Frozen Foods Marke Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

Frozen Foods Marke Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

The global frozen foods market is witnessing significant expansion, driven by various trends and consumer preferences. . In 2024, the market is projected to reach $295.33 billion, and by 2031, it is expected to grow to $424 billion, reflecting a robust CAGR of 5.30%. The demand for convenience and easy-to-prepare food items is one of the primary factors influencing the market. However, several other aspects are also propelling the industry forward. Companies are launching a diverse range of frozen foods, transforming an industry long known for instant meals into one of the hottest grocery aisles, offering more variety, convenience, and options than ever before.

Manufacturers of frozen foods are continuously rolling out new products to give consumers a sense of novelty. Partnerships, increased marketing, licensing agreements, and new alternatives like gluten-free options are all contributing to the accelerated growth. The expanding range of products is bolstering sales by offering convenience and extended shelf-life.

According to a detailed study by Fairfield Market research, the global frozen foods market is expected to surge significantly over the forecast period.

Key Trends in the Frozen Foods Market

Long Shelf-life of Frozen Food Products

Frozen food is witnessing a rise in demand due to advanced technologies used for their production. Techniques such as freeze drying, air drying, and vacuum drying have made it possible to consume vegetables, fruits, and their ingredients for a longer period when preserved under specified conditions. These technologies result in a longer shelf life, ranging from weeks to months, helping customers to consume them later or in the future. The removal of moisture in the freezing process keeps the food free from microorganisms, contributing to the long shelf life of frozen food products. Regulatory approvals have further opened doors for manufacturers, who have identified the potential of this business and started supplying new-age products.

Consumer Inclination Towards Processed and Convenience Foods

The invention of frozen food products has provided a solution for food processors, allowing them to incorporate items such as fruits, vegetables, meat, and seafood as ingredients to enhance product quality and meet consumer demand. Various manufacturers are focusing on producing frozen foods to gain a better market share due to high demand. The rapid growth of foodservice chains, such as restaurants, cafeterias, and hotels, in developing markets is also expected to fuel the demand for frozen foods.

The fast-paced work culture in cities has led to increased work timings, making it difficult for consumers to cook food at home. Busy schedules have driven consumers to opt for packaged and ready-to-eat meals. Frozen foods enable customers to enjoy tasty meals with minimal preparation time. Since these foods are available in different varieties, consumers can choose any food they desire.

Consumers are looking for affordable, convenient, and flavorful food products due to their fast-paced lifestyles, providing ample growth opportunities for frozen food products. Convenience foods that reduce preparation time are in high demand, driven by busy lifestyles and an aging population. Key attributes consumers look for in convenience foods include ease of packaging, use, nutritional value, variety, safety, and product appeal. The quest for convenience is primarily driven by the increased value of time and rising incomes.

Ready meals are the most favored frozen food products across North America and European countries, with the market for ready meals in Europe showing significant growth.

Development of Cold Chain Logistics in Developing Countries

Companies are focusing on developing cold chain logistics, crucial for transporting frozen food products. Frozen foods are consumed in various countries, with a significant share coming from North America and Western Europe due to developed economies and consumer awareness. Several companies in Western Europe are establishing their own distribution networks for frozen foods, which require specific temperature and environment controls after being taken out of cold storage.

Frozen foods have a high chance of contamination and spoilage if not stored properly after removal from cold storage. For transportation, specialized trucks are needed to maintain the required environment. Hence, many manufacturers are starting their logistics to increase profits. Additionally, transportation providers often do not have dedicated mediums for frozen foods, transporting all types of frozen products in the same trucks. Asian countries like India and China are among the fastest-growing regions for the cold chain industry.

Based on the distribution channel segment, the hypermarkets/supermarkets segment is showing substantial growth.

Consumer Demand for Variety and New Product Launches

The frozen food industry has significant potential for product diversity and variety. New products are emerging as more people opt out of eating meat, leading to rapid growth in the plant-based food segment. The growth of frozen fruits and vegetables is also steadily increasing due to shifting consumer preferences. Advanced freezing technologies allow manufacturers to preserve nutritional content, contributing to the growth of these segments.

Leading companies in the U.S. are expanding and partnering with counterparts to capitalize on growth opportunities. Major packaged food firms like Kraft, Kellogg, and Unilever are focusing on further acquisitions, bringing niche products into the mainstream. General Mills, Inc., for example, has joint ventures with Nestlé S.A. in the ready-to-eat cereal category and Häagen-Dazs Japan, Inc. in the super premium ice cream segment.

Factors Affecting Market Growth

One significant factor affecting the growth of the frozen foods market is the increasing population of health-conscious consumers who prefer fresh foods over frozen ones. Consumers are willing to pay a premium for organic, nutritious food products free of pesticides and synthetic fertilizers, leading them to gravitate toward fresh products. Although frozen foods are just as delicious as fresh ones, there is still a long way to go in changing consumer perceptions.

Manufacturing frozen foods is a high-risk process. Hygiene standards must be stringent to avoid contamination and preserve public health, with regular cleaning of food processing equipment required. Protective paint coatings on essential parts like motors can deteriorate under corrosive wash-down conditions, posing a risk of contamination.

The Asia Pacific region is expected to be the fastest-growing area for frozen foods, with ongoing trends in ready meals and ready-to-cook products. However, barriers for new entrants, such as the high capital required for setting up production, storage, and supply infrastructure, pose a challenge. Poor storage facilities in convenience stores also restrict the penetration of frozen foods in developing countries like India and China.

Country-wise Insights

Leading Market for Frozen Foods in Europe

Germany leads the demand for frozen foods in Europe, driven by soaring demand for convenience and ready-to-eat products. The market in Germany is showing significant growth.

Highest Demand for Frozen Foods in South Asia & Pacific

Increasing investments and manufacturers' efforts in product launches and infrastructure developments are driving market growth in the South Asia & Pacific region.

Category-wise Insights

Promising Growth Opportunities in Product Types

The ready meals segment holds the highest market share and is anticipated to see substantial growth. The demand for meat, fish, and seafood products is promoting the market growth of frozen products, with fish/seafood products growing at a notable rate.

Increasing Demand for Organic Frozen Foods

Health-conscious consumers are driving the demand for organic frozen foods, with consumption growing steadily.

Competitive Analysis

Key manufacturers are strategically investing in scaling up processing capacities, developing new products, and strengthening their logistical capabilities.
• In November 2017, ITC Limited launched Farmland, offering fresh fruits and vegetables, including innovative products like natural low-sugar potatoes and frozen vegetables.
• In June 2021, The Kraft Heinz Company introduced omelette rounds under the Just Crack an Egg brand, marketing them as free from artificial flavors, dyes, or preservatives.
• In July 2019, McCain Foods announced investment in a frozen French fry factory in Brazil, aligning with its expansion strategy.
• In June 2019, Birds Eye, a brand of Conagra, introduced new easy-to-prepare entrees.

Frozen Foods Industry Research by Category
• Product Type: Ready Meals, Fish/Seafood, Meat, Dairy Products, Fruits & Vegetables, Pizza & Pasta, Bakery products
• Nature: Organic, Conventional
• Distribution Channel: Business to Business (Foodservice), Business to Consumer (Hypermarket/Supermarket, Convenience Stores, Specialty Stores, Online Retail)
• Region: North America, Latin America, Europe, East Asia, South Asia & Pacific, Middle East & Africa

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