The Global Frozen Foods 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 widely used due to its convenience. Changing lifestyles, growing number of working populations, busier lifestyles and affinity towards convenient products are the factors that will lead to the rise of the frozen foods market. Due to hectic work and daily schedules, people prefer frozen foods which is an important factor of the growth of the frozen foods market. Changing shopping cultures from supermarkets to online grocery shopping, consumers have access to a wider range of products. According to 2019 report of Eurostart, 25 percent of the world population purchased their food through the means of online shopping. This rise is also attributed to the growing use of smartphones.
This is slated to create new opportunities for new entrants. This is another reason which has fueled the growth of the frozen foods market. Due to the Covid 19 pandemic, people were forced to stay indoors and due to the uncertainty of the situation, people shopped in bulk for frozen foods. The long shelf life and long-lasting nature of frozen foods is one of the major reasons for the growth of the frozen foods market. However, the market was hampered due to manufacturing plants being shut during the Covid 19 pandemic. Another reason for the hindrance in the frozen foods market is the comparison of fresh food to frozen foods. It is widely debated that frozen food is not as healthy as fresh food. Another major reason for the downfall of the growth of the frozen foods market is the lack of investment in cold chain logistics and infrastructure in developing countries. The requirement for special equipment for cold storage for frozen foods needs heavy investment. In developing countries, such as Bangladesh and Myanmar, there is a lack of investment towards the infrastructure of cold storage. Thus, factor is considered to hinder the growth of the frozen foods market.
However, in many countries, Manufacturers around the world are adopting strategies at regional levels such as mergers and acquisitions with other companies at local level of the market. This makes scope for distribution of the frozen food items stronger. In many countries, there are heavy investments being made in the frozen foods industry. One of the many new technologies is pouch packaging which is airtight and keeps frozen foods fresh for longer durations. This technology also enables more nutrients and minerals to be retained in the food. Key players are investing to innovate new products and wider variety for consumers. The latest product among many to be introduced is plant-forward foods. These are meat patties that are made of vegetables and they are highly demanded by health-conscious consumers around the world. With new innovations such as these and many others, this is seen as an opportunity for the frozen foods market.
Based on product type, frozen potatoes segment, in the frozen vegetables segment, is likely to witness the fastest CAGR of 5% during the forecast period. Hotel chains, restaurant businesses, fast food joints, catering companies are largely the users of frozen food products especially frozen vegetables and fruits. The increase in the frozen potatoes segment is owing to the increase in fast food items such as French fries, potato chips, and other potato-based snacks among all age groups. This growth is also due to new and innovative products frozen ready meals which are due to heavy investments towards the research and development of food processing. A strong distribution network of frozen food items will contribute significantly to the growth of the frozen potatoes segment.
Based on type, the ready to eat meals segment is projected to generate the largest share of revenue. This is attributed to surge in use of frozen pizza crusts, bread, and frozen bakery products, which acts as a key driver of the ready meals segment. The rise in demand for the ready to eat meals is mainly due to the lack of time to cook meals in busy lifestyles. The rising millennial population and their rising demand for fast and on the go, meals are one of the major reasons for the rise in ready to eat frozen foods. Key players are investing in and innovating new products to create a wider range of ready to eat meals. One major example is the launch of halal ready to eat foods by the renowned brand Marks and Spencer in the United Kingdom in 2019.
Based on region, Europe, held the highest market share for 2020 which accounted to 40% CAGR and is expected to a high growth rate during the forecast period. Europe is deemed to hold the major share in the frozen foods market share. With one of the largest consumer bases in the European region, who have the capacity to spend and have busy lifestyles the frozen foods market will flourish. With a rise in the vegan population in Europe, the sales of frozen foods will see a major boost. Due to the death of more than 50 thousand people during the Covid pandemic, the European region witnessed a rise in the frozen foods market.
Company Profiles and Competitive Intelligence:
The major players operating in the global Frozen Foods Market include 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 among others are the key players operating in this market are focusing on collaborating with various stakeholders and innovating new products. Growing consumption of frozen foods is urging companies to produce sustainable and durable food products.
The sudden outbreak of the Covid 19 pandemic and lockdown like situation led to panic buying among consumers. The anticipation of the future and volatility of the pandemic, led to the excessive purchasing of frozen foods with the fear in mind of uncertainty among consumers. This led to the boom in the frozen foods market. However due to social distancing and curfew like situations in many nations across the world, manufacturing plants were shut which led to a dip in the growth of the market. However, as the situation normalizes, the frozen foods industry will also gain momentum.
|1||Lack of investment in cold chain logistics and infrastructure in developing countries||Negative|
|2||Boom in Online Grocery Shopping||Positive|
|3||Rising employment rate of women leading to lesser time for cooking||Positive|
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