The Frozen Food Market is expected to reach $408.05 billion by 2029, at a CAGR of 5.2% during the forecast period of 2022 to 2029. The increasing demand for convenience food, the growing global cold-chain market, and changing consumer tastes and preferences are the key factors driving the growth of the frozen food market.
Furthermore, the increasing digitalization in the retail industry and emerging economies in Asia-Pacific, Latin America, and the Middle East & Africa are expected to provide significant opportunities for the players operating in this market.
The Impact of COVID-19 on the Frozen Food Market
The COVID-19 outbreak caused by the SARS-CoV-2 virus created a severe public health emergency globally, with its quick spread in more than 150 countries. NUMEROUS countries worldwide declared emergencies and announced complete nationwide, statewide, or citywide lockdowns to combat & control the spread of this disease, halting all travel, transport, manufacturing, educational institutions, and non-essential trade, significantly impacting many industries globally.
However, the pandemic positively impacted the frozen food industry. Since the outbreak of the COVID-19 pandemic, the frozen food industry has witnessed steady growth. For instance, according to the American Frozen Food Institute (AFFI), in 2020, frozen food products witnessed a 21% increase in sales compared to 2019. The British Frozen Food Federation (BFFF) claimed that the sales of the retail frozen food industry increased by £872 million to over £7 billion a year in 2020 in the U.K.
Furthermore, the frozen food products supply chain has been mostly shifted from food service to retail as the demand for frozen foods, such as frozen bakery products, has shifted from food service to household consumption. According to AFFI, during the COVID-19 pandemic, frozen food sales, including frozen bakery, witnessed a 75% increase. Thus, the increase in online sales of frozen food has positively impacted the frozen food market.
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Increasing Demand for Convenience Food Drive the Growth of the Frozen Food Market
Consumer demand for convenience foods has grown substantially over the past decades. Consumers are more inclined toward convenience food products, such as baked goods, confectioneries, beverages, and other ready meals, due to their ease of preparation and consumption. The demand for ready-to-eat food products is increasing rapidly due to the drastic shift in dietary habits among consumers. Additionally, the increasing urbanization is likely to boost the growth of this trend.
More than half of the world's population lives in urban areas, and virtually all the countries worldwide are becoming increasingly urbanized. According to the United Nations World Urbanization Report, the urban population of the world has grown rapidly from 439,498,772 in 2015 to 471,031,528 in 2019, which indicates that almost 55% of the world’s population lives in urban areas, a proportion that is expected to increase to 68% by 2050. As a result, urban consumers are gaining exposure to a much wider choice and better food availability than those living in rural areas. Also, this urbanization trend contributes significantly toward improved living standards and rising incomes, which influences the affordability of frozen food products to a greater extent.
Furthermore, with rising urbanization, the demand for convenience food products is increasing rapidly due to the changing lifestyles, the rising number of nuclear families, and a significant increase in faced-paced work environments. These factors accelerate the growth of the frozen food products market.
Key Findings in the Frozen Food Market Study:
The Ready Meals Segment to Dominate the Frozen Food Market in 2022
Based on product, in 2022, the ready meals segment is expected to account for the largest share of the frozen foods market. The large market share of this segment is attributed to the changes in consumers’ lifestyles due to the fast-paced work environment, particularly among the working-class population, and the growing preference for ready frozen meals due to their convenience. In addition, the rising popularity of ready meals among the younger generation and the adolescent population and their easily accessible at different convenience stores and supermarkets contribute to the large market share of this segment.
The Bread Segment to Dominate the Frozen Bakery Products Market in 2022
The bakery products segment is further subsegmented into bread, pizza crust, cakes & pastries, cookies & biscuits, doughnuts, waffles, and other frozen bakery products. In 2022, the bread segment is expected to account for the largest share of the frozen bakery products market. The large market share of this segment is attributed to the rising bread consumption across the globe, growing preference for fast food, and the increasing number of ready-to-eat product chains and QSRs.
The Ready-to-eat Segment to Witness Highest Demand Through 2029
Based on type, the ready-to-eat segment is slated to register the fastest growth rate during the forecast period. The growth of this segment is driven by the rising demand for frozen ready-to-eat food coupled with the increasing demand for specific meal solutions. Also, the growing demand for ready-to-eat food, high nutritional value, high shelf life, and easy availability drive their global demand.
The Business-to-business (B2B) Segment to Dominate the Frozen Food Market in 2022
Based on distribution channel, In 2022, the business-to-business segment is expected to account for the larger share of the frozen food market. The large market share of this segment is attributed to the growing B2B frozen food trading, the growing number of Quick Service Restaurants (QSRs), and rising demand from hotels, restaurants, food chains, cafes, and the food service sector.
Asia-Pacific: Fastest-growing Regional Market
Based on geography, in 2022, Europe is expected to account for the largest share of the frozen food market, followed by North America, Asia-Pacific, Latin America, and the Middle East & Africa. The major market share of Europe is attributed to the rising preference for ready-to-eat food, favorable regulations, a well-established cold chain in the region, innovative practices by key players in the industry, technological innovation in the frozen food sector, busier lifestyles of consumers, introduction of various healthy and diet-related frozen meals, and the growing import of frozen foods.
However, the market in Asia-Pacific is slated to register the fastest growth rate during the forecast period. The growth of this regional market is driven by the changing lifestyles of consumers, increasing disposable income, an increasing number of Foreign Direct Investments (FDI) in the retail sector, the increasing awareness about the importance of protein-rich diets, and the growing demand for processed food products in emerging countries such as India, Indonesia, and Thailand. Additionally, the rising demand for dairy products such as natural snacks, yogurt, and sour milk is driving the growth of the frozen food market in the region.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market participants in the frozen food market between 2019 and 2022.
The key players profiled in this frozen food market study are General Mills, Inc. (U.S.), Conagra Brands, Inc. (U.S.), Nestlé S.A. (Switzerland), Unilever PLC (U.K.), Kellogg Company (U.S.), McCain Foods Limited (Canada), The Kraft Heinz Company (U.S.), Tyson Foods, Inc. (U.S.), Associated British Foods plc (U.K.), Ajinomoto Co., Inc. (Japan), Vandemoortele NV (Belgium), Lantmännen Unibake International (Denmark), Cargill, Incorporated (U.S.), Europastry, S.A. (Spain), JBS S.A. (Brazil), ARYZTA AG (Switzerland), and Nomad Foods Limited (U.K.).
Scope of the Report
Frozen Food Market, by Product
- Ready Meals
- Meat & Poultry
- Seafood
- Dairy Products
- Bakery Products
- Bread
- Pizza Crust
- Cakes & Pastries
- Cookies & Biscuits
- Doughnuts
- Waffles
- Other Frozen Bakery Products
- Vegetables
- Fruits
- Other Frozen Products
Frozen Food Market, by Type
- Raw
- Half-cooked
- Ready-to-eat
Frozen Food Market, by Distribution Channel
- Business-to-business (B2B)
- Food Services
- Food Manufacturers
- Quick Service Restaurants (QSRs)
- Business-to-consumer (B2C)
- Offline
- Supermarkets & Hypermarkets
- Convenience Stores
- Other Stores
- Online
Frozen Food Market, by Geography
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Rest of Europe (RoE)
- Asia-Pacific (APAC)
- China
- Japan
- South Korea
- Australia
- India
- Rest of Asia-Pacific (RoAPAC)
- Latin America (LATAM)
- Brazil
- Mexico
- Argentina
- Rest of Latin America (RoLATAM)
- Middle East & Africa (MEA)
Key Questions Answered in the Report: