Freeze-Dried Food Market - Growth, Trends, and Forecasts (2023 - 2028)

Freeze-Dried Food Market - Growth, Trends, and Forecasts (2023 - 2028)

The Freeze-Dried Food Market is projected to register a CAGR of 8.50% over the next five years.

Consumers these days are more aware of their health and well-being. Due to the increase in urbanization and lifestyle changes, consumers prefer their food to be easy to cook and carry. Food service restaurants and cafes mostly use freeze-dried products like fruits and vegetables. Due to the increase in tourism worldwide, the business of food service restaurants is also increased, which in turn increased the market for freeze-dried products. Consumers are attracted to freeze-dried products as they are easy to store, handle, and take minimum time to prepare.

Over the short term, the expanding food-processing sector and massive demand for ready-to-eat or convenience food products among consumers are anticipated to drive the market. Moreover, the increasing consumer awareness about the side effects of artificial food additives used for food preservation is expected to fuel the demand for natural and healthy food products. ​ Freeze-dried products do not have any additional nutrients, and they preserve the nutrients present in the products. Additionally, the market players are using freeze-drying techniques for products that are heat sensitive, and the incorporation of freeze-drying techniques in several food products for longer preservation and convenient consumption is considered the best option.​ In August 2021, Advik Foods expanded its portfolio with the launch of freeze-dried milk powder, i.e., Donkey Milk Powder, Frozen Camel milk, and Frozen goat milk.

The demand for freeze-dried food products is highly prevalent in a few categories, such as bakery products, cereal products, fruit snacks, and vegetable snacks. In the bakery industry, freeze-dried fruits are used in whipped creams and frosting. Freeze-dried fruits are also widely used in dessert decoration and give color and flavor to the finished products. ​ Healthy snacking is a growing trend. Due to the ever-increasing demand for clean-label freeze-dried food products, market players continuously focus on producing vegan, gluten-free, and all-natural food products.

Furthermore, consumers' growing concerns about the long-term effects of the products they consume in terms of nutrition content and their impact on health, environmental sustainability, sourcing, and social responsibility have fueled demand for clean-label products, including clean-label freeze-dried food products. Also, due to an increase in busy lifestyles and disposable income, consumers are shifting toward frozen meals and products. For instance, in June 2021, Texas-based Sow Good Inc. announced the launch of its first product line of freeze-dried fruit and vegetable snacks and smoothies. The product line includes six ready-to-make smoothies and nine snacks, of which the smoothie lineup features a mix of new and familiar flavors, including acai relief (acai and blueberry), mint to be (banana, coconut, and mint), and berry-appealing (banana and strawberry). In contrast, the packaged snack lineup includes single-ingredient fruits and vegetables, such as cherries, edamame, and apples. ​

The freeze-dried food market in Asia-Pacific is experiencing rapid expansion due to the increasing consumption of processed food and rising preference for ready-to-eat meals, owing to the rising trend of on-the-go lifestyles of consumers. Such factors make Asia a potential market for freeze-dried foods, and thus, manufacturers are exploring this trend to attract young Asian consumers. The increasing internet penetration in the region and the rising trend of purchasing groceries through online distribution channels are expected to increase the demand for freeze-dried ready meals. Chinese consumers' interest in healthy and innovative products formulated with Chinese ingredients, which fit in their busy lifestyles, provides a great platform for foreign retail manufacturers to expand their businesses in the country. For instance, In 2021, Tyson Foods Inc. launched a new line of plant-based products in select retail markets and e-Commerce across the Asia-Pacific under the brand First Pride, which will introduce frozen Bites, Nuggets, and Stripsmade.

The global freeze-dried food market is highly competitive owing to the presence of multiple regional and multinational companies offering a wide range of freeze-dried products and trying to maintain their leadership position in the market studied. Major players in the market include Nestle SA, European Freeze Dry, Ajinomoto Co. Inc., Asahi Group Holdings Ltd, and Harmony House Foods Inc., holding a significant share of the market studied and embarking on business strategies including product innovations, partnerships, strengthening their hold over online and offline marketing, and mergers & acquisitions to expand their visibility and portfolio of offerings, thus, augmenting the growth of the market.

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