Frozen food is preserved under low temperatures in order to increase its shelf-life and be consumed over a long period. Frozen food includes vegetables & fruits, meat & poultry, ready meals, soup, and seafood. Frozen ready meals include bakery, snacks, ready-to-eat foods, and desserts. Hotels, caterers, restaurants, and fast-food chains are the largest end-user of frozen food.
Global frozen food market was valued at US$ 167116.37 Million in 2021 in terms of revenue, exhibiting a CAGR of 4.84 % during the forecast period (2022 to 2030).
Drivers
The hectic lifestyle of consumers due to demanding work cultures is predominantly fueling the market growth of frozen food. A 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 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 consumers and the chance to consume seasonal fruits and vegetable throughout the year is further fueling the market growth. Nowadays, the expansion of logistic services 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 the market growth.
The frozen food market has impact in the recent months owing to the lockdowns imposed globally to curb the spread of COVID-19. 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, Spain, among others and cease in subsequent trade activities had suspended the supply chain activities. The increasing spread of COVID-19 forced manufacturers to deploy precautionary measures in their facilities including labors and plant controllers screening and monitoring and sanitizing the facilities.
Figure 1. Global Frozen Food Market Value Share (%), By Region, 2021
Market Restraints
Misconception regarding the nutritional value of frozen food products among consumers is hampering the demand. 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 the storage of frozen food products coupled with the availability of better substitutes such as fresh food products are hampering the demand for frozen food products. Also, growing awareness regarding the health and fitness among consumers is again fostering the market growth of the frozen food.
| Report Coverage | Details | ||
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| Base Year: | 2021 | Market Size in 2021: | US$ 167116.37 Mn |
| Historical Data for: | 2017-2020 | Estimated Year: | 2022 |
| Forecast Period 2022 to 2030 CAGR: | 4.84 % | Forecast Period: | 2022-2030 |
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Major players operating in the market include 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., and Pinnacle Foods, Inc. |
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Market Trends
The growing number of single household family has influenced the purchasing pattern of consumers. Small-size families spend more on frozen food products and this is contributing to the market growth of the frozen food. An increase in female working population coupled with the growing influence of social media is also 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 agreements for frozen food and partnership among key players for business expansion are 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 entered into a distribution agreement with Frank Dale. As per this agreement, Central Foods will handle the distribution of the full range of sweet and savory products to the foodservice sector, made by the party food specialist across the UK and further afield.
Figure 2. Global Frozen Food Market Value Share (%), By Product Type, 2021
On the basis of product type, the frozen ready meals segment dominated the overall frozen food market with around 24.4% of market share in the year 2021.
Recent Developments
October 2019, Bell & Evans launched a line of uncooked, frozen chicken meatballs.
Competitive Section
Major players operating in the global frozen food market include Nestlé 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., and Pinnacle Foods, Inc.
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. The increasing digitalization in the retail industry and emerging economies in Asia-Pacific, Latin America, and the Middle East & Africa are expected to provide significant opportunities for the players operating in this market.
Market Dynamics
The rising popularity of frozen ready meals is expected to open up new growth 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 the frozen food market growth.
One of the emerging trends in the market is the increase in strategic distribution agreements and partnerships among key players for business expansion, which is expected to boost the 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 urban population. According to the United Nations, urban areas housed 55% of the world's population, or 4.2 billion people, in 2018. The world's urban population is expected to grow by 68% 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:
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