Frozen Processed Food Market – Insights
The processed food is frozen to control the microbial growth and to retain the quality of processed products over long period. The frozen processed food products are stored under recommended temperatures to maintain their quality. They are perceived as natural and healthy food product, which is fueling the growth of the market. Furthermore, increasing preference of customers towards ready to cook products, owing to hygiene and convenience is boosting the growth of frozen processed food market. However, the availability of chilled food products is restraining the growth of the market.
Frozen processed food are segmented on the basis of product type in frozen processed bakery products, frozen processed desserts, frozen processed meat substitutes, frozen processed fish/sea food, frozen processed poultry, frozen processed meat, frozen processed pizza, frozen processed noodles, frozen processed potatoes, and frozen processed vegetables. Frozen processed poultry segment is expected to account for the highest revenue share over the forecast period, due to increasing consumption of chicken. According to United States Department of Agriculture, the per capita poultry consumption was 48.8 kg in 2016 and is expected to increase up to 49.7 kg in 2018.
North America is the dominant region in the global frozen processed food market and was valued at US$ 16.95 Bn in 2016. This is attributed to increasing consumer interest in healthy and functional food. The ability to preserve the processed food enables the manufacturer to offer products to the consumers to the other side of the world, leading to burgeoning the growth of frozen processed food market. In February 2017, Smithfield Foods, Inc., a meat processing company, extended their frozen meat product portfolio, which included frozen chicken breakfast items and pork’s. However, increasing prevalence of obesity levels in the U.S. may negatively impact frozen processed food market. According to Centers for Disease Control and Prevention (CDC), nearly 36.5% of the U.S. adults have obesity and the prevalence of obesity was higher among the adults and middle-aged population, which in turn is expected to hinder the growth of the market.
Europe is expected to be the second largest market for frozen processed food in terms of revenue over the forecast period. The market is driven by increasing demand for the convenience food product in countries such as U.K., Germany and France, owing to the surging number of working women and changing food purchasing pattern, led to increased production of frozen processed food items. According to CBI Ministry of Foreign Affairs, the production of frozen processed fruits and vegetables was valued at US$ 6.86 billion in 2016. Furthermore, owing to the negative consumer sentiment related to red meat, the frozen processed food is gaining popularity among the consumers offering longer shelf life of this product.
The frozen processed food market was valued at US$ 60.12 billion in 2016 and is expected to expand at a CAGR of 4.0%, in terms of revenue, over the forecast period (2017 – 2025).
Figure 1. Global Frozen Processed Food Market Share, by Region, 2016
SOURCE: COHERENT MARKET INSIGHTS ANALYSIS (2017)
North America accounted to hold a revenue share of 28.19% in the global frozen processed food market in 2016, owing to healthy benefits related with frozen processed food. However, limited information regarding frozen processed food and chilled food is expected to hinder the market growth.
Most of the manufacturers are adopting various strategies such as new technological innovations and product launch to sustain their market position. In June 2017, The Coca-Cola Company, launched frozen desserts in India under Minute Maid brand.
Major Players in Global Frozen Processed Food Market:
Some of the key players operating in the global frozen processed food market are Nestle S.A., ConAgra Foods, Inc., Kraft Foods Group, Inc., Mother Dairy Fruit & Vegetable Pvt Ltd, BRF S.A., General Mills, Inc., Maple Leaf Foods Inc., Tyson Foods, Inc., and Unilever Plc.