Chilling Trends: Exploring the Global Frozen Food Market

Chilling Trends: Exploring the Global Frozen Food Market

Frozen Food Market is emerging as a Nutritious Option for Today's On-The-Go Lifestyle

The frozen food market is emerging as an ideal solution for time-pressed consumers seeking healthy and convenient meal options. Frozen products allow for the preservation of nutrients found in fresh foods while offering versatility and ease of preparation. With rising work pressures and busy schedules, frozen meals and snacks have become a popular choice for their long shelf-life and ability to be cooked quickly.

The Global frozen food market is estimated to be valued at US$ 167116.37 Mn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030. Frozen foods offer distinct benefits over their fresh counterparts including longer preservation of flavors and nutrients through the freezing process. Demand is being driven by changing dietary habits and exposure to global cuisines. The market provides ample variety through products such as frozen desserts, frozen pizza, frozen potatoes, frozen meat and seafood among others.

Key Takeaways

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 companies are focusing on strategic acquisitions and new product launches to strengthen their market position. For instance, Nestle acquired General Mills' baby food business in 2019 to expand its product portfolio.

The growing demand for convenient packaged foods has boosted the frozen food industry. Time-starved consumers are increasingly opting for frozen meals, snacks and othervalue-added dairy products due to their ease of preparation. Rising health awareness has also increased sales as frozen foods retain most nutrients during freezing and can be healthier than fresh alternatives if fresh foods are not consumed immediately.

Global expansion into emerging markets presents lucrative opportunities for frozen food producers. Areas such as Asia Pacific and Latin America offer high growth potential driven by rising incomes, westernization of diets and growing urbanization. Companies are investing in local manufacturing and retail partnerships to cater to regional tastes and strengthen their foothold. For example, Nestle inaugurated a new frozen food factory in India in 2022 to meet local demand.

Market key trends

One of the key market trends is an increase in demand for plant-based and vegan frozen meals. With health and sustainability becoming priorities, consumers are seeking more meat-alternative products. Companies have responded by introducing a wide variety of meat-free options such as vegan burgers, chicken-style tenders and vegetable-based snacks. Their availability in frozen form expands the target consumer base beyond those following a strict plant-based diet. This growing demand for nutritious plant-based products will likely shape future innovations and product launches in the market.

Porter's Analysis

Threat of new entrants: High upfront costs of operations and distribution networks act as entry barriers. Bargaining power of buyers: Large buyers such as supermarkets have significant bargaining power over suppliers. Bargaining power of suppliers: The bargaining power of suppliers is low as major suppliers supply diversified products to multiple buyers. Threat of new substitutes: New substitutes like fresh food, canned/pouched food pose threat. Competitive rivalry: Intense competition between established players to gain market share.

Geographical regions where market is concentrated: The frozen food market is concentrated majorly in North America and Europe as Western countries adopt frozen foods extensively due to busy lifestyles. However, Asia Pacific is also emerging as a key region.

Fastest growing region for frozen food market: Asia Pacific region is expected to grow at the fastest rate during the forecast period due to changing eating habits, rising disposable incomes and growing population in countries like China, India giving a boost to the frozen food industry in the region. The increased acceptance of nuclear families has also boosted the demand for convenient ready-to-eat frozen foods in Asia Pacific.