According to the latest report published by Credence Research, Inc. “Global Frozen Food Market – Growth, Future Prospects and Competitive Analysis, 2018-2026,” the global frozen food market was valued at US$ 252.77 Bn in 2017, expected to grow at a CAGR of 6.6% from 2018 to 2026.
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Frozen food is stored below zero degrees for retaining the moisture content at a solid state, which enhances the preservation period of the frozen food product as compared to their fresh counterparts. Refrigeration allows the consumers with the access to seasonal food items, especially frozen fruits & vegetables and also allows them store the food products for future consumption. Moreover, frozen food products contain high amounts of minerals and vitamins because refrigeration helps in preservation, without the addition of preservatives and also prevents microbial growth that can cause spoilage of the food item.
Transition in the consumption pattern of the millenials is one of the major factors responsible for the growth of the frozen food market at present. Millenials are driven towards the consumption of frozen food due to convenience, as frozen foods require lesser amount of time to prepare which helps to save a considerable amount of time spent on cooking. Moreover, this trend is also supported by the rising number of working females, which has witnessed considerable increase over the past decade. Countries such as U.S., Canada, Germany, France, and U.K. among others have a high percentage of working females, which is augmenting market growth of frozen food in these countries. Robust growth of the food service industry is another key factor resulting in a steady market growth of the frozen food market.
Based on product type, frozen ready-to-eat meals dominated the market in 2017 and expected to display a promising growth in the coming years on account of rapid adoption of such food items among millenials. Premiumization is a key factor responsible for the growth of the ready-to-eat meal segment. Strengthening economic condition of countries such as U.K. has urged the consumers shift to the purchase of premium products, which in turn has led the manufacturers to focus on bring out new offerings in the ready-to-eat meals category in order to satisfy the demand of the consumers.
This trend has resulted in reduced demand for traditional food products in the country. Based on distribution channel, supermarkets & hypermarkets dominated the market in 2017. Consumer inclination towards supermarkets & hypermarkets is the highest due to the availability of a huge variety of frozen food products and the freedom of choosing from multiple brands.
North America and Europe are matured markets for frozen food. Consumers in these regions are more inclined towards the consumption of frozen food products compared to fresh food products, which is a key factor driving the growth of the frozen food market. In Germany, food products aiding in convenience witnessed a positive growth in 2017, with frozen ready-to-eat meals topping the charts. The frozen food market in Europe is witnessing a rapid expansion, the growth of which is majorly attributed to the rising consumer desire for convenience.
Sale of frozen food products is noted to the be the highest in the Western European countries such as U.K., Germany, France and the Benelux countries, where the trend of convenient food products is the highest compared to the other regions in Europe. Further, 2017 witnessed a significant rise in demand for frozen fruits & vegetables in Europe as well. The rise in demand is majorly attributed to the emergence of new products being introduced in this category coupled with growing awareness regarding the availability of such products. Further, shortage in the supply of fresh fruits & vegetables is another key factor for the increased inclination of the consumers towards the consumption of frozen fruits & vegetables in Europe.
Key players operating in the global frozen food market includes Ajinomoto Co. Inc., Bonduelle Group, ConAgra Foods Inc., General Mills Inc., Kraft-Heinz Company, McCain Foods, Nestle S.A., Pinnacle Foods Inc., Tyson Foods Inc., and Unilever Plc.