Frozen food items such as frozen meat & poultry and seafood are some of the most widely consumed grocery items across North America and Europe. Europe is the largest market in terms of frozen bakery and desserts. Even in developing countries such as India, the frozen food sector is growing. The rise in the use of frozen food items by big names such as Pizza Hut, McDonald’s, Subway, KFC, and Frozen Potatoes is one of the factors why frozen items are popular among the general public. Even celebrities are launching their own line of frozen food items. By Hemangi Gokhale, analyst at Allied Market Research
Apart from the above factors, there are a few trends that are driving the frozen food marketon the global level. Some of these trends are the entry of new market players, environment-friendly production, partnerships, new innovations, and business expansion. Governments are also making changes in their food safety regulations which are subsequently helping the frozen food market to grow, especially in regions such as the US and Europe. Many experts and market research reports are expecting positive growth in the global frozen food market. As per the report published by Allied Market Research, the global frozen food market is projected to reach USD404.8bn by 2027, exhibiting a CAGR of 4.2% from 2020 to 2027. The recent market updates are backing this and many such claims made by experts in whichfrozen food products are projected to be in-demand.
When the market is big and opportunities are unlimited, market players make every effort to spread the reach and add to the revenue. One of the ways of making it happen is to enter partnerships with organizations that aim at the same goal and have enough resources to go for it. A recent update on the partnership strategy comes from a known company in Europe. The largest frozen food company in Europe, Nomad, has joined hands with BlueNalu, a cultivated seafood start-up. The motto is to explore the possibilities of cell-based seafood products inthe European market. Nomad is a consumer packaged goods company and BlueNalu is a cultivated seafood company. This partnership is the ‘first of its kind’ when it comes to Europe. As per the statement given by the Nomad CEO Stéfan Descheemaeker, the partnership will address the need for sustainably sourced seafood. It is estimated that the global demand for seafood will increase by 30% by 2030. Yet the seafood supply is not sufficient to meet this rising demand.
The World Bank predicts that around 90% of global marine fish availability is fully exploited. This simply means the market has overfished. The EU citizens are recorded to consume three times more of seafood produced in the region.Hence,Descheemaekerbelieves in the significance of sustainability. While the demand for frozen food items is increasing, the producers are making efforts to be as eco-friendly as possible in order to ensure long-term growth. Nomad, the largest frozen food company in Europe has recently announced its plans to lower its greenhouse gas (GHG) emissions.
It will strive to reduce GHG Scope 1, 2, and 3 emissions in areas such as transportation, purchased goods, and distribution. The Science Based Targets initiative (SBTi) has approved this target. In 2020, Nomad Foods reduced absolute emissions by around 11% and carbon emissions per ton of finished goods by over 20%.
Businesses that leverage the market growth, prepare for expansion, an extended reach, and an increase in revenue. The global frozen food market is not an exception when it comes to witnessing such trends. A recent update in business expansion comes from Bernatello’s Foods. It is a known marketing and manufacturing company dedicated to innovative and quality frozen products and pizzas. The company is planning to expand its frozen food business in Kaukauna due to an incentive package offered by city officials. The city of Kaukauna is planning to offer USD2.7m in utility and road development with other incentives that are being discussed. The business expansion includes an upgraded current facility to enable the production of more frozen food items within the present 100,000-square-foot cold storage distribution centre. The company plans to complete the project in 24 months.
Any new market player will have to make extra efforts to gain the desired reach and sales. However, if the market player is a known public face, the number of efforts required to attract consumer attention can be less. Martha Stewart, a known food personality has recently launched a line of frozen food items named ‘Martha Stewart Kitchen’. The product is now made available in grocery stores across the US. The line offers more than 40 items.
All these recent updates from the market show the growing demand for frozen food items and the kind of attention and investment the global market is attracting. Every new and existing business operating in the frozen food market would follow the trends and plan strategies accordingly.