Convenience Stores

Current Status of Frozen Food Business in Convenience Stores

Sales of frozen foods at convenience stores are increasing due to the impact of the need for "nest-egg consumption" following the spread of the new coronavirus infection. Convenience stores also experienced a decrease in the number of customers visiting their stores due to the impact of the coronavirus, but the annual sales per customer increased, and frozen foods contributed to the increase in the number of purchases. The spread of remote work has resulted in a rise in the use of frozen meals for lunch and snacks for beverages, among other things.

Innovations in Frozen Food Sales

In recent years, convenience stores have adopted a different sales system from products sold in supermarkets by using containers as plates. For example, small-sized side dishes are one of the products where the tray can use as a plate, which is highly appreciated because it saves them time and effort of washing dishes and allows people to prepare other dishes in their free time. Other products such as pasta and fried rice, which can be eaten by simply peeling off the film on the top, can also be heated in the microwave at convenience stores. In this context, frozen vegetables have recently begun to attract attention in the convenience store industry. Because of factors such as the necessity to acquire a large variety of items in tiny quantities, the demand for frozen veggies is predicted to grow as the number of small families grows. FamilyMart has started selling frozen vegetables, and they are gaining popularity.

What Kind of People Are Popular with Frozen Foods?

The COVID-19 pandemic increased the use of frozen foods among double-income households, single-income households, and senior households wanting shorter and simpler meals in 2020. There has been a rise in the usage of frozen foods for meals containing staple foods rather than for lunch boxes in recent years.  Also, there is a demand for fast and flavorful frozen foods. As Japan's population continues to shrink, the birth rates fall, and the population ages, demand from dual-income and elderly couples, is predicted to rise. In addition, the expectation of the use of frozen food for commercial use is to increase, as it will help companies that provide food and beverage services to alleviate labor shortages by shortening the cooking process and reducing the workload. As the domestic frozen food market will inevitably shrink due to the declining birthrate, aging population, and other factors, there are expectations from foreign markets. In America and Europe, the demand for frozen foods is high. Also, it is expected to grow in Southeast Asia, which is experiencing rapid growth. With these factors in mind, the convenience store industry is moving forward with development with the aim of the increasing demand among various households.

Summary

Convenience stores are one of the industries affected by the COVID-19 pandemic. However, owing to the growth of remote work, etc., this has increased in individuals spending time at home. As a result, frozen food, especially frozen food that pursues the convenience and simplicity of convenience stores, is attracting attention. The convenience store industry is aiming for new developments, such as establishing sales of frozen vegetables, while considering the future of Japan.