July 22, 2024
Frozen Food Market

Rising Demand for Convenience Food Items to Power Growth of the Global Frozen Food Market

The global Frozen Food Market is estimated to be valued at US$ 183684.71 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 Overview:

The frozen food market mainly comprises ready-to-eat meals, frozen pizza, meat products, fish & seafood, fruits & vegetables, potato products, and soups. These frozen products are easy and quick to prepare and provides convenience to customers. Rising number of double-income households and women participating in workforce has boosted the demand for convenience food items globally. Changing food habits and increasing trend of eating out has also augmented the sales of frozen foods. Frozen foods have long shelf life and help reduce food wastage compared to fresh food products.

Market key trends:

One of the key trends in the frozen food market is the rising demand for gluten-free and plant-based frozen products. With growing health awareness, consumers are shifting towards diet which are free from gluten and animal proteins. Manufacturers are launching wide variety of frozen vegetarian meals, meat alternatives and gluten-free pizza & pasta to cater to this demand. Furthermore, growing popularity of exotic and specialty food has prompted companies to offer ethnic cuisine in frozen form. Rising grocery retail sales through e-commerce channels during the pandemic has also encouraged frozen food vendors to strengthen their online distribution network. Introduction of innovative packaging solutions extending the shelf life of frozen goods is another emerging trend in the market.

Porter’s Analysis

Threat of new entrants: The frozen food market is seeing increased competition with new startups entering the space regularly, however established players have significant brand loyalty and economies of scale which make it difficult for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power given the availability of several alternatives in the market. However, private label brands give buyers more negotiating power against branded products.
Bargaining power of suppliers: Suppliers have moderate bargaining power given the need for reliability of supply and quality standards in the frozen food industry. Changes made to formulations require approval time which gives suppliers an advantage.
Threat of new substitutes: Threat from substitutes is moderate as customers have several snack options and ready-to-eat food alternatives available beyond frozen food. However, frozen food offers convenience not found in fresh alternatives.
Competitive rivalry: Competition in the frozen food market is high among major players given branding, marketing strategies and geographical expansion focuses to increase market share.

Key Takeaways

The Global Frozen Food Market Size is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period 2023 to 2030, due to increasing demand for convenient ready-to-eat meals.
Regional analysis: North America dominates the global frozen food market currently. However Asia Pacific is expected to witness the fastest growth during the forecast period owing to rising disposable incomes and preference for convenience foods in countries like China and India.
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. Focus on product innovation and expansion into emerging markets are the key strategies adopted by major players.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it