Global Frozen Food Market was valued at $264 Billion in 2015 and is estimated to grow at a CAGR of over 3.8% from 2016 to 2024.
The industry is expected to be driven by increasing consumption in Asian countries, primarily China, India, Thailand, and Malaysia. Significant increase in number of working individuals in such emerging countries has created huge demand for ready-to-eat food & beverages.
Steep increase in number of multinational as well as domestic retail chains including supermarts and hypermarts has fostered the shifting trend towards frozen food products. Integration of small vendors with major industry participants has enabled the penetration of these products in relatively smaller economies.
Europe Frozen Food Market, By Product, 2014 – 2024 (USD Billion)
Increasing per capita disposable income coupled with changing food preferences among consumers is projected to remain a key factor driving demand over the forecast period. Europe is the existing leader in the global market with Germany accounting for over 18% of the overall revenue share in 2015 within the region. However, emerging economies of China, India, Brazil and Saudi Arabia are set to witness exponential growth in demand and consumption.
Rising number of women workforce, prevalence of nuclear families along with growing acceptance of western food are key factors slated to shape market dynamics in Asia Pacific region. The region is expected to grow at a steady CAGR of over 5% from 2016 to 2024.
Climatic change is another factor likely to create a huge influence on the frozen food demand on global magnitude. Extreme weather and water scarcity is anticipated to affect crop yields and patterns, thus creating consumption patterns radically. Frozen food is being touted as a viable option to counterfeit food security issues arising across the globe.
“Optimal Price Point (OPP) for Frozen Food”
Estimated Average cost – $ xx globally. However, with technical advancements in refrigeration, growing solution implementation and increasing SMEs, OPP and range of acceptable Prices (RAP) are going to change. We at Ameri Research continuously track these prices with our proprietary pricing model.
Southeast Asian countries including Malaysia, Indonesia, Thailand, and Vietnam are attracting major companies as a result of rising living standards and shift in food habits. Busy lifestyle, increased purchasing power and time paucity are major drivers for increasing frozen demand in the region. Moreover, younger generation in aforementioned countries is largely influenced with western culture food habits. Rising demand for halal certified food products by Muslim population has further instigated product differentiation amongst industry participants.
“Prominent industry participants include General Mills, Nestle ConAgra and Kraft Foods Group”
Key players include Cargill Inc., CongAgra Foods Inc., Maple Leaf Foods, The Schwan Food Company, McCain Foods, Kellog Company, Heinz, Birds Eye Foods, Inc., Ajinomoto Co. Inc., Tyson Foods, Amy;s Kitchen and Rich Products Corporation.
Availability of logistics and distribution facilities are of prime importance for companies to operate efficiently. Technological upgradation of existing refrigeration amenities is crucial to ensure improved product offerings and longer shelf life
Strategic partnerships, joint ventures, and mergers with retail outlets, supermarts and local vendors are likely to help capture market share. Strong product advertising and promotional activities to outline frozen food benefits is essential to connect with consumer base in remote locations.