Increasing Health Consciousness to Cause a Spur in the Frozen Fruit Market
The Frozen Fruit Market is expected to grow at a compound annual growth rate of 6.74% over the forecasted period to reach a market size of US$6.366 billion in 2027 from the US$4.034 billion in 2020. The rising demand for exotic fruits coupled with an all-time availability of non-seasonal fruits, especially due to the technological advancements in the refrigeration market has led to a rise in demand for frozen fruits, thus augmenting market growth. With the robust growth in food processing companies, rapid urbanization, and growing usage of frozen foods in a variety of products when it comes to food and beverage, as well as the growing awareness regarding health benefits are also a few factors which contribute to the growth of the frozen fruit market. Adding to that, constant innovations in the food packaging industry, inclination in disposable income across the globe and especially in the emerging economies, and the expansion of offline as well as online retail spaces are some more factors that are expected to be contributing towards the growth of the market. Further, since the consumption of frozen fruit is better and healthier than canned and dehydrated fruits, it is considered a more preferable choice over the other two. On top of all this, the essential characteristics are observed to be well retained in frozen fruits along with the nutritional aspects of the actual fruit, which is projected to further increase their demand and augment market growth. However, the trade disruption experienced due to the COVID-19 pandemic is predicted to create a decline in the frozen fruit market trend to a certain extent.
Increase in demand of frozen fruits as a healthy and organic food option to drive market growth
As the trends in then market continue to evolve and develop at a steady pace, the impact of the younger population on the food and beverage business is quite evident and this generation dominates the world population with millennials forming the largest adult cohort globally, constituting 23% of the population according to the World Population Prospects, United Nations, 2019. This acts as a catalyst in the rising demand for healthy food options which makes frozen fruits stand out and thus contributes to the growth of the market. Modern consumerism mostly constitutes of health-conscious and aware customers who are increasingly trying to avoid processed foods and foods containing synthetic substances. Considering this growing demand for natural and organic foods, which keep the health aspect in mind, the market is projected to show significant development throughout the analysed period. Further, with the growing knowledge of consumers regarding the potential benefits of indulging into natural food items, demand for these fruits is predicted to rise and increase market size. Additionally, many commercial, as well as local customers have demand for seasonal fruits that may be not available at all times. The consumer’s demand for such fruits is fulfilled through these frozen fruit products, especially in the off-season when they are not naturally available. Furthermore, an increased utilization of frozen fruits in bakery products is expected to augment the growth of the frozen fruit market. Manufacturers are constantly on the lookout for newer and advanced technology and innovative solutions to increase the quality as well as the shelf life of bakery items. Thus, in order to increase the profitability, the use of frozen fruits in these products is seeing an incline. Frozen fruits are used in a broad range of modern bakery products including cakes,, tarts, muffins, jellies and so on while frozen berries are used widely in yogurts, fruit snacks, smoothies and many other desserts. Hence, all these factors are expected to contribute to a rise in the demand for frozen fruits which in turn would lead to an inclination in the generation of sales and the growth of the market.
Europe to hold a significant share in the market due to increasing trade and also augment market growth
The prime factor expected to bring about a change in the frozen fruit market is the rising inclination towards consuming food that is not only easy to prepare but also packs nutrition value. Due to tropical fruits not being able to be cultivated throughout Europe, the growing markets of Europe, especially eastern Europe, offer a plethora of opportunities for the growth of this market. For instance, in June 2020, it was announced that a trial was being conducted by Waitrose & Partners for a refillable zone that was reported to be UK’s first borrow-a-box scheme and the also the first frozen ‘pick and mix’ to be made available in supermarkets. This concept reportedly included frozen fruits like blueberries, cherries, strawberries, mango, pineapple and raspberries. Further, in June 2020, it was reported that Agrimola, base company of Casalfiumanese (Bologna) which deals in frozen and semi-processed fruits acquired Vicenza based La Nuova Tradizione being backed by FondoAgroalimentareItaliano in the process to complement the former’s portfolio with the latter’s semi-processed and frozen fruit products which catered to patisseries and ice-cream parlours and sold under the brand, Vergani 1881. Adding to that, since 2018, the consumption that was registered during the preceding five years has been risen by an annual growth rate of 6.0%. Countries like Germany, Belgium, France, and UK are seen as the largest markets for frozen berries. Belgium serves as a base to several huge frozen processing companies but most of the frozen berries imported in there are not sold within the country. They are instead re-exported or further processed which makes it emerge as a trade hub. The largest importer of frozen berries is Germany, which reported a total import value of €371 million as of 2018 and increase in imports by 6.7% in volume annually between 2014 and 2018, to 250,000 tons, according to the Ministerie van Landbouw, NatuurenVoedselkwaliteit. Hence, Europe is predicted hold a substantial market share and is therefore also expected to drive overall growth of the market as well.
The onset of the coronavirus pandemic very negatively affected the frozen fruit market. Due to the subsequent lockdowns most manufacturing links were disrupted which caused a stir in the supply chain. As most agricultural producers were not able to supply their produce to the frozen fruit manufacturers, the demand in the market suffered as well. With the shutting down of supermarkets and retail stores due to the lockdown, the availability suffered and caused a decline in revenue. However, with the ease pf restrictions and the revival of the functioning of various industries, the demand in the frozen fruit market is also expected to grow.
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