Introduction
Frozen food is the term given to products that can be stored in low temperatures over a long period of time. Some of the more popular frozen food products include ready-to-eat meals, fruits & veggies, meat & poultry, and soups.
Freezing is one of the easiest, quickest, most versatile and most convenient methods of preserving foods. Properly frozen foods maintain more of their original color, flavor and texture and generally more of their nutrients than foods preserved by other methods.
The frozen foods industry is one that has grown as a result of Covid-19, with people having to store food at home.
Factors like convenience and longer shelf life have made consumption of frozen attractive, especially for younger people who are busy in their lives.
After the introduction of frozen foods in the 1930s, the category took a while to catch on with consumers and retailers alike.
Frozen food products have significant market share. The growth of the frozen food industry is influenced by socioeconomic changes and technological developments.
Table of Contents
Market Overview
The value of the frozen foods market is forecasted to reach 312.3 billion U.S. dollars in 2025, comparing to 244.3 billion U.S. dollars in 2020
Europe was the largest market for frozen food, with a share of more than 35.0% in 2019.
Key Trends
Substitutes for animal protein are firmly set in most consumers’ everyday lives, and although vegan or vegetarian do not represent recent eating habits, they do seem to be adopted by more and more people around the world. These will continue to be present in retail and even foodservice in frozen form, with experts believing that there is still a lot more room to grow for such products.
Cold-storage trucks are being used to consistently maintain an optimum environment for frozen foods to stay fresh. These trucks are now being fitted with third party GPS technologies for timely deliveries. This being a primary market disruption, is driving the growth of frozen food market in a positive direction.
Key Market Players
The largest companies in the industry are Unilever, Nestle SA , General Mills, Nomad Foods Ltd, Tyson Foods Inc., and , ConAgra Brands Inc, Kellogg Company, McCain Foods Limited, Kraft Heinz Company, Associated British Foods plc, Ajinomoto, Vandemoortele NV, Lantmannen Unibake International and Cargill. These have been capitalising on the growing demand for frozen products by launching innovative products which align with consumers’ demands for organic, plant-based and gluten-free food.
Growth Drivers and Challenges
People are looking for easily accessible, nutritious foods with wholesome ingredients & vegan food and frozen foods is a perfect category for retailers to address those needs.
Another driver of growth in this market has been the demand from millennials as they seek instant gratification and don’t have time to prepare full-fledged meals.
Factors like convenience and longer shelf life have made consumption of frozen attractive
Despite the opportunities, there are some challenges that remain. Frozen food manufacturing is a risky business. With temperatures potentially shifting anywhere between 25C and -30C degrees, hygiene requirements must be thorough to avoid risk of contamination and to protect public safety. Food manufacturing equipment must be cleaned regularly, often twice daily for some processes.
There is a perception among people that fresh foods are better for health than frozen foods. Thus, people who are health-conscious do not always prefer frozen foods.