Frozen Food Market Analysis

Frozen food is preserved under low temperature in order to increase the shelf-life and consume over a long period. Frozen food includes vegetables & fruits, meat & poultry, ready meals, soup, and seafood. Frozen ready meal includes a bakery, snacks, ready-to-eat foods, and desserts. Hotels, caterers, restaurants, and fast-food chains are the largest end-user of frozen food.

The global frozen food market is was accounted for US$ 1,52,741.60 Mn in terms of value by the end of 2019, witnessing a CAGR of 4.7% during the forecast period (2020 to 2027).

Drivers:

The hectic lifestyle of the consumers due to demanding work cultures is predominantly fueling the market growth of frozen food. Busy lifestyle makes it difficult for people to cook food at home and this compelled people to opt for frozen food products. Frozen food takes less time for preparation and thus creating demand for such as food products. Hence, a busy lifestyle coupled with the increasing disposable income of the consumers is propelling the market growth of the frozen food.

The increasing availability of seasonal food is driving the market growth of the frozen food. The growing popularity of seasonal food due to the hectic lifestyle of the consumers and the chance to consume seasonal fruit and veggies throughout the year is again fueling the market growth. Nowadays, the expansion of logistic service has enabled the easy transportation of frozen fruits and vegetables across the globe. Hence, the easy availability of seasonal fruits and vegetables is projected to foster market growth. 

Figure 1. Global Frozen Food Market, Revenue Share (%), By Region, 2019

North America region dominated the global frozen food market in 2019, accounting for 34.60% share in terms of value, followed by Europe and Asia Pacific, respectively

Market Restraints

Misconception regarding the nutritional value of frozen food products among consumers is hampering the demand. Moreover, initially, it was perceived as an inferior substitute for fresh food and is not good for health. Also, it is processed food with added preservatives. This is a major factor hindering the market growth of frozen food.

Strict government rules and regulation for storage of frozen food products coupled with the availability of the substitute such as fresh food products is hampering the demand for the products. Also, growing awareness regarding the health and fitness among consumers is again fostering the market growth of the frozen food.

Frozen Food Market Report Coverage

Report Coverage	Details
Base Year:	2019	Market Size in 2019:	US$ 1,52,741.60 Mn
Historical Data for:	2017 to 2019	Forecast Period:	2020 to 2027
Forecast Period 2020 to 2027 CAGR:	4.7%	2027 Value Projection:	US$ 2,19,298.08 Mn
Geographies covered:	Regions: North America, Latin America, Europe, APAC, and Middle East & Africa
Segments covered:	By Product Type: Frozen Ready Meals, Frozen Fish/Seafood, Frozen Meat Products, Frozen Pizza, Frozen Potato  Products, Frozen Bakery Products, and Others
Companies covered:	Nestle S.A., Ajinomoto Co., Inc., Kraft Foods Group, Inc., ConAgra Foods, Inc., General Mills, Inc., H.J. Heinz Company, Tyson Foods, Inc., Unilever Plc., Maple Leaf Foods, Inc., Pinnacle Foods, Inc.
Growth Drivers:	Rising demand for ready to eat food products Growing food chain stores globally
Restraints & Challenges:	Strict government regulations Availability if fresh food products

Market Opportunities

Increasing development of the food service industry due to the growing demand for food and consumer spending is projected to provide lucrative opportunities. Growing spending on shelf-stable foods by consumers due to busy lifestyles coupled with the growth in the agriculture industry is again expected to foster the market growth of frozen food. Hence, the development of the foodservice industry is projected to augment the market growth of the frozen food over the forecast period.

Growing popularity of the frozen ready meal is projected to offer bright opportunities in the market growth of frozen food. Increasing consumption of the ready meals among the working population coupled with the easy availability of such products in brick and mortar stores is again expected to foster the market growth of the frozen food. Also, increasing use of potatoes across various cuisines around the globe is further projected to foster the market growth of the frozen food. 

Figure 2. Global Frozen Food Market – Opportunity Analysis

On the basis of product type the frozen ready meals dominated the overall frozen food market with around 24.4% of market share in the year 2019.

Figure 3. Global Frozen Food Market, Revenue Share (%), By Product Type, in 2019

Market Trends/Key Takeaways

The growing number of the single household family has influenced the purchasing pattern of consumers. Small size families spent more on frozen food products and this is contributing to the market growth of the frozen food. An increase in the female working population coupled with the growing influence of social media is again creating demand for frozen food. Changing food habits along with the continuous change in the demand for food products is further projected to foster the market growth.

Increasing strategic distribution agreement and partnership of frozen food among key players for business expansion is one of the emerging trends in the market and this is projected to bolster the market growth in the near future. For instance, in March 2020, Central Foods has entered into a distribution agreement with Frank Dale. As per this agreement, Central Foods will handle distribution to the foodservice sector of the full range of sweet and savory products made by the party food specialist across the UK and further afield.

Global Frozen Food Market - Impact of Coronavirus (Covid-19) Pandemic

Food is an essential commodity and the demand for frozen food products is expected to rise during the pandemic and post pandemic conditions, worldwide. Moreover, Coronavirus (Covid-19) has majorly impacted the food & beverages industry and in turn has changed the dynamics of entire ecosystem including raw material suppliers. Lockdown in various countries such as India, China, and Spain, among others and cease in the subsequent trade activities has suspended the supply chain activities. The increasing spread of Covid-19 has forced the manufacturers to deploy precautionary measures in their facilities including labors and plant controllers screening and monitoring, and sanitizing the facilities.

Competitive Section:

Company Names 

1. Nestlé S.A.
2. Ajinomoto Co., Inc.
3. Kraft Foods Group, Inc.
4. ConAgra Foods, Inc.
5. General Mills, Inc.
6. H. J. Heinz Company
7. Tyson Foods, Inc.
8. Unilever Plc
9. Maple Leaf Foods, Inc.
10. Pinnacle Foods, Inc.

Few Recent Developments

In May 2017, Ajinomoto Co., Inc. launched eight varieties of frozen Japanese foods in collaboration with a major retailer to establish a sales channel in France. The purpose of this collaboration is to increase the penetration of the “AJINOMOTO brand” among French households.