Frozen Processed Food Market Poised to Grow at Highest Pace Owing To Increased Demand For Convenience Foods

The frozen processed food market comprises products such as frozen fruits & vegetables, dairy products, bakery products, meat & seafood products and convenience food among others. Frozen processed fruits and vegetables are increasingly being preferred owing to their longer shelf life as compared to fresh produce. They are rich in nutrients and offer various health benefits. The convenience offered by frozen foods such as ready-to-eat meals, appetizers and desserts has led to a rise in their demand worldwide. The Global frozen processed food market is estimated to be valued at US$ 167115.0 Mn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030.

Key Takeaways
Key players operating in the frozen processed food market are Nestle S.A., ConAgra Foods, Inc., Kraft Foods Group, Inc., Mother Dairy Fruit & Vegetable Pvt Ltd, BRF S.A., General Mills, Inc., Maple Leaf Foods Inc., Tyson Foods, Inc., and Unilever Plc. These players are focusing on new product launches, mergers & acquisitions and geographical expansions to gain a competitive edge in the market.

The demand for frozen processed foods is growing due to changing lifestyles and increasing number of working women. Growing consumers' inclination towards ready-to-eat meals with longer shelf-life is expected to drive the demand further. Rising popularity of ingredients such as baked snacks, gluten-free products is creating new opportunities for frozen food manufacturers.

Technological advancements such as improved freezing technologies are helping manufacturers offer high-quality frozen food products with minimal loss of nutrients, texture and taste. Advanced packaging solutions are also playing a crucial role in preserving the freshness and quality of frozen foods during storage and transportation.

Market Trends

Health and Wellness: With growing health consciousness, demand for frozen foods containing low sodium, whole grains, high fiber, probiotics is increasing. Manufacturers are offering more nutritious options made from organic and natural ingredients.

Sustainable Packaging: Rising concerns about environmental impacts are prompting companies to use more eco-friendly and sustainable packaging materials such as bioplastics and biodegradable films for frozen foods.

Market Opportunities

Plant-based Frozen Foods: The vegetarian and vegan frozen food segment holds promising growth opportunities owing to surging preference for meat and dairy alternatives. Companies are innovating products made from ingredients like plant-based meat, seafood.

E-commerce platforms: Growing e-commerce channels provide lucrative sales opportunities for frozen food brands to boost their consumer reach in both domestic and international markets. Online platforms help address issues like bulk purchasing and doorstep delivery.

Impact of COVID-19 on Frozen Processed Food Market

The COVID-19 pandemic has significantly impacted the growth of the frozen processed food market globally. The lockdowns imposed by various governments worldwide led to panic buying by consumers in initial months of pandemic. This sudden surge in demand led to empty store shelves and disrupted supply chains of frozen food manufacturers. However, as people stayed home due to restrictions, demand for frozen meals, pizza, snacks increased manifolds. Companies struggled to cope up with this sudden spike and fulfill orders on time. Logistical challenges like shortage of trucks/drivers, closed borders hindered transportation of frozen foods to markets. Companies had to rely more on local sourcing and improve inventory management to stabilize supplies. Post lockdowns, demand remains elevated as people opt for convenience foods. Companies are diversifying product portfolios, enhancing online retail presence to grab this opportunities. However, price inflation of key ingredients like wheat, oils, vegetables poses challenges in future. Rising preferences towards healthy options may reduce demand for high calorie frozen foods.

Europe is the largest regional market for frozen processed foods in terms of value. The strong foothold of companies like Nestle, Nomad Foods, Premier Foods has established Europe as the global leader. High per capita consumption of frozen meals, snacks also attributes to its large market size. North America follows Europe as the second largest market, driven by high disposable incomes and busy lifestyles increasing frozen food adoption. However, Asia Pacific is poised to be the fastest growing regional market. Rising middle class population, improving cold chain infrastructure is fueling massive growth especially in countries like India, China, Japan. Continuous westernization of diets and growing acceptance of frozen convenience is driving the Asian frozen processed food market.