Delray Beach, FL, Dec. 05, 2024 (GLOBE NEWSWIRE) -- The global frozen foods market was valued at USD 284.2 billion in 2023 and is expected to reach USD 363.7 billion by 2028, growing at a compound annual growth rate (CAGR) of 5.1%. A key benefit of frozen foods is their extended shelf life, which helps reduce food waste an increasing global concern. Consumers can stock up on frozen items without worrying about spoilage, making them a more sustainable option.
The rise of e-commerce has also significantly contributed to the market's growth. Online platforms offer unmatched convenience, allowing consumers to easily purchase frozen foods from the comfort of their homes. This digital accessibility has expanded the market and made it simpler for consumers to include frozen food in their meals. Additionally, globalization has played a key role, as frozen food options now include a wide range of international cuisines, bringing greater variety to consumers’ diets.
Market Drivers: Growth in Packaged Foods Fuels Frozen Foods Demand
The growth of the packaged food and beverage industry is a significant driver for the frozen foods market. Increasing consumer demand for convenience, portability, and longer shelf life aligns well with the characteristics of frozen foods. They offer easy-to-prepare and ready-to-eat meal options, appealing to individuals and families seeking quick, hassle-free dining solutions.
The robust distribution networks and marketing strategies in the packaged food industry have also helped expand the reach of frozen food products, making them accessible to a larger audience. This synergy between the packaged food and frozen food sectors supports their collective growth, meeting consumer needs for both convenience and variety.
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Online Distribution Channel Growth
The online distribution channel for frozen foods is expected to grow at the highest CAGR during the forecast period. E-commerce has revolutionized the grocery shopping experience, with online platforms providing consumers the convenience of browsing and purchasing frozen food from home. The COVID-19 pandemic further accelerated this trend, as more consumers turned to online shopping for safety and convenience. Many people who had not used online grocery services before have continued to do so post-pandemic, and this behavioral shift has bolstered the market. Online platforms also offer a wider variety of frozen foods, including niche and specialty items, further driving growth. Features such as product reviews, price comparisons, and personalized recommendations enhance the online shopping experience, making it even more appealing.
Food Service Dominates Frozen Foods Consumption
The food service industry is a key consumer of frozen foods, contributing significantly to frozen foods market size in 2023. Restaurants, hotels, cafeterias, and catering services rely on the convenience and consistency offered by frozen food products. These foods allow for easier portion control and help reduce food waste due to their longer shelf life, making them a cost-effective option for businesses in the food service sector. The wide variety of frozen food options, ranging from appetizers to desserts, gives food service providers the flexibility to meet diverse consumer preferences.
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Europe Leads the Frozen Foods Market
Europe is a major market for frozen vegetables, driven by busy lifestyles and a growing demand for affordable, nutritious, and convenient food options. Rising incomes and changing dietary preferences, particularly a shift toward plant-based diets, are contributing to the growth of frozen food demand in the region. Countries like Germany, France, Belgium, Italy, and the Netherlands are key markets, with a strong demand for frozen vegetables due to their nutritional value. In 2021, Europe imported €3 billion worth of frozen vegetables, with the majority sourced from within the region. Germany, France, and Belgium are particularly important markets, with Germany holding a 20% share of the European imports.
Key Players in the Market
Notable players in the frozen foods industry include General Mills Inc. (US), Nestlé (Switzerland), Unilever (Netherlands), McCain Foods Limited (Canada), Conagra Brands, Inc. (US), Kellogg's Company (US), Grupo Bimbo (Mexico), and The Kraft Heinz Company (US).
Opportunities for Growth
- Exploring Adjacent Markets: Identifying both known and unknown adjacencies in the frozen foods market can uncover new growth opportunities.
- Revenue Expansion: Evaluating potential new revenue sources is key for capturing a larger share of the growing market.
- Customer Insights: Understanding who your top customers are and the factors that would make them switch brands can help refine marketing and product strategies.
- Competitive Advantage: Implementing strategies to defend your market share or outcompete rivals is crucial in a growing and competitive market.
- Partner Selection: Creating a scorecard for identifying and targeting the best potential partners can strengthen your position in the market.
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