Nestlé Invests $150 Million in South Carolina Plant Expansion Amid Growing Demand for Frozen Foods
Nestlé is set to enhance its manufacturing presence in the U.S. with a substantial $150 million investment in its Gaffney, South Carolina plant, which has been operational since 1980. The investment aims to establish a new production line dedicated to single-serve frozen meals and to upgrade automation and digital technologies within the facility.
As the demand for frozen food surges, Nestlé’s moves reflect a strategic response to changing consumer habits. The U.S. frozen food market, valued at $56 billion in 2021, is projected to grow at a 4.7% compound annual growth rate through 2030, according to Grand View Research. This growth is fueled by the increasing preference for convenient meal options that accommodate busy lifestyles and rising restaurant costs due to inflation.
Nicole Caldwell, Nestlé USA’s Gaffney factory manager, emphasized the company’s commitment to bolstering its manufacturing capabilities to meet consumer demand for popular brands, including Stouffer’s, Lean Cuisine, and Hot Pockets. However, despite the optimistic market outlook, Nestlé has experienced a decline in its frozen food sector in North America over the past nine months, primarily due to fierce competition, particularly in the pizza category.
Nestlé’s expansion follows a trend among major consumer packaged goods (CPG) companies, many of which are reevaluating their manufacturing strategies. PepsiCo, for instance, is constructing a significant 1.2 million-square-foot plant in Colorado, while also closing several existing facilities. Similarly, Campbell Soup and other companies like Flowers Foods, Del Monte Foods, and Conagra Brands have announced various plant closures and investments aimed at enhancing efficiency.
As Nestlé invests in its future, the company aims to solidify its position in the competitive frozen food market, adapting to both consumer preferences and economic pressures.
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