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Up 11.2% during the most recent quarter, the frozen segment gets a boost from at-home dining, authentic flavors and products that cater to healthy lifestyles.

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You don’t need market research to know that the world has changed significantly in the face of COVID-19 and that consumers are still adapting to the new normal. Like the rest of the frozen aisle, the Hispanic/Mexican frozen food category also saw a big uptick in sales as people ate more meals at home.

During the 13 weeks ended Aug. 9, total sales rose 11.2% to nearly $1.18 billion in conventional and natural channels combined, according to SPINS. However, more than 75% of frozen Mexican food sales are in the snacks, apps and handhelds segment where dollars climbed 9.2% to $900.99 million. Snacks and apps were up 12.7% to $522.40 million while burritos and pockets climbed 4.7% to $378.58 million. Why the (comparatively) lackluster performance?

Manufacturers say consumers still covet convenience even when sheltering at home, but portability may not be the sales driver it was pre-pandemic. As a result, they suggest marketers give equal weight to authenticity of flavor and emphasize opportunities to enjoy a high quality Mexican meal even when they can’t visit their favorite restaurant.

Happi Foodi’s new Mexican Style Street Corn offers a foodie twist on a classic dish.

TRADITIONAL WITH A TWIST

Thanks to Mexican food’s increasing penetration on restaurant menus, today’s consumers are savvier and expect more complex and authentic flavor profiles. “While consumers still want classic dishes, they want it to taste great with delicious layered flavors in sauces that have a brightness and depth that isn’t just about heat level,” says Diana Horwitz, senior brand manager at Chicago-based Conagra, parent company of Healthy Choice and EVOL, among others. Among the newest additions to its Mexican foods lineup is Healthy Choice (healthychoice.com) Café Steamers Chicken Fajitas made with an ancho chili sauce that is “smoky and has a slight, pleasant heat that adds a great flavor,” according to Horwitz.

Nutley, N.J.-based Happi Foodi (happifoodi.com) was also seeking a balance between classic and innovative when it tackled the side dish category, says co-founder and CEO Sam Rockwell. “Our new Mexican Style Street Corn is a familiar dish, but we added a foodie twist by incorporating cotija cheese and a delicious butter sauce to really level up a typical Tuesday taco night at home.”

CONSUMERS CRAVE CONVENIENCE

Despite having a less harried schedule these days, people still reach for effortless meal solutions. “It’s a bit ironic, but on-the-go and quick-and-easy meals are still very important for today’s consumers,” says Matt Yost, CEO of Green Chile Food Co. (greenchilefoods.com), Richardson, Texas. After launching a line of single-serve tamales, the company’s latest release aims to fill what it sees as a gap in the category. “Meal-sized quesadillas are not something traditionally found within the frozen category,” explains Yost. “But our new quesadilla gives consumers seeking a restaurant quality but competitively priced meal solution that feeds the entire family for under $10.” Available flavors include Bean & Cheese, Poblano Chicken, Southwest Steak and Breakfast.

Of course, the granddaddy of quick-and-easy frozen Mexican foods — the burrito — continues to attract new users as well. “The frozen Mexican food category grew 9% in retail sales over the last 52-week period, with 42% of the growth generated from the burrito segment,” reports Robert Cross, CEO of Vernon, Calif.-based Tina’s Burritos (tinasburritos.com).

The company doubled down on the product’s popularity recently with its new Big Burrito, a 10-ounce version of its flagship 4-ounce product. Later this fall, it will release a burrito multi- pack. “The multi-pack segment makes up 59% of the burrito category versus singles at 41%, so we feel the multi-pack is a natural progression of the line and will allow us to better serve customers who started eating Tina’s after school as a snack and now have their own families,” says Cross.

Beyond new sizes and packages counts, manufacturers also cite a distinct desire for interesting and authentic new burrito flavors that don’t compromise on nutritional value or taste, says Mike Ryan, vp of USA sales at San Francisco-based PJ’s Organics (pjsorganics.com). The company recently debuted certified organic Chicken Mole, Adobo Chicken and Carne Asada burritos as well as a new organic Sausage Breakfast burrito.

“We know households led by adults younger than 25 are 29% more likely to consume microwaveable dinners and 23% more likely to eat frozen meals,” says Ryan. But younger, more mobile consumers are also the most interested in exploring new flavors, and they expect clean labels, suggesting PJ’s is on the right track. “Research like this tells us there is new life and potential in the frozen aisle, especially as we take a closer look at industry trends in 2020,” says Ryan.

SURGE IN BETTER-FOR-YOU BURRITOS

As in most categories, frozen Mexican food sales are impacted by consumers’ desire for improved health and wellness. “Better-for-you burritos are growing at a rate of 30% versus last year, with plant-based burritos over-indexing in growth at 36%,” says Cole Orobetz, CEO of Glendale, Calif.-based Alpha Foods (alphaplantbased.com), which recently launched a Steakless Ranchero Burrito.

“Flexitarian eating is on the rise, but shoppers are looking for better tasting plant-based options,” continues Brad Locke, vp of marketing and innovation at Red’s All Natural (redsallnatural.com), Franklin, Tenn. In fact, he reports, a 2020 Datassentials study found that 33% of adults in the U.S. think plant-based food lack taste and flavor.

Red’s flavorful new meatless product launches include a plant-based Sausage Egg & Cheese Burrito and a plant-based Beef, Bean & Cheese Burrito. “[Frozen burrito] growth rates may dip a bit as new habits have been formed during the pandemic,” says Locke. “But the introduction of more better-for-you, clean-label burritos should continue to fuel healthy growth in the category.” He adds, “Clean label remains very relevant for today’s shoppers as they want ingredients they recognize.”

Plant-based options are also gaining a foothold in the frozen Mexican entrée segment where Cedarlane Foods (cedarlanefoods.com), Carson, Calif., recently launched Simply Plant Powered Vegan Enchiladas in Red Sauce and Vegan Enchiladas in Green Sauce.

But plant-based isn’t the only better-for-you attribute popping up in the category. For example, Wellesley, Mass.-based Good Food Made Simple (goodfoodmadesimple.com) recently rolled out new gluten-free formulations of some of the most popular Mexican items in its frozen lineup, including its Chicken Black Bean Bowl and Chicken Enchiladas Verdes. Meanwhile, EVOL (evolfoods.com) launched a paleo-friendly Guajillo Chicken and Cauliflower dish.

“While plant-based meats are more easily accessible, it can be a struggle to take a traditional recipe and find a way to make it compatible with keto, paleo or Whole 30 diets without the use of artificial ingredients and still taste fantastic,” says Horwitz at Conagra. “The complex ingredients in Mexican food make it a bit more difficult to find quality substitutions that still invoke the classic flavors of Mexican food,” she explains. “But we wanted to offer an option for consumers who are following different lifestyle food philosophies.”

Horwitz notes that paleo and keto lifestyles are growing at 13%, but compatible products in frozen food sets are limited.

FROZEN MEXICAN FOOD

Sales in supermarkets, drugstores, mass merchants, military commissaries and select club and dollar stores combined for the 13 weeks ended Aug. 9, according to Chicago-based market research firm IRI (iriworldwide.com). Percent change is versus the same period a year ago.

*Includes snacks and appetizers, handhelds, single-serve entrees, multi-serve entrees and breakfast.

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