Frozen Snacks Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Frozen Snacks Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global frozen snacks market was valued at USD 99,282.1 million in 2021 and it is projected to register a CAGR of 4.23% during the forecast period, (2022-2027).

During the COVID-19 situation, the frozen snacks market experienced a sudden increase in sales with the availability of products in the e-commerce stores along with various supermarkets/hypermarkets with the home delivery option for the consumers. With the surge of the deadly spread of the virus, consciousness and hygiene were major perspectives among the consumers which have created an immense opportunity for the e-commerce stores to come up with contactless delivery with fully sanitized packaged food items in various countries around the globe. However, the unceasing innovation in the sector to provide apt packaging aids the overall growth of the market by gaining consumers’ trust and catering extensive categories of frozen snacks.

Over the period, convenience is one of the key factors driving the increase in consumption of frozen food items, globally. Hence, leading players are introducing new types and ingredients to cater to the taste of consumers, on a regional basis. The rising preference of consumer toward convenience products fuel the growing demand for frozen products due to its effortless and time saving beneficial factor as compared to cooking from scratch. The frozen snacks food market is growing abundantly owing to the rising volume of hectic lifestyle of working population around the globe which in turn is boosting majorly the frozen snacks market.

Italian cuisine is gaining traction in the global market with that the trend of deep-frozen pizza is capturing majorly the Asian, European and North American market. The manufacturers are coming up with innovative techniques to meet consumer demands and to boost the growth of the market. The intake of animal protein is associated with high cholesterol level, fat, and calorie intake, which increases the risk of cardiac diseases, high blood sugar level, and obesity. Hence, consumers are showing an inclination toward vegan sources of protein, which, in turn, has created a good platform for the players offering plant-based/vegan frozen products.

Key Market TrendsRising Consumer Expenditure on Convenience Food Products

The market is primarily driven by rising expenditure on food and beverage, introducing products with longer shelf life, increasing impulse purchasing, and growing demand for convenience foods that can be prepared quickly and is fresh to eat such as fries, frozen pizza, and other products. ​As per the data cited by the Bureau of Labor Statistics and Mordor Intelligence, an average American spent USD 159 on prepared frozen foods annually in 2021 compared to USD 130 in 2016. The main advantage of these products is their comforting familiarity as a snack food among consumers. This is especially true for families, whereby stressed parents turned to frozen pizza as something that appeals to even the pickiest eaters.​ Owing to fast-paced lifestyles and the need for a quick snack among adults, there has been a growing demand for healthy and convenient food that can be consumed instantly. These products are considered beneficial as most of them can be cooked within less time for consumption. These factors have been propelling the market growth.​ Moreover, manufacturers have provided consumers with more foods, where much of the preparation work has been done outside the home. This development has been facilitated by technological innovations in preservation, packaging, freezing, artificial flavorings and ingredients, and by using microwaves.

North America Holds Major Share

Keeping up with the changing consumer demand, restaurants are providing food items, in line with the need for convenience and other trends associated with changes in the lifestyle of North American consumers have adversely boosted the growth of the global frozen snacks market. According to the US Department of Agriculture,72% of Americans purchased frozen food due to their busy life schedules in 2021. Moreover, the growing preference for healthier food options, concerns over environmental sustainability, increased competition from grocery stores, heightened consumer expectations, and rapidly advancing technology is reinventing the traditional dining experience and forcing changes in the way that restaurants and cafes operate. However, restaurant operators in North America are optimistic about their businesses, where the competition is more in terms of product offerings and dining experiences, which is expected to drive positive sales in line with the time spent at the restaurants. Further, the demand for frozen pizza, fries, nuggets, wedges, rolls, baguettes, fish fingers, fish sticks, pretzels, croissants, fish cakes, squid rings, frozen momos, frozen burgers, sausages, cutlets, chicken fingers and dippers, and many more are booming in the region and several restaurants have the convenience of take-out and delivery options, thereby, demanding the restaurants to keep larger stocks of frozen snack products to facilitate growth in their sales.

Competitive Landscape

The market for frozen snacks is highly fragmented, due to the presence of a large number of global and local companies. Some of the key companies in the market include Nomad Foods Limited, ConAgra Brands Inc., McCain Foods Limited, Kraft Heinz Co., and Nestle SA. Manufacturers operating in the market are entering agreements with downstream companies to increase their operational reach. The giant manufacturers have intensified their R&D efforts, in order to develop niche and innovative products based on the requirements of the end-user industry. Manufacturers are majorly concentrating on enhancing their product quality to obtain a competitive edge over other players in the market. Geographical expansion and mergers and acquisitions are also being practiced by the major players to pump up their revenues. For instance, in December 2021, Strong Roots, a leading plant-based frozen food company, and McCain Foods, the family-owned world leader in frozen potato specialties and appetizers, announced a strategic partnership, with McCain Foods investing USD 55 million USD in Strong Roots to take a minority stake in the business. ​

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