For Each and Every Consumer

The demand for frozen foods has traditionally been driven in large part by consumers’ desire for convenience. Because many people appear less inclined to spend a significant amount of time in the kitchen, it is likely that consumer demand for products that can be cooked or heated up with the minimum of preparation will remain high for the foreseeable future. This is especially true given that many people prefer to spend less time in the kitchen. As a result of shifting eating patterns among consumers and the development of the market, convenience meals have expanded their application to include a larger variety of settings.

The global frozen food market size is expected to reach USD278.47bn by 2030, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 5.2% from 2022 to 2030. The rising consumer preference for ready-to-eat food products that need the least preparation and cooking time is the key growth driver. The fruits & vegetable segment is projected to register the fastest growth over the forecast period, as the products offer a wide range of advantages over the fresh produce.

The online channel segment is anticipated to register rapid growth during the forecast period, owing to the promising growth exhibited by e-commerce platforms, including Amazon, Walmart, and other such service providers. Geographically, Asia Pacific is expected to register the fastest growth during the forecast period, with brands rolling out frozen foods due to the rising number of working-class consumers in countries including China and India.

Major food manufacturers have been ramping up their production capacity as well as improvising supply change strategies to cater to the unprecedented demand for frozen food among consumers worldwide. For instance, in August 2020, Marks & Spencer launched a frozen food brand Picard in France. The product line includes brioche, crepes and mini croque monsieur in flavors of raspberry and macarons. The initiative was taken due to the growing inclination for the abovementioned products among consumers. The ready meals segment held the largest revenue share in 2021 and is expected to maintain its dominance over the forecast period. Changing food consumption patterns, due to increasing urbanization, is one of the prevalent factors driving the growth of this segment.

Frozen Entrée to Push Growth for Frozen Ready Meals Market

From 2021 to 2026, the market for frozen ready meals is projected to increase by USD37.98 billion. Technavio predicts that the market’s growth velocity would slow down during the projected period at a CAGR of 5.78%. During the projection period, the frozen entree category will significantly contribute to market growth. This market is expanding because of the increased demand for frozen entrees from major suppliers like Nestle, Tyson Foods Inc. (Tyson Foods), Conagra Brands Inc. (Conagra Brands), The Kraft Heinz Company (Kraft Heinz), Nomad Foods, and Sigma Alimentos.

Due to the vast number of small and major sellers, the frozen ready meal market is fragmented. To compete in the market, the vendors are implementing growth methods include the introduction of new products. Changes in customer wants and preferences impact the market. Consumer living standards are impacted by shifting economic situations, which has an impact on vendors’ companies. Based on factors including quality, pricing, reputation, innovation, and distribution, the vendors compete.

The increasing level of manufacturer rivalry may force businesses to reduce the price of their goods, which would have a detrimental effect on vendors’ profit margins and the expansion of the market throughout the projection period. According to his report, one of the key factors driving the market growth for frozen ready meals over the coming few years would be the rising popularity of private-label frozen prepared meals. The market’s expansion has been significantly aided by the introduction of new products. However, issues with frozen food warehousing could limit market expansion.

To read the entire article, please access your complimentary e-copy of Frozen Food Europe November-December, 2022 issue here.