Even amid fresh’s success, frozen alternatives are making inroads with consumers.
Rising to the challenge
While fresh is beloved and will likely continue to occupy a larger share of the consumer’s plate, the challenge from frozen is undeniable. The perishable nature of fresh food is now harder for many consumers to integrate into their lives. Though many foods at home continue to do well, perishability, along with rising prices and changed preferences, tilts the playing field toward the attributes of frozen. Suppliers and retailers should take the opportunity to reevaluate their strategies in these segments.
Food producers/suppliers should consider
- Strengthening the fresh food supply chain: With real and perceived perishability problems gaining importance among consumers, fresh food producers/suppliers should focus on transforming their supply chains to become more efficient. This can help ensure that food travels faster through the supply chain and arrives at retail outlets without losing its freshness.
- Diversifying the food portfolio: As most frozen food starts as fresh, food producers/suppliers can explore the option of bringing more frozen products to the market. Evaluate building a branded presence in frozen or enhancing it where it already exists. Suppliers should leverage analytics to maximize products harvested and protein processed as well as gain the agility to divert food to specific consumer offerings expected to be in the highest demand, be it fresh or frozen.
- Growing their online presence: Online is fast emerging as a preferred mode of shopping for food especially among contemporary consumers. Food producers/suppliers that do not focus enough on developing and serving this channel might risk losing out on a growing consumer base. This can include direct-to-consumer (DTC) and subscription-box services.
Food retailers should consider
- Reenergizing the fresh foods section: Fresh foods drive foot traffic in grocery stores. The fresh perimeter can consider deploying more exciting visuals, cooking bars, demonstrations, and tasting sections. Retailers can also lean into options like fresh salad bars, fresh meal solutions, and recipe-based ingredient displays.
- Reimagining the frozen section: Why can’t frozen be fun too? Consumers may respond to frozen with even more enthusiasm if commensurate efforts were put into building energy around frozen. Appeal to the senses like with fresh. Additionally, while the investment would be significant, new freezer options that do away with the glass doors, use technology in interesting ways, and put food out in chests where consumers can see and grab it easily might help. Investing in private-label frozen products can be another option worth exploring.
- Strengthening the online presence for fresh: Contemporary consumers have already embraced the idea of an in-store shopper picking up the best quality fresh food items. Work to keep fresh prominently included in search results and virtual shelves even as retail media ad dollars flow in, obscuring visibility with brand-supported alternatives.
Read the full article from Deloitte Insight's third annual edition on the Future of Fresh series here.