The Global Frozen Food Market was valued at USD 147.1 billion in 2020 and is expected to reach USD 186.2 billion by 2027, growing at a CAGR of 3.5% during the forecast period, 2021 - 2027.
Frozen foods are foods that are preserved under low temperature and can be used over a long period of time, conveniently. They do not require time and effort and cater to the consumers of busy lifestyles. Owing to busy lifestyles, there is a high demand for frozen food items. Given the wide variety, and new products for consumers, frozen foods beat home cooked foods. Availability of frozen foods there all year round and in any season. If a consumer wishes to eat any kind of food out of season or in any part of the world, it is possible due to frozen foods. Covid 19 and the pandemic urged people to stay home during lockdown like situations. Restrictions from going out, led people to keeping frozen foods stocked at their homes. This highly rose the demand for frozen food products and thus propelled the frozen foods market during 2020. Online grocery shopping is on the rise and due to the variety and convenience of shopping, consumers have the option of choosing their preferable products. This has created an opportunity and visibility for frozen foods and this is expected to boost the frozen foods market during the forecast period. Nestle introduced a series of new products keeping in mind the millennial population in the US in 2019. The line-up included frozen coconut chickpea curry, sweet earth lovers veg pizza, among many others. The frozen foods market is said to rise rapidly with the introduction of new products by key players.
However, with the rise in food products like organic and nutrient rich food, there is a notion that frozen foods are not as healthy as fresh food. This will restrain the growth of the frozen foods market. Another setback for the frozen food industry is the lack of infrastructure in developing countries. Frozen foods require cold chain logistics for a longer shelf life. Due to economic downfall and lack of investment in developing countries, this will create a major drawback for the frozen foods market. Frozen foods require food to be kept at a certain temperature and require special apparatus. Incase of a breakdown or slight malfunction of the system, the frozen food can get rotten. Maintenance and storage require heavy investments and in developing countries it becomes difficult to incur such investments. Hence, one of the major restraints restricting the growth of the frozen foods market is the lack of infrastructure.
Based on region, the European Region accounted for the largest share in 2020. The major reasons for the growth of the market in the European region is the ability of the population to spend, the busy lifestyle of the consumers, and Europe being the home to large bakeries and food giants. Key players such as Aryzta, have fuelled investments into research and development for innovative products and have maintained their leadership in the frozen foods market. All these factors will lead to the surge of the frozen foods market during the forecast period.
Nestle, H.J. Heinz Company, ConAgra Foods Inc., Maple Leaf Foods Inc., General Mills, BRF SA, Tyson Foods Inc., Mother Dairy Fruit & Vegetable Pvt. Ltd., Pinnacle Foods Inc., Ajinomoto Co. Inc., Kraft Foods Group Inc., Unilever PLC, Aryzta A.G., General Mills Incorporation, Kraft foods Group Inc., Among others