The frozen seafood market is expected reach USD 20.12 billion by 2027 at 5.70% CAGR. Froze seafood is kept at freezing temperatures to expand the shelf life by preventing the growth of different kinds of microorganisms. The freezing process that is undertaken helps lower the decomposition level by converting the remaining moisture into ice. Two key processes are followed for freezing seafood, namely, flash freezing or cryogenics and mechanical freezing. The cryogenic process is popularly used for freezing seafood. It involves the application of freezing technology and ultra-low nitrogen that has a temperature of -196 degrees Celsius.
Various factors are expected to drive the market growth, such as increasing the health awareness of customers and their shift from canned food to frozen food. Frozen seafood is mainly served in locations that are far away from water bodies. Due to the lack of coastal areas, people from such areas are unable to access fresh seafood. The availability of frozen seafood enables them to explore new kinds of food apart from meat and their staple food. According to the U.S. Food and Drug Administration (FDA), if seafood is used within two days of purchase, it must be stored in a refrigerator at a temperature of 40-degree Fahrenheit or lower. Proper freezing of seafood influences its quality as well as taste.
A detailed evaluation of the frozen seafood market has been conducted. Several factors have been identified and examined, such as drivers, opportunities, challenges, and restraints. Each of these market variables can potentially influence the frozen seafood market size during the forecasted period.
COVID 19 analysis
The COVID 19 pandemic has significantly impacted the frozen seafood market. It has changed the buying pattern of consumers as they have preferred to purchase essential commodities. Due to the stringent lockdown restrictions, the import of frozen seafood among various nations has been affected. However, the market is expected to recover during the forecasted period as several restrictions have been eased. An important factor that is likely to positively influence the performance of the market in post-pandemic times is the shift of consumers towards healthy and nutritionally rich food.
Chief variables existing in the market
Some of the chief drivers driving the frozen seafood market demand include the rise in health awareness among customers. Similarly, the increase in the shelf life of frozen seafood by restricting the growth of microorganisms has also boosted the performance of the market. During the forecasted period, businesses need to capitalize on these drivers to expand their portion of the market share.
One of the main challenges that adversely affects the frozen seafood market is the risk of damage to food due to thawing. The requirement of a well-functional and highly developed cold chain infrastructure also poses a major challenge for the business entities operating in the market. To carry out the business operations on an ongoing basis, companies need to invest in their infrastructural capabilities so that the quality of frozen seafood would not get compromised in any manner.
There exist several opportunities in the frozen seafood market that could be exploited in the future. There is an opportunity for businesses to integrate the latest technologies in their cold chain infrastructure so that seafood can be properly frozen and stored. There is also an opportunity for businesses to collaborate with fishermen and fisheries so that at every stage of the transportation process, the quality of the seafood would remain intact. In the competitive market setting, companies would gain a competitive edge by exploiting the new market opportunities that come along their way.
Several restraining elements exist in the global frozen food market that hampers its growth. One of the key restraints is the depletion of various kinds of sea species. It minimizes the varieties of frozen seafood that businesses can offer to their customers. Another major restraining factor is the availability of other alternatives such as meat, dairy products, etc. These elements could restrain the growth of the market during the forecasted period.
Cumulative evaluation of the market
The attractiveness of the frozen seafood market has been evaluated in the report. A diverse range of market variables has been identified and investigated to influence the industry's growth potential during the forecasted period. The opportunities, drivers, challenges, and restraints that have been examined could positively and negatively impact the market's performance in the future. Based on the detailed frozen seafood market analysis, it can be ascertained that the market would showcase commendable performance in the future. However, the businesses that operate in the promising industry also need to consider the market elements that could hamper their profitability.
Overview of the main market segments
The market can be further segmented based on product type into fish, crustaceans, shellfish, mollusks, and others. The fish segment has been playing a dominant role in the market, and it has significantly contributed to market growth in recent times. The fish segment is expected to play an instrumental role in expanding the frozen seafood market size during the forecasted period.
Based on the distribution channel, the global seafood market can be further divided into store-based and non-store-based. The store-based segment can be further categorized into supermarkets and hypermarkets, convenience stores, and others. Convenience stores and supermarkets, and hypermarkets are likely to play an influential role in boosting the performance of the market during the projected period. The high demand for seafood over meat could drive the performance of the specific market segments.
The frozen seafood market can be categorized into several geographical regions such as Europe, North America, the Asia Pacific, and the rest of the world. The industry in North America is projected to act as the market leader and drive the market performance during the assessment period. Several factors could influence the performance of the regional segment, such as the availability of developed and innovative cold chain infrastructural facilities. The surge in seafood consumption compared to red meat is also expected to drive the region's performance in the future. The Asia Pacific region is also expected to showcase commendable performance in the future due to a rise in seafood demand due to population growth.
Competitive intensity in the industry
The market is considered to be one of the most flourishing industries of recent times. As frozen seafood suits the hectic and fast-paced lifestyle of customers, its demand has been expanding considerably. Due to the high frozen seafood market demand, several players have entered the market landscape and intensified the competitive intensity. Some of the chief businesses that have been playing a dominating role and expanding the market size at the global level are listed below
Recent market developments
A comprehensive analysis of the market has been presented in the report. Several strategic frameworks and models have been used to investigate the macro and micro factors in the market setting. The PESTLE framework has been used to examine the factors that exist in the political, economic, social, technological, environmental, and legal settings. Similarly, Porter's Five Force Model has been used to assess the competitive intensity in the market. The detailed frozen seafood market analysis has increased the richness of the market study. Additionally, it has helped to determine the growth potential of the industry during the forecasted period.
Key Industrial segments
By Product Type
By Distribution Channel