Market Scenario
North America Frozen Fruits and Vegetables Market was valued at $ 11.90 billion in 2023 and is projected to surpass a valuation of US$ 24.80 billion by 2032 at a CAGR of 8.5% during the forecast period 2024–2032.
In the North America frozen fruits and vegetables market, convenience is a major factor as it provides ready-to-eat options to customers that require minimal preparation. Research conducted by American Frozen Food Institute survey reveals that 83% of frozen food shoppers buy these products as alternatives due to their long shelf life and ease of preparation. Furthermore, this longer preservation time of frozen fruits and vegetables compared with fresh varieties ensures that consumers can access healthy options throughout the year, example being they are able to last for months but fresh produce can only be utilized within a week.
The market is also driven by health consciousness. Consumers are becoming more focused on what they eat and choose nutritious foods. Many people consider frozen fruits and vegetables healthier than canned or processed ones because they have maximum nutrient retention value. In fact, an analysis done by the American Frozen Food Institute discovered that it was possible for a woman following dietary guidelines set forth by Americans consuming 95% frozen food at $8.52 per day only. Besides, it has been observed that just 9% of adults are getting enough vegetables while only 12 % consume sufficient amount of fruit indicating a need for accessible nutritional choices.
Additionally, the growing demand for organic and natural products has benefitted the global frozen fruits and vegetables market too. As consumers become increasingly interested in quality and origin of what they eat, organic and natural frozen fruits and vegetables have become available in various places within the country’s grocery stores’ shelves’ racks.’ These items appear as though they lack chemical additives or pesticides thus constituting good substitutes for health-conscious individuals’ preferences. The reason why there exists a demand for organic type of freezing is because those types do not require any preservatives since they can stay up to an extended period. Freezing techniques advancements especially Individual Quick Freezing (IQF) has revolutionized the quality and texture of frozen fruits and vegetables significantly. Therefore, these technological developments have made frozen products more attractive to consumers thereby contributing to growth in the market for frozen fruits and vegetables. Most customers prefer IQF technology to other methods because it helps them to retain the nutritional and textural properties of the product.
The foodservice industry has also been a major driver of the global frozen fruits and vegetables market expansion through its adoption of frozen fruits and vegetables. Restaurants, cafes, and hotels use frozen ingredients due to their convenience, consistency in quality as well as their all-year availability on the market. Reduced wastage and longer shelf life are some benefits that come from using the frozen produce by the food service industry which can help them manage their inventory better. Moreover, presence of such products in supermarkets, hypermarkets and convenience stores is a result of retail expansion in this area. The rise of e-commerce platforms has made ordering for frozen fruits and vegetables online so easy hence more growth within that space. Therefore, purchasing groceries categorized under “frozen” has become increasingly popular especially during COVID-19 period since it gives people an opportunity to safely access nutritious food items at any time they want.
To Get more Insights, Request A Free Sample
Market Dynamics
Driver: Increasing Consumer Demand for Convenient and Nutritious Food Options
Increasing consumer demands for healthy and ready to eat meals are driving the North American frozen fruits and vegetables market. The change in lifestyles has resulted in consumers looking for lesser time-consuming food choices. For example, they provide a convenient solution since they can be obtained easily and require minimal preparation, thus making them a good fit for people who have busy schedules. Over the last 15 years, the global convenience foods market has grown by approximately 129 percent and it is expected to grow another 40% by 2025 as a result of lifestyle changes and changing tastes among consumers.
Also, the year-round availability of a variety of fruit and vegetable types can be achieved through frozen produce because it has a longer shelf life compared to fresh ones. For example, while frozen produce may last for several months, fresh produce on some occasions has to be consumed within seven days. Additionally, this lengthy shelf life helps cut down on food losses especially when we consider that approximately 1.3 billion tons or one-third of all food produced worldwide is lost or wasted annually. Furthermore, retained nutrients in terms of vitamins and minerals make frozen fruits and vegetables market most attractive for nutrition conscious people who want balanced diets. According to research studies done so far preserved fruits can serve similar nutritional functions as their fresh counterparts without any need for preservatives.
Moreover, technological advancements in freezing techniques like individual quick freezing (IQF) are another boost to the growth of this market since it preserves nutritional content plus texture aspects of these products. This has increased consumer acceptance towards frozen fruits and vegetables hence expansion market size. In addition, North America dominates the global arena because it has well-established strong cold chain logistics capacities which facilitate safe transportation as well as storage of such commodities across NAFTA markets.
Restraint: Perception Challenges and Quality Concerns
Although North America frozen fruits and vegetables market has potential for growth, there are some drawbacks. The fact that fresh is often considered to be superior to frozen produce by a significant number of buyers in the region is one of the key challenges. This perception can act as an obstacle to the development of this industry since consumers will choose fresh foodstuffs instead. Food Marketing Institute conducted a poll where 61% of customers believed that fresh fruits and vegetables were more nutritious than their frozen counterparts thus indicating an important misunderstanding that requires clarification.
This means that manufacturers and various players in the sector should emphasize on informing consumers about advantages accruing from using frozen fruits such as nutritional value, flavor retention, quality and texture preservation through advanced freezing techniques. For example, studies in the global frozen fruits and vegetables market have shown that well-frozen products retain up to 90% of their nutrients, which goes against the belief in always going for fresh foodstuffs. Moreover, according to research carried out at University of Georgia, some types of frozen fruits and vegetables contain higher amounts of vitamin A and C compared to fresh ones due to their quick-freezing process which ensures preservation of most nutrients.
Another crucial thing is addressing quality aspects related to texture, taste or nutrient loss when it comes to these preserved foods. In order to achieve this goal, strict quality control mechanisms need be established in addition making sure that transparency characterizes every stage of production. For instance, adoption Individually Quick Freezing (IQF) technology has notably improved texture as well as taste qualities linked with refrigerated products almost at par with those found on original state. Furthermore; campaigns aimed at creating awareness among buyers on how easy it is using frozen edibles besides being cost effective can begin changing people’s minds about them. In other words, choosing processed foodstuff over fresh ones can enable shoppers save up-to 30% on grocery bills; hence it is an economically viable choice.
Opportunity: Expansion of Retail Channels and E-commerce Platforms
With the expansion of retail channels and increasing popularity of e-commerce platforms, there are many opportunities for North America’s frozen fruits and vegetables market. The increasing presence of frozen produce in supermarkets, hypermarkets as well as convenience stores is enhancing its accessibility among consumers. These retail outlets have a wide range of customers, thus, providing a platform for promotion and sales of frozen fruits and vegetables. According to Food Marketing Institute (FMI), 95% of consumers buy frozen food products at supermarkets which indicates their significance in the distribution system. Moreover, hypermarkets account for 35% while convenient stores take 50%, which is a broad reach to potential buyers.
Manufactures can work with retailers to achieve optimal product placement that will enhance visibility leading to consumer awareness and increased sales figures. This interaction may be very vital since research shows that tactical product placement may boost sales by around thirty percent (30%). Additionally, conducting promotional activities within the stores and having sampling programs may improve customer experience.
The rise of e-commerce platforms has revolutionized consumer buying habits when it comes to food products in the global frozen fruits and vegetables market. It also gives the customer an option on how he would want his product delivered in terms of cost, variety or any other aspect that may come into mind during ordering process. Once again, this form is preferred due to its sheer convenience associated with accessing various groceries at fingertips. The North American E-commerce grocery market is projected to reach $38 billion by 2023 with a CAGR of approximately 24%. Moreover, more than two-thirds (70%) U.S male adults do online shopping for food stuffs once or several times per year while another third perform it weekly based on information provided by FMI.
Segmental Analysis
By Type
in 2023, North America frozen fruits and vegetables market is led by frozen vegetables segment. In 2023, the vegetable segment accounted for a significant revenue of US$ 5,973 million and is expected to continue dominating in the future with a CAGR of 7.5%. This can be attributed to various factors including the versatility of vegetables in multiple culinary applications like stir fries, soups, salads and side dishes. There is an increasing demand for frozen vegetable products as health-conscious consumers increasingly diversify their diet with a wide array of vegetables. For instance, the International Food Information Council survey revealed that 73% of consumers are trying to eat healthier today focusing primarily on increasing their intake of vegetables. Moreover, there are different types of frozen vegetable alternatives such as broccoli, corns, peas and carrots among others that further strengthen its market leadership.
Broccoli alone had an increase of 15% in frozen sales in just one year which shows a growing consumer preference. Over the last five years, frozen vegetable sales have increased by 28% as per National Frozen & Refrigerated Foods Association (NFRA) implying strong upward trend. Furthermore, this convenience feature has made it appealing to busy consumers who do not have enough time for food preparation; thus, making it widely accepted since according to Astute Analytica over 81% of US households frequently buy them.
Apart from this, end-users also turned toward frozen vegetables because they wanted plant-based foods only. According to Plant Based Foods Association report, plant-based food market grew at 27% in 2022 while frozen vegetables played a significant role during this growth. This trend will continue further strengthening the dominance of North America’s vegetable sector within the North America Frozen Fruits and Vegetables Market.
By Application
Convenience, technological advancements, and evolving consumer lifestyles are driving a massive boom in the popularity of ready-to-eat (RTE) frozen foods. The global market for ready to eat frozen food is projected to grow at a CAGR of 10.2% from 2024-2032 and contribute over US$ 4,244 towards the frozen fruits and vegetables market by the end of 2024. Convenience is the biggest factor with 78% of shoppers saying this was why they bought them. Technological advances such as flash-freezing (which has seen a 15% rise in adoption) ensure that meals keep their taste and nutritional value.
Healthier options are also becoming more popular; low calorie, high protein and plant based RTE meals have seen a YoY increase in market share by 12%. These have been consumed more by people eating at home, with 64% of households saying they ate these types of meals more frequently since doing so. They appeal to a wide range of consumers including busy professionals, students and families – millennials & Gen Z account for sale to these groups which represents about half total sales.
There are economic drivers too; cost-conscious buyers who find dining out expensive have increased purchasing RTFMs by 7%. Furthermore, these products result in less waste which appeals to eco-friendly consumers (58%). Ongoing innovations by companies like General Mills led them on average releasing an additional product each year over five years which resulted in +10% growth across all launches annually. Some favorites include uncrustable sandwiches or snacks such as frozen pizza, frozen taquitos, and Mon Salwa.
By Technique
Freeze drying dominates North America frozen fruits and vegetables market in terms of technique. The freeze-drying segment’s revenue was $7,346 million in 2022 and is forecasted to grow at a CAGR of 7.5% in the years to come. Freeze drying is a common method used to preserve fruits and vegetables because it helps them keep their shape, color, taste and nutrients.
Light weight, rehydration ability, long shelf life are among features that make freeze-dried fruits and vegetables appropriate for various applications such as snacks, desserts or ingredients in cereals, granolas and trail mixes. In addition, the global freeze-dried food market is expected to reach $178.3 billion by 2032 due to growing demand from customers looking for convenience and healthier food options. Moreover, freeze dried products account for 15% of the total dried food market which illustrates their increasing prominence. Freeze drying has been dominant in this sector through its capacity to maintain quality characteristics of frozen produce. It was found that during freeze drying process fruits preserved up to 97% nutritional value compared with other drying methods. Furthermore, these products are lightweight hence reducing shipping costs by almost half making them an attractive economic option for both producers and consumers.
Convenience plays a significant role here in the frozen fruits and vegetables market; as much as 68% of customers would rather eat freeze-dried fruit on-the-go. Additionally, there is a corresponding projected annual increase of 8% in the market for freeze-dried vegetables especially due to inclusion into ready-eat meals besides emergency rations. E-commerce however has increased sales where there were online purchases of freeze-dried foods rising by 30% within one year alone (2023). Thus, based on these trends and facts about the North American freezing technology section on vegetable/fruit markets segments can expect preservation method will sustain development while still dominating this region’s industry over time.
By Form
In the terms of form, sliced and cubed products dominate the North American frozen fruits and vegetables market. In 2022, this sector generated a total revenue of $7,016 million and is likely to keep on being dominant in the future by growing at a staggering CAGR of 9.4%. On the other hand, by being pre-cut and ready to use, sliced and cubed frozen fruits and vegetables offer consumer convenience that helps them save time and energy during meal preparation. These forms are generally used in making different types of foods including salads, smoothies, desserts as well as ready-to-eat meals. According to an American Frozen Food Institute survey reported by Packaged Facts (2015), 72% of customers choose pre-cut frozen vegetable because they are easy for them to prepare. Additionally, demand for convenient food items has necessitated an increase in sales of pre-cut fruits and vegetables globally; this will see its market value grow from $27.2 billion today to over $27.2 billion by 2025. The segment is growing due to the rising popularity of versatile frozen produce which allows food makers to create various dishes with simplicity thereby targeting consumers’ preferences. It was also noted that about two-thirds or 65% households in America purchase sliced/cubed fruit more than any other type when buying frozen fruits/vegetables according to a study done by Del Monte Foods in California. There was also a rise of 20% in the usage of these fruit pieces among Americans who make smoothies within five years indicating their changing tastes.
Also, contributing towards this development of the frozen fruits and vegetables market is e-commerce as online sales for the same rose by 30% during last year alone. Furthermore, grocery shopping through online channels increased from 18% to about 58% between 2019-2023. Therefore, given these changes favoring modern consumers’ hurried lives that have no time for cutting whole fruits, the consumption of sliced/cubed frozen vegetable emerged as a driving factor behind the industry’s rise. The future of this segment is bright in that it has been positioned to sustain its growth and control the North American frozen fruits and vegetables market with respect to these trends and figures.
To Understand More About this Research: Request A Free Sample
Top Players in the North America Frozen Fruits and Vegetables Market
Market Segmentation Overview:
By Type
By Consumer Group
By Household Income Groups
By Gender
By Category
By Form
By Technique
By Application
By Distribution Channel
LOOKING FOR COMPREHENSIVE MARKET KNOWLEDGE? ENGAGE OUR EXPERT SPECIALISTS.
SPEAK TO AN ANALYST