Frozen foods are food products preserved and kept frozen until used for cooking or direct consumption. The frozen food market is estimated to be valued at US$219.87 billion in 2018 and is projected to grow at a compounded annual growth rate (CAGR) of 5.14% during the forecast period; it is projected to reach US$282.50 billion by 2023. Frozen food products are increasingly becoming an integral part of the daily diet of people around the world, especially in European countries. Busy lifestyles have driven the food manufacturing industry to produce new products that could meet the rising demand from consumers which, in turn, fuels the overall frozen food market.

Online grocery shopping and new apps in the retail sector are creating several opportunities for the overall processed food market and are, hence, accelerating the frozen food market. With the growing penetration of the internet and smart-phone usage, retail grocery shopping is emerging as one of the platforms for companies to showcase and sell their food products. The convenience food and ready meals segment is projected to dominate the frozen food market by 2023.

The food service segment accounted for a larger share of the global frozen food market. This segment includes the large food chains that contribute to the growth of frozen products. Changes in lifestyles and high disposable incomes have led the working class to rely on ready-to-eat meals, which help them save time and effort. The raw material segment is estimated to acquire the largest share of the frozen food market. The reason is that the products covered in this segment can be preserved for a longer period of time at home and restaurants and can be used as per consumers’ convenience.

Globalisation and increasing international trade are the main factors for the development of the frozen food industry globally. With economic development and increasing purchasing power parity (PPP), consumers can afford premium products with improved nutritional value and shelf life. This drives the trade of various food products between regions. According to the Agriculture Marketing Resource Centre (AGMRC), the USA is the world’s largest producer of strawberries. In 2014, it produced 3 billion pounds of strawberries, valued at US$2.9 billion, of which, 63.4 million pounds of frozen strawberries were exported, valued at US$45 million.

The global seafood market is also witnessing immense growth due to the health benefits offered by these products. According to the Food and Agriculture Organization of United Nations (FAO), an estimated 2.3% hike in global fish production combined with good market conditions around the world led to a significant boost in trade revenues in 2017. India, Peru, Ecuador, Chile, and Norway were the top exporters of seafood in 2017. Increasing export and import of such products boosts the overall frozen food
market growth.
(Source: fnbnews, April 17, 2019)