Market Scenario 

The global frozen foods market size is expected to reach US$ 808.42 billion by 2032 from US$ 331.83 billion in 2023, growing at a CAGR of 10.4% during the forecast period.

Frozen foods are particularly gaining popularity in countries like Europe and North America while Asia and South America are also catching up quickly. The Indian frozen foods market is flourishing with 250 new frozen products introduced only in the past year mostly in the cities. Cold-Chain is essential for product quality; countries like China are spending lot of money in building cold storage facilities and in 2023 alone over 5000 new cold storage units were installed. This allows growth in the nexus so as to snack on more frozen nutriments as the shops coverage bereaves any complain of rhythmic increase in the attendees. In Latin America for example, the rising per capita consumption of frozen foods is supported with the opening of 1,500 new retail chains providing more space for frozen food access.

In 2023, ready-to-eat meals, frozen vegetables, snacks, and frozen meats occupied the biggest share of the frozen foods market. Leading players include Nestlé, ConAgra, and Tyson Foods. Nestlé's Hot Pockets and Stouffer's and ConAgra's Banquet and Marie Callender's are common among households. These brands serve the increasing need of working people and working couples who survive on fast meals. A survey cites that 94% of consumers in the U.S. claim they will not cut or cut down on any frozen food purchases, and out of these, 7 out of 10 consumers claim to freeze various products these days. The increase in the demand for frozen foods is being fueled by the health-oriented consumers as well, with more than 20,000 stores indoors selling organic frozen foods.

In this regard, frozen ready meals from the plant-based sector are a growing area as companies like Beyond Meat and Amy's Kitchen have started to add frozen product lines. The worldwide plant based frozen foods market contains more than 300 new products introduced in 2023 alone. The emphasis on online sales has brought about physical changes to retail where it is reported that more than fifty percent of customers order frozen foods online at least once a month. The reason behind that change is the home delivery option and the broader choice on the internet. Strategies and tactics employed by brick and mortar consumers to counteract sales lost to competition from e-commerce companies are integrating more in-store activities. Drawing the attention of consumers Through Walmart and Kroger adding mountains more than 1,000 new frozen food items to shelves of traditional retailers. Thus, In an additional basil and frozen foods from the business strategy, it can be seen that 20% of global frozen food sales are made online which fundamentally changes the market.

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Consumer Behavior Analysis

Over the recent years, it has been observed that the behavior of consumers in the frozen foods market is gradually changing to be focused on the principles of convenience and variety-seeking. According to a survey done by the American Frozen Food Institute, 86 percent of the customers buy frozen foods due to their convenience. Due to the busy lifestyles, frozen meals that require no preparation and contain a little cooking time, also referred to as frozen ready meals, are gaining much of the market share. Same goes with the frozen food aisle, which offers a plethora of choices including more and more ethnic and gourmet frozen meals. On the other hand, consumers who are focused looking forward to eating healthy are also inducing these trends by looking for frozen foods that incorporate healthy components. In 2023, 35% of consumers of processed food products stated that they purchased a greater quantity of plant-based frozen food compared to 2022. This also reflects a growing concern for healthy living, healthy and ethical eating practices.

• Economic Considerations and Sustainability

Various economic factors play a role in determining the behavior of consumers towards the consumption of goods in the frozen foods market. Cinema in economics works even more effectively as pressure of this or that type increases, which for consumers means even more modest means and more frozen food sales. A survey conducted in 2023, finds that 60% consumers tend to purchase frozen foods over fresh products due to reasons like cost and extended shelf life. Buying in large quantities and putting away some food stuff in stock helps consumers to budget effectively. The desire for a more sustainable planet is also changing the way consumers make their purchases. A study shows that 48% of the consumers who buy frozen foods do so because of the lower carbon footprint as compared to other food products, especially in food wastage. Since most of the waste of their households includes frozen food, consumers help reduce food waste by adopting the environmental friendly practices. This approach demonstrates consumers’ attempts to save money while promoting healthy environmental, especially by avoiding overconsumption.

Market Dynamics 

Driver: Busy Lifestyles Increasing Demand for Convenient Frozen Food Products

In today's fast-paced world, the demand for convenient, quick-preparation frozen food products is rapidly increasing, driven by consumers' busy lifestyles. The global frozen foods market has reached $265 billion in 2023, with a significant portion attributed to time-strapped individuals seeking easy meal solutions. Urbanization has led to more single-person households, now totaling 282 million globally, which often prefer quick meal options. In the United States alone, approximately 40 million people work over 50 hours per week, leaving minimal time for meal preparation. The frozen pizza market, valued at $18 billion, highlights the convenience trend, as does the rise in frozen breakfast items, now a $3 billion market. Companies like Nestlé have capitalized on this trend, with their Lean Cuisine and Stouffer's brands offering diverse, ready-to-eat options.

Moreover, the rise of dual-income families, which comprise 65 million households in the U.S., has fueled the demand for convenient meals, giving a boost to the frozen foods market growth. The demand for frozen food in India, with a burgeoning middle class of 350 million, is also on the rise. Additionally, the frozen vegetable segment, valued at $33 billion, is benefiting from consumers seeking healthy yet convenient options. The ability to store these foods for extended periods, with frozen foods lasting up to 3 months compared to 2-3 days for fresh produce, further adds to their appeal. The growing number of health-conscious consumers has led to innovations like low-calorie frozen meals, which are now a $1.5 billion market, indicating that convenience and health can coexist.

Trend: Shift Towards Premium Frozen Products with Gourmet and Exotic Flavors

In recent years, there has been a sharper increase in the popularity of frozen food products that require minimal preparation on part of the consumers, attributable to the latter's busy lives. In 2023, the revenue of the global frozen foods market had reached US$287.5 billion, and a large share of that was dedicated to those seeking fast supper solutions. Urban agriculture contributed to more single person households now worldwide numbering 282 million women and men that eat and prefer fast foods. In America, approximately 40 million citizens are workaholics, working at least more than 50 hours a week which gives no room for preparations of meals. Frozen pizza as other market trends with a turnover of US$18 billion exemplifies this convenience trend, coupled with ready to eat breakfast items which are fast becoming a $3 billion opportunity. The growing trend has also been embraced by companies like that of Nestlé, Lean Cuisine and Stouffer's brands, which provide a wide range of pre-cooked meals.

The increasing number of dual-income households in the US, which currently totals 65 million households, has created a market for easy to prepare meals. This trend is also evident in India which has a rapidly growing middle class of 350 million; the frozen foods market is on the rise as well. Furthermore, the $33 million frozen vegetable market has been on the rise as consumers go for convenient and healthy options. As for the ‘durability’ of the product, frozen foods last about 3 months while fresh foods such as fruits and vegetables are available for only about 5 to 3 days. The growing number of health-conscious consumers has led to innovations like low-calorie frozen meals, which are now a $1.5 billion market, indicating that convenience and health can coexist.

Challenge: High Energy Costs Impacting Profitability and Sustainability of Frozen Food Production

High energy prices are a crucial obstacle for the frozen food industry that affects their profitability and processes. The frozen foods market estimated at US$265 billion engages in energy-consuming production, storage, and delivery. Still, the energy cost has gone up as global crude oil costs average US$87 per barrel in 2023. Food refrigeration alone consumes more than 130 billion kWh of energy per annum in the US, this spending strains the firms. Cold stores which hold about US$187 billion worth of ice cream face a lot of costs particularly on the reaching in-bill. For example, the average annual energy cost for one cold storage plant is US$ 1.2 million.

Strategies to reduce these costs include using energy saving technologies, where the global market of such solutions stands at US$8 billion. Other examples include investing in solar powered cold storage units that help unnaturally cold foods to cut down on normal electric energy consumption in the frozen foods market, such as in the case of Unilever. In other areas, the rise for sustainability has encouraged the use of alternative refrigerants, which is another market worth US$ 2.5 billion. It should be noted that making the shift to such alternatives will require substantial investment up front which might make it difficult for the smaller ones. The pressure from regulations set down by the European Union concerning how much energy a manufacturer may use has caused the manufacturers themselves to innovate like the new high technology insulation materials which is now a US$ 1 billion market. Unfortunately, the energy cost concerns still remain a serious issue over and above all these strategies, on the pricing along with the major sustainable in the frozen food sector.

Segmental Analysis 

By Products 

The ready meal segment is positively projected to expand due to the rise in convenience foods. The segment is projected to become the most dominant segment in the frozen foods market with 29.6% market share owing to it’s on-the-go nature and its offerings including vegetarian and vegan preparations. These key brands include Nestle, General Mills, Tyson Foods, and Conagra Brands leading this category in the global market. Nestle has been recording more than 1.6 billion intake of ready meals a year which explains its diverse nature and geographical expansion. General Mills markets its ready meal divisions in more than 100 countries. The market is extremely competitive, fragmented with a number of players always looking to retain their competitive advantage by bringing out new products.

The main reasons behind the popularity of ready meals in the frozen foods market include the ease of use, the need for minimization of time and effort put in the preparation of the meals, thus, appealing to the present-day consumers. An average household spends over $200 per year purchasing ready meals. The demand is especially high in cities and among employees who choose to eat out instead of engaging in the traditional cooking methods. Individuals from generation Y make up 35% of the target market for ready meals. Their inclusion into trendy restaurant menus has also increased their popularity since it ensured efficiency and quality on the consumers’ houses. Furthermore, the emergence of various online channels for distribution has helped facilitate even more consumption of these products with sales of their increased by 30% over the last few years.

The segmental dominance in the frozen foods market will continue outweighing other categories such as meat, poultry, dairy, seafood, and others due to their longer shelf life and variety of frozen, chilled, and canned meals. Ready meals frozen foods usually have an average of 18 months of shelf life, which is considerably higher than that of fresh foods. The growth of the market has also been facilitated by the existing stringent food safety regulations that boost the markets for these products. Frozen meals instill a high level of consumer confidence since over 75% have confidence in the safety and reliability of those meals. To add to that, there's an increasing share of veganism and an increasing demand for vegan meals has also had a hand in the acceptance of frozen vegetarian meals forecasts that they will remain the best-selling genre with vegan ready meals growing by 20% each year. The other contributing factor to the expansion of the market is rapid urbanization and consumption of emerging and fast lifestyle trends among consumers. Even the Asia-Pacific region alone accounts for 40% of the total consumption of ready meals across the globe.

By Distribution Channel 

Retail continues to be the dominant distribution channel for frozen foods market with the market share accounting for 68.7% thanks to the wide distribution and range of products offered. In the year 2023, fast food frozen food sales through supermarkets is believed to have been around US$ 230 billion, further proving this sales channel’s relevancy. Within the United States alone, now over 40,000 supermarket outlets with frozen foods are in operation, emphasizing great market penetration. Markets in Countries like Vietnam have already opened more than 1500 new supermarket bodies within the last five years which mentions the growing frozen foods market. The option of getting to buy all the grocery requirements in on e-center coupled, affirming the huge range of frozen food products is especially appealing to these type of establishments and warrants their continued dominance.

As a result of several strategic advantages, there is a noticeable inclination among the brands to rely on the supermarkets and hypermarkets for the distribution of frozen foods. Not only do these outlets provide substantial coverage, but shelving frozen foods within their stores is more than simply a matter of inventory; there are prime locations dedicated to the popular food segment. Sales in supermarkets can make a large contribution to increased sales with regards to sales promotions in a year raising the units sold of frozen food by some 30 million units in periods of sales promotions. Another point within this consideration is the argument of the anatomy of such retail behemoths that permits cold chain distribution. The size of the market for global cold chain logistics for frozen foods was around $220 billion in 2023 and therefore highlights its significance as a driver of product safety and quality. Moreover, the regions such as Europe wherein there is a high purchasing power and economic stability tend to further enhance sales through these channels.

The prevalence of supermarkets and hypermarkets in the frozen foods market retailing chain is also influenced by the macroeconomic environment and changes in customer attitude. The increase in disposable income has enabled consumers to purchase more convenient food products, and in just the Asia-Pacific region this was $ 70 billion in 2023. The worldwide sales of prepared frozen meals were worth US$ 85 billion, which infers that an increasing number of people are seeking easy meal options. With new technologies being used in the Frozen food packaging industry, about 50,000 tons of plastic waste is avoided every year in the frozen food industry due to the consumers who prefer eco-friendly products. The organic frozen foods market also continued to expand markedly and in 2023 amounted to 15 billion dollars due to the demand from health-oriented people.

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Regional Analysis 

Asia Pacific region is the world’s largest frozen foods market with 38% market share owing to the swift urban shift, rising income levels, and a growing middle class population wanting easy access to foods. Some of the contributing countries are China, India, and Japan. For instance, urban Chinese households purchased almost 30 million metric tons of frozen foods in 2023 which is a large increase in consumption. There are roughly 20 million Indians who have rapidly become frozen food consumers within 3 decades and integrate these foods in the course of their weekly shopping. In the same year, Japan that prides itself in technology, also launched more than 500 new frozen food items showing the direction of development. In addition, the growth was buoyed by the convenience factor and the development of cold chain logistics which has led to the establishment of over one thousand five hundred new cold storage facilities to meet the demand in the region. The relevance of the internet and the need to develop ecommerce websites has also been witnessed, as more than 100 million transactions for frozen foods were made online in the region in 2023. CP Foods, Nestle, Ajinomoto are few such brands which had stood to benefit and introduced different product ranges since there was a demand. More than 200 leading brands have also shifted to eco-friendly packaging materials as consumers have increasingly sought green products.

In North America, the frozen foods market continues to hold strong, possessing the second highest share across the globe. The most dominant players in this region are the United States and Canada, with the US selling roughly 2 billion frozen pizzas in 2023 alone; this goes on to prove why frozen pizzas are very much in demand. Busy schedules and the availability of frozen foods hence fuel the growth of this segment, where frozen pizzas, frozen vegetables and frozen entrees are very popular. Plant-based foods are rapidly expanding, as in the previous three years this category of frozen food has doubled and in 2023 over 1000 new products are expected to be released. Canada also has its part in this as its frozen foods market had more than 600 million transactions. Better technology for freezing has brought improvements in the quality, with over 300 companies implementing such technology in 2023. Furthermore, as change becomes the trend, more than 500 companies are moving to biodegradable package for their products which is what the customers are buying.

Top Players in Global Frozen Foods Market: 

• Ajinomoto Co., Inc.
• Associated British Foods PLC
• CJ Foods
• ConAgra Brands, Inc.
• General Mills Inc.
• Grupo Bimbo S.A.B. De C.V
• Grupo Bimbo
• Kellogg Company
• Lantmannen Unibake International
• Maruha Nichiro Holding Inc.
• Mccain Foods Limited
• Nestle SA
• NH Foods Ltd.
• Nichirei Corporation
• Nippon Suisan
• The Kraft Heinz Company
• Tyson Foods, Inc.
• Unilever
• Other Prominent Players

Market Segmentation Overview:

By Product Type

• Fruits
  • Seasonal
  • Regular
• Vegetables
  • Peas
  • Corn
  • Potatoes
  • Others
• Dairy Products
  • Milk
  • Butter
  • Cheese
  • Others
• Meat & Poultry
  • Red Meat
  • Pork Meat
• Poultry Meat
• Seafood
• Bakery Products
  • Bread
  • Pizza Crust
  • Cakes & Pastries
  • Others
• Soups
• Ready Meals
  • Dumplings
  • Rice-based
  • Italian (Pastas)
  • Indian
  • Korean
  • Chinese
  • Others
• Others

By Distribution Channel

• Retail
  • Online
  • Supermarket/ Hypermarket
  • Convenience Stores/ Standalone Stores
•  Enterprise Sale (B2B)
  • HoReCa (Hotel, Restaurants, Café) – Food Service
  • Travel (Railway/ Airline/ Others)
  • Educational Institutes
  • Food Processing Industry

By Region 

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • The UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Netherlands
  • Rest of Europe
• Asia Pacific 
  • Japan
  • China
  • India
  • Australia & New Zealand
  • Korea
  • ASEAN
  • Rest of Asia Pacific
• The Middle East and Africa 
  • UAE
  • Saudi Arabia
  • Egypt
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America