Frozen food products such as frozen ready meals, frozen seafood, frozen meat, frozen fruits and vegetables have witnessed immense growth in consumption globally due to growing working population and urbanization. Frozen foods offer convenience and ease of preparation coupled with longer shelf life as compared to fresh foods. Food products are frozen at farm/processing facilities using advanced freezing technology which help retain nutritional value, quality and taste of foods. Global frozen food market is estimated to be valued at US$ 167,116.37 Mn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the frozen food market are Nestle S.A., Ajinomoto Co., Inc., Kraft Foods Group, Inc., ConAgra Foods, Inc., General Mills, Inc., H.J. Heinz Company, Tyson Foods, Inc., Unilever Plc., Maple Leaf Foods, Inc., and Pinnacle Foods, Inc. These players are focused on new product launches, mergers and acquisitions to strengthen their market position.
The frozen food market offers massive untapped opportunities especially in developing countries owing to rapidly changing lifestyles and rising disposable incomes. Rising awareness about nutritional benefits of frozen foods also presents growth prospects for manufacturers. Furthermore, introduction of gluten-free and organic frozen food products catering to specific dietary needs will drive the demand.
Cold chain logistics plays a vital role in frozen food supply chain management. Optimization of frozen transportation and storage infrastructure through advanced refrigeration systems, temperature tracking technologies and shorten delivery time are major technological advancements supporting the growth of frozen foods industry.
Market Drivers
Growth of organized retail: Rising penetration of hypermarkets, supermarkets and online grocery platforms have made frozen foods more accessible to consumers globally. Organized retail provides increased visibility and shelf space for frozen food products.
Current Challenges in the Frozen Food Market
The frozen food market is facing various challenges like increasing cost of raw materials and packaging due to inflation. Supply chain disruptions caused during the pandemic impacted the availability of raw materials and led to price rise. Consumer preference is shifting towards fresh and minimally processed foods which is a challenge for frozen food companies. Maintaining cold chain during transportation and storage and ensuring food quality and safety also remains an ongoing challenge.
SWOT Analysis
Strength: Wide variety and convenience of frozen foods available. Improved freezing technology helps retain nutrients and flavor.
Weakness: Perception of frozen foods being low quality compared to fresh. Higher costs associated with freezing, storage and logistics.
Opportunity: Growth in ready to eat category. Increase in number of people eating out less after pandemic favorable.
Threats: Vulnerability to supply chain disruptions. Competition from fresh food brands pushing organic and clean label products.
Geographical Regions of Concentration
The United States accounts for the largest share in the global frozen food market in terms of value. Easy availability through retail outlets and growing demand for convenience foods has made US the biggest market. Europe is another major region concentrated for frozen foods led by countries like United Kingdom, Germany and France.
Fastest Growing Geographical Region
Asia Pacific region is poised to be the fastest growing market for frozen foods during the forecast period. Rising middle class population and busy lifestyles are driving the demand for convenient frozen meals and snacks in countries like India and China. Favorable government policies supporting food processing industry and growing retail infrastructure also supports the growth of frozen food consumption in Asia Pacific.