The global frozen food market size is projected to reach USD 185.28 billion by 2027, exhibiting a CAGR of 3.1% during the forecast period. Growing number of urban dwellers around the world will be a leading factor propelling this market in the near future, states Fortune Business Insights™ in its report, titled “Frozen Food Market Size, Share & COVID-19 Impact Analysis, By Type (Frozen Vegetables and Fruits, Frozen Ready Meals, Frozen Pizza, Frozen Seafood, Frozen Meat Products, Frozen Potato Products, Frozen Baked Products, and Others), Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, and Online Retail), and Regional Forecast, 2020-2027”. Urbanization is gaining considerable traction worldwide, underpinned by speedy economic growth and development, especially in Asia and Africa.
According to the UN Department of Economic and Social Affairs (DESA), urban areas, which house roughly 55% of the global population at present, will be home to nearly 70% of the world population by 2050. Put differently, over 2 billion people will be added to the world’s urban areas in the next three decades, with Asian and African countries leading the charge. Urban agglomerates are typically characterized by the widespread presence of supermarkets, hypermarkets, and departmental stores. Frozen type of food products are some of the most prominent items on shelves at these facilities owing to their high demand among the working populace. Thus, expansion of urban areas is expected to favor the growth of this market during the forecast period.
As per the report, the global market value was at USD 146.79 billion in 2019. The report also features the following:
Resurgent Demand for Frozen Foods amid COVID-19 to Boost the Market
When the coronavirus pandemic broke out and lockdowns and social distancing measures were imposed worldwide, retail stores and supermarket outlets were fearful of reduced footfalls, which would result in declining sales. While consumer footfall dropped as expected, retail facilities are experiencing a new wave of demand for these foods products.
According to a study commissioned by the American Frozen Food Institute (AFFI), the resurgent demand for frozen food is attributable to returning buyers as well as first-time buyers. The study found that in America, approximately 86% of consumers were buying frozen type of foods, despite the pandemic. More interestingly, the study revealed that 70% of current consumers are purchasing more products than usual, while 68% are trying new products, indicating a shift purchasing patterns. The COVID-19 pandemic, therefore, has increased the demand for frozen foods and the AFFI study states that this surge will continue even after the crisis is over.
Growing Preference for Vegetarian Diets to Catalyze the Market in Europe
With a size of USD 56.17 billion, Europe dominated the frozen food market share in 2019 and the region is expected to retain its leading position during the forecast period. This will be mainly attributable to the gradual adoption of vegetarian and vegan diets in the region, which is fueling the demand for frozen vegetables and fruits. In addition to this, high consumer purchasing power will be another factor feeding the growth of the regional market.
Growing awareness among consumers about the benefits of frozen foods and strict food-safety regulations imposed by the US Food and Drug Administration (FDA) on frozen eatables will support the market in North America. In Asia Pacific, the primary growth driver for the market will be the rising number of cold chain facilities in the developing countries of the region.
Strategic Launch of Products in Regional Markets to Foster Competition
Key players in this market are tapping avenues to capture region-specific frozen foods industry trends and expand their presence in these regions. Besides this, companies are also making large-scale investments in enhancing their production and R & D capacities, thereby strengthening their market presence.
Key Industry Developments:
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