The frozen food market size was valued at $291.8 billion in 2019, and is estimated to reach $404.8 billion by 2027, registering a CAGR of 4.2% from 2020 to 2027. Frozen food is defined as food products that are preserved under low temperature and used over a long period. The product market comprises various food products, including ready meals, vegetables & fruits, potatoes, meat & poultry, seafood, and soup. Frozen ready meals further include packaged ready-to-eat foods, bakery, snacks, and desserts. Business buyers such as hotels, caterers, restaurants, and fast food chains are among major users of frozen food products that include frozen vegetables & fruits, potatoes, and non-veg products.
Frozen meat & poultry and seafood are among the most commonly used grocery items across North America and Europe. Frozen meat products are growing in popularity as they can be stored conveniently, reducing food wastage. Europe is the largest market of frozen bakery and desserts. The retail frozen food industry is evolving, and is in its nascent phase in markets such as India. However, it has witnessed a steady growth since the past few years.
Increase in use of frozen food products by giants such as KFC, McDonald’s, Pizza Hut, Subway, and Frozen Potatoes acts as a key driver of the global frozen food market. Moreover, the utilization of these products by numerous end users such as full-service restaurants, hotels & resorts, and quick service restaurants is expected to drive the growth of this market.
The world has witnessed a significant growth in the women employment rate. With increase in number of employed women, it becomes significantly difficult for them to cook meals, which results in consuming frozen ready meals. For instance, according to the United States Department of Labor, the U.S. female employment rate in 2019 was 46%. Similarly, in China, the women employment rate was around 43.7%, and in South Africa it was around 45%. All these factors collectively drive growth of the market during the forecast period. Popular frozen ready meals include Birds Eye 4 Chicken Pies, mini cottage pie, smoked haddock kedgeree, and broccoli & cheddar bake.
The report segments the market into product type, user, and region. On the basis of product type, the market is categorized into frozen ready meals, frozen meat & poultry, frozen seafood, frozen vegetables & fruits, frozen & refrigerated soups and frozen potatoes. By end user, it is classified into food service industry, and retail users. Region wise, it is analyzed across North America (U.S., Mexico, and Canada), Europe (Germany, UK, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Argentina and rest of LAMEA).
According to frozen food market analysis On the basis of product type, the ready meals segment is the largest revenue generator in the current scenario, followed by frozen meat and poultry products. This is attributed to surge in use of frozen pizza crusts, bread, and frozen bakery products, which acts as a key driver of the ready meals segment. Frozen potatoes segment is expected to grow at the fastest CAGR of 4.8% from 2019 to 2027, followed by the segment of frozen seafood products segment, which is expected to witness a CAGR of 4.4% during the same period. New launches in frozen ready meals owing to increased investment in R&D of food processing coupled with strengthening distribution network of frozen food items is expected to contribute significantly to the growth of frozen ready meals market segment.
