Market Scenario 

Frozen food market size is expected to reach US$ 722.5 billion by 2033 from US$ 450.1 billion in 2024, growing at a CAGR of 5.4% during the forecast period.

Worldwide, the frozen food market has been slowly expanding and Europe and North America are considered to be the primary regions, with Asia and South America as up-and-coming markets. In 2022, Italy alone introduced more than 100 fresh products, exceeding expectations in terms of growth. In addition, China’s investments into cold-chain facilities have been significant. Industry reports claim that the country has installed thousands of newly built cold storage facilities from the beginning of 2023 onwards, allowing for greater efficiency and quality of the supply chain. Brazil along with the other countries located in Latin America is witnessing growth in consumption of frozen foods as well, primarily due to the rise of many new retail chains that provide hat products throughout the region.

In the global frozen food market analysis, frozen vegetables, ready to eat meals, frozen packs, and frozen meat products are amongst the largest shareholder. It’s apparent that Nestle, ConAgra Brands, and Tyson Foods are giants in this industry. Household names include Nestle’s Hot Pockets and Stouffer’s, ConAgra Banquet and Marie Callender’s. The plethora of meals that are easy to prepare are on the rise due to the busy schedule of working individuals and families. Research depicts that a good portion of US population uses frozen foods once in a while and some even prefer freezing their goods at their own place. There is also a new trend in organic frozen food products and there are thousands of stores responding to the trend across the US.

The plant-based frozen food market has made remarkable strides in 2023 owing to the perhaps tinged growth in the sales by companies like Beyond Meat and Amy’s Kitchen whose frozen products have seen much improvement this year. New developments such as introductions of various new products and the pursuit of the plant-based frozen market are also likely to be a deepening factor. The boom in online shopping has greatly transformed the business environment, reports show that more than half of the users purchase frozen products over a month. This is largely caused by the comfort of home delivery and wider online availability. Retail operators have switched gears to diversify their offerings online: In 2023, for instance, Walmart and Kroger branched out their frozen food sections by several hundred items. It is also worth mentioning that the share of online sales in global frozen food revenue has increased significantly, which has drastically changed the game.

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Market Dynamics 

Driver: Health-conscious products: Frozen food with probiotics and gut-friendly ingredients see 33% growth in consumer demand

The first factor to consider is the growing adoption of frozen food market by the working class, which is largely motivated by convenience. The U.S. Bureau of Labor reported that 61% of American families in 2023 were having dual income, giving an insight into the tight schedules families endure today. Households are also greatly pressured to prepare meals faster, as noted by The Food Marketing Institute which stated that Americans reduce their meal preparation time to 30 minutes. This adds a lot of variety to their meals while saving time and increasing the consumption of frozen foods.  Moreover, the scenario is almost identical in Europe, where the European Union's statistics agency reported that 50 million families were dual employment families in 2023. 

In the last few years, the quality and the appeal of frozen food market have surely been improved thanks to recent improvements in freezing and packaging technology. Frozen food has managed to maintain its taste, due to the new invention called flash freezing, which has also helped keep its nutritional weight. Furthermore, in the US, Census Bureau states that more than 90% of homes have ready access to microwaves which makes preparing frozen meals super easy and quick. Moreover, Walmart is now stocking over southern three thousand frozen food items in stores, which I implied earlier has allowed supermarket frozen food section to grow by a great number. This has only fueled the reliance that people have on frozen food even more to prepare food quickly.

Trend: Global Cuisine Diversity, growing focus on wellness promotes development of nutritious and organic frozen food options

One of the crucial trends experienced by the frozen food market is the globally integrated cuisine diversification as consumers wish to experience new food. Such growth is fueled by increased homogenization and a will to understand new ethnicities through food. In Western markets, for example, Indian, Japanese, Mexican, and Mediterranean cuisines have become popular. The manufacturers are also broadening their international cuisine inspired range of frozen meals. In 2023, Astute Analytica noted that as many as 1,500 new ethnic frozen food lines were launched in the US market. The catalogue includes items such as sushi rolls, dumplings, curries and tapas, that attract people with different taste preferences. Tesco and Carrefour are amongst the largest retailers that have set aside space with over 1000 international frozen products worldwide. Such a variety allows customers to have a taste of the exotic in the comfort of their homes.

This trend in the frozen food market is supplemented by the multicultural societies that are now more common. Countries such as Canada and Australia where immigrants make up more than 20% of the population have created a larger market for genuine frozen ethnic foods . The world tourism organization reported that international tourist arrivals grew in number to 1.5 billion in 2023, giving people more experience with foreign food. Such experience influences buying patterns as consumers looking for ways to recreate the experience that they had. The interest is taken advantage of by the frozen food industry to target chefs and restaurants to create genuine high quality products to fit the need.

Challenge: Health Perceptions, increasing consumer preference for fresh, organic alternatives challenges frozen food manufacturers

Perception regarding human health is a major barrier in the growth of the frozen food market as consumers are shifting towards liking fresh and organic options. According to a survey conducted in 2023 by International Food Information Council, 80% of people consider fresh food to be healthier as compared with frozen food. Organic Trade Association as of 2023 reports that the organic food industry got a global revenue of 150 billion, showcasing a strong trend amongst consumers towards natural and less processed foods.

Such kinds of trends indeed impact the sales of frozen food market, especially in what is considered being the unhealthiest food categories. According to recent report, there was a fall in the sales of frozen pre-prepared meals containing high amounts of preservatives and other additives. Furthermore, rising competition from fresh meal kit delivery has led to great competition by providing the consumers with fresh ingredients with endless combinations. According to a survey, 75% of the consumers nowadays are avoiding the consumption of artificial ingredients which is showing that consumers are paying more attention to the ingredients present on the label.

The challenges are being dealt with by manufacturers through the remaking of products to fit the health trends. For instance, according to Mintel’s global new products database, during the year 2023, more than 500 new frozen products were introduced with claims of being organic, natural and free of additives. Educational campaigns are being conducted to erase the belief that freezing food destroys nutrients, and the campaign points out that freezing food maintains its nutritional value. The efforts include investment in persistent packaging and labeling approaches. Changing these deep rooted ideas is still an uphill battle and calls for continuous change and communication from the industry, despite these efforts.

Segmental Analysis 

By Products

The growth in demand for ready-meals segment continues to drive growth of the frozen food market and the ready-meal segment remains the most dominant by capturing over 29.6% market share. This market is only projected to expand further due to the increasing demand for vegetarian and vegan meals. The bestselling brands, Conagra, Tyson Foods, General Mills and Nestle after assessing customer preferences actively engage in innovations and changes to meet the fast evolving tastes of consumers. Nestle, for example, generated over $1.8 billion in revenue gained from ready meal sales. General Mills interestingly showcased its willingness for market penetration by expanding its ready meals across 120 countries.

With the pace of modern life, city dwellers and working professionals tend to spend less time on cooking, which has contributed to the increasing use of ready meals in the frozen food market. In 2023, retail sales of ready meals segment showed an increase of over $250 each year per households in the US. Spending in this category is on the rise, given that the popularity of frozen means among millennials and generation z is booming. The popularity of meal delivery services and the addition of ready meals into restaurants’ menus have made these products more attractive and available. In addition, internet sales have expanded ready meal consumption, with e-commerce witnessed increasing sales by 35% in the last few years.

Factors such as increased product assortment and prolonged shelf life are predicted to keep the ready meals segment at the top rank even over meat, poultry, dairy and seafood segments in the frozen food market. The shelf life of a frozen meal on average is around 24 months. The recent advances in frozen parts particularly with lean protein such as meat, fish and poultry, have also been greatly assisted by the strict food safety norm. This has increased the level of trust among the consumers. Survey shows that over 80% of consumers surveyed have higher trust on the safety and reliability of frozen ready to cook meals. Moreover, with the rising trend of veganism, the market for vegan frozen meals is growing at a rate of 25% annually.

By Distribution Channel

As of 2023, retail channels, especially supermarkets and hypermarkets, have once again taken over the distribution of the frozen food market, retaining a market share of 68.7%. This is due to their enormous economies of scale and the assortment they maintain to suit their customers. In the US, more than 42,000 supermarket stores offer frozen food to their customers indicating a wide reach of the market. The past five years have seen the emergence of new supermarket stores to an upward of 2,000 in Vietnam, a testament to the ever growing nature of the retail distribution channels in both developed and developing countries.

For several reasons, brands in the frozen food market are beginning to utilize supermarkets and hypermarkets for the sale of frozen food. They have good coverage and great merchandising with freezers which increase product attractiveness. These giant retailers have had great success in marketing their products. For instance, during the promotional seasons, there was a 12% growth in the amount of frozen food sold units, which in a yearly basis is around an additional 35 million units. There is also the advantage of these facilities being so large as to facilitate cold chain integration which protects the quality of the products. The cold chain logistics market reached US$310 billion in 2023, which denotes its importance to the frozen foods market. Countries with high disposable income i.e. Europe, have largely increased usage of the channels because of increased confidence in the economy. The macroeconomic environment and changing consumer trends also contribute to the continued popularity of supermarkets and hypermarkets. Increased income levels have made it possible for buyers to spend more on easy to prepare food.

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Regional Analysis 

Amidst the growth of the middle class and constantly increasing in income, the Asia Pacific region has been dominating the frozen food market by capturing over 38% market share. The dominance is mainly attributed to receding rural areas alongside the increased demand for speedy food. A report showed that the urban areas in China alone purchased more than 30 million tons of frozen food in 2023. In India, the results were similar, as more than 20 million citizens started incorporating frozen foods in their diets. Furthermore, Japan also actively participated in the growing trend and introduced Ashitamo brand that offered steamed dishes, including chuka, fried noodles, pies, and more - exclusively throughout 2023. In total, Japan launched over 500 new frozen food items further strengthening their influence in technological advancements. Moreover, more than 1,500 cold storage facilities were established throughout the region in order to further compete in the sector. In addition to growing e-commerce transactions, over 200 brands also switched to biodegradable packaging. Lastly, more than 1000 possession of new plant based frozen goods were introduced across Asia Pacific region, further assisting in the plant based food movement in the region.

The frozen food market appears to be resilient across North America, with the U.S. and Canada as the major stakeholders. In 2023, the U.S. alone sells an estimated $2 billion worth – in frozen pizza. Canadian sales were also strong, with over 600 million frozen foods sold; which indicates the high demand for frozen foods in the market. Product quality also increased over time paired with the innovations and competitive nature of the industry as evidenced by the fact there were around 300 advanced freezing businesses in 2023. Sustainability is also becoming an issue as there are a barrage of customers who are attaching a lot of importance to it and more than 500 companies manufactured biodegradable packaging materials. In just three years, the segment of plant-based frozen foods has increased twofold and in the year of 2023 alone, more than 1,000 new items were introduced to the market. In addition, more than one-third of the global population began ordering goods online, which in turn gave prominence to the e-commerce and frozen food sales. The combination of convenience, variety, and sustainability have remained the north drivers of frozen food in North America.

Top Players in Frozen Food 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