Frozen Food Market is projected to reach at USD 346 Billion by 2027 at a CAGR of 5.3% over the forecast period. GMI Research conjectures that frozen food products are expected to dominate the market during the forecast period. It is attributed to the growing working population and rising awareness of health, which increase the need for more convenient and ready-to-eat food products resulting in a surge in the global frozen food market.
Introduction of Frozen Food Market
Frozen foods are food products processed in the preservation method to retain the food’s nutrients, flavors, and colors. Therefore, making the cooking process easy and having a longer shelf life is the main objective of frozen food. It is considered a vital component of meals prepared and served in restaurants and homes. The Global Frozen food market has been categorized based on product, type, consumption, distribution channel, and geographical region.
Key Players of the Market
Frozen Food Market Dynamics
The increasing number of working women is leading to strong demand for frozen foods as it decreases preparation and cooking time. The prominent factors that further propel the frozen food market size are the easy availability of the various types of frozen food and the severe change in the eating habits of consumers. Moreover, the growing consumer acceptance and the robust demand for healthy food are expected to bolster the market growth. As per the frozen food market research reports, Multiple manufacturers are working on various innovative strategies and technological developments to minimize the loss of nutrients in frozen foods and reduce the use of harmful plastic packaging to meet the increasing market demand.
The outbreak of the COVID-19 pandemic has stimulated the demand for frozen food products throughout the forecast period. People staying away from their homes are actively looking for various frozen food and ready-to-cook meals alternatives. In addition, the restaurants and other fast-food outlets are closed, by which consumers are more inclined to adopt frozen fast-food alternatives as their evening snacks. All these factors are further strengthening the market demand. On the other edge, according to the frozen food market report, the high maintenance and logistics costs are likely to hamper the market growth.
Frozen Food Market Segmentation
Product Market Drivers
Based on the product, the convenience foods & ready meals segment is projected to witness a faster CAGR during the forecast period. It is due to the growing consumer preference for convenience food products. These food products offer exceptional features such as no or minimum cooking requirements, are highly cost-effective, and other advantages. In contrast, the processed food segment is perceiving heavy demand due to the growing need for convenience food driven by the hectic lifestyle of the consumers. Furthermore, the growing per capita income of the consumers and the increasing number of the working population are other factors surging the segment’s demand.
Type Market Drivers
Based on the type, the ready-to-eat segment is expected to increase faster CAGR over the forecast period. The ready-to-eat food products are fully cooked food items, and one can consume them directly irrespective of time and place without further cooking. The high demand for desserts such as frozen yogurt and ice creams is the crucial factor driving the segment’s demand. Consumers are becoming more health-conscious, which is encouraging them to consume low-calorie yogurt and ice creams. These factors are further stimulating the segment’s demand.
Consumption Market Drivers
Based on consumption, the foodservice segment is expected to lead the market during the forecast period. The food services industry includes pubs, hotels, QSRs, restaurants, and other foodservice providers. The foodservice segment is perceiving an increase in demand for frozen food because service providers utilize frozen food items regularly to save cooking time and enhance the taste and quality of the food products.
Distribution Channel Market Drivers
Based on the distribution channel, the online segment is expected to rise at a faster CAGR during the forecast period due to the rising penetration of the Internet, particularly in developing countries. E-commerce shopping is more comfortable and feasible than supermarkets and other offline outlets. All these factors, followed by the free home delivery option, are promoting the consumers to adopt online shopping rather than visiting the stores.
Europe is expected to dominate the frozen foods market in the next six years. It is due to the change in the lifestyle of people and rising preference towards hygiene-related frozen food items by the consumers in the market. Moreover, implementing strict government regulations to sustain the quality and certifications/tags with the product and make it more appealing is again driving the market growth in the region. On the other hand, the Asia-Pacific and the Rest of the world regions are expected to witness a faster CAGR due to the growing awareness about the advantages of frozen food and the increasing number of fast-food outlets.
Frozen Food Market Segmentation
Market Segmentation by Product
1. Frozen Fruits
2. Frozen Vegetables
a. Frozen Potato
3. Bread & Pizza Crusts
Market Segmentation by Type
Market Segmentation by Consumption
Market Segmentation by Distribution Channel
Market Segmentation by Region
Introduction of GMI Research
GMI Research is a market research and consulting firm that provides market insights and intelligence across 12 major sectors helping our clients make effective investment and business decisions.