Frozen Food Market - Forecasts from 2023 to 2028

The frozen food market is estimated to grow at a CAGR of 3.74%, reaching US$324.407 billion in 2028 from US$250.858 billion in 2021.

The products are preserved under low temperatures to extend the self-life over a long time. Frozen food has gained popularity due to the hectic lifestyle of young professionals, and it has the potential to cater to these crowds due to its ability to offer extended shelf-life. Frozen food has minimal preparation time, and some ready-to-eat food can be prepared in seconds. Additionally, the increasing availability of seasonal food around the year, coupled with increasing disposable income, is also one of the factors driving the frozen food demand over the forecast period. Moreover, the requirement for food with clean labels is also increasing in the market, and companies are trying to provide eco-friendly and sustainable packaging to their customers.

Increasing Investments in the Food Sector

Investment by major companies to expand their production capacity shows that the market is growing and companies are willing to invest in the market. For instance, in February 2022, Tyson Foods announced building a new facility in Bowling Green with an investment of US$ 355 million. The facility has started producing products for Jimmy Dean and Wright Brands that offer a wide range of refrigerated and frozen food. Such investments indicate a boost in demand for frozen food in the market.

Increasing Demand for Convenience Food

As per the World Bank estimates, almost 2/3rd of the world's population is living in urban areas, and with further growth projected in the urban population, the need for more convenient food options is rising worldwide. Further, as per the data from the World Bank in 2020, 46% of females were engaged in the labor force - which grew to 47% in 2022. Frozen food comes in handy as the they have less time for meal preparation. It is easy to store and comes to be prepared in no time. This is one of the reasons why the frozen food market is anticipated to grow in the forecasted period.

Europe is Expected to Grow Considerably

Europe is expected to hold a significant share of the frozen foods market during the forecast period. The United Kingdom is expected to hold a substantial share of the market owing to rising consumer awareness about the benefits of frozen food, which is the major factor contributing to the increasing demand during the forecast period. According to estimates from the Britain Frozen Food Federation (BFFF), there is growth in the post-pandemic phase in 2021 in various frozen food categories in the UK market, such as ice cream, fish, meat, and poultry. This indicated favorable prospects for the frozen food market till the forecast period.

Japan is the Largest Importer of Frozen Foods in Asia

The total import value of Japan's frozen vegetables was US$ 940 million in 2021, making the country the world's second-largest importer of frozen vegetables. The major part of the frozen vegetables exported from China is US$ 549 million. Countries such as the U.S., Thailand, Chinese Taipei, and Ecuador also played a major role. As per a survey released by the Japan Frozen Food Association on frozen food with 1,250 Japanese people, the survey indicated that 88% of females used frozen foods to prepare meals for their families. And approximately 80% of the men used frozen foods. Hence, the easy convenience of making food is driving the market for frozen food. The change in eating habits, the presence of dual income, and various options available also provide an edge for market growth.

Market Developments:

• In June 2023, Unilever PLC, a key market player in frozen food in the UK, agreed to acquire Yasso Holdings, Inc., a frozen food brand in the United States. This agreement is expected to address the growing consumer demand for healthier & different varieties of frozen snacks.
• In April 2022, Nomad Food patterned with Innoget to develop a clean-label paper-based packaging for their frozen food. Such innovative steps by the companies are also driving the market for frozen food.
• In September 2021, Norman Foods, a major supplier of Frozen food in the UK, completed its acquisition of Fortenova Group for around Euro 615 million to expand its frozen food business across different countries of Europe such as Hungary, Bosnia, Slovenia, Serbia, among others.

Market Segmentation:

By Type

• Raw Material
• Half-Cooked
• Ready to Eat

By Product

• Frozen fruits and vegetables
• Frozen meat and poultry
• Frozen seafood
• Frozen ready meals
• Frozen desserts
• Frozen snacks
• Others

By Distribution Channel

• Supermarkets & Hypermarkets
• Convenience Stores
• Online Channels
• Others

By End-User

• Food Service
• Residential

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others