FROZEN FOOD MARKET ANALYSIS

Market Size and Trends

Global frozen food market is estimated to be valued at USD 298.69 Bn in 2024 and is expected to reach USD 423.10 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.1% from 2024 to 2031.

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Consumers nowadays seek convenience and prefer ready-to-eat options. With rising incomes and busy lifestyles, demand for frozen foods has increased multifold globally. Global frozen food market is expected to witness growth during the forecast period. Changing dietary habits and increasing health-consciousness will boost demand for frozen vegetable and fruit. Advancements in freezing technology will enable better retention of nutrients in frozen foods. Key players are introducing varied product portfolios to tap opportunities across regions. Innovation in packaging is helping stay ahead of competition.

 Changing Lifestyle and Busy Schedules

Changing lifestyles and increasingly busy schedules of people around the world are major factors driving the growth of the global frozen food market. With greater emphasis on convenience and time-saving options, more individuals and families are opting for frozen meals and snacks that provide convenience without compromising on quality or nutrition.  Frozen food offers an appealing solution in today's fast-paced world where people have less time to devote to cooking and preparing meals from scratch every day. Frozen food can be stored in freezers for several months and then quickly cooked or heated and served with minimum preparation time. This allows consumers to save time on chopping, mixing and cooking ingredients while still enjoying freshly made home-cooked style meals. Busy professionals in particular rely heavily on frozen food to fulfill their nutritional needs despite demanding work schedules. According to recent data by the Food and Agriculture Organization, the average hours spent on food preparation by individuals dropped from 65 hours in 1965 to less than 30 hours in 2020 in many developing countries due to increased dual income households and lifestyle changes. The convenience of frozen food is further boosted by the wide variety of options available in stores. Beyond traditional frozen vegetables and meals, there is now a large selection of frozen snacks, bakery products, meat alternatives and ready-to-eat items. This variety addresses the changing tastes and preferences of different customer segments. The future prospects of the frozen food market also look strong with rising health consciousness and focus on nutrition. Many frozen food manufacturers are launching products with clean labels, fewer ingredients and more whole foods to meet growing demand for healthy convenience options. The popularity of home-delivered frozen meal subscription services is also gaining momentum among millennial families.

Market Concentration and Competitive Landscape

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Along with changes in lifestyle and time availability, consumer food preferences is also constantly evolving. Nowadays consumers pay greater attention to food qualities like nutrition, taste, ingredients, ethically sourced production and sustainability. People also seek variety and experimentation versus daily boredom with same meals. Frozen food manufacturers have been able to skillfully adapt to these evolving preferences. Manufactures also use diverse ingredients and innovative recipes to launch exciting new products on a frequent basis, keeping consumers engaged. Manufacturers have also implemented sustainable packaging and production practices. All these advances ensure frozen food caters effectively to consumers' changing tastes along with their nutritional and responsibly-produced attributes. Food innovations matching new preferences thereby sustain long-term demand for frozen categories from health-conscious, discerning and variety-seeking buyers. Changing consumer mindsets therefore fuel consistent market expansion for frozen solutions.

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Changes in consumer preferences towards healthier and organic products have decreased demand for foods high in preservatives, fat, salt and processed ingredients which make up much of the frozen food industry. Strict regulations on food safety and standards also increase production costs. Environmental concerns around packaging and waste management present regulatory hurdles. Additionally, Fluctuations in food commodity prices impact costs and the supply chain is complex requiring frozen food manufacturers to balance inventory with demand that changes seasonally.

Opportunities: Rising incomes in developing nations

Rising incomes in developing nations boosts demand for convenience frozen foods. Demographic and social trends like dual-income households and smaller family sizes boost the appeal of frozen meals. Advancements in freezing technology improves food quality and shelf life. Furthermore, customized products for health-conscious, religious or ethnic consumer segments open new marketing avenues.

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By type, frozen snacks & bakery products segment is estimated to contribute the 38.7% market share in 2024, owning to convenience and popularity among millennials. The segment growth can be attributed to changing lifestyles and dietary habits that boosts demand for convenient, on-the-go snack options. Busy millennial, in particular, prefer snacks that can be easily transported and consumed without much preparation. Frozen snacks offer great portability and shelf stability as compared to fresh alternatives.  A wide variety of tasty frozen snacks and bakery items are now available that appeal to both adults and children. Consumers enjoy the flexibility to eat these foods hot or cold based on their preference. Working professionals also find frozen snacks beneficial as these can save food preparation time while still enjoying a homemade meal or treat. Growing health and wellness trend has boosted the segment growth. Many frozen snacks contain whole grains, proteins and fewer artificial ingredients as compared to traditional snack foods

Insights, By Distribution Channel: Immense product variety and bulk buying advantages offered

By distribution channel, supermarkets/hypermarkets segment is estimated to contribute the 36.8% market share in 2024. The segment is witnessing growth as supermarkets provide consumers unmatched product selection under one roof. These stock an enormous variety of frozen meals, snacks, vegetables and ready-to-cook items from leading brands. Customers can easily compare options and pick items tailored to their dietary preferences, budget and cuisine tastes. In addition, supermarkets make bulk purchases economically viable for households. Families can stock up on frozen supplies for the entire month in a single shopping trip. This saves them time running to multiple specialty stores. Supermarkets also offer affordable multi-buy discounts that add to the savings. Supermarkets also cater to different communities through ethnic frozen aisles. Immigrants and expatriates find familiar ingredients from home easily available here. This has boosted market reach within the culturally diverse population. Furthermore, private label frozen foods launched by major retail chains provide good quality alternatives at competitive pricing. This value proposition has augmented footfalls in the frozen sections of supermarkets. To consolidate their leading market position further, supermarkets are beefing up their cold storage infrastructure and supply chain management.

Regional Insights

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North America has established itself as the dominant region in the global frozen food market. With the U.S. being the major market, North America is estimated to accounts for 35.8% market share in 2024. The large base of working population, hectic lifestyles, and preference for convenience foods have made frozen meals and snacks immensely popular among North American consumers. Several long-established brands like General Mills, Conagra, Tyson Foods, McCain Foods have strengthened their presence over the years through constant innovation in product offerings, packaging and promotion. The penetration of retail stores like Walmart, restaurants chains, food outlets, universities and corporate canteens has further enabled these brands to gain widespread shelf space and consumer reach.

Among emerging regions, Asia Pacific is witnessing fastest growth. Changing dietary patterns influenced by rapid urbanization and economic prosperity are driving the growth of frozen foods in Asia. In India, the growing population of working women and nuclear families has bolstered the demand for meals that can be prepared quickly at home from frozen form. Indian frozen food players are actively launching into segments like snacks, appetizers and meal kits to tap into this demand. Similarly, in China frozen desserts and dumplings have become extremely popular. Large Asian retailers are allocating more shelf space for global as well as local frozen food brands. This along with growing acceptance of international cuisine is propelling the Asia Pacific frozen food market growth.

Market Report Scope

Key Developments

• In March 2024, BigBasket partnered with Chef Sanjeev Kapoor to launch frozen foods brand-Precia.
• In 2023, Bikano, India's favourite snack and packaged food manufacturing company, launched a range of frozen products in the international market.
• In 2023, Haldiram's launched minute khana frozen food range.
• In 2022, Prasuma launched new products in frozen food portfolio.

*Definition: The global frozen food market refers to the industry engaged in the manufacturing, packaging, distribution and sale of frozen foods worldwide. It involves processing raw food ingredients through freezing to preserve and prevent spoilage. Major products in this market include frozen ready meals, fruits and vegetables, meat and seafood, snacks and desserts that provide convenience and greater shelf life to customers. The frozen food market has seen significant growth over the years due to busy lifestyles, increasing fast food consumption and distribution networks worldwide making these products widely available.

Market Segmentation

• Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Frozen Ready Meals
  • Frozen Seafood & Meat Products
  • Frozen Snacks & Bakery Products
  • Others
•  Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
  • Supermarket/Hypermarkets
  • Convenience Stores
  • Specialty Stores
  • Online Retail
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Ajinomoto Co., Inc.
  • Kellogg Company
  • Conagra Brands, Inc.
  • Nestle SA
  • General Mills, Inc.
  • Kraft Heinz Company
  • Unilever Group
  • McCain Foods Limited
  • Nomad Foods Ltd.
  • The Schwan Food Company
  • Tyson Foods, Inc.
  • JBS S.A.
  • Birds Eye Limited
  • Hormel Foods Corporation
  • Dr. Oetker GmbH
  • Amy's Kitchen Inc.
  • Nichirei Corporation
  • Findus Group
  • Goya Foods Inc.
  • Pinnacle Foods Inc.