Global Frozen Foods Market: Dynamics and Outlook

The expansion of the frozen foods market is also creating fertile ground for new market entrants. This factor, coupled with the impact of the COVID-19 pandemic, has further propelled market growth. During the pandemic, widespread lockdowns and uncertainty led to a surge in bulk purchases of frozen foods, driven by their inherent long shelf life and lasting nature.

However, the market also faced significant headwinds during the pandemic, primarily due to the shutdown of manufacturing plants. Another persistent challenge is the perception that frozen foods are less healthy than fresh alternatives, a widely debated topic that can deter some consumers. Furthermore, a substantial impediment to market growth, particularly in developing countries like Bangladesh and Myanmar, is the lack of investment in robust cold chain logistics and infrastructure. Establishing and maintaining the specialized cold storage equipment required for frozen foods demands considerable capital, which is often scarce in these regions.

Despite these challenges, manufacturers globally are strategically adopting regional approaches, including mergers and acquisitions with local companies. These collaborations enhance the distribution networks for frozen food products. There's also increasing investment in the frozen foods industry across many countries. Innovations such as pouch packaging, which is airtight and extends freshness while preserving nutrients, are emerging. Key players are actively investing in research and development to introduce novel products and diversify offerings. A notable trend is the rise of plant-forward foods, such as vegetable-based meat patties, which are gaining traction among health-conscious consumers and represent a significant opportunity for the frozen foods market.

Global Frozen Foods Market Segmentation:

The global frozen foods market can be segmented as follows:

By Product Type:

• Fruits & Vegetables

  • Frozen Fruits

  • Frozen Vegetables

  • Frozen Potatoes

  • Other Vegetables

• Dairy Products

• Meat & Seafood Products

• Bakery Products

  • Breads & Buns

  • Pizza Crusts

  • Other Bakery Products

• Others

By Type:

• Raw Material

• Half-cooked

• Ready-to-eat

By Distribution Channel:

• Online

• Offline

  • Supermarket & Hypermarket

  • Convenience Stores

  • Specialty Stores

By Region:

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa

Segment Analysis:

Frozen Potatoes Leading Growth in Fruits & Vegetables Segment: Within the frozen fruits and vegetables category, frozen potatoes are anticipated to exhibit the highest growth, with a CAGR of 5% during the forecast period. This growth is largely driven by the strong demand from the foodservice sector, including hotels, restaurants, fast-food chains, and catering companies. The increasing popularity of fast-food items like French fries, potato chips, and other potato-based snacks across all age groups is a significant contributor. Furthermore, advancements in frozen ready meals, resulting from substantial investments in food processing R&D, and robust distribution networks for frozen food items are expected to fuel the growth of the frozen potatoes segment.

Ready-to-Eat Meals Dominating by Type: The ready-to-eat meals segment is projected to command the largest revenue share. This is attributed to the surging usage of frozen pizza crusts, breads, and other frozen bakery products. The primary driver for the increased demand for ready-to-eat meals is the lack of time for meal preparation in today's busy lifestyles. The rising millennial population, with their preference for quick and on-the-go meal options, further boosts this segment. Key players are actively investing in innovation to broaden the range of ready-to-eat meals available. A notable example is the launch of halal ready-to-eat foods by Marks and Spencer in the United Kingdom in 2019.

Europe Leading Regional Market Share: In 2020, Europe held the largest market share in the global frozen foods market, accounting for a 40% CAGR, and is expected to maintain a high growth rate throughout the forecast period. Europe's substantial consumer base, characterized by disposable income and busy lifestyles, provides a fertile ground for the frozen foods market to thrive. The growing vegan population in Europe is also anticipated to significantly boost frozen food sales. Additionally, the increase in frozen food consumption during the COVID-19 pandemic, partly due to the high number of fatalities and subsequent behavioral changes, contributed to the region's market expansion.

Company Profiles and Competitive Intelligence:

Major companies operating in the global frozen foods market include:

• Nestle

• H.J. Heinz Company

• ConAgra Foods Inc.

• Maple Leaf Foods Inc.

• General Mills

• BRF SA

• Tyson Foods Inc.

• Mother Dairy Fruit & Vegetable Pvt. Ltd.

• Pinnacle Foods Inc.

• Ajinomoto Co. Inc.

• Kraft Foods Group Inc.

• Unilever PLC

• Aryzta A.G.

• General Mills Incorporation

• Kraft Foods Group Inc.

These key players are actively focusing on collaborating with various stakeholders and innovating new products. The increasing consumption of frozen foods is also prompting companies to produce more sustainable and durable food products.

Market Dynamics:

Drivers:

• Ease and convenience for busy consumers

• Wide variety of products available

Restraints:

• Perceived health comparison to fresh food

• Lack of infrastructure and investment in developing countries

Opportunities:

• Rise in online grocery shopping

• Investment in research and development for innovative products

COVID-19 Impact on the Frozen Foods Market:

The initial outbreak of the COVID-19 pandemic and subsequent lockdowns triggered panic buying among consumers. The uncertainty surrounding the pandemic led to excessive purchasing of frozen foods, driven by consumer anxieties. This resulted in a boom in the frozen foods market. However, measures like social distancing and curfews in many nations led to the shutdown of manufacturing plants, causing a temporary dip in market growth. As the situation normalizes, the frozen foods industry is expected to regain its momentum.

Recent News Developments and Investments:

• Tyson Foods Inc. (2020): Announced the introduction of a range of frozen chicken products for the European market.

• ConAgra Brands Ltd (2019): Introduced a comprehensive range of frozen and refrigerated products, including frozen sandwiches, pasta, chicken, eggs, and baked goods.

• Sara Lee Frozen Bakery (2020): Acquired Fresh Foods Corporation of America (operating as Cyrus O’Leary’s Pies®), expressing delight in adding their variety of pies to its portfolio.

Unique Insights Provided by This Report:

• In-depth value chain analysis

• Opportunity mapping

• Sector snapshot

• Key Players Positioning Matrix

• Regulatory scenario

• Strategies Adopted-Benchmarking Heat Map

• Market trends

• COVID-19 impact analysis

• Product comparison

• Pre & Post COVID-19 impact on the Global Frozen Foods Market

• Competitive Landscape