The frozen food market is estimated to be valued at US$ 167116.37 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:
Frozen food includes ready-to-eat meals, frozen pizza, meat products including poultry, seafood, fruits and vegetables that are preserved by a freezing process. It offers advantages like long shelf life, ease of preparation and availability of variety throughout the year. With busy lifestyle and dual income households, there is increasing demand for nutritious yet convenient to cook food options.

Market key trends:
One of the key trends driving the frozen food market is modern retail expansion. The growth of hypermarkets, supermarkets and online retail stores has facilitated easy availability and access to frozen food products. Many retailers provide store brands and private labels along with national brands. This has increased consumer acceptance and trust in frozen food quality. Furthermore, expanded shelf space for frozen categories have promoted product trial and awareness. Rising health consciousness is another driver as frozen fruits and vegetables retain high nutritional value compared to canned or fresh alternatives due to flash freezing process. Introduction of exotic frozen food items and localized product offerings catering to regional tastes is a new trend gaining traction.

Porter's Analysis:

• Threat of new entrants: The frozen food market requires high capital investments for large scale production and distribution, which poses high entry barriers for new players. However, the market offers growth opportunities with product innovation.
• Bargaining power of buyers: The buyers have moderate bargaining power due to availability of various private label brands offering price competitiveness. However, customers prefer quality and taste of established brands.
• Bargaining power of suppliers: Suppliers of raw materials like meat, poultry and seafood have moderate bargaining power due to supply constraints of agricultural commodities globally. Suppliers can impact prices by controlling supply.
• Threat of new substitutes: Substitutes like fresh foods pose medium threat. However, convenience and longer shelf-life of frozen foods make it less susceptible to substitutes.
• Competitive rivalry: Intense competition due to global presence of key players like Nestle, Kraft and General Mills.

SWOT Analysis:

• Strength: Wide product portfolio and global presence of major players. Product innovation leads to new product launches catering to changing tastes.
• Weakness: Perception of low nutrition compared to fresh foods. High dependence on fluctuating agricultural commodity prices.
• Opportunity: Rising health awareness favors low-calorie foods. Growth in organized retail and e-commerce boosts availability.
• Threats: Stringent food safety regulations increase compliance cost. Vulnerability to supply chain disruptions and climate change impacts.

Key Takeaways:

The global frozen food market is expected to witness high growth at a CAGR of 4.8% over the forecast period, due to increasing demand for convenience foods. Western countries dominated the market in 2023 with the highest consumption of frozen ready meals, fruits & vegetables.

The North America region accounted for over 35% share of the global market in 2023, driven by busy lifestyles, demand for special diet foods and organized retail. The Asia Pacific is estimated to grow at the fastest pace, supported by rising population, urbanization and disposable incomes in major 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. Major players focus on capacity expansions and new product launches catering to regional tastes to strengthen their market positions.