Dive Brief:
- Nestlé is investing $150 million to expand its plant in Gaffney, South Carolina, focusing on single-serve frozen meals production and enhancing automation and digital technology.
- The U.S. frozen food market is growing rapidly, with Nestlé aiming to capitalize on the trend as consumers seek convenient meal options for home preparation.
- Nicole Caldwell, Nestlé USA’s Gaffney factory manager, emphasized the company’s commitment to meeting consumer demand for its popular frozen meal brands.
- Despite tough competition, Nestlé’s frozen portfolio includes well-known brands like Hot Pockets, DiGiorno, Sweet Earth, and Vital Pursuit.
Dive Insight:
The frozen food segment in the U.S. is projected to grow at a CAGR of 4.7% through 2030, driven by consumer demand for convenient meal solutions amid busy lifestyles and economic factors.
Nestlé’s investment in its Gaffney plant reflects its strategy to enhance manufacturing capabilities and cater to evolving consumer preferences in the frozen food market.
Several food and beverage companies, including PepsiCo and Campbell Soup, have made changes to their manufacturing network to improve efficiency and competitiveness.
The industry landscape is dynamic, with companies adapting to market trends and consumer behaviors to stay ahead in a highly competitive market.