Frozen Food

Frozen Food

The Frozen Food Market is growing at a steady rate of 5.10% in the forecast period due to the growing demand for convenience foods and time-saving meal solutions. Over the recent past, the frozen food market has been rapidly developing, primarily as a result of an increasing market trend of convenience foods especially in the current busy world. People are busy with their jobs and have higher standards of living and hence require convenient products like frozen products. This trend is further promoted due to developments in freezing technology and the availability of better packaging materials which has led to better nutrition and quality of these frozen products. What is meant by convenience here is not just referring to ready meals but other frozen foods that allow one to prepare delicious and fresh foods with much ease. Furthermore, the indicated aspect of frozen foods on the shelf relates not only to freshness but also to the reduction of food waste and consumer desire for environmentally friendly products. Hence, consumption of frozen foods will equally continue to grow given employment and urbanization, especially in developing countries, which are also likely to continue to alter consumer food trends and choices in the years ahead.

Recent instances and developments highlighting this trend include:

• For instance, in 2023, according to a report by the American Frozen Food Institute (AFFI), frozen food sales in the United States reached USD 72.2 billion in 2022, maintaining the gains achieved during the pandemic. This represents a 23% increase compared to 2019 pre-pandemic levels.
• In September 2023, Green Giant, a B&G Foods brand introduced 9 new frozen vegetable products in the market.

Therefore, the growing demand for convenience foods and time-saving meal solutions drives the frozen food market globally.

• Based on the products, the frozen food market is segmented into fruits and vegetables, dairy products, meat & seafood products, convenience food & ready meals, and others. Due to their limited preparation requirements, ready-to-eat meals inspire consumers to prioritize convenience food over other choices. Likewise, as urbanization accelerates, there is a greater requirement for convenience foods due to the rise of cities valuing time. In 2023, Tyson Foods took enhanced action to administrate the production of its frozen chicken items, expanding its frozen product line as demand for quicker, protein-rich alternatives approaches an increase. In addition, developments in freezing techniques have strengthened the quality and flavor of ready meals, thus raising consumer confidence in frozen convenience foods. This section additionally provides a wide array of convenient food options, inclusive of pizzas, frozen dinners, and snacks, which attract a big spectrum of tastes and preferences, driving its popularity even higher.
• Based on consumption, the frozen food market is bifurcated into food service and retail. The food service segment dominated the market in 2023 and is expected to behave in the same fashion in the forecast period. The major factors contributing to the growth include the rising demand from restaurants and fast-food chains. Fast-food chains heavily rely on frozen food for the instant preparation of meals to serve the customers. Additionally, the growing popularity and consumption of Ready-to-Cook and Heat-and-Eat Options has increased in the last couple of years due to busy lifestyles and a wide variety of available cuisines, which has bolstered the segment’s growth. For instance, Walmart increased its frozen food segment, especially plant-based products that are in high demand due to their nutritional value. Furthermore, the development of efficient cold chain logistics and storage solutions has made it easier for food service providers to access and manage frozen food inventories, ensuring supply continuity and reducing spoilage.
• Based on distribution channels, the frozen food market is segmented into offline and online. The offline segment has dominated the market in the historic year and is expected to dominate in the forecast period. Frozen food has its demand in supermarkets/hypermarkets/ convenience stores which gives consumers access to many numbers of products. These outlets also display general appearance and when a customer has any physical contact with products then they are likely to buy them. Currently, most consumers prefer to purchase frozen foods from physical stores because they have not adopted the modern method of shopping and trust supermarket products to be fresh and quality. For instance, Europe’s Tesco expanded its range of frozen food that caters to the increasing number of consumers concerned with their health through the addition of more plant-based and organic frozen meals. Offline stores provide a large range of frozen foods, both branded and private label with- ongoing promotions and offers that entice more consumers to shop physically. Frozen foods are located in certain places in physical stores with the ability to entice one to purchase them, especially for the offline segment.
• For a better understanding of the frozen food market, the market is analyzed based on its worldwide presence in countries such as North America (The US, Canada, and Rest of North America), Europe (Germany, The UK, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The North America frozen food market currently dominates and is expected to dominate in the forecasted period. The frozen food industry in North America, primarily in the United States and Canada, is growing at a fast pace due to innovations in technology and changing customer trends. The market is supported by advanced freezers that freeze items to a better quality and packaging that makes the items easily accessible. Some of the leading companies in the industry include ConAgra Foods, General Mills, and Kraft Heinz and while these players are diversifying their product portfolios to meet the new trends, the frozen food industry is characterized by intense competition. Also, the expansion of e-commerce has enabled a wider market for frozen foods and better cold chain technologies. Additionally, there is growing awareness of healthy living, and this is putting pressure on the manufacturers to provide better quality frozen foods, that are organic, hence extending the market. For instance, in June 2023, ConAgra Foods released its new line of organic frozen meals based on the increasing focus on healthier foods in the frozen food market. These products are designed to meet consumer expectations by solving mealtime dilemmas and satisfying cravings.
• Some of the major players operating in the market include Unilever, Nestle, The Kraft Heinz Company, General Mills Inc., Cargill, Incorporated, Ajinomoto Co., Inc., WK Kellogg Co, Conagra Brands, Inc., Tyson Foods, Inc., and FRoSTA AG.