April 12, 2024

The global Frozen Processed Food Market is driven by changing consumer preferences

Frozen processed foods refer to foods that have been processed, pre-cooked or treated to extend their shelf life and frozen for storage and transportation before being consumed. They include frozen bakery products, frozen meat and poultry, frozen seafood, frozen potato products and frozen ready meals. Frozen processed foods offer convenience and reduce food wastage as they can be stored and cooked whenever needed. Their long shelf life also makes them suitable for bulk procurement and stocking by retailers and households.

The global Frozen Processed Food Market is estimated to be valued at US$ 167115.0 Mn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the major trends driving growth in the frozen processed food market is changing consumer preferences. Today’s fast-paced life leaves little time for elaborate home cooking, leading to demand for convenient frozen foods that can be cooked and eaten quickly. Moreover, increasing health awareness is prompting consumers to prefer frozen foods that are low in calories, fat, salt and preservatives. Frozen vegetables in particular are gaining popularity among health-conscious buyers due to better nutrient retention compared to fresh vegetables. Manufacturers are launching a variety of frozen vegetables, seafood and meat products fortified with vegetables, whole grains, probiotics etc. to cater to this demand. Novel product launches featuring ethnic flavors and healthier ingredients will continue to support market revenues over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate due to high capital requirements for production, processing and distribution facilities. Moreover, the market is dominated by few major established players.

Bargaining power of buyers: The bargaining power of buyers is high due to the availability of substitutes and concentration of retailers. Buyers can choose from a wide range of products offered by various companies.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers for raw materials. However, suppliers of unique and proprietary ingredients may have some bargaining power.

Threat of new substitutes: The threat of substitutes is moderate as there are few substitutes available for frozen processed food. However, trends towards fresh and minimally processed food categories pose a threat.

Competitive rivalry: The competition in the market is high due to the strong presence of major players. Companies compete based on price, quality, service, innovation, and brands.

Key Takeaways

The global frozen processed food market is expected to witness high growth owing to changing consumer lifestyle and hectic schedule. The increasing demand for convenient ready-to-eat food is driving the market. The global Frozen Processed Food Market is estimated to be valued at US$ 167115.0 Mn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030.

Regional analysis: North America dominates the market followed by Europe. High disposable income, consumption of packaged food, and demand for convenience products augment the growth of frozen processed food in these regions. Asia Pacific is expected to grow at the fastest pace during the forecast period with India, China, Indonesia being the major markets. Rising population, changing diet patterns, and growing middle-class income contribute to the demand in Asia Pacific.

Key players: Key players operating in the frozen processed food market are Nestle S.A., ConAgra Foods, Inc., Kraft Foods Group, Inc., Mother Dairy Fruit & Vegetable Pvt Ltd, BRF S.A., General Mills, Inc., Maple Leaf Foods Inc., Tyson Foods, Inc., and Unilever Plc. Players compete in the market by launching new and innovative products with varied flavors and nutrition. Companies expand their product portfolio through mergers and acquisitions to strengthen their position in the industry.