The Fastest Growing Product in the Global Frozen Food Market
The global frozen food market size has been recently valued by Grand View Research, Inc. at USD291.3 billion in 2019 and it is expected to reach USD380.5bn by 2027, expanding at a CAGR of 3.4%.
The potatoes segment is projected to expand at the fastest rate, with a CAGR of 4.0% from 2020 to 2027, owing to rising demand for French fries and the increasing use of potatoes in various types of cuisines around the world.
The rising consumer preference for Ready-to-Eat (RTE) food products, which require less preparation and cooking time and have a longer shelf life, is the primary driving factor for the market. Furthermore, shifting consumer dietary preferences in busy lives around the world is expected to open up new opportunities for the market over the forecast period.
“In addition to this, these frozen potatoes are capable to retain all the different types of nutrients and vitamins which are naturally present with a long shelf life. Moreover, they are extremely convenient and flexible in terms of preparation and cooking time,” the report shows.
Asia Pacific is anticipated to be the fastest growing region with a CAGR of 3.9% from 2020 to 2027 owing to an increasing trend of RTE food among the working-class people as well as college grads of countries such as China and India.
“China, India, and Japan are the major markets, in terms of consumer spending on food. In addition, a significant rise in the demand for frozen food owing to less time for preparation and cooking is opening new avenues in the regional market for frozen food. China was the first country where the coronavirus started to spread across the globe. The country had locked down some of the severely hit provinces for more than two months. After that, many other countries have followed the trend of lockdown to maintain social distancing, the only and the most effective way to control the spread of the virus. These trends are expected to promote the scope of shelf-stable products and thus, in turn, will expand the market for frozen food over the next few years,” the report shows.
According to the same source, the frozen ready meals segment accounted for more than 30.0% of revenue share in 2019 in the frozen food market. The segment is expected to maintain its dominance over the forecast period on account of the predominant consumption of ready meals among working-class people around the globe.
Mergers and acquisitions are expected to remain a key strategy among the industry participants. For instance, in October 2018, ConAgra Brands Inc. completed the acquisition of Pinnacle Foods at USD10.9bn.
