Frozen Food Market
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.
| 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: |
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| Segments covered: |
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| 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. |
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| Restraints & Challenges: |
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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
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.
Ready-to-eat, ready-to-cook, ready-to-drink, and other frozen food categories include frozen meat and fish, fruits and vegetables, desserts, snacks, and frozen meat. Frozen food is widely available in supermarkets and on the internet.
Market Dynamics
The rising popularity of frozen ready meals is expected to open up new opportunities in the frozen food industry. Increased consumption of ready meals among the working population, combined with the ease with which such items can be found in brick and mortar stores, is expected to boost frozen food market growth.
One of the emerging trends in the market is the increase in strategic distribution agreements and partnerships of frozen food among key players for business expansion, which is expected to boost market growth in the near future. Central Foods, for example, signed a distribution agreement with Frank Dale in March 2020.
The growth of the frozen food industry is being fueled by the rapid growth of the urban population. According to the United Nations, urban areas housed 55 percent of the world's population, or 4.2 billion people, in 2018. The world's urban population is expected to grow by 68 percent by 2050, adding another 2.5 billion people to the world's urban population as a result of global population growth.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
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