Author: Ken Whah, President and CEO —
The spotlight in US ecommerce falls on the rapid growth of the food and beverage world – in fact, the food and beverage industry is the fastest growing segment of online shopping. Frozen food, while once viewed as too limiting by online retailers, is now front and center due to newly innovative ways to ship and package these edible products. As a result, new brands in the online frozen food department are quickly gaining in popularity.
According to a recent report, “retail ecommerce sales of food and beverage products in the US will surpass $22 billion this year, growing more than 20% annually through 2021”. While still trailing apparel categories and electronic products, this impressive growth is turning the heads of both retailers and consumers alike. The fact that more consumers are beginning to recognize the safety and quality of frozen food items purchased online is enough to create a strong foundation to support this emerging industry’s rapid growth.
With this expanding growth, one of the ways that retailers are looking to improve the online food-buying experience is by rethinking the packaging, which can boost “convenience and confidence”, according to a recent study. As more consumers trust buying frozen foods online, more retailers are responding to the growing demand for home delivery. Specifically, the global frozen food market is set to witness a higher CAGR of 6.15% during the period 2017-2021, with consumers purchasing freezer staples as well as prepared meal kits.
A survey published by the American Frozen Food Institute revealed that 41 percent of shoppers purchased food online within the past 30 days, with 56 percent of those including frozen foods in their purchase. Those purchases were divided evenly between home delivery and pick up.
One unique aspect of home delivery: the best shipping origin may be the least populated. Our Logansport facility, for example, is located in a relatively rural area, yet is also a great location for outbound parcel service. As a result, our Pick Pack and Parcel service offers frozen food manufacturers and on-line retailers a frozen facility that’s easily served by truckloads in and parcel out to roughly the east half of the US. Indiana is truly the crossroads of US.
Thanks to an array of new services like Pick Pack and Parcel that are designed to help retailers and manufacturers develop new sales channels by shipping frozen food, meals, and meal kits directly (and safely) to consumers, the impressive growth predicted for the industry is likely to exceed many of the experts’ expectations.