Last year, SmartSense’s inaugural Frozenomics survey showed that frozen foods serve as an economic safety net for many Americans, helping them find items that offer both savings and longevity. The survey also explored Gen Z shopping habits and the role of transparency in building consumer confidence in this category.
Since that survey, inflation has moderated (but not disappeared), and recalls have consistently made headlines, including ones directly impacting the frozen foods category. To see how the past year's events have shaped consumer views, SmartSense has once again surveyed 1,000 US-based adults (21+) to better understand how trends, behaviors and insights are evolving.
Consumers Remain Financially Squeezed
Grocery inflation eased slightly in August, but prices remain 2.7% higher than a year ago, leaving shoppers with little room to absorb further increases. Even as the overall pace of food inflation cools, household budgets remain strained, and swings in individual food categories can quickly erase any sense of relief, reinforcing concerns that grocery costs could climb again just as quickly.
Sixty-four percent (64%) say their economic circumstances have worsened compared to last year. This response is seven percentage points higher than last year’s survey. Gen Z is feeling the most stress, believing their economic circumstances have worsened, with the highest response among any age group at 76%.
Sixty-six percent (66%) of respondents say their grocery budgets have tightened compared to last year, and 60% are likely to purchase more frozen foods if grocery prices continue to rise. Both figures are largely unchanged from last year, increasing by just one percentage point each. But after another year of elevated grocery prices and strained household budgets, the fact that financial pressure has only worsened is telling.
Last year, consumers viewed frozen food as a rainy-day safety net. This year, many feel that rainy day has arrived, and frozen food is becoming an even more dependable part of how they manage through it. Fifty-eight percent (58%) consider frozen food a safety net if their financial situation worsens, while 50% have already purchased frozen food to cut costs in the last six months. Among Millennials, 62% have leaned on frozen food to cut costs, up six percentage points since last year.
Households with Children Feel the Pinch More
Households with children are feeling the impact of rising grocery prices more acutely. Seventy-three percent (73%) of households with kids have tightened grocery budgets year over year, which is 10 points higher than households without kids. Other habits have surfaced as more pronounced between these two groups. For households with children:
- Sixty percent (60%) have purchased more frozen food over the last six months (vs. 44% without children);
- Forty-nine percent (49%) have panic-purchased grocery items over the last six months (vs. 32% without kids);
- Sixty-eight percent (68%) are likely to purchase even more frozen food items if prices continue to rise (vs. 55% without kids).
Price isn’t the only motivator. Those with children see a wider set of benefits to leaning into frozen foods beyond price alone. Households with children buy more frozen food to make it last longer (44%) and purchase frozen food because produce or proteins were more affordable than fresh options (40%). This compares to households without kids at 32% and 31%, respectively. Two-thirds of consumers overall (67%) and 70% of households with kids would also switch to frozen food if their favorite fresh product became more expensive. This shows that frozen food is not only a hedge against inflation and a convenience hack for those with children, but also a way to keep feeding their children nutrition-dense foods. But not without qualms. Food safety concerns continue to be a hurdle for the frozen sector.
Frozen Foods Still Have a Perceived Risk
Storage and transport are a concern when it comes to frozen foods. Forty-seven percent (47%) of respondents overall worry frozen food may not stay at a safe temperature during transport, and 44% worry it may be exposed to unsafe temperatures while being unloaded, stocked or stored at a grocery store. Overall, Seventy-seven percent (77%) would be less likely to shop at a grocery store if they learned the frozen food had been stored outside a safe temperature range. In addition, over a third of shoppers (35%) say they trust frozen food less than other food categories and close to a third (32%) believe frozen food is more prone to recalls.
Twenty-eight percent (28%) of shoppers will choose the lower-priced option only if they trust it’s safe. A quarter of shoppers (25%) are willing to pay more if they have greater confidence in a product’s safety.
These concerns can’t be dismissed and speak to a broader need for transparency and communication across all food categories. Brands that can demonstrate safety and savings will win out. Seventy-eight (78%) would feel more confident buying frozen food from a grocery retailer that publicly explains how it monitors temperature and food safety, and 71% expect retailers to use automated temperature monitoring rather than relying solely on manual checks.
Balancing Priorities in the Freezer Aisle
Frozenomics 2.0 reveals a consumer who is balancing two competing priorities: controlling costs and ensuring food safety. While frozen foods continue to serve as an economic safety net for many households, concerns about storage, transportation and temperature integrity remain top of mind. As shoppers seek greater transparency, retailers that use technology to monitor and communicate food safety practices can strengthen trust and build loyalty while meeting the growing demand for affordable food options. SmartSense’s condition monitoring provides the real-time intelligence and visibility needed to give shoppers and grocers peace of mind.