Frozen Food Market Size 2024-2028

The frozen food market size is forecast to increase by USD 150 billion at a CAGR of 8.09% between 2023 and 2028. Retail stores are increasingly expanding their frozen food offerings to meet growing consumer demand. This trend is accompanied by a surge in new product launches, particularly in the realm of vegan options. As more consumers adopt plant-based diets or seek healthier alternatives, frozen vegan foods are becoming more prevalent on store shelves. Retailers are responding by diversifying their frozen food sections with innovative vegan products, such as plant-based burgers, dairy-free ice creams, and nutrient-rich vegetable meals. This shift reflects a broader movement towards healthier eating and a greater emphasis on convenient, ready-to-eat options. The increased availability and variety of vegan food cater to the changing preferences of health-conscious consumers and those with dietary restrictions, positioning retailers to capitalize on this growing market segment.

Market Overview

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Market Segmentation

By Product Type

The market share growth by the frozen ready meals segment will be significant during the forecast period. Frozen food can be defined as complete meals that do not require additional ingredients. The frozen food segment comprises frozen pizza frozen-pasta, frozen-croissants, frozen-Asian meals, frozen-rice bowls, and frozen-noodle bowls, among other products. Due to convenience and the shorter time needed for the preparation of meals, frozen foods are gaining popularity.

The frozen ready meals segment was the largest segment and was valued at USD 67.80 billion in 2018.

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Frozen food is often high in sulfur content, and its consumption may lead to an increase in blood pressure. Frozen food can also be reheated.  A shift in consumers towards healthier food options will also have a negative impact on the frozen food segment. Thus, the companies are trying to expand their frozen-ready meals product line with healthy varieties.

Key Regions

North America is estimated to contribute 49% to the growth of the global market during the forecast period.

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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to companies is Europe. The large markets for frozen foods in Europe include the UK, Germany, and Spain. Some factors influencing the growth of the market in Europe are the increasing number of mergers through M&As and innovative promotional campaigns by manufacturers and the premiumization of frozen food products. The market, encompassing the UK, Germany, and Spain, experiences growth due to consolidations like Nomad Foods' USD637 million acquisition of Fortenova Group's frozen food business. Innovative marketing and premiumization are key drivers. In the evolving landscape, consider the following trends: doorstep delivery, user-friendly technology, health and wellness, organic ingredients, and additive-consciousness. Frozen fruits, processed fruits, vegetables, lean protein options, plant-based alternatives, and vegetarian/vegan choices cater to various dietary preferences. Convenience is paramount with single-serve meals, microwaveable snacks, and pre-cut frozen produce, addressing busy lifestyles and hectic schedules. Price comparison and time-saving are essential for consumers. Additionally, look for low-sodium content, plant-based meat, dairy-free ice cream and sugar-free ice cream, and vegetable-based frozen meals.

Market Dynamics

In the contemporary marketplace, the commerce sector has witnessed a significant shift towards convenience and affordability. This sector encompasses a variety of products, including vegetables, fruits, meats, and ready-to-eat meals. The convenience factor is a major driving force behind its popularity. Consumers appreciate the ability to have a nutritious meal ready in minutes without the need for extensive meal preparation or preservation techniques. Additionally, the cost-effective nature of frozen food makes it an attractive option for households. Companies such as Con Agra Foods, Nestle, and PepsiCo have recognized this trend and have expanded their product offerings in the market. The global market is projected to grow significantly in the coming years, with a particular focus on sustainability and innovation in product development. The shift towards plant-based diets and the increasing demand for organic and natural food options are also influencing the market. Overall, the market presents a lucrative opportunity for businesses and investors alike, as it caters to the evolving needs and preferences of modern consumers.

Key Market Driver

The market is experiencing growth due to the expansion of organized retail, particularly supermarkets, hypermarkets, and specialty stores. This trend is driven by several factors, including the convenience and longer shelf life of frozen food, as well as the increasing availability of international cuisines and dietary preferences through e-commerce and online shopping platforms. Globalization and sustainability goals are also influencing the market, with a focus on cost-effective sourcing of raw materials, innovation, and reducing food waste. Distribution networks and marketing strategies are evolving to meet consumer demands for farm-to-table, locally sourced produce, and culinary horizons.

However, challenges such as quality degradation, food safety risks, and limited availability in developing countries persist. The versatility of frozen fruits, vegetables, seafood, meats, and their nutritional value, flavor, and ability to cater to various dietary preferences (vegan, paleo, gluten-free) make them a popular choice for health-conscious consumers. Brick-and-mortar stores continue to compete with online channels, offering variety and organic options to meet consumer needs.

Significant Market Trends

Technological innovations are one of the key market trends propelling the market growth. Vendors that offer frozen food use various strategies to achieve a competitive edge in the global market. They are trying to improve the quality and shelf life of frozen foods with certain technological innovations. Innovative pouch packaging is one such method used by vendors to avoid the loss of nutrients in frozen foods.

Moreover, the unique packaging solution offered by the company allows consumers to take frozen food from the refrigerator and place it directly in the microwave oven. Thus, the increasing availability of such innovative packaging solutions may encourage more vendors to offer innovative packaging, thereby reducing the use of plastic packaging.

Major Market Challenge 

Health risks associated with the consumption of frozen ready meals are one of the factors limiting the frozen food market growth. They are processed foods that are stored at a low temperature to prevent spoilage and increase their shelf life. Their manufacturers often substitute healthier ingredients with cheap alternatives.  Furthermore, the frequent consumption of frozen food puts consumers at risk of developing high blood pressure and other health-related problems.

Thus, increased consumer awareness regarding frozen food will limit the growth of the market during the forecast period. This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026. Such factors will hinder the market growth during the forecast period.

Key Market Companies Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Key Offering- Ajinomoto Co. Inc.: The company offers frozen food such as frozen vegetables, noodles, gyoza, and cooked rice dishes.
• Key Offering- Aryzta AG: The company offers frozen food such as bread, roll and bun, patisserie, and savory snacks.
• Key Offering- Conagra Brands Inc.: The company offers frozen food such as voila garlic chicken, voila beef lo mein, lasagna with meat sauce oven bake meal, and chicken taco oven bake meal.

The market growth and trends analysis and report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Dr. August Oetker Nahrungsmittel KG
• General Mills Inc.
• HanoverFoods
• J.R. Simplot Co.
• JBS SA
• Kellogg Co.
• Lantmannen Unibake International
• McCainFoods Ltd.
• Nestle SA
• NomadFoods Ltd.
• PNW Veg Co. LLC dba NORPAC
• SmithFrozenFoods Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Product Type Outlook 
  • Frozen-ready meals
  • Frozen-meat and poultry
  • Frozen-fish and seafood
  • Frozen-fruits and vegetables
  • Others

• Distribution Channel Outlook 
  • Offline
  • Online

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Argentina
    • Brazil

Market Analyst Overview

In the modern world, its convenience has gained significant traction in the market. The Frozen Food industry comprises of various products such as vegetables, fruits, meats, poultry, seafood, and ready-to-eat meals. The global market is expected to show a steady growth due to several factors. One of the primary reasons is the increasing urbanization and hectic lifestyles, leading consumers to opt for time-saving and convenient food options. Additionally, the advancement in technology has enabled the production of high-quality frozen food that retains its nutritional value and taste. Furthermore, the rising awareness about food safety and the availability of a wide range of options catering to diverse dietary preferences have also contributed to the growth of this market. Companies like ConAgra Foods, Nestle, and McCain Foods are some major players in this sector. In summary, the market is a thriving industry that continues to innovate and cater to the evolving needs and preferences of consumers.

Further, the market is experiencing rapid growth driven by various factors, such as the expanding e-commerce landscape and the proliferation of online shopping platforms. As consumers become increasingly focused on sustainability goals, frozen foods offer a solution with their longer shelf life and reduced food waste. With the trend of globalization, consumers have access to a diverse range of products, including international cuisines. Frozen foods provide portability and convenience while maintaining flavor and quality. Additionally, initiatives like farm-to-table and sourcing locally produced ingredients support culinary horizons while ensuring food safety. This market evolution benefits from cost-effective sourcing in developing countries and addresses health consciousness with options like paleo and gluten-free products.

However, in the market, the sourcing of raw materials and efficient transportation logistics are crucial components. Companies invest in robust distribution facilities to ensure product quality and reduce quality degradation during transit. Addressing food safety risks is paramount, with stringent measures implemented throughout the supply chain. Despite challenges such as the limited availability of certain ingredients, the industry's versatility allows for innovative solutions. Manufacturers continually adapt to market demands, offering a wide range of frozen products that meet diverse consumer preferences and dietary requirements. With ongoing advancements in technology and processes, the global market remains resilient, catering to the evolving needs of consumers worldwide.

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What are the Key Data Covered in this Market Forecasting Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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