
The convenience frozen food market has evolved over the last few decades to become a popular segment that is offered as an option across the world.
This sector has achieved its growth from the technological growth and the increasing demand for convenience food in both households and foodservice establishments. With the global demand for convenience food still on the rise, the frozen food market is predicted to grow even further, this being due to innovations and concerns about sustainability.
As such, the convenience frozen food market has massively expanded especially after the COVID-19 pandemic, which boosted the tendencies of online grocery shopping and the need for ready-to-eat meals. The global frozen food market is expected to grow steadily at a CAGR of 6.55% from the year 2024 to 2029 as mentioned by Mordor Intelligence recently.
This growth is attributed to number of factors such as a rise in urbanization, rise in income of dual income households and rise in the rates of people with constrained time who all need food that is easy to prepare yet of good quality. The convenience frozen food products have been able to capture consumers’ attention because of the value that they add to the lives of consumers.
The Future of Frozen Food 2024 report by Conagra Brands shows that frozen meals and ready-to-eat as well as meal kit products are growing at a fast rate. These products are suitable for all the consumers since they come in various sizes ranging from single serving to family size. It is, therefore, clear that there are financial gains for both the consumers and businesses.
Frozen foods are cheaper as compared to their fresh counterparts and the long shelf storage helps to minimize wastage which is a big advantage in both the retail and foodservice industry. This financial efficiency together with the advantages of storage and preparation make frozen foods a cheap and effective product in the context of increasing food prices and shortage of staff in the foodservice industry.
Different Consumer Trends
It is not only that the frozen food market has become larger in terms of value but also has changed with the help of technological advancements. The market has also learned to accommodate the increasing concerns of consumers, as more and more brands have come with a larger number of healthy frozen food products in the market, which are organic, plant-based, and low in calories.
Free-from frozen foods, such as veggie burgers, vegan meals, and dairy-free desserts have been popular and major brands like Nestlé’s Garden Gourmet and Conagra’s Healthy Choice have been trying to tap into this segment. People are not only looking for products that can be prepared quickly but also for the products that will help them to be healthy and meet their values, which creates a market for the introduction of new frozen foods products. The convenience frozen food is not only a part of every household but has also found its application in the foodservice industry.
The operators in the restaurants, schools, hospitals and corporate canteens prefer using the frozen products to prepare quality meals within the shortest time and with great consistency. The global pandemic has emphasized the importance of adaptability and effectiveness of the foodservice operations, which made many companies to incorporate the frozen food in their kitchen to improve the workflow and minimize the cost of labor. The convenience store products are appreciated for their availability, standard packaging, and simple preparation.
The American Frozen Food Institute (AFFI) reported that over 40% of foodservice operators who were interviewed added to their purchases of frozen foods in 2024 as compared to 2019 and the categories that experienced the highest growth include frozen vegetables, potato products and appetizers. Besides, these products also aid in reducing the time and cost of losing food and, at the same time, meet the requirements of the consumers regarding taste and convenience.
Furthermore, the new frozen products like air-flyer-ready meals are in line with current trends that are favorable to both the consumers and operators. Such products are convenient to prepare and help in retention of food taste and quality which is very vital especially in the fine dining restaurants.
To read the entire article, please access your complimentary e-copy of Frozen Food Europe November-December, 2024 issue here.