Frozen food market is estimated to be valued at USD 298.69 Bn in 2024, exhibiting a CAGR of 5.1% over the forecast period 2024-2031. Furthermore, the market growth is driven by rising health conscious consumer base that prefer frozen foods as these retain most of their nutritional value as compared to fresh foods. Frozen foods also offer variety and convenient food options to busy consumers.
Rising Working Population and Changing Lifestyle
With increasing number of working professionals and nuclear families globally, the reliance on convenient and ready-to-eat foods has increased significantly. Frozen foods offer great advantages of being time-saving as well as effortless alternative to home cooking while still delivering on freshness and nutrition. This has been a major driver boosting demands for frozen foods.
Growth of Organized Retail
Establishment of hypermarkets, supermarkets, discounters and online retail has provided enormous boost to sale and availability of frozen food products globally. Organized retail offers a wide variety of frozen food options from snacks to meals to consumers under one roof, thus, driving the market growth.
Changing consumer lifestyles is driving growth of global frozen food market
With increasingly busy lifestyles and rising dual-income households globally, consumers have less time to cook meals from scratch on a daily basis. Frozen food offers a convenient solution as it can be easily heated and served with minimal preparation. Manufacturers are introducing a wide variety of frozen products ranging from ready meals and pasta dishes to fruits and vegetables to cater to growing demand for convenience. The ability of frozen food to be stored for longer durations without refrigeration also makes it an attractive option for consumers.
Increasing health consciousness is encouraging growth of healthy frozen food options
There is a growing interest among consumers to eat healthier and nutritious diets. Many people are focusing more on wellness, nutrition and managing weight. This trend is benefiting the frozen food industry as manufacturers are launching a range of frozen veggies, fruits and meals with added nutrients. Products with claims like no preservatives, natural ingredients, high protein, low calories are gaining market share. Even frozen snacks and dessert items are being reformulated with less fat, sugar and artificial ingredients.
Volatility in agricultural commodity prices is challenging manufacturers
Frozen food manufacturing relies heavily on agricultural commodities as key ingredients. However, prices of commodities like wheat, corn, and soybean fluctuate constantly, depending on various factors like weather conditions, supply & demand forces as well as government policies. When prices increase substantially, it impacts the input costs for frozen food companies. This price volatility in raw materials poses a major challenge for manufacturers in maintaining stable profit margins.
Concerns over food waste due to packaging issues can hamper the market growth
Concerns over packaging-related food waste can hamper the market growth. When frozen foods are left partially eaten in the freezer, it gets wasted due to lack of optimal packaging solutions that allow storing leftover portions. Advanced packaging innovations that enable convenient storage and recycling of leftovers can help address this crucial concern around sustainability.
Digital revolution opening new avenues in direct-to-consumer space
The online retail boom around the world presents a huge opportunity for frozen food manufacturers to connect directly with consumers via e-commerce platforms. Companies are increasingly investing in optimizing their digital presence, launching brand websites and mobile apps for online ordering. Popular grocery delivery services are also expanding their frozen assortment and gaining strong demand within this category. Automation technologies are enabling mass customization of frozen meals as per preferences of individual households. The direct-to-consumer digital channels hold immense promise for future growth of the frozen food market.
Popularity of meal kit delivery services drives new product innovation
Meal kit delivery services that provide semi-finished ingredients and recipes for home cooking various cuisines has gained popularity in the recent years. This represents a great opportunity for frozen food players to launch partner brand products within the kits. Manufacturers are coming up with smaller resealable and microwave-friendly frozen packets that suit the needs of meal kit consumers. There is a lot of scope to expand the range of global dishes featured in these meal solutions. Manufacturers that strategically leverage their branding through popular online platforms stand to gain new customers as well as drive new product development.
While changing lifestyles and health trends are fueling overall demand for frozen food, volatile input costs pose challenges for the global frozen food market. Advancements in digital and packaging technologies present opportunities to overcome restraints and tap new growth avenues through convenient e-commerce and direct-to-consumer solutions.
*Link: https://www.coherentmarketinsights.com/market-insight/frozen-food-market-3084
Key Developments
- In March 2024, BigBasket partnered with Chef Sanjeev Kapoor to launch frozen foods brand- Precia
- In 2023, Bikano, India's favourite snack and packaged food manufacturing company, launched a range of frozen products
- In 2023, Haldiram's launched minute khana frozen food range
- In 2022, Prasuma launched new products in frozen food portfolio
Key Players
Ajinomoto Co., Inc., Kellogg Company, Conagra Brands, Inc., Nestle SA, General Mills, Inc., Kraft Heinz Company, Unilever Group, Kellogg Company, McCain Foods Limited, Nomad Foods Ltd., The Schwan Food Company, Tyson Foods, Inc., JBS S.A., Birds Eye Limited, Hormel Foods Corporation, Dr. Oetker GmbH, Amy's Kitchen Inc., Nichirei Corporation, Findus Group, Goya Foods Inc., Pinnacle Foods Inc.
