Frozen Food Market

The frozen food market had a value of USD 244.3 billion in 2023 and is projected to reach approximately USD 312.3 billion by 2030, with a CAGR of 5.0%. Factors such as developments in the retail industry, increasing demand for convenience food, and technological advancements in the cold chain market are driving the market's growth. However, the preference for fresh and natural food products poses a challenge for the frozen food market.

Market Dynamics:

Drivers: Increasing demand for convenience food       

The growing preference for convenience foods indirectly contributes to the rising demand for frozen products, as they offer time and effort savings compared to cooking from scratch. Busy consumer lifestyles drive the demand for convenience, which in turn fuels the demand for frozen products. The growth of disposable income also plays a significant role in the expansion of the frozen food market by increasing consumers' purchasing power.

Restraints: Preference for fresh and natural food products

Some consumers view frozen food as an inferior substitute for fresh food, which limits the market's potential. There is a perception that food processed and stored for a year or more may lack nutritional value. However, statements from authoritative bodies such as the US Food and Drug Administration (FDA) and the International Food Information Council (IFIC) about the nutrient content of frozen food are changing consumer perceptions. These organizations highlight that frozen produce can be just as nutritious as fresh food. Unlike food stored at varying temperatures, frozen foods maintain essential nutrients since they are stored at a constant low temperature.

Opportunities: Digitalization of the retail industry

The digitalization of the retail industry, particularly online grocery shopping and the introduction of new apps, presents opportunities for the frozen food market. Consumers are increasingly inclined towards online shopping due to its convenience and variety. Eurostat reports that in 2018, nearly 25% of the population purchased food and groceries from online retail channels. With the growing penetration of the Internet and smartphone usage, retail grocery shopping is becoming a platform for companies to showcase and sell their food products.

Challenges: Lack of cold chain infrastructure in developing economies

The lack of proper cold chain infrastructure poses a significant challenge for the frozen food market in developing economies. These countries struggle to provide safe frozen food products to their populations due to inadequate infrastructure. While frozen food has a long shelf life, the lack of proper facilities leads to product wastage and financial losses for manufacturers. The monetary crisis in these economies has hindered investments in cold chain logistics, further exacerbating the issue. Poor infrastructure in cold chain logistics has also directly impacted the import and export of frozen food products in countries such as Bangladesh, South Africa, and Myanmar. However, these developing nations present a significant investment opportunity due to the growing acceptance of frozen food products among urban consumers.

The convenient & ready meals segment is estimated to dominate the global market in 2023.

In terms of product, the convenient and ready meals segment is projected to hold a significant share in the global market in 2023. This can be attributed to the changing and busy lifestyles of people worldwide, which have led to an increased consumption of frozen foods. Frozen meals are convenient to prepare and require less time for preparation. They are considered a healthy option with high nutritional value. Moreover, the export business of frozen foods has witnessed growth recently due to the widespread acceptance of these products among consumers and the increasing brand awareness in developing countries.

The offline segment is estimated to account for the largest share in the frozen food market in 2023.

In terms of distribution channels, the offline segment is expected to capture the largest share in the market in 2023. The infrastructure of convenience stores and hypermarkets, which includes freezing and temperature-controlled facilities, is driving the growth of this segment as a distribution channel for frozen products.

The ready-to-cook segment is projected to grow at the highest CAGR during the forecast period in the market.

By type, the ready-to-cook segment is estimated to grow at the highest compound annual growth rate (CAGR). Factors such as changing lifestyles and the increasing population of working women are driving the growth of ready-to-eat frozen food globally.

Europe accounted for the largest share in the frozen food market

The largest market share in the frozen food market was captured by Europe. Factors such as population growth, rapid urbanization, and increased consumer awareness regarding the advantages of frozen food have been pivotal in driving the demand for frozen food in the region.

Key Market Players:

The market is characterized by the presence of several key players, including General Mills Inc (US), Conagra Brands, Inc. (US), Grupo Bimbo S.A.B. de C.V. (Mexico), Nestle SA (Switzerland), Unilever (Netherlands), Kellogg Company (US), McCain Foods Limited (Canada), Kraft Heinz Company (US), Associated British Foods plc (UK), Ajinomoto (Japan), Vandemoortele NV (Belgium), Lantmannen Unibake International (Denmark), Cargill (US), Europastry S.A. (Spain), JBS (Brazil), Kidfresh (US), Aryzta (US), Kuppies (India), OOB Organics (New Zealand), Omar International Pvt Ltd (India), Bubba Foods (US), Shishi He Deming (China), Smart Price Sales & Marketing (US), Chevon Agrotech Pvt Ltd (India), and Omar International Pvt Ltd (India).

On the basis of product, the market has been segmented as follows:

• Fruits & vegetables

• Frozen fruits
• Frozen vegetables
  • Frozen potatoes
  • Other vegetables

• Dairy products
• Bakery products

• Breads & pizza crusts
• Other bakery products

• Meat & seafood products
• Convenience food & ready meals
• Other products

On the basis of consumption, the frozen food market has been segmented as follows:

• Food Service
• Retail

On the basis of type, the market has been segmented as follows:

• Raw material
• Half-cooked
• Ready-to-eat

On the basis of distribution channel, the market has been segmented as follows:

• Offline
• Online

On the basis of region, the frozen food market has been segmented as follows:

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Recent Developments:

• In June 2018, Lantmännen Unibake inaugurated a new production facility in Nowa Sól, Poland to enhance its production capacity.
• In October 2018, Conagra acquired Pinnacle Foods Inc. (US), expanding its frozen meals & snacks and sweet treats categories.
• In September 2018, Grupo Bimbo introduced four frozen bakery lines at its Argentina plant, aiming to boost the company's export business in neighboring countries like Chile.
• In November 2018, Nestle launched Wildscape, a range of healthy frozen meals in reusable and recyclable containers. The Wildscape meals feature six different varieties, including gochujang cauliflower with Brussels sprouts, quinoa, chickpeas, pickled onions, riced cauliflower, and cashews.
• In May 2018, Nestlé introduced Garden Gourmet, a meat-free brand, in the UK. Garden Gourmet offers nutritious meat-free products and is expected to strengthen the frozen ready meals segment in the UK.