DUBLIN--(BUSINESS WIRE)--The "Frozen Food Market by Product (Fruits & Vegetables, Dairy, Meat & Seafood), Type (Raw Material, Half Cooked), Consumption, Distribution Channel, and Region (North America, Europe, Asia Pacific, South America, and MEA) - Global Forecast to 2023" report has been added to ResearchAndMarkets.com's offering.
The frozen food market is estimated at USD 219.9 billion in 2018 and projected to grow at a CAGR of 5.1%, to reach USD 282.5 billion by 2023.
The retail food industry has witnessed significant growth over the past few years, globally. Development of retail channels in the form of supermarkets, hypermarkets, and convenience stores has driven the growth of the frozen food market. These large food chains form an important growing outlet for frozen food products, owing to the latest trend of on-the-go consumption. Rising per capita income and the increasing number of working women globally have further accelerated market growth.
The convenience food & ready meals segment for frozen food is estimated to account for the largest share in 2018
Based on product, the convenience food & ready meals segment is estimated to account for the largest share in the frozen food market in 2018. This is due to the increasing consumer preference toward convenience foods, which indirectly favors the increasing demand for frozen products. The processed food market is driven by the greater need for convenience due to the busy lifestyles of consumers. This, in turn, increases the demand for frozen products. Increasing disposable income is also one such factor that has a huge influence on the growth of the frozen food market, as it increases the buying power of the consumers.
The ready-to-eat segment to be the fastest-growing segment of the frozen food market
Based on type, the ready-to-eat segment is projected to be the fastest-growing during the forecast period. Ready-to-eat frozen foods are those products that are fully cooked and can be eaten directly. For instance, ice cream and frozen yogurt are some of the products that have been included in this segment.
Ready-to-eat frozen foods are majorly used in dessert applications, as they are easy to consume. The ice cream segment of this market has been extremely dominant and has been growing steadily due to the increasing adoption of low-calorie ice creams. Frozen yogurt is also increasing the growth of this segment in the frozen food market, as it is considered a healthy dessert.
The food service segment for frozen food is estimated to account for the largest share in 2018
Based on consumption, the food service segment is estimated to account for the largest share in the frozen food market in 2018. The food service industry includes restaurants, QSRs (quick service restaurants), pubs, hotels, and healthcare. Among these, QSRs dominate the foodservice industry in the frozen food market due to the high contribution of QSR chains such as McDonald's, Starbucks, Subway, Burger King, Pizza Hut, KFC, and Dominoes, with their high number of outlets across the world.
The food service industry uses frozen food items on a regular basis to save time in cooking; this reduces the time taken by the food item to reach the customers' table. Frozen food has both quality and taste; hence, it fulfills customer expectations. The global food service industry is growing at a fast pace due to the high demand for fast food and growth in food delivery channels.
The online segment to be the fastest-growing segment of the frozen food market
Based on distribution channel, the online segment is projected to be the fastest-growing during the forecast period. The online market for frozen food is expected to showcase significant growth in the coming years due to the increasing use of internet services in developing countries.
Also, online shopping is more feasible and convenient as compared to offline shopping services. Consumers can get their products delivered at their doorsteps. Increasing preference for online shopping among consumers for food items and the availability of various payment options are factors that are expected to drive the market growth.
Europe is estimated to account for the largest share in 2018
Europe is estimated to account for the largest share in the frozen food market in 2018, due to the rising disposable income, changing busy lifestyle of consumers, and rising health awareness. The frozen food market is highly dominant in Europe due to the demand for extended, safe, refrigerated shelf life of food; as well as favourable food preservation legislation. Increasing internet penetration by youngsters has also propelled the market growth. The market for frozen fruits in Europe is driven by the demand for health and wellness products.
Market Dynamics
Drivers
- Developments in Retail Landscape
- Rising Demand for Convenience Food
- Technological Advancements in the Cold Chain Market
Restraints
- Rising Preference for Fresh & Natural Food Products
- Requires Constant Temperature Monitoring
Trends
- Rising Demand for Convenience Food
- Digitalization of the Retail Industry
- Increasing Trade of Processed Food
- Rising Preference for Fresh & Natural Food Products
Challenges
- Lack of Cold Chain Infrastructure in Developing Economies
Company Profiles
- General Mills Inc.
- Conagra Brands Inc.
- Grupo Bimbo S.A.B. De C.V.
- Nestle S.A.
- Unilever
- Kellogg Company
- McCain Foods Limited
- The Kraft Heinz Company
- Associated British Foods PLC
- Ajinomoto
- Vandemoortele N.V.
- Lantmannen Unibake International
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