The frozen food market is projected to grow at a CAGR of 4.25% during the forecast period to reach US$325.938 billion by 2027, from US$243.488 billion in 2020. The market has grown from selling raw foods like frozen meat, fish, vegetables, and fruits to selling prepared foods like frozen vegetable mixtures and bakery items. Flavors, such as sweetness, fat content, and texture, are influencing the market's growth. Rising disposable income, the advent of longer shelf-life products, more impulse spending, and high demand for frozen food products due to a lack of time are all driving the industry. According to the United Nations' Food and Agriculture Organization, over a third of the food produced each year, totaling US$680 billion (around 1.3 billion tons), is wasted. The problem of food waste has given rise to the frozen food sector, which is exploding because of rising disposable income and improved refrigeration technology.
The frozen food market is expected to grow with rising demand for convenience foods due to busy lifestyles and increasing employment rates of women. As frozen meals take less time and effort to prepare compared to fresh foods, rising customer demand for convenience foods indirectly stimulates increased demand for frozen foods. Globally, women's employment rates have risen due to which it has become difficult for women to prepare meals, resulting in the rising consumption of frozen foods. According to the United States Department of Labor, the female employment rate in the United States was 46 percent in 2019. Increasing disposable income and purchasing power of consumer further boosts the demand. Furthermore, frozen food companies such as KFC, McDonald's, and Subway are increasing their use of frozen food items, which is a primary driver of the frozen food business. Moreover, the adoption of these items by a variety of end-users, including full-service restaurants, hotels, resorts, and quick-service restaurants, is projected to propel the industry forward.
One of the primary limitations for this industry is the perception among some consumers that frozen food is a poor alternative to fresh food. There is a popular belief that food processed a year or more before consumption is not nutritious. However, remarks from the International Food Information Council (IFIC) and the US Food and Drug Administration (FDA) about the nutrient value of frozen food are shifting consumer perceptions. Vitamin C and folate are two nutrients that can alter with temperature, and food items stored at different temperatures might lose their nutrients.
Key Developments
Real Good Foods announced the launch of seven new rich in protein, low in carbs, grain-free, and gluten-free frozen goods in 1,500 Kroger stores across the US in August 2021. This is an addition to the company's entrée range, which debuted in 2020. Conagra Brands, Inc., a large consumer packaged food manufacturer, introduced a wide range of single-serve frozen meals in June 2021. Healthy Choice, Marie Callender's Banquet, and Hungry Man all introduced new meals to the company's product lineup. Tyson Foods, Inc. debuted a new plant-based food line called First PrideTM in select retail areas and e-commerce across the Asia Pacific in June 2021. Sweet Earth, a subsidiary of Nestlé S.A., debuted vegan hot dogs and burgers with fava and hemp in the United States in May 2021. Sweet Earth vegan hot dogs are manufactured with a base of potato and pea protein, and the burger is the first plant-based burger on the market.
By type, the frozen food market can be segmented into frozen fruits and vegetables, frozen ready meals, frozen meat and poultry, frozen seafood, frozen desserts, frozen snacks, and others. The frozen fruits and vegetable segment is predicted to account for a significant market share due to its longer shelf life and high nutritive value. The demand for frozen ready meals is also rising, which has a considerable market share due to changes in lifestyle and people's hectic schedules. Because of the availability of premium items in the aquaculture and cold cut meat sectors, the frozen seafood and meat product segments are expected to increase considerably.
By distribution channels, the frozen food market can be segmented into hypermarkets and supermarkets, online channel, convenience stores, and others. Supermarkets and hypermarkets account for a sizable portion of the market as investors are capitalizing on customers' preferences by providing a convenient shopping experience. Online channel is expected to witness tremendous growth during the projected period.
By geography, the frozen food market can be segmented into North America, South America, the Middle East and Africa, Asia Pacific, and Europe. Europe is predicted to dominate the market due to the presence of multiple businesses and exquisite bakeries. Further, owing to the existence of emerging countries, Asia-Pacific is expected to have the highest demand for frozen food during the forecast period. Manufacturers from all over the world are investing in these economies, which is expected to increase demand for frozen foods in the Asia Pacific.
Covid-19 Insights
COVID-19 had a positive impact on the frozen foods market. The frozen food market prospered as the pandemic compelled individuals to stay and eat at home resulting in anxious shoppers to stock up on frozen meals, and other items, driving the demand. According to the American Frozen Food Institute's report, the dollar value of frozen food sales increased by 21 percent last year, while unit sales increased by 13.3 percent. Also, 57 percent of customers were still buying more frozen goods, 58 percent were buying new sorts of frozen foods, and 57 percent were buying different brands in late 2020 than they were pre-pandemic. Furthermore, internet food sales are expected to increase by 84 percent by 2020, with frozen foods playing a significant part in this sector.
| Report Metric | Details |
| Market size value in 2020 | US$243.488 billion |
| Market size value in 2027 | US$325.938 billion |
| Growth Rate | CAGR of 4.25% from 2020 to 2027 |
| Base year | 2020 |
| Forecast period | 2022–2027 |
| Forecast Unit (Value) | USD Billion |
| Segments covered | Type, Distribution Channel, And Geography |
| Regions covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies covered | General Mills, Unilever, Nestle SA, Tyson Foods, Nomad Foods Ltd, Conagra Foods, Kellogg Company, McCain Foods Limited, Kraft Heinz Company, Ajinomoto, Cargill, Bellisio Foods, Wawona Frozen Foods |
| Customization scope | Free report customization with purchase |
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What will be the frozen food market size by 2027?
A1. The frozen food market is projected to reach a market size of US$325.938 billion by 2027.
Q2. What is the size of the global frozen food market?
A2. Frozen Food Market was valued at US$243.488 billion in 2020.
Q3. What are the growth prospects for the frozen food market?
A3. The global frozen food market is projected to grow at a CAGR of 4.25% over the forecast period.
Q4. Which region holds the maximum market share of the frozen food market?
A4. Europe is predicted to dominate the frozen food market due to the presence of multiple businesses and exquisite bakeries.
Q5. What factors are anticipated to drive the frozen food market growth?
A5. The frozen food market is expected to grow with rising demand for convenience foods due to busy lifestyles and increasing employment rates of women.
General Mills
Unilever
Nestle SA
Nomad Foods Ltd
Conagra Foods
Kellogg Company
McCain Foods Limited
Kraft Heinz Company
Ajinomoto
Cargill
Bellisio Foods
Wawona Frozen Foods
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