Every business has difficult lessons to learn, and every industry has its own set of problems and challenges. This applies especially to the food industry. Everything from airborne bacteria to stock levels to the weather can disrupt the supply chain of local grocers. If that isn’t intimidating enough, managing a food business also requires carefully monitoring inventory to minimize spoilage and wastage, both of which may be costly and affect revenue.
If you’re looking to go direct to consumers and start selling your frozen food online rather than to retail stores, keep reading! This article will dive into the perks and challenges of opening a frozen food eCommerce store.
Is The Frozen Food Business Profitable?
The frozen food industry has transformed dramatically in recent years. Frozen foods were one of the fastest-growing grocery store categories across the COVID-19 pandemic, according to a new analysis from the American Frozen Food Institute and the Food Industry Association (FMI). The survey also revealed that the trend towards frozen products will keep growing once the pandemic is over.
The Power of Frozen 2021, a separate report, analyzes trends and developments driving frozen food demand, including greater participation across all categories, internet buying, and health and wellness. According to the study, Americans’ consumption of frozen products differs significantly, with 13% eating frozen products once a month and 14% eating them every day. In their meal preparation, approximately 72% of consumers combine fresh and frozen items. As a result of the pandemic, core frozen food consumers increased from 35% in 2018 to 39% in 2020. These are people who consume frozen foods on a daily or weekly basis.
What Are the Frozen Food Industry’s Driving Forces?
The outlook for the frozen food industry has never been more promising. With increasing knowledge of food trends, customers turn to home cooking to prepare fresh, preservative-free meals. Here are some of the factors that are propelling the frozen food industry forward.
Food Without Preservatives Is in Higher Demand
With the rise in demand for organic goods, shoppers constantly search for fresh produce with a long shelf life. Due to the short shelf life of most fresh foods, retailers are turning to freezer food that people are interested in purchasing. Food products that are cryogenically frozen have a longer shelf life and are free from preservatives. Consumers resort to these goods, helping the frozen food sector flourish.
Millennials’ Shopping Preferences
Despite popular perceptions that millennials are irresponsible consumers, the frozen food industry primarily relies on purchasing habits. Millennials, unlike previous generations, are willing to try new ideas and invest in them. They also like to purchase things that save them time and are simple to use. These characteristics help fuel the expansion of the frozen food business because they are convenient and ready to eat, which is exactly what millennials want.
What Are the Challenges in a Frozen Food Business?
The lack of a robust supply chain system and the constant worry of cold chain systems malfunctioning are two of the most significant challenges facing the frozen food industry. Because frozen goods require a constant temperature of roughly -0.4 degrees Fahrenheit, even a minor breakdown in the cold chain system might lead to a significant loss. To ensure minimal frozen food waste, you’ll need a well-functioning power backup and constant surveillance.
Is It Possible To Sell Frozen Food Online?
Yes, but your logistics must be better and more focused. Your buyers will get thawed products if they aren’t, leading to a disaster with angry customers.
However, given the tremendous growth of eCommerce and the freedom it provides to entrepreneurs, it would be foolish not to make use of it. In addition, selling directly to the consumer online can greatly increase your revenue, more so than selling wholesale to retailers.
Start Selling Frozen Food Online With the Help of a Pro
At PERC, we’ve assisted customers with fantastic frozen products in taking their goods online, connecting them with a frozen food co-packer, and generating online sales. There has never been a more critical time to do so, with supply chain concerns, local retailers falling short on inventory, and interruptions to daily life on the rise. We have the resources, the experience, and the know-how to get your product in front of customers directly, increase your profit margins, sales, and brand awareness. Get in touch today to get started!