Industry Outlook
The global market for frozen food stood at US$ 304.33 Bn in 2021 and expected to reach US$ 532.72 Bn by 2030, growing at a CAGR of 5.1% during the forecast period of from 2023 to 2030. Europe dominated the market in 2021 and expected to retain its leading position throughout the forecast period. However, Asia Pacific is identified as the fastest growing market during the forecast period.
Food products that are subject to rapid freezing and kept frozen until consumed are termed as frozen food. Frozen food products provide enormous advantages over their fresh food products such as flavor and nutritional values. Fruits & vegetables are harvested at the height of their nutritional value and are freezed quickly, which aids in the retention of essential vitamins and the natural fresh taste. Further, frozen food offer high quality, uniformity and consistency and they are easy to prepare as well. Moreover, consumption of frozen food products result in minimal wastage as consumers only prepare the amount required for consumption and store the rest. In addition, frozen food such as fruits & vegetables are never out of season. These factors have resulted in high inclination towards the consumption of frozen food products among the millenials.
High demand for convenience food in the developed economies such as Germany, U.K., U.S., Canada and France among others has resulted in the steady growth of the frozen food market. Demand for convenience food, especially among the millenials has surged significantly over the past few years on account of changing lifestyle and consumption pattern. Rising number of working females, coupled with rapid emergence of nuclear families is another key factor augmenting market growth of frozen food. Prevalence of nuclear families is fairly high in U.S. In 2017, married couples with children accounted for more than 35% of the entire number of family households in the country, while a single mother with a children account for more than 50% in the same year. Nuclear families refrain themselves from cooking food for themselves and their children and focus mostly on the consumption of frozen food items, which help them to store the food items for a longer period of time, without it getting contaminated or spoiled. These factors have urged the manufacturers operating in the frozen food industry to focus more on introducing newer products for its customers and also focus on packaging innovations in order to attract more consumers. However, a major chunk of the population are still inclined towards the consumption of fresh food products, which is a key factor resulting in the slowdown of the frozen food market at present.
Frozen Ready-to-eat Meals Dominated the Market, and Expected to Display Similar Trend in the Coming Years
Based on product type, frozen ready-to-eat meals accounted for the dominant share in 2021 and is expected to retain its position throughout the forecast period. Despite the widespread availability of fresh food, ready-to-eat meals have made its way into several households, acting as a convenient food product for consumers who do not find the time to cook food every day. Further, increasing availability of a wide array of frozen ready-to-eat meals such as lasagna, pasta, pizzas, and soups in supermarkets & hypermarkets has led to a shift in the focus of the consumers towards such food items, leading to the high growth of the ready-to-eat meals segment.
Further in September 2018, JD.com announced that it will expand its premium offline chain of supermarkets called 7Fresh in China, with 1,000 new stores with the intention of promoting its ‘boundary-less retail’ service. The stores will be launched in Guangzhou, Shanghai, and Chengdu over the next five years. 7Fresh was launched in the first quarter of 2018, combining the technology of JD.com and offline shopping experience. This development is expected to push the market growth of frozen ready-to-eat meals in China in the coming years.
Emerging Nations Expected to Drive Future Growth of Frozen Food Market
The global market for frozen food is dominated by Europe and North America in 2021. High consumer demand for frozen food products is one of the key factors augmenting market growth of frozen food in these regions. The frozen food sector in developing nations such as U.S. has witnessed a rapid change over the past few years, with significant improvements in quality and taste. Products have become more consumer centric and shopper traffic in the frozen food section has increased significantly. Frozen ready-to-eat meals ranked among the top picks of the consumers in the U.S. Further, Nestle S.A. dominated the frozen pizza category in 2016, with DiGorno being the preferred brand of frozen pizza among consumers.
Emerging nations such as Asia Pacific and Latin America is expected to generate the fastest growth during the forecast period with China, India, Australia, Brazil and Japan leading the growth of the frozen food market in the region. Buoyant income growth in these countries has paved the way for the middle class population to experience newer goods & services. China, India and Brazil are expected to be ranked among the top ten consumer markets in the world, and are expected to generate revenues worth US$ 3.4 Bn, 1.3 Bn and US$ 0.7 Bn respectively by 2025. This is expected to create more opportunities in the frozen food market in these countries in the coming years. Steady growth of the service sector coupled with rising female working population and transition in the consumption pattern of the millenials have contributed to the growth of the frozen food market in the developing regions. Further, growth of convenience retail in the emerging nations has resulted in an expanding portfolio of new products in the frozen food market.
The changing lifestyles of the millenials in India have created multiple opportunities for several market players spanning across several industries. Emergence of nuclear families, rising acceptance of western food and the rising demand for on-the-go fresh cooked food are some of the factors responsible for the steady growth of the frozen food market in the country. Frozen ready-to-eat meals have gained significant popularity among consumers owing to their convenience. Growing working population coupled with higher purchasing power of consumers in India are contributing to the growth of the frozen ready-to-eat meals category.
Product Development is one of the Key Strategies of the Companies Operating in the Frozen Food Market
Notable players operating in the global frozen food market include Ajinomoto Co. Inc., Bonduelle Group, ConAgra Foods Inc., General Mills Inc., Kraft-Heinz Company, McCain Foods, Nestle S.A., Pinnacle Foods Inc., Tyson Foods Inc., and Unilever Plc among others.
In April 2017, Ajinomoto Co. Inc., launched eight varieties of frozen Japanese food products throughout France. The aim of the company is to enhance the brand image of the company among the French households. The market for Japanese food products in France grew by approximately 15% from 2016, which is due to the increase in the number of Japanese restaurants in the country. This strategy is expected to strengthen the company’s brand image in France. Further, in September 2016, Ajinomoto Co. Inc., expanded its frozen food business in North America by launching Japanese style Ramen Noodles in the region. The frozen food market in North America is highly lucrative with Asian food being the preferred type of cuisine among the consumers in the region. This launch is expected to improve the sales of the frozen food business in North America.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Frozen Food market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
