July 16, 2024

Growing demand for convenient foods to fuel growth in the global frozen food market

The frozen food market consists of ready-to-eat or ready-to-cook food products that are frozen prior to distribution and storage. Common frozen food products include frozen vegetables and fruits, frozen meat and seafood, frozen pizzas and meals, frozen bakery products and frozen snacks. Frozen foods offer advantages such as longer shelf life, minimal risk of food poisoning and freedom from seasonal unavailability of foods. They provide consumers an easy option for quick meal preparation while retaining the nutritional value of fresh food. The growing desire for convenient, easy-to-cook meals has been a key driver boosting demand in the global frozen food market.

The global frozen food market is estimated to be valued at US$ 167,116.37 Mn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the frozen food market is the rising popularity of organic and natural frozen foods. Consumers are increasingly preferring frozen meals made from natural ingredients without additives and preservatives. Another trend gaining ground is customization and variety in frozen food products. Companies are innovating their product lines to cater to the changing tastes and preferences of diverse consumer groups. For instance, traditional frozen pizza and meal manufacturers are introducing cauliflower, gluten-free and plant-based options. Furthermore, the growing fast food and fast casual restaurant sector has increased the demand for artisanal and gourmet frozen foods. Companies are launching premium frozen snacks, meals and bakery items to cash in on this opportunity. Overall, emphasis on health, variety and quality continues to define the outlook of the frozen food market space.

Porter’s Analysis

  • Threat of new entrants: The frozen food market requires high capital investment in production, storage and distribution infrastructure which acts as a barrier for new players.
  • Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and brands. They can negotiate on price and switch between brands easily.
  • Bargaining power of suppliers: Major brands source raw materials from a limited number of suppliers globally which gives them bargaining advantage over suppliers.
  • Threat of new substitutes: Products from canned, fresh and processed food categories can act as substitutes. However, convenience factor of frozen foods makes it irreplaceable.
  • Competitive rivalry: The market is dominated by few global brands leading to high competition. Players compete on basis of product variety, quality, promotions and relationships with retail channels.

Key Takeaways

The global frozen food market is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period, due to increasing preference for convenient ready-to-eat meals. The market size for 2023 is US$ 167116.37 Mn.

Regional analysis: North America dominates the market owing to busy lifestyles and presence of major brands. however, Asia Pacific is poised to be the fastest growing market due to rising incomes, westernization of diets and increasing women workforce.

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. The key players are focused on new product launches to meet dynamic consumer preferences. For instance, Nestle Japan launched over 300 plant-based frozen food products in 2021.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it