Sustainable Practices and Environmental Impact in the Frozen Food Market

Sustainable Practices and Environmental Impact in the Frozen Food Market

Frozen food products are pre-cooked or raw food items that are frozen and packed for consumption at a later stage. Frozen food offers various advantages such as longer shelf life, retention of nutritional value, and convenience of consumption. With changing dietary patterns and busy lifestyle, demand for convenient frozen food products such as frozen pizza, frozen ready meals, frozen seafood, frozen meat, and frozen vegetables is growing among the working population.

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 Opportunity:

The strong demand from the working population represents a key opportunity for the frozen food market. With rising number of dual-income households and busy schedules, people have less time for cooking meals from scratch. Moreover, young consumers prefer convenient options that save time on cooking. Frozen food addresses these needs as it offers convenience and helps save time for working individuals and nuclear families. The hectic lifestyles have increased the consumption of packaged and ready-to-eat foods including frozen varieties. Various players are launching new frozen ready meals, pizzas, snacks to cater to the growing demand from time constrained consumers. They are also improving packaging and offering microwavable products. The market is expected to significantly benefit from the trend of nuclearization and rising women workforce.

Porter’s Analysis

Threat of new entrants: The frozen food market requires high investments and resources to build production facilities and distribution networks. Established brands also enjoy benefits of economies of scale and customer loyalty which poses barriers for new entrants.

Bargaining power of buyers: The buyers in the frozen food market have moderate to high bargaining power due to availability of substitutes and brand alternatives. They can choose from a wide variety of products from different brands.

Bargaining power of suppliers: A few large multinational players dominate the supply of raw materials like meat, vegetables and fruits. This gives them significant power over pricing.

Threat of new substitutes: Alternatives like fresh and canned foods pose threat to frozen varieties. Changing consumer preferences can shift demand quickly.

Competitive rivalry: The market is fragmented with global and regional players competing on basis of price, quality, innovation and branding. M&A activities are common.

SWOT Analysis

Strengths: Wide product range, Economies of scale, Strong brand perception, Robust distribution channels

Weaknesses: Seasonal demand, Perceptions around processed food, Heavy reliance on few suppliers

Opportunities: Expanding into emerging markets, Growth in organized retail, Innovation in product offerings

Threats: Price wars, Rising input costs, Strict regulatory frameworks, Shift to fresh alternatives

Key Takeaways

The global frozen food market is expected to witness high growth supported by expanding middle class, hectic lifestyles and health benefits of frozen foods.

Regionally, North America currently dominates with U.S. being the major market. Europe follows in terms of revenues led by countries like France, Germany and UK.

Asia Pacific is identified as the fastest growing region in frozen food market during the forecast period. Rising incomes, nuclear families and awareness around frozen foods will drive demand especially in India, China, Japan and Southeast Asian countries.

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. These players are focusing on new product development, portfolio expansion and strategic mergers to gain competitive edge.