Frozen Fruit Market is estimated to Witness High Growth Owing to Increasing Health Awareness and Growing Consumption of Convenience Foods
The frozen fruit market is estimated to be valued at USD 4.93 Bn in 2024 and exhibit a CAGR of 6.5% over the forecast period 2024-2031. Furthermore, growing demand for ready-to-eat and on-the-go food items is also contributing to the market growth.
Market Dynamics:
The growth of the frozen fruit market is mainly driven by increasing health awareness among consumers and growing consumption of convenience foods. Rising awareness regarding the various health benefits of fruits such as vitamins, minerals, fiber and antioxidants is encouraging more people to include fruits in their daily diet. However, the short shelf life of fresh fruits is a major limitation. This is creating demand for frozen fruits which have longer shelf life and provide similar nutritional benefits. Additionally, changing lifestyles and busy schedules have increased the demand for convenience foods including frozen fruits that can be easily consumed without requiring much preparation time. Rapid urbanization coupled with rising disposable incomes is also fueling the sales of convenience food items including frozen fruits. Manufacturers are further boosting the market growth through product innovation, new flavors and offerings catering to various regional tastes.
Market drivers, restraints and opportunities for the frozen fruit market:
Increasing health consciousness driving demand for frozen fruits
The growing health consciousness among consumers is a major driver for the frozen fruit market. Frozen fruits retain most of their nutritional value even after months of freezing compared to fresh fruits that start losing nutrients within days. They are thus seen as a healthier option by health-conscious consumers. Several frozen fruit products are now marketed as having high fiber, vitamins and antioxidants. This boosts their popularity among those focusing on nutrition, weight management and overall well-being. The COVID-19 pandemic further raised awareness on immune health, benefiting frozen fruits known to contain vitamins that support the immune system.
Year-round availability of fruits expands markets and consumption
Another key driver is the frozen fruit market's ability to offer year-round availability of fruits. While seasonal and tropical fruits have limited growing seasons, freezing allows their preservation and supply beyond harvest periods. This overcomes the challenge of inconsistent fresh fruit supply and availability. It enables consistent consumption of fruits throughout the year. It also opens up new export opportunities by making different types of seasonal fruits from across world regions available year-long in various local and international markets. The steady supply stream drives increased exposure and trial among consumers, supporting market growth.
High processing and storage costs pose challenges
One major restraint is the high production and storage costs involved. The freezing process requires specialized equipment and techniques to flash freeze fruits while retaining their quality, texture, color and nutrients. This freezing, packaging, storage and distribution of frozen fruits brings higher costs compared to fresh fruits. Similarly, maintaining the cold supply chain from production to retail also involves significant expenditure on equipment, energy and temperature controls. These high processing and logistics costs eat into the margins for manufacturers and retailers.
Stiff competition from fresh fruits
Another significant challenge is the competition from fresh fruits. While the health and availability benefits make frozen fruits an attractive option, the preference for fresh produce remains strong among many consumers. This is due to attributes like superior texture, taste and appearance offered by fresh fruits in season. Retailers also tend to push fresh seasonal options more prominently than frozen variants. Staying poised against the competitive threat from fresh fruits demands ongoing new product development and strong marketing by frozen fruit brands such as Wyman’s.
Growing demand for convenience fuels innovations
The increasing demand for convenience and ease amid busier lifestyles presents a major opportunity. Many consumers have less time for extensive meal preparation. Thus, products that offer fruits with no-thaw or no-peel convenience see rising demand. This drives manufacturers to innovate new preparations like sliced, diced, pureed frozen fruits as well as blends, smoothies and snacks for easy snacking or cooking. Such innovations extend the frozen fruit category beyond basic frozen berry mixes. They attract new consumers and create incremental growth potential.
Emergence of specialty retail outlets expands reach
The proliferation of specialty health food stores is another key opportunity area. These outlets focused on organic, natural and specialty products play an important role in exposing consumers to new brands and product categories like frozen fruits. They allow targeted marketing and education by frozen fruit brands to raise awareness. These stores help increase the frozen fruit products' footprint beyond conventional supermarkets. This expanded point of sale access can significantly drive volumes by gaining trial from new audiences interested in functional and healthy foods.\
Link - https://www.coherentmarketinsights.com/market-insight/frozen-fruit-market-3506
Key Developments:
- In June 2022, Delektia, a Dubai-based (U.A.E) frozen food company, signed a contract with Medicaa, a consultancy and import agency in Jordan, to enter the frozen fruit market
- In May 2022, serial entrepreneur Mira Jhala launched her fourth startup, FroGo, an online business focused on frozen food products and distribution, located in Gurugram, India
- In April 2021, Aussie Frozen Fruit, an Australia-based company, introduced frozen pineapples as their fifth product, available in 400g packs made from 100% Australia-grown fruit
- In January 2021, Dole Packaged Foods, LLC opened a new frozen fruit facility in McDonough, GA. This marks Dole's third facility in the U.S. The new site spans approximately 60,000 square feet and is fully automated, featuring four manufacturing lines capable of producing 60 million pounds of frozen fruit each year.
Key Players:
Kendall Fresh Frozen Fruits, Inc., Del Monte Produce Inc., Nomad Foods, Nature's Touch, HARVEST FOOD GROUP, Titan Frozen Fruit, Meel Corp, Val-Mex Frozen Foods, LLC, Royal Ridge Fruits, and SunOpta
