The issue of food wastage has given birth to the frozen food market which is experiencing a colossal growth with an increase in disposable income, and accentuated refrigeration technology. According to the analyst at IndustryARC, the global frozen food market size in 2018 stood between $225 billion to $228 billion.
Frozen Food market Overview:
According to the Food and Agriculture Organization of United Nations, nearly one third of the food produced every year amounting to roughly $680 billion (approximately 1.3 billion tons) gets either wasted, or lost[1]. The issue of food wastage has given birth to the frozen food market which is experiencing a colossal growth with an increase in disposable income, and accentuated refrigeration technology. According to the analyst at IndustryARC, the global frozen food market size in 2018 stood between $225 billion to $228 billion. The market is estimated to grow steadily with a normal CAGR of 3.5%-5% during the forecast period of 2019-2025. Geographically, Europe led the frozen food market with a regional share of 30%-32% in 2018 owing to an increase in mergers and acquisitions between vendors and hypermarkets. On-the-go consumption of food is also driving the European frozen food market.
Frozen Food Market Outlook:
The prospect for frozen food market has never seemed brighter. With a growing awareness in food trends, consumers are resorting to cooking fresh meals at home which are free from any preservatives. For this, they require frozen foods which come in extensive categories these days, some of which are dairy-free, vegan, gluten-free, sugar-free, low fat, etc. Availability of high quality frozen foods makes market growth easier, and less prone to negative fluctuation. Recent trends in technology have introduced cryogenic freezing which prevents addition of any artificial preservatives, while maintaining negligible growth of microorganisms at the same time. Ready meals, a key segment of the frozen food market, is expected to grow at a standard CAGR of 2.5%-4%. It is a convenient, and accessible option for the working class society which is perpetually busy, and consistently short on time.
Frozen Food Market Growth Drivers:
- An Increasing Demand for Preservative Free Food
With an increase in organic produce demand, consumers are incessantly on the lookout for fresh vegetables, seafood, and fruits that do not have a short shelf life. Since most of the organic produce expires quickly, hypermarkets are resorting to freezing of frozen foods which customers are interested in buying. Cryogenic freezing of food items extends their shelf lives, and makes them free from any added preservatives. Consumers flock towards these products, and help frozen food market in attaining noticeable growth.
- The Shopping Trends of Millennials
Contrary to popular beliefs on millennials being irresponsible buyers, frozen food market heavily relies on their purchasing trends. Millennials are ready to experiment, and invest on novel things unlike the generation before them. They also tend to buy products that preserve their time, and are easy to handle. These traits fuel the market growth of frozen foods as they are convenient, and ready to use, exactly how millennials might prefer. This generation, which drowns in student debts, and underpaying jobs relies majorly on the frozen food market for their nutritional needs.
- Frozen Food Market Challenges:
One of the basic challenges faced by the frozen food market is the lack of a proper supply chain system, and the consistent fear of cold chain systems failing. Since frozen foods require a set optimum temperature around -18°C, even the slightest failure in cold chain system can result in massive wastage. A thoroughly functioning power backup, and consistent vigilance is required for assuring negligible frozen food loss.
Frozen Food Market Key Players Perspective:
According to the analyst at IndustryArc, some of the key players in the frozen food market are Nestle SA, Unilever, Kellogg Company , General Mills Inc, Conagra Brands, Inc., Grupo Bimbo S.A.B. de C.V., McCain Foods Limited , Kraft Heinz Company, and Associated British.
In 2018, after recognizing the frozen food preference patterns of millennials, and losing out to rivals like LeanMeals, Nestle increased production in its US factories, and introduced a plethora of items in its lineup like frozen coconut chickpea curry, and sweet earth lover’s veggie pizza[2].
Frozen Food Market Trends:
- Improved Supply Chain Management
In order to make sure that the frozen food market continues to grow, and is not obstructed by food wastage, companies are employing an ameliorated supply chain management system. Reefer trucks are being used to consistently maintain an optimum environment for frozen foods to stay fresh. These trucks are now being fitted with third party GPS technologies for timely deliveries. This being a primary market disruption, is driving the growth of frozen food market in a positive direction.
- The Rise Of IQF Food
IQF stands for ‘individually quick frozen’ which implies that all the items in a frozen food packet are frozen individually, and not as a block. The method involves passing of every individual piece of food through a blast chiller on a conveyor belt. This assures freshness in the food items even after thawing. An amount of peas for example, if frozen using IQF technique and packed in a carton, lidded tray, or crystallized PET tray will sell faster owing to its freshness as compared to the one frozen using ordinary refrigerant technique.
Frozen Food Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the frozen food market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of cheese in the frozen food market, and their specific applications in different areas.
Frozen Food market Report: Industry Coverage
Frozen food market can be segmented on the basis of type, and distribution channels. Based on distribution channels, the market can be divided into supermarkets, hypermarkets, online stores, and convenience stores. On the basis of type, the market can be bifurcated into ready to eat meals, seafood, vegetables, fruits, etc.
The frozen food market report also analyzes the major geographic regions for the market as well as the major countries for the market in these regions. The regions and countries covered in the study include:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, The Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
- Middle East and Africa: Israel, South Africa, Saudi Arabia
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