Global Frozen Food Market Witnessing Positive Growth – Projected to reach worth USD 342.9 Billion in 2027

Published | 21 September 2021

The recent expansion of this market can be attributed to key driving factors such as the rise of the working-class population, the rise of millennials, improvements in dietary lifestyles, technological advances in the cold chain industry, and retail reforms. The convenience of cooking and longer shelf life are the key reasons why people prefer frozen food…

A recent study conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the global frozen food market was worth USD 245.1 billion in the year 2020. It is and is further projected to reach USD 342.9 billion by 2027, at a CAGR of 5.0% during the forecast period (2021-2027). The demand for frozen food is expected to grow in the near future as a result of hectic lifestyles among working-class people around the world and rising expenditure on ambient (shelf-stable) foods by consumers.

Frozen food is now considered a viable option by millennial consumers due to its convenience. Additionally, fast service restaurants (such as KFC, Domino's, and Subway), bars, hotels, and healthcare canteens have expanded their use of frozen foods in order to keep their servings cost-effective and timely. Also, the development of the retail territory and technical innovations in the cold chain industry has led to the growth of the frozen food market globally.

Frozen Food Gaining popularity Because of its Convenience

For the past few years, the preference of the working-class population has shifted to frozen food products as they save time and are easy to cook. For example, a majority of working women in the Western countries prefer frozen foods over spending time in the kitchen. Increasing disposable income of households, which enhances the buying capacity of consumers, is another primary factor driving the growth of the frozen food industry. Additionally, the demand for frozen foods has risen dramatically as a result of the rapid shift in lifestyle and impulsive buying trends among the millennial population. As a result, the working population is the industry's primary customer base.

Advancements in the Cold Chain Industry

The cold chain industry is rapidly evolving with technological advancements like new temperature-controlled packaging options. Market players are increasingly investing in advanced technologies to store refrigerated or retarded dough, frozen meat, and vegetables, partially or fully-cooked products for a longer duration. The rise in customer expectations and demand for frozen foods has sparked these changes.

Additionally, the frozen food industry has also made it easier to ensure maximum shelf life for products that may travel thousands of miles before reaching distributors. Developed economies are majorly involved in the export and import of frozen food due to their strong global cold chain services. Moreover, since frozen food items have a longer shelf-life compared to fresh produce, the demand for frozen food items is expected to grow during the forecast period.

Apart from this, growing preference toward plant-based food is another  major factor that is influencing market dynamics. Veganism has been accepted by about 11% of the world's population as of 2021, owing to convenience, environmental consciousness, health benefits, and the desire to avoid animal cruelty. In 2020, a growth of 25% was witnessed for frozen plant-based nuggets, strips, and cutlets. During the same year, frozen plant-based burgers saw a 10% increase, whereas frozen vegetables  and frozen fruits witnessed an 8% and 5% increase, respectively.

Request For Free Sample Report @ https://www.blueweaveconsulting.com/report/global-frozen-food-market/report-sample

Global Frozen Food Market- By Product Type

Based on product type, the global frozen food market is categorized into- fruits & vegetables, frozen dairy products, bakery products, meat & seafood products, convenience foods, and ready meals and other products. The frozen ready meals segment dominated the frozen food market in 2020, with more than 30% of the revenue share. The frozen meat segment is anticipated to remain the largest segment due to new product launches like an on-the-go snack by Conagra and Nestle. This segment is further expected to maintain dominance during the forecast period as well, as frozen ready meals are extremely convenient to use and flexible. Major consumers of these products are working-class people.

Impact of COVID-19

Following the outbreak of a pandemic in 2020, several countries proposed a national lockdown. People were restricted from going outside to shop for food in conventional ways. This global panic fueled the demand for frozen foods, which have a longer shelf life than fresh fruits, vegetables, meat, etc. Additionally, this also helped the people reduce their number of visits to market places to shop for food. As a result, the risk of contracting the virus was reduced to some extent.

According to the American Frozen Food Institute (AFFI), the U.S. frozen food sales increased by 18% in 2020, totaling USD 66 billion. As a result, supply chains are shifting demand from food services to retail. The growing popularity of frozen foods has resulted in numerous technological advancements as well. For example, to minimize food waste, transport trucks are being equipped with GPS tracking and more precise temperature control.

Europe Dominates the Global Frozen Food Market

The global frozen food market is categorized into North America, Europe, the Asia-Pacific, Latin America, and the Middle-East & Africa. France, Germany, Italy, Spain, the United Kingdom, and other European countries held the largest share of the market in 2020. Increased consumer awareness of frozen foods in these countries, combined with population growth and rapid urbanization, are the main drivers of increased sales. The COVID-19 pandemic is also one of the significant factors driving the frozen food market in Europe.

Additionally, the Asia-Pacific is also expected to grow rapidly over the forecast period. This can be attributed to the rising trend in the consumption of ready-to-eat food among the working-class population and millennials. China, India, and Japan are the major economies contributing to the frozen foods market. The outbreak of pandemic also led to the popularity of frozen food in this region due to the assurance of longer shelf-life.

Competitive Landscape

The frozen food market is highly fragmented in nature, consisting of regional and international players. The key players profiled within this market are- General Mills Inc., Conagra Brands Inc., Nestle SA, Unilever, Kellogg Company, McCain Foods Limited, Kraft Heinz Company, Associated British Foods plc, Ajinomoto, Kuppies, Omar International Pvt Ltd., Shishi He Deming, and other prominent players.

The market players are taking rigorous measures to ensure that the supply of frozen food in the market is not affected by any means during the COVID-19 breakdown. To address this problem, they are embracing numerous strategies, including collaborations, and mergers and acquisitions with numerous food-delivery organizations. In order to gain greater market share and global customer reach, the companies are also focusing their energies on the distribution channel.

Don’t miss the business opportunity of the global frozen food market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global frozen food market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the ­­­global frozen food market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

About Us

Blue Weave Consulting provides all-inclusive Market Intelligence (MI) Solutions to businesses regarding various products and services online & offline. We offer comprehensive market research reports by analyzing both qualitative and quantitative data to boost up the performance of your business solution. BWC has built its reputation from the scratches by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.

Contact Us:

BlueWeave Consulting & Research Pvt. Ltd

+1 866 658 6826 | +1 425 320 4776 | +44 1865 60 0662

info@blueweaveconsulting.com