The frozen food market consists of a wide variety of frozen food products including frozen desserts, frozen pizza, frozen vegetables, frozen meat and poultry, frozen seafood and others. Frozen food products have longer shelf life as compared to fresh food products. Consumers opt for frozen food items as they are quick and easy to prepare saving time for working individuals. Moreover, frozen food contains same amount of nutrients as fresh food. Frozen food manufacturers focus on innovating their offerings and introducing organic, gluten-free, low-calorie and other healthy options to cater to evolving needs of health-conscious consumers.
The global Frozen Food Market is estimated to be valued at US$ 167116.37 Mn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends witnessed in the frozen food market is the introduction of vegetarian and vegan options. With rising health consciousness among consumers and growing awareness about benefits of plant-based diets, demand for meat alternatives is increasing substantially. Major frozen food brands are launching a variety of frozen vegetables burgers, entrees, snacks made from ingredients like tofu, tempeh etc without the use of any animal products. Furthermore, frozen food manufacturers are focusing on clean label positioning by removing artificial preservatives, colors and flavors from their products. Consumers today closely scrutinize ingredients lists and prefer brands that use simple, recognizable ingredients. They are willing to pay premium prices for organic, non-GMO and natural frozen food items. Advancements in freezing technologies have also boosted the frozen food industry. Companies leverage new freezing methods like individual quick freezing (IQF) and flash freezing to enhance nutrition retention and boost shelf life of products.
- Threat of new entrants: The frozen food market has moderate threat of new entrants due to large economies of scale and capital requirements. However, new companies specialized in niche categories can enter the market.
- Bargaining power of buyers: Buyers have low bargaining power in the frozen food market as it is fragmented with many global and regional suppliers. Product differentiation gives advantage to suppliers.
- Bargaining power of suppliers: Suppliers have moderate bargaining power due to concentration of few key raw material producers. Suppliers can negotiate prices to some extent with buyers.
- Threat of new substitutes: Threat of substitutes is low as frozen food offers convenience without compromising on taste or quality compared to other substitutes like canned, fresh or preprocessed food.
- Competitive rivalry: The frozen food market witnesses high competition. Major players compete on the basis of brand, quality, taste, distribution network and innovation.
The global frozen food market is expected to witness high growth over the forecast period. v
North America leads the global frozen food market and is expected to maintain its dominance over the forecast period owing to increasing demand for convenient and ready-to-eat food in countries like US and Canada. Rising urban population and busy lifestyles drive the growth of frozen food market in the region.
The European frozen food market is expected to grow at a steady pace. Countries like UK, France, Germany, Italy, and Spain contribute significantly to the region’s frozen food market growth. Increased demand for ethnic frozen food and increasing investments in cold chain infrastructure support market growth in Europe.
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. Major players focus on new product launches, mergers & acquisitions and geographical expansions to meet the rising demand and strengthen their market position.