Frozen processed food market is estimated to be valued at USD 75.07 Bn in 2024, exhibiting a CAGR of 2.8% over the forecast period of 2024-2031. Furthermore, growing demand for convenience food items among busy consumers is expected to support the market growth.
Market Dynamics:
Global frozen processed food market growth is primarily driven by two major factors. Changing lifestyles and increasing disposable incomes have led to rise in demand for convenient and ready-to-eat food options. Frozen processed foods eliminate the need for extensive cooking and food preparation at home, appealing greatly to working professionals and young consumers. Growing population worldwide is propelling the food processing industry to meet the demand for food products. Producing frozen varieties of perishable foods allows manufacturers to reduce food wastage and expand availability all year round.
However, high dependency on frozen foods may negatively impact health and nutrition due to higher sodium and fat levels in certain products. Moreover, issues regarding food safety and quality arising during the freezing process could challenge market players. Innovations in freezing technology and emergence of organic frozen foods are expected to provide new opportunities for market growth over the forecast period.
Changing Consumer Lifestyle and Busy Schedules Boosts Demand for Convenient Frozen Food Options
One of the major drivers for the global frozen processed food market is changing lifestyles and busy schedules of consumers around the world. People now have less time to dedicate to cooking meals from scratch on a daily basis. Frozen processed foods provide a convenient option as these require little to no preparation time and can be cooked or heated quickly. Many frozen meals, snacks and food items can simply be popped in the microwave or oven to be ready in a matter of minutes. This saves consumers valuable time that people can spend on other activities instead of cooking. As more people take on multiple jobs or pursue higher education alongside work, the demand for convenient frozen food options will increase.
Growth of Organized Retail and Increased Availability Drives the Frozen Processed Food Market
Another key driver is the growth of organized retail such as supermarkets and hypermarkets around the world. These large retail stores dedicate considerable shelf space to frozen foods and provide exposed storage for frozen items, improving their visibility and access for consumers. The increased availability of frozen processed food in grocery stores makes these a more viable option for consumers compared to traditional unpackaged foods. Organized retailers employ marketing and promotions to boost frozen food sales as well. As the retail landscape in developing nations becomes more organized, it will expand the availability of frozen processed foods and drive the market growth in these regions in the near future.
Health Concerns and Perception of Non-Fresh Food Can Act as Restraint
One major restraint for frozen processed food market is health concerns among consumers regarding highly processed foods and preservatives. There is a perception that frozen items contain more preservatives, sodium, fat and calories as compared to fresh foods. While frozen products are not necessarily unhealthier, this negative perception deters some consumers. Some people view frozen foods as inferior substitutes for fresh ingredients. The perception that frozen items are stale or low-quality as compared to unpackaged fresh foods can hamper the market growth, especially in developing markets where such mindsets are more common. Educating consumers about food safety and nutrition aspects can help address these restraints over time.
Strict Government Regulations on Food Additives Limit Market Growth
Governments around the world are imposing stricter regulations on the types and volume of additives permitted in packaged and processed foods. Any addition of new ingredients or increase in the allowable limits of existing additives requires extensive research and approval procedures. This regulatory burden increases costs and compliance pressures for frozen food companies. Newly imposed regulations may also force the reformulation of established product lines. Overall, stricter additive regulations restrain the scope of product innovation and limit the pace of market growth for the frozen processed food industry globally.
Growing Demand for Healthy and Organic Options Presents Opportunities
Consumers are increasingly health-conscious and seeking frozen meal solutions that are nutritious, natural, and minimally processed. This growing demand represents an opportunity for manufacturers to introduce new lines of frozen foods with attributes like whole grains, plant-based proteins, low sodium, no added hormones/antibiotics, clean label, organic and non-GMO claims. Companies positioning their portfolios to cater to this demand can attract new customers and see greater market share over time.
E-commerce Growth in Developing Markets Unlocks New Market Potential
Fast delivery services and online grocery platforms are growing rapidly in these regions. This allows frozen food companies to directly connect with consumers who may not be served by brick-and-mortar stores. It also supports the marketing and promotion of products. Leveraging the rise of e-commerce can help manufacturers unlock substantial untapped market potential, especially in rural and suburban areas not supported by physical retail infrastructure. Overall, e-commerce growth across emerging markets provides a significant opportunity to expand the frozen processed food industry in these regions in the near future.
*Link: https://www.coherentmarketinsights.com/market-insight/frozen-processed-food-market-1228
Key Developments
- In March 2024, Big Basket partnered with Mr. Sanjeev Kapoor to launch frozen foods brand- Precia
- In September 2023, General Mills invested USD 48 Mn to expand its frozen dough facility in Joplin, Missouri, U.S., and is expected to create 47 new jobs
- In April 2023, Nestle and PAI Partners, the private equity firm, signed an agreement to establish a joint venture focused on Nestlé's frozen pizza business in Europe
- In March 2023, McCain Foods, the global leader in frozen potato products manufacturing, made a significant announcement of a substantial investment totaling USD 438.4 million. This investment is directed towards the expansion and doubling in size of its potato processing plant located in Coaldale, Alberta.
Key Players
Unilever, Nestle, Conagra Brands, Inc., GRUPO BIMBO , General Mills Inc., Kellogg Co. , McCain Foods Limited, The Kraft Heinz Company, Associated British Foods plc, Ajinomoto Co. Inc., Vandemoortele, Lantmannen Unibake , Cargill, Incorporated, Europastry, JBS Foods, Kidfresh, Aryzta.com, Shishi He Deming Seafood Co Ltd, OOB Organic, Omar International Pvt Ltd
