The global frozen food market sizeis projected to reach USD 185.28 billion by 2027, exhibiting aCAGR of 3.1% during the forecast period. Growing number of urban dwellersaround the world will be a leading factor propelling this market in the nearfuture, states Fortune Business Insights™ in its report, titled “FrozenFood Market Size, Share & COVID-19 Impact Analysis, By Type (FrozenVegetables and Fruits, Frozen Ready Meals, Frozen Pizza, Frozen Seafood, FrozenMeat Products, Frozen Potato Products, Frozen Baked Products, and Others),Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, ConvenienceStores, and Online Retail), and Regional Forecast, 2020-2027”. Urbanizationis gaining considerable traction worldwide, underpinned by speedy economicgrowth and development, especially in Asia and Africa.
According to the UN Department of Economic and Social Affairs(DESA), urban areas, which house roughly 55% of the global population atpresent, will be home to nearly 70% of the world population by 2050. Putdifferently, over 2 billion people will be added to the world’s urban areas inthe next three decades, with Asian and African countries leading the charge.Urban agglomerates are typically characterized by the widespread presence ofsupermarkets, hypermarkets, and departmental stores. Frozen type of foodproducts are some of the most prominent items on shelves at these facilitiesowing to their high demand among the working populace. Thus, expansion of urbanareas is expected to favor the growth of this market during the forecastperiod.
Market Driver
Resurgent Demand for Frozen Foods amid COVID-19 to Boost theMarket
When the coronavirus pandemic broke out and lockdowns and socialdistancing measures were imposed worldwide, retail stores and supermarketoutlets were fearful of reduced footfalls, which would result in decliningsales. While consumer footfall dropped as expected, retail facilities areexperiencing a new wave of demand for these foods products.
According to a study commissioned by the American Frozen FoodInstitute (AFFI), the resurgent demand for frozen food is attributable toreturning buyers as well as first-time buyers. The study found that in America,approximately 86% of consumers were buying frozen type of foods, despite thepandemic. More interestingly, the study revealed that 70% of current consumersare purchasing more products than usual, while 68% are trying new products,indicating a shift purchasing patterns. The COVID-19 pandemic, therefore, hasincreased the demand for frozen foods and the AFFI study states that this surgewill continue even after the crisis is over.
Regional Insights
Growing Preference for Vegetarian Diets to Catalyze the Market inEurope
With a size of USD 56.17 billion, Europe dominated the frozen foodmarket share in 2019 and the region is expected to retain its leading positionduring the forecast period. This will be mainly attributable to the gradualadoption of vegetarian and vegan diets in the region, which is fueling thedemand for frozen vegetables and fruits. In addition to this, high consumerpurchasing power will be another factor feeding the growth of the regionalmarket.
Growing awareness among consumers about the benefits of frozenfoods and strict food-safety regulations imposed by the US Food and DrugAdministration (FDA) on frozen eatables will support the market in NorthAmerica. In Asia Pacific, the primary growth driver for the market will be therising number of cold chain facilities in the developing countries of theregion.
Competitive Landscape
Strategic Launch of Products in Regional Markets to FosterCompetition
Key players in this market are tapping avenues to captureregion-specific frozen foods industry trends and expand their presence in theseregions. Besides this, companies are also making large-scale investments inenhancing their production and R & D capacities, thereby strengtheningtheir market presence.
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https://www.fortunebusinessinsights.com/frozen-food-market-104138
