Frozen Food Market

Frozen Food  Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Frozen Food  Market grew at a CAGR of 4.7% between 2017-2021 and is estimated to be US$ 2,63,874.5 Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 4.3% and is expected to reach a valuation of US$ 4,02,013.4 Mn by 2032 end.

Throughout the projected period, the market is anticipated to grow in response to the rising demand for frozen products has continued to increase over the past few years. This is because consumers have been more willing to purchase frozen goods because of the spread of COVID-19, a viral infection that can cause severe respiratory illness in humans.

Market Dynamic

THE RISE IN DEMAND FOR CONVENIENCE FOOD WILL BOOST THE MARKET FOR FROZEN FOOD

The demand for convenience food is increasing at an exponential rate. The processed food industry is primarily driven by the convenience offered by packaged edible products, which attract consumers from every age group. Consumer preference for convenience food and RTE foods has created a rapid change in the global market. This type of food requires less effort and less time as compared to cooked items, which is the main factor driving the demand for frozen food products. Increasing the disposable incomes of consumers is another important reason for the market to flourish in the upcoming years.

A RISE IN PREFERENCE FOR NATURAL FOOD MAY HAMPER THE MARKET GROWTH

Frozen foods are considered as an inferior substitute to fresh foods among certain consumers, which is the major drawback in this market. There is a myth among consumers that edible stored for more than a year loses their nutritional content. However, these myths were dispelled by the US Food and Drug Administration (FDA) and IFIC (International Food Information Council). Frozen food products can be as good as fresh and natural products. However, consumers in the lower-income group tend to prefer fresh food as they are more concerned about the freshness of the product. As fresh vegetables and fruits are preferred more over frozen products, this factor may restrain the growth of the market during the forecast period.

THE RISING AWARENESS AMONG CONSUMERS WILL CREATE MORE OPPORTUNITIES FOR THE MARKET

The recent trend among consumers is online shopping. Online retail is one of the major factors fueling the growth of this industry. The introduction of various new apps makes it even more convenient for consumers to purchase edible products according to their preferences, There are a variety of products available which attracts the working population as they tend to avoid shopping from retail outlets.

COVID-19 Impact

The COVID-19 pandemic caused a sudden increase in sales of frozen items because of the fear that people had of worldwide lockdowns. Consumers were afraid that they would not be able to get their food products, so they were willing to pay a premium for them.

As days passed, fewer/no stocks of these products were available due to reduced manpower in production plants. However, considering the necessity of these products, government bodies allowed for the manufacturing of edible products. Thus, the production was back up and running again. This led to ease in the transfer of products from suppliers to distributors after the second quarter of 2020. This also affected consumer buying patterns; since many people worked from home for a long time, their eating habits changed as well. They started cooking their food instead of buying it packaged in plastic containers. This led to a decline in sales of frozen foods like ice cream bars and frozen fruit drinks. Gradually, lockdowns were lifted in phases but not fully functional until the second quarter of 2021.

Market Segments Covered in Report

By Product:

• Fruits & Vegetables
  • Fruits
  • Vegetables
  • Potatoes
  • Other Vegetables
• Dairy Products
• Bakery Products
  • Breads & Pizza Crusts
  • Other Bakery Products
• Meat & Seafood Products
• Convenience Food & Ready Meals
• Others

By Consumption:

• Food Service
• Retail

By Type:

• Raw Material
• Half-cooked
• Ready-to-eat

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why are Meat & Seafood Products projected to ensure the most revenue during the forecast period?

At 48.0% of the market, Meat & Seafood Products had the greatest revenue share. The growth of the frozen food market is driven by an increase in demand from developed countries such as Germany, the U.S., the UK, France, Canada, and developing countries of Asia Pacific and Africa for these products. In addition to this trend, changes in lifestyle and the busy schedules of people are also driving this segment.

Why is the Ready-to-eat segment expected to expand the fastest during the forecast period?

The ready meals segment held the largest revenue share of 43.0% in 2021 and is expected to maintain dominance over the forecast period on account of pre-dominant consumption of ready meals among working-class people around the globe. Further, the segment is expected to grow on account of new product launches.

Owing to the increasing prevalence of lifestyle diseases such as bloated stomach and diarrhea caused by eating infected or unclean food, consumers are shifting to these products as they do not need to be washed, peeled, or chopped.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• North America, which contributed 31.1% to the global market in 2021, is expected to dominate the frozen food market in the years ahead. Growing affinity towards frozen food among consumers especially millennials due to single-serving options and ease of preparation is expected to drive its market share.
• Asia Pacific is the region with the fastest market growth, with a CAGR of 5.1% predicted between 2022 and 2032. Regional growth will be fueled by the growing availability of frozen foods that are high in protein, low in calories, and low in fat, as well as those that cater to special dietary needs like those that are dairy-free, vegan, sugar-free, gluten-free, and plant-based.

Competition Analysis

There are many international companies in the market, which has a significant degree of fragmentation. The leading manufacturers in this industry, who have a sizable consumer base, well-established brands, and extensive distribution networks, compete fiercely with the market’s players. To stay competitive, businesses have been putting various expansion strategies into practice, such as partnerships and the introduction of new products.

Some of the key developments that have taken place in the Frozen Food  Market include:

• In In June 2020, A frozen food company called GOELD was introduced by the Goel Group. The company sells fifteen items across four categories, including vegan delights, Indian bread, and munchies.
• In March 2021, The frozen food division of Fortenova was purchased by Nomad Foods. The agreement for the sale of the aforementioned business includes Ledo Plus, Ledo Citluk, Frikom, as well as several other minor linked businesses.

A list of some of the key suppliers present in the market are:

• Unilever PLC
• Nestlé S.A.
• General Mills, Inc
• Nomad Foods Ltd.
• Tyson Foods Inc.
• Conagra Brands Inc.
• Wawona Frozen Foods
• Bellisio Parent, LLC
• The Kellogg Company
• The Kraft Heinz Company

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectioglobal and country-level analysisvels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.