Frozen processed foods refer to foods that are pre-cooked or prepared before being packaged and frozen for later consumption. They include frozen pizza, frozen ready meals, frozen meat and poultry, frozen seafood, frozen bakery products and frozen snacks. These foods are highly convenient to consume as they require less time, effort and preparation to cook and serve. They provide longer shelf life than fresh foods and offer versatility for consumers looking for quick meal solutions.
The 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 the growth of frozen processed food market is growing demand for convenience foods. Rising number of working women and changing lifestyles have led to increased demand for ready-to-eat and easy-to-cook meals that save time for cooking. Furthermore, rising disposable incomes in developing countries is enabling consumers to spend more on value added and ready-to-eat frozen food products. Frozen processed foods being highly convenient, low cost and providing longer preservation are getting increasingly popular among consumers. For instance, innovations in frozen pizza categories with different toppings and flavors are attracting various demographics. Growing health consciousness among consumers has also led to rising demand for frozen food products containing higher protein content, whole grains, less fat and low calories.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low in the frozen processed food market. Large capital investments are required to build processing plants and warehouses for refrigeration. Established brands have an advantage in distribution channels and customer loyalty.
Bargaining power of buyers: The bargaining power of buyers is moderate. The availability of substitute options increases customers' bargaining power. However, convenience attributes of frozen foods attract price-sensitive customers.
Bargaining power of suppliers: Suppliers of raw materials such as meat, vegetables and grains have moderate bargaining power due to the availability of substitute suppliers. Volume contracts with suppliers help reduce procurement costs.
Threat of new substitutes: The threat of substitutes is moderate as customers can opt for fresh food alternatives. However, convenience aspects of frozen foods distinguish them from substitutes.
Competitive rivalry: The competitive rivalry is high due to the presence of many large players.
SWOT Analysis
Strengths: Wide product portfolio and availability in retail stores. Established brands enjoy high brand recognition and customer loyalty.
Weaknesses: High marketing and distribution costs. Vulnerable to fluctuations in raw material prices. Require investments in cold chain infrastructure.
Opportunities: Growing demand for convenience foods. Rising health awareness is boosting sales of frozen ready-to-eat meals and veggies. Potential in developing markets.
Threats: Substitute options like fresh and canned foods. Stringent food safety regulations increase compliance costs. Exposure to currency and trade risks.
Key Takeaways
The global frozen processed food market is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period, due to increasing demand for convenient packaged foods. Busy lifestyles are driving consumers towards frozen meals, desserts and snacks that offer ease of preparation.
Regionally, North America dominates the market, accounting for over 30% revenue share in 2023. However, Asia Pacific is poised to emerge as the fastest growing market, expanding at a CAGR of around 6% during the analysis period. Improving cold chain infrastructure and growing affordability are boosting frozen food sales in the region.
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 are focused on introducing microwavable and gluten-free products to appeal to a wide consumer base.
