The growing demand for frozen food in the fast-paced age has gained popularity due to convenience. Fueling demand for ready-to-eat foods due to hectic lifestyles amongst working classes globally is anticipated to drive the market growth of convenience food products. Further, increasing shelf-life of food products has enabled the demand amongst consumers. Rising consumer awareness regarding e-commerce has led to higher penetration of the products. Frozen food refers to various food products that are ready-to-eat foods, snacks, desserts, bakery items, vegetables & fruits, seafood, and meat. Availability of all meals, such as breakfast, lunch, dinner, and snacks, is contributing to the rise in demand for frozen food buying.
According to Fortune Business Insights, the global frozen food market size was valued at USD 256.46 billion in 2021 and is expected to reach a valuation of USD 385.04 billion by 2028 at a CAGR of 15.35% during 2021-2028. The market has leading players such as General Mills Inc., McCain Foods, Wawona Frozen Food, ConAgra Foods Inc., Bellisio Foods, and Nestle S.A.
Lockdowns by Governments to Change Market Dynamics During COVID-19
The outbreak of the COVID-19 pandemic imposed many limitations on the global market. The market experienced a sudden increase in sales due to panic buying during the lockdown period. Frozen food products and immediate food products were being sold due to their longer shelf life. Online retail changed the buying patterns. But as the pandemic progressed, the working population prioritized their food expenses and started cooking their own food, which led to decline in sales of such products.
Increasing Demand for Convenience Food to Enhance Popularity of Such Food Products
Convenience food requires less or minimum time to prepare and can be consumed without any further preparation. There is a range of convenience food products that has expanded the food portfolio of chilled, microwavable, portion-controlled, packaged foods, and mixes. This is possible due to technological advancements and innovations in the food industry. Increasing income levels and rising inclination to dispose the income by consumers are the important driving factors of the market.
Fast-paced lifestyle to Drive the Market Growth
Increasing fast-paced lifestyle and rising hectic work schedules have led consumers to engage in delicacies. Rising trend of employment globally has changed people’s preferences. People are shifting their preferences toward ready-to-eat food products as it takes less time to cook. Hectic work lifestyle has propelled the demand for frozen potatoes, fish, meat, and ready meals. Features, such as easy and fast cooking, are estimated to increase the market share of frozen food.
Frozen Seafood and Meat to be a Primary Choice
The frozen seafood & meat segment is expected to be the first and major choice among consumers. It is owed to increased shelf-life and nutrition present in the frozen non-veg food products. The demand is increasing from developed countries, such as Germany, France, Canada, the U.S., and U.K., and also from developing countries of Africa and Asia Pacific regions. Changes in lifestyle and busy schedules of consumers are anticipated to surge the demand.
Supermarket/Hypermarket to be the Choicest Distribution Channel
Supermarket/hypermarket is one of the most rapidly evolving distribution channels for food products. It is due to the comfort provided to buyers and lets manufacturers showcase their products in the stores. With the growth of supermarkets and hypermarkets in developing countries, they are now being available in tier 2 and tier 3 cities as well.
Digitalization in Retail Industry to Offer Attractive Prospects for the Market
The market trend in the frozen food sector is expected to be accelerated by digitalization. Online grocery shopping and retail have been on the rise due to the introduction of new applications. This has made it convenient for consumers to shop for groceries and have a variety of food products to choose from. Majority of the population is buying groceries and food from online retail channels, making e-commerce one of the most lucrative channels to shop.
With various R&D activities done by market players, it is expected that companies will focus and expand their product portfolios and change some part of the food landscape. Growing penetration of smartphones and rising usage of the internet re expected to create opportunities and propel the market growth of frozen food.