COVID-19 Get an extensive COVID-19 analysis on the Frozen Food Market Request Free Sample

The global Frozen Food market was valued at USD 277.03 Billion in 2019 and is expected to reach USD 421.10 Billion by year 2027, at a CAGR of 5.1%. Frozen food holds a superior nutritional value and flavour as when the crops are harvested, they are frozen quickly to seal in nutrients, freshness and taste. It is economical and often has a longer shelf life than the traditional fresh food. The long working hours of people, increase in demand for ready to eat/cook food along with nutrient content is boosting the demand

Click here to enlarge

The growing popularity of convenience foods, the progress in the lifestyle of people, growing urbanization and industrialization are another factors accompanying the growth of industry in upcoming years. This type of food items are often stored at a standard temperature set by the commercial authorities around -18 degree Celsius. Novel processing techniques is one of the advancement in freezing technology which enables the use of edible coatings that helps to provide better quality with prolonged storage efficiency. The techniques of novel processing include features like high pressure and ultra-sound protected freezing.

Along with ease of preparation and time management, consumers are also interested in taste, quality and variety of food which is a major challenge for the companies. The concerned companies are required to be aware that the buying decision of the consumers in the segment largely depends on the health factors, convenience and the larger trend of the consumers towards any particular product. The changing Indian lifestyle along with improved standard of living is creating a multitude of opportunities for market players, across businesses. There is often a misconception among the consumers relating to these type of food items, like it cleans off the nutritional value and involves preservatives which can be extremely harmful for the human consumption.

It is a necessity to wipe of these misconceptions and spread awareness regarding the quality and nutritional value of such foods. Moreover, rising number of visits by the consumers in the restaurants and hotels along with large demand for home delivery of foods are also major hindrance factors to the growth of the industry. Another major challenge for the industry is lack of proper refrigeration facility in retail stores and inadequate distribution facility in semi-urban and rural areas. There are already major players involved in the industry which are acquiring the smaller players. For the major players to tackle these challenges they need to educate the customers about the advantages and production process to meet the challenges in the market.

Processed Product Outlook:



Processed products include, frozen vegetables, fruits, meat, fish and dairy products among others. These products come in large variety and offers a wide base of options for consumers to choose from. The manufacturers also make sure to keep up the quality promised and the nutritional value of the food items. Fruits, vegetables, meat, fish and dairy products especially milk are important factors of balanced diet and are essential for growth in children and maintaining good health of adults.

However, due to busy work schedule of the working class people, they are unable to consume fresh food as preparing it is time consuming. Therefore, they have started to incline on processed products to save time and energy. Thus, growing focus on healthy lifestyle, consumption of balanced diet and time restraints are some factors who are contributing to the growth and development of the frozen food market.

Product Outlook:



Every food item before getting frozen is entirely raw in its natural form. The manufacturers try their best to preserve the nutrients in it. Thus, in every stage that is, raw, half prepared and full prepared, the manufacturer makes sure that the food’s original characteristics are protected for best results when consumed by the consumers.

Demand for imported food items is increasing and large quantity of frozen food is getting imported for the same. This one of the major driving factor of growth in the market. Furthermore, increase in awareness for consumption of exotic food veggies and fruits are likely to propel the market globally, in the years to come.

End-Use Outlook:



Consumers love new variety of food products for their daily/weekly meals. Frozen foods offer a widespread options to choose from. Consumers often schedule weekly visits to the retail stores to stock up for their upcoming week. They usually prefer to buy the food items in a bulk. Therefore, end users play a very significant role considering the purpose of growth and development in the market. Increase in disposable incomes coupled with change in lifestyle and food habits are major factors that boost the market growth. Moreover, a rapid increase in number of large retail chains including hypermarkets and supermarkets has bolstered the demand in developing Asian countries.

Due to factors like improved shelf life, variety of food items, maintained nutritional value and technological advancements, consumers are likely to prefer frozen food over fresh food items, thus flourishing the market across the globe.

Regional Outlook:



North America held the largest share in the frozen foods market for the year 2019. The factors contributing to the large share are rise in disposable income, improved standard of living and health awareness to consume healthy food. Over 80% of meals in the U.S falls under the category of frozen foods.

North American consumers are turning to frozen foods as their primary solution, as frozen food is easy/ready to cook, saves times and nutritional values are not compromised. Frozen breakfast sandwiches, waffles and fruits are the top foods preferred in this region. The developed markets are expected to continue their growth at a moderate pace, majorly driven by the mounting consumer preference for healthy food items.



Market-O-Nomics

As of 2019, Frozen Fruits & Vegetables is the leading product segment of the global industry. However, the Dairy Products is expected to register highest CAGR among product types.

Fully-Prepared stage use segment was valued at USD 91.8 billion in 2019 and is expected to grow at the largest rate of 3.4%. the demand for cooked food amongst the people is increasing due to industrialization is the primary factor contributing to the market growth of this product segment

The market for food service providers end use segment is expected to reach USD 159.41 billion by year 2027, growing at a CAGR of 3.3% during the forecast period. The Frozen meat & fish type segment is expected to register a CAGR of 2.9% during 2019-2027.

Companies considered and profiled in this market study



The players operating in the market have undertaken a number of strategies related to the market in the period 2017-2020. The key highlight is:

In early 2020, Mosiac Foods aims to be sustainable with its packaging, using recyclable material rather than consuming gel packs or food packed in dry ice, which disperses on its own. Their ultimate aim is to be socially conscious in packing of frozen foods.

In November 2018, Nestle launched a range of healthy frozen meals in reusable and recyclable containers named Wildspace. These meals include six different varieties, like the sprouts, quinoa, chickpeas, pickled onions, riced cauliflower, and cashews.

Start-up Traction



Consumers always have differentiated criteria for selecting and purchasing the variety of food. No doubt the frozen food industry offers numerous growth and trending opportunities. Thus, a number of start-ups providing innovative products and technologies have been entering the market. Some of them are Magic Spoon, IWON Organics, Smart Sweets and Daily Harvest among others.

Deals Landscape



In June 2020, Brynwood Partners announced its newly-formed portfolio company, Buitoni Food Company, has entered into an contract to acquire the North American Buitoni business from Nestlé USA, Inc to expand its business

In June 2018, Conagra Brands Inc. agreed to buy Pinnacle Foods Inc. for about $8.1 billion in cash and stock, gaining freezer-aisle brands such as Birds Eye to capitalize on growing demand for frozen foods

Mergers and Acquisitions are an integral part of the Sensor Patch industry. Along with the companies operating in the market, other key market players have also been entering the industry.

Expert Insights:



Based on the analysis of the industrial experts, the demand is likely to increase due to shift in consumer preference from traditional food to frozen food due to features like less time consumption, huge quantity of variety, long shelf-life and reasonable prices among others. It is also suggested that the traditional food, now a days, is getting exposed to the air pollution and thus, the consumer base is preferring frozen food for safety purposes. During the course of lockdown due to the novel coronavirus, frozen food is preferred and demanded on a large scale. Moreover, new start-ups entering the market with new innovative ideas are likely to propel the growth of market in the forthcoming years.

Segments Covered in the report



This report forecasts revenue growth at a global, regional & country level, and provides an analysis of the market trends in each of the sub-segments from 2017 to 2027. The scope of the report can be defined as:

For the purpose of this report, Reports and Data have segmented the global frozen food market on the basis of processed product, product type, end-use, and region:

By Processed Product Type (Revenue, USD Billion; 2016–2026)

Frozen Fruits & Vegetables

Frozen Meat & Fish

Frozen Dairy Products

Frozen Soups

Others

Product Type (Revenue, USD Billion; 2016–2026)

Raw Stage

Half-Prepared

Fully-Prepared

End Use (Revenue, USD Billion; 2016–2026)

Retail Customers

Service Providers

Regional Outlook (Revenue in USD Billion; 2016–2026)

North America

U.S.



Canada

Europe

Germany



France



UK



Spain



Italy



Rest of the Europe

Asia Pacific

China



India



Japan



Rest of Asia-Pacific

Middle East & Africa

Latin America

Brazil