increasing number of people eating out more often. Chefs save time by not cooking everything from scratch. Even luxury hotels have started to use frozen ingredients to maintain quality and save on expenses. Moreover, the rising popularity of ghost kitchens, which are no-dine, only-delivery establishments. They rely on frozen ingredients to prepare food in order to satisfy consumers’ demand for instant delivery.

The consumer types analyzed here are:

• Retail Consumers (Larger Category)
• Foodservice Industry (Faster-Growing Category)

Distribution Channel Analysis

The supermarkets & hypermarkets category held the largest market share, of 55%, in 2024, as they are a one-stop shop that offer everything from foods to desserts. Further, the frequent discounts they offer attract a lot of people. People trust these stores due to their hygienic settings, neatly stacked shelves, and cold-storge infrastructure, which help in keeping food fresh for long. Supermarkets are easily accessible in cities and towns, witnessing high footfalls every day. The biggest advantage of these stores is the huge variety of stuff from different brands they offer, which allows people to read all the labels before buying.

The online retail category will grow at the highest CAGR, of 10%, during the forecast period, because these websites and apps deliver foods in dry-ice packaging. This trend ballooned during the pandemic, when people were forced to shop online. First-timers eventually became used to it, finding it easy and safe. Instant deliveries, electronic payments, detailed product comparisons, and regular discounts attract people toward online shopping. As per the Census Bureau, people in the U.S. bought USD 308.9 billion worth of goods online in the fourth quarter of 2024, which was 2.7% in value than the previous quarter.

The distribution channels analyzed here are:

• Supermarkets & Hypermarkets (Largest Category)
• Convenience Stores 
• Online Retail (Fastest-Growing Category)
• Specialty Stores 
• Foodservice & HoReCa

Packaging Type Analysis

The single-serving & ready-to-eat packs category held the largest market share, of 50%, in 202, because these meals are quick and easy to make. They require only heating, which is perfect for people who do not have the time to cook. Moreover, it is just one portion, therefore a great option for people living alone. These products lead to less wastage of food, which aligns with the goals of sustainability as well. Furthermore, they are easily available at physical and retail stores in a wide variety, such as rice bowls, pasta, burritos, and frozen breakfasts.

The eco-friendly & sustainable packaging category will grow at the highest CAGR, of 8.9%, during the forecast period, because shoppers do not want to buy or eat in plastic boxes anymore. This is because of the rising awareness of the risk of plastics for the environment and health. Brands are switching to recyclable packaging to show that they care about nature, which attracts green-minded consumers. Younger people prefer eco-friendly packaging even if it costs more, because of the strict rules and laws in some areas.

The packaging types analyzed here are:

• Single-Serving & Ready-to-Eat Packs (Largest Category)
• Family-Sized & Bulk Packaging
• Eco-Friendly & Sustainable Packaging (Fastest-Growing Category)

U.S. Frozen Food Production Market Geographical Analysis

The northeast region held the largest market share, of 40%, in 2024. This is because cities such as New York, Boston, and Philadelphia are home to people who lead busy lifestyles. Frozen food saves their time as they are easy and quick to prepare. Moreover, due to smaller living spaces, frozen foods are a great choice as they can be stored in compact spaces for a long time. The diversity of the food available, such as Italian, Indian, Mexican, and Chinese, apart from typical American, drives sales even further.

The southern region will grow at the highest CAGR, of 10.5%, during the forecast period. This is because young people and families here want quick, affordable meal options that can be stocked up. They are budget-friendly for the people in Texas, Georgia, and North Carolina, many of whom are there temporarily for education or work. All the big grocery chains, such as Walmart, are expanding their service in these states, thus making frozen food more easily accessible to the masses. However, some parts of the south have fewer restaurants, which leads to people stocking up on frozen meals.

The regions analyzed in this report are:

• Northeast (Largest Region)
• Midwest
• South (Fastest-Growing Region)
• West

U.S. Frozen Food Production Market Share

The market is fragmented, as American consumers have a wide preference, from low calories to ethnic meals and plant-based items. Everyone has different choices and wants quick meals. The diversity creates competition and opportunities for the players in the market. Entering the market with health-focused innovations to compete with established and emerging brands also requires investment. Moreover, it is not hard for companies to sell frozen food as it has a long shelf life and can be produced in bulk. Furthermore, frozen food can be distributed easily without rushing, making it an easy entry strategy.

U.S. Frozen Food Production Market News & Updates

• In March 2025, McCain Foods Limited partnered with the Sustainable Markets Initiative, to launch Routes to Regen. This project aims at scaling regenerative farming practices globally to enhance the sustainability of its frozen food supply chain.
• In December 2024, Conagra Brands Inc. launched an "On Track" badge on 26 Healthy Choice products, which means they contain high-protein, low-calorie, and fiber-rich nutritional values and follow GLP-1 guidelines for consumers who focus on health.