The global frozen food market is highly fragmented with top five players holding a small share in the overall market, as per a recent market study by Transparency Market Research (TMR). Global players such as Nestle, H.J. Heinz, and ConAgra are expected to further their presence by means of advanced technology, acquisition, and adoption of different strategies to increase their market share. However, a significant presence of private labels in regional markets acts as a major challenge for international players to enter and establish themselves herein. In 2012, others that comprise a few large as well as many local and unorganized brands collectively held more than 65% of the global frozen food market.
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According to the TMR report, the global frozen food market is likely to clock a moderate 3.90% CAGR for the forecast period between 2013 and 2019, for the market to attain a valuation of US$293.7 bn by the end of 2019 from US$224.7 bn in 2012.
Among the various product types, frozen ready meals segment, which includes frozen pizza, entrees, desserts, snacks, etc., is anticipated to rise at a significant 3.9% CAGR between 2013 and 2019. On the other hand, frozen potatoes occupy a small share in the market; going forward the market share of frozen potatoes segment is likely to increase with the expanding range of food applications of frozen potatoes. Frozen fruits and vegetables are likely to register an increased market share by 2019 due to advancement in freezing technologies that will help extend their shelf life.
Geography-wise, Europe stood as the leading market for frozen food in 2012 accounting more than 35% share. Germany accounts as the leading domestic market for frozen food in Europe. However, Asia Pacific is anticipated to emerge as a lucrative market holding 24.8% market share until 2019.
Rising Disposable Incomes leading to Changing Eating Habits Benefits Market in Emerging Economies
The worldwide market for frozen food is expanding due to a number of factors. This includes increasing number of women in the workforce, changing food habits, increasing purchasing power, busy lifestyles, and a wide selection of frozen food products. In particular, in emerging economies, recently acquired economic prosperity has led to a dramatic change in eating habits and purchase of ready to eat meals. Consumers in the region are enticed with the wide selection of frozen foods that are available in attractive packaging. This, along with rising disposable incomes makes emerging economies a hotspot for the growth of frozen food market.
The rising acceptance that nutritional value of food is not lost in the process of freezing is also leading to an uptake of frozen food. This is because foods such as fruits, vegetables, soups, meat, etc., are stored at subzero temperatures at which the moisture therein is in a solid state. This expands the shelf life of food preventing it from spoilage.
Dependency on Third-party Distribution Channel Challenges Growth
On the flip side, factors such as dependence of frozen food manufacturers on third-party distributors mostly to reach retail consumers, need to maintain a perfect temperature at the time of transportation to prevent spoilage, and need to maintain impeccable hygiene at the manufacturing facility are challenging the market’s growth. To address this, leading companies are focusing on mergers and acquisitions with distributors to reduce dependency on the third-party distribution channel.
The review presented here is based on the findings of a TMR report, titled “Frozen Food Market (Product - Vegetables & Fruits, Potatoes, Ready-to-eat Meals, Meat, Fish/Seafood and Soups) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019.”
The global frozen food market is segmented as follows:
- Frozen Fruits & Vegetables
- Frozen Potatoes
- Frozen Ready Meals
- Frozen Meat
- Frozen Fish/Seafood
- Frozen Soup
Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.