ID: MRFR/F-B & N/6116-CR | February 2021 | Region: Global | 100 pages
The frozen foods market could experience growth at a rate of 5.93% between 2020 and 2030. The market worth by the end of 2030 should be around USD 338.5 billion, reveals Market Research Future (MRFR).
The escalating preference for convenience food items among consumers has a tremendous impact on the frozen food market, since these types of foods require less time as well as effort compared to foods that need to be cooked from scratch. The frozen food industry benefits from the rampant need for comfort and convenience owing to hectic lifestyles of the consumers. This will raise the demand for a variety of frozen food products. Surging disposable incomes of the consumers could also accelerate the growth of the frozen food market, given the rise in their spending capacity.
However, some perceive frozen food as a substandard alternative to fresh food, which can be a major growth deterrent for the worldwide market. On the other hand, statements including “frozen produce are as healthy as fresh items with respect to nutrition” by the US Food and Drug Administration as well as the International Food Information Council has been affecting the consumer perception.
Online grocery shopping in conjunction with the emergence of apps have made it easier for the consumers to choose from various frozen foods. More and more consumers are shifting their preference towards online shopping owing to a host of features along with variety, and convenience. With the rising prevalence of the Internet and extensive smartphone use, online grocery shopping will be a great lucrative opportunity for the frozen food developers in the future.
Frozen Foods Market COVID-19 Analysis
COVID-19 has put a temporary damper in the frozen foods industry. It is also changing the healthy frozen foods market structure by holding back growth dramatically. What restrained growth in this industry the most was the fact that frozen foods manufacturing companies faced challenges in sourcing the raw materials for their products. G
Government policies prohibiting trade in international foodstuffs - frozen or not - also contributed. However, the overall outlook of the refrigerated and frozen foods industry remains bright largely because of rapidly growing demand.
Frozen Foods Market Dynamics
More and more people live busy lifestyles. They want to eat healthy food but do not always have the time to cook it. These people look to market selection frozen foods to satiate their growing demand. Also, more women are working full-time around the world. They do not have the time to spend hours cooking and prefer to spend a few minutes reheating frozen foods for a quick and healthy meal.
Many frozen food manufacturers are responding by investing heavily in manufacturing and processing equipment. This will help them meet rapidly growing demand which is expected to increase exponentially in the post COVID world. Added to this is the fact that the growing middle classes in developing nations increasingly crave organic frozen foods.
The current and new restrictions on the movement of raw materials needed to produce these frozen foods are a current restraint on overall market growth. However, governments will lift these once COVID-19 has been managed.
One of the main challenges that frozen food manufacturers face is finding sufficient and reliable distributors. Also, since there are few barriers to entry, many companies are already in the market and more are expected to enter. Finally, frozen foods tend to have a low price point and customer demand is relatively elastic and sensitive to even small increments in price increases.
Cumulative Growth Analysis
The long-term outlook for the refrigerated and frozen foods market is bright. The CAGR is above 5%. What is expected to continue to drive strong growth in the near and far future is the rapidly growing global middle class whose purchasing power and discretionary income are increasing rapidly.
Frozen foods manufacturers are investing heavily in new technologies that are designed to make frozen foods more nutritious and last longer without the use of any preservatives. One such technology is pouch packaging. This airtight packaging keeps frozen foods fresh for longer by preventing any moisture which would encourage bacteria and mold growth. It has another benefit of retaining more of the minerals and nutrients in frozen foods for longer.
Quick-frozen technology also allows frozen foods to stay frozen for longer and retain more of their nutritional value.
Frozen Foods Market Segment Overview
Frozen food manufacturers have done extensive frozen foods market research. They are aware that people are too busy to cook yet want to eat nutritious food that can be heated easily and quickly. They are responding by introducing many innovations in frozen foods. One of these is plant-forward foods. They include meat patties that are made of vegetables. Many customers around the world who are increasingly conscious of their health are demanding these types of innovations.
The nutritional value of market selections of frozen foods is constantly improving and so is their variety. This is largely driven by new advances in technology. One of these is the use of recyclable boxes and resealable pouches. These have two advantages: they help preserve frozen foods and their nutritional value for longer and they are environmentally friendly.
Frozen foods can be divided into many categories:
Many different establishments sell frozen foods. These include supermarkets, hypermarkets, specialty stores, retail stores, and online stores, among others!
Frozen Foods Market Regional Analysis
Growth in the refrigerated and frozen foods market is strongest in the European Union. The frozen foods industry share there was 39.90% in 2019. Many Europeans live busy and hectic lives. This combined with eroding purchasing power and discretionary income has led many to prefer frozen foods.
People in North America also prefer to eat frozen foods for these reasons. China is also witnessing strong and fast growth in the frozen foods market. The rising middle classes and their greater purchasing power largely drive this. The Asia-Pacific region is seeing the highest growth in the refrigerated and frozen foods market of all regions in the world.
Frozen Foods Market Competitive landscape
Competition in the frozen foods market remains very strict. Some of the reasons why are the relatively low barriers to entry and the lucrativeness of the market.
One large company in the refrigerated and frozen foods market is General Mills (USA.) It is positioning itself in the frozen foods industry by investing millions in upgrading and implementing new manufacturing and processing technologies for frozen foods.
Companies, in general, are busy investing in research and development and new production/distribution facilities. This will help them introduce new frozen food products that are more nutritious and will last longer without preservatives. They are also expanding operations by entering new markets. Many companies like Danone are involved in joint ventures and mergers and acquisitions. They want to have an easier time entering new markets.
Major food manufacturing and processing companies:
Seara, is launching Seara Shawaya, a first-of-a-kind in the frozen foods space at Gulfood 2022. The company with presence in more than 150 countries is owned by JBS, the worldwide leader in protein-based food.
The Real Good Food Company Inc., an advanced, branded, health-and wellness-focused, high-growth frozen food brand, will introduce its latest platform, called Stuffed Chicken Bites, nationwide. Consumers can decide between two varieties of Stuffed Chicken Bites in more than 1,500 stores.
Frozen Foods Market Report Overview
The frozen foods industry is facing a strong CAGR of more than 5% until at least 2026. The main factors spurring demand are increasingly busy lifestyles. These people want food that is nutritious yet quick and easy to cook/reheat. Frozen foods also have a lower price point. Frozen food manufacturers are responding by investing in new technologies and innovations that will allow them to make frozen foods more nutritious and last longer without the need for preservatives. These manufacturers are also entering into new markets through mergers and acquisitions, joint ventures, and new product launches.
|Market Size||USD 338.5 Billion (2030)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Frozen Processed, Distribution Channel|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||General Mills (USA), Tyson Foods Inc (USA), Grupo Bimbo (Mexico), Conagra Brands Inc (USA), Associated British Foods Plc (UK), Nestle S.A. (Switzerland), Unilever Plc. (UK), Ajinomoto Company (Japan), Kraft Heinz Company (USA), McCain Foods Limited (Canada)|
|Key Market Opportunities||Growing Middle Classes in Developing Nations Increasingly Crave Organic Frozen Foods.|
|Key Market Drivers||The fact that more people around the world prefer and are willing to pay for food that is nutritious yet easy|
Frequently Asked Questions (FAQ) :
It is expected to be 5.93% globally.
The frozen foods market is expected to be worth up to 338.5 million in US Dollars by 2030
Ajinomoto Co., Inc. (Japan), McCain Foods Limited (Canada), and the Kraft Heinz Company (US) are some reputed names in the frozen foods market.
The fact that more people around the world prefer and are willing to pay for food that is nutritious yet easy and quick to cook/heat up.
Frozen seafood sells at a premium. This deters many would-be customers.