Frozen Foods Market

Frozen Foods Market Size

The global frozen foods market size was USD 284.2 billion in 2023 and is projected to grow from USD 363.7 billion in 2028, at a CAGR of 5.1%. One of the primary advantages is their longer shelf life compared to fresh alternatives. This quality significantly reduces food waste, a growing concern globally. Consumers can confidently stock up on frozen foods, knowing they won't spoil quickly, aligning with sustainability goals.

The proliferation of e-commerce has further propelled the frozen foods market. Online shopping platforms offer unparalleled convenience, allowing consumers to access and order frozen foods with ease. This digital accessibility has broadened the market's reach and made it simpler for individuals to incorporate frozen food products into their meal plans.

Globalization plays a pivotal role as well, with an extensive range of international cuisines available in frozen form. Consumers can now enjoy a diverse culinary experience from the comfort of their homes, adding excitement and variety to their diets.

Lastly, the perception of frozen foods as a safer option due to reduced contamination risk bolsters their demand. In an era where food safety is paramount, the frozen foods market benefits from this perceived advantage, further driving its growth and expansion.

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Market Dynamics

Drivers: Rapid Growth in the Packaged Food & Beverage Drives Growth in the Frozen Foods Market

The rapid growth in the packaged food and beverage industry is significantly fueling the expansion of the frozen foods market. This synergy can be attributed to several key factors. Firstly, the packaged food and beverage sector is experiencing increasing demand due to changing consumer lifestyles and preferences. Convenience, portability, and longer shelf life are all characteristics that appeal to today's busy consumers.

Frozen foods align seamlessly with these trends, providing convenient, ready-to-eat or easy-to-prepare meal options. They offer a practical solution for individuals and families seeking quick, hassle-free dining choices in the packaged food realm.

Furthermore, the packaged food industry's robust distribution networks and marketing strategies make it easier for frozen food products to reach a broader consumer base. This collaborative growth strengthens both sectors, as they cater to evolving consumer needs for convenience and variety in their food choices.

Restraints: Rising Preference for Fresh and Natural Food Products

The escalating preference for fresh and natural food products is exerting a constraining effect on the growth of the frozen foods market. Consumers today are increasingly health-conscious and inclined towards choices perceived as less processed and more wholesome. This shift in preference is driven by the desire for higher nutritional value and fewer additives in their diets.

As a result, the frozen foods market faces the challenge of convincing health-conscious consumers that their products offer comparable nutritional benefits to fresh alternatives. Additionally, the perception that fresh foods are inherently healthier can deter potential consumers from exploring frozen options.

Moreover, the rising trend of farm-to-table and locally sourced produce further reinforces the preference for fresh foods, as consumers seek to connect with the source of their food and support local agriculture.

Opportunities: Rising disposable incomes in emerging economies, driving frozen foods segment

The expanding trade of processed foods presents a significant opportunity within the frozen foods market. As global trade networks continue to grow, the frozen foods industry stands to benefit in several ways. Firstly, increased international trade facilitates the exchange of a wide variety of processed foods, including frozen options. This enables consumers to access a diverse range of products from around the world, expanding their culinary horizons. Secondly, globalization supports the import and export of frozen food ingredients, allowing for cost-effective sourcing of raw materials. This can lead to more competitive pricing and increased profitability for frozen food manufacturers. Moreover, international trade encourages innovation and the development of new frozen food products to meet the tastes and preferences of different regions. This diversity in offerings can attract a broader consumer base and drive market growth.

Challenges: Lack of Cold Chain Infrastructure in Developing Countries

The lack of adequate cold chain infrastructure in developing countries poses a formidable challenge to the frozen foods market. Cold chain infrastructure, which includes temperature-controlled storage, transportation, and distribution facilities, is essential for maintaining the quality and safety of frozen food products. In many developing nations such as South Africa, and Kenya these critical components of the supply chain are underdeveloped or insufficient.

This deficiency hampers the frozen foods market in multiple ways. It can lead to temperature fluctuations during transportation and storage, resulting in quality degradation and potential food safety risks. Moreover, the limited cold chain infrastructure restricts the availability of frozen products in remote and underserved areas, limiting market penetration and growth potential.

Additionally, the cost of establishing and maintaining cold chain infrastructure is often high, posing financial challenges for both producers and distributors. Overall, addressing the cold chain infrastructure gap in developing countries is crucial to unlock the full growth potential of the frozen foods market in these regions.

Market Ecosystem

Based on type, the raw material segment is estimated to hold the largest market share during the forecast period of the frozen foods market.

Raw frozen food is poised to dominate the frozen food market due to its versatility and appeal to a wide range of consumers. This category encompasses an array of products, including fruits, vegetables, seafood, and meats, offering consumers the flexibility to create diverse and customized meals. Raw frozen foods retain their inherent nutritional value and flavor, often outperforming their cooked or processed counterparts. Furthermore, they cater to various dietary preferences, such as vegan, paleo, and gluten-free diets, making them inclusive and adaptable. In an era where health consciousness and convenience intersect, raw frozen foods align perfectly, allowing consumers to prepare fresh, wholesome meals with minimal effort. This appeal is driving their popularity, ensuring that raw frozen food remains the largest share of the frozen food market.

Based on consumption, the retail segment is anticipated to witness the highest growth in the frozen foods market.

The COVID-19 pandemic has accelerated the trend of consumers stocking up on frozen essentials due to their longer shelf life, providing a boost to the retail frozen food segment. Additionally, as consumers become more health-conscious,  frozen foods are evolving to offer a wider range of healthier options, including organic and low-calorie choices, further appealing to a health-focused demographic.

Furthermore, retail channels provide a convenient and accessible distribution network, making it easier for consumers to purchase frozen foods. With the ongoing expansion of e-commerce and online grocery shopping, retail frozen foods are well-positioned to capture a significant share of the market as they cater to the evolving preferences and needs of today's consumers.

Based on the distribution channel, the online segment is projected to experience the highest growth during the forecast period of the frozen foods market.

The online distribution channel is poised to experience the fastest growth in the frozen food market due to a confluence of factors. Firstly, the digital transformation of the retail landscape has seen an exponential increase in e-commerce and online grocery shopping, driven by changing consumer preferences and convenience. This shift has been further accelerated by the COVID-19 pandemic, which prompted many consumers to turn to online platforms for their shopping needs, including frozen foods.

Secondly, online channels offer a wider variety and selection of frozen food products compared to brick-and-mortar stores, catering to diverse dietary preferences, including vegan, gluten-free, and organic options. This variety attracts a broader customer base, appealing to health-conscious and adventurous consumers.

Moreover, the ease of doorstep delivery and the ability to compare prices and products online makes it an attractive option for time-pressed consumers. As technology continues to advance and online platforms become more user-friendly, the online distribution channel is primed for rapid growth in the frozen food market, providing unparalleled convenience and accessibility for consumers.

Frozen Foods Market Trends

• Health and Wellness: Consumers are increasingly seeking healthier frozen food options, including those with organic ingredients, fewer additives, and lower sodium content. There's a growing demand for frozen fruits, vegetables, and lean protein options as people become more health-conscious.
• Plant-Based Alternatives: With the rise in vegetarianism, veganism, and flexitarian diets, there's a surge in demand for plant-based frozen foods. This includes plant-based meat substitutes, dairy-free ice creams, and vegetable-based frozen meals, catering to the needs of diverse dietary preferences.
• Convenience and Time-Saving: Busy lifestyles and hectic schedules have fueled the demand for convenient meal solutions. Frozen foods offer quick and easy meal options without compromising on taste or nutrition. Single-serve frozen meals, microwaveable snacks, and pre-cut frozen produce are gaining popularity among consumers seeking hassle-free meal solutions.
• Premiumization: Consumers are willing to pay more for higher-quality frozen food products. Brands are focusing on premium ingredients, innovative packaging, and gourmet flavors to differentiate themselves in the market. Premium frozen pizzas, artisanal ice creams, and specialty frozen appetizers are witnessing increased demand among discerning consumers.
• Ethnic and Global Flavors: There's a growing interest in ethnic and global cuisines, driving the demand for frozen foods featuring authentic flavors from around the world. Frozen ethnic meals, such as Indian curries, Asian stir-fries, and Mediterranean dishes, are becoming increasingly popular as consumers seek diverse culinary experiences at home.
• Sustainability: Environmental concerns are influencing consumer purchasing decisions, prompting companies to adopt more sustainable practices in packaging and sourcing. Eco-friendly packaging materials, recyclable packaging, and responsibly sourced ingredients are becoming important considerations for environmentally conscious consumers.
• Online Retailing: The rise of e-commerce has transformed the frozen foods market, making it more accessible to consumers through online grocery platforms and meal delivery services. Brands are investing in e-commerce strategies, including direct-to-consumer sales and partnerships with online retailers, to reach a wider audience and offer greater convenience to consumers.

Europe Holds the Largest Share of the Frozen Foods Market

Europe is a major hub for frozen vegetable consumption, driven by busy lifestyles and a growing demand for affordable, nutritious, and convenient food options. Rising incomes and changing dietary preferences are propelling this market, with consumers shifting towards plant-based diets. Key opportunities for vegetable suppliers are found in countries like Germany, France, Belgium, Italy, and the Netherlands. Public awareness of the superior nutritional value of frozen vegetables over fresh and refrigerated ones is boosting demand, especially among younger generations.

According to the European Ministry of Foreign affairs, in  2021, Europe imported €3 billion worth of frozen vegetables, totaling 2.8 million tonnes, with 91% coming from within Europe and only 9% from developing nations. Europe's status as a major global frozen vegetable producer drives this predominantly internal trade. Germany, with a 20% market share, leads European imports, followed by France (18%) and Belgium (14%). These countries, particularly Germany and France, are crucial focus markets. Belgium, while a major producer and exporter, sources certain vegetable varieties from other nations. Italy, the Netherlands, Spain, and Sweden also rank among the top European markets.

Germany, ranked as the world's third-largest frozen vegetable importer (after the United States and Japan), holds the top spot in Europe. In 2021, 90% of Germany's frozen vegetable imports came from fellow European nations, with 10% originating from developing countries. This robust import activity within Europe contributes significantly to the growth of the European frozen foods market.

Contract catering, in which an external organization outsources catering services to a specialized company through a contractual arrangement, is becoming increasingly popular among businesses, public authorities, childcare centers, educational institutions, healthcare facilities, and correctional facilities in Europe. According to Food Service Europe, the contract catering industry boasts an annual turnover exceeding USD 26.59 billion, with substantial growth potential since, on average, only 35% of European firms or collective organizations providing social food services have contracts with catering companies.

The growing trend of dining outside the home is driving the expansion of contract catering to encompass a broader range of venues and events than ever before. This includes services at sporting events, museums, train stations, airports, and more. These organizations often rely on their contracted caterers not only to provide food but also to establish a unique style, atmosphere, and image for their customers.

This trend in contract catering is anticipated to have a  positive impact on the European frozen foods market. With more venues and events seeking catering services, there is an increased demand for a diverse range of food options, including frozen foods. Contract caterers opt for frozen food solutions to efficiently meet this demand, as frozen foods offer convenience, longer shelf life, and the ability to cater to a wide range of tastes and preferences. As a result, the European frozen foods market stands to benefit from the growth of the contract catering sector as it continues to expand its reach and services.

Frozen Foods Market Share

The key players in this market include General Mills Inc. (US), Nestlé (Switzerland), Unilever (Netherlands), McCain Foods Limited (Canada), Conagra Brands, Inc. (US), Kellogg's Company (US), Grupo Bimbo (Mexico), and The Kraft Heinz Company (US)

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Scope of the Report

Frozen Foods Market Segmentation:

This research report categorizes the frozen foods market based on Product, Type, Consumption, Distribution Channel, Freezing technique, and Region.

By Product

• Fruits & Vegetables
  • Frozen Fruits
  • Berries
  • Mango Chunks
  • Others
  • Vegetables
  • Cauliflower
  • Broccoli
  • Bell Pepper
  • Carrot
  • Beans
  • Mushroom
  • Avocado
  • Corn
  • Others
  • Frozen Potatoes
  • French Fries
  • Other processed potato products such as Hash Brown, Etc
• Dairy Products
• Bakery Products
  • Proofed
  • Fully Baked
• Meat & Seafood Products
  • Poultry
    • Raw (Secondary Processing)
    • Pre/Half Cooked (Further Processing)
    • Fully Cooked/Ready to Eat (Further Processing)
  • Red Meat
    • Raw (Secondary Processing)
    • Pre/Half cooked (Further Processing)
    • Fully Cooked/Ready to Eat (Further Processing)
  • Fish/Seafood
    • Raw (Secondary Processing)
    • Pre/Half Cooked (Further Processing)
    • Fully Cooked/Ready to Eat (Further Processing)
• Plant-based protein
  • • Pre/Half Cooked (Further Processing)
    • Fully Cooked/Ready to Eat (Further Processing)
• Convenience Food & Ready Meals
• Pet Food
• Other Products

By Consumption

• Food Service
• Retail

By Type

• Raw Material
• Half-cooked
• Ready-to-Eat

By Distribution Channel

• Online
• Offline

By Freezing Technique

• Individual Quick Freezing (IQF)
• Blast Freezing
• Belt Freezing

By Region:

• North America
• Europe
• Asia Pacific
• Central & South America
• Rest of the World (RoW)

Target Audience

• Frozen food producers, suppliers, distributors, importers, and exporters
• Large-scale frozen food manufacturers and research organizations
• Related government authorities, commercial research & development (R&D) institutions, FDA, EFSA, USDA, FSANZ, EUFIC government agencies & NGOs, and other regulatory bodies
• Food product consumers
• Regulatory bodies, including government agencies and NGOs.
• Commercial research & development (R&D) institutions and financial institutions
• Government and research organizations

Frozen Foods Market Industry News

• In April 2023, Nestlé and the private equity firm PAI Partners came to an agreement to establish a joint venture focused on Nestlé's frozen pizza business in Europe. This move aimed to create a specialized player in a highly competitive and constantly evolving market segment. In this joint venture, Nestlé would maintain a minority stake, ensuring equal voting rights in partnership with PAI Partners.
• 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. This strategic move is expected to foster continued growth for the company, strengthening its ability to cater to key markets.
• In January 2022, Unilever, the largest ice cream company globally, introduced its new portfolio offerings for the year 2022. These offerings spanned across four of its prominent packaged ice cream and frozen novelty brands, namely Breyers, Klondike, Magnum ice cream, and Talenti Gelato & Sorbetto. This strategic move reflected Unilever's commitment to innovation and meeting consumer preferences by continuously refreshing its product lines and expanding its portfolio.

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