Food and Beverages

Frozen Foods Market is Expected to Reach USD 424.73 Million by 2031

May 2024

Food and Beverages

As per the report published by Kings Research, the global Frozen Foods Market was valued at USD 297.81 million in 2023 and is projected to reach USD 424.73 million by 2031, growing at a CAGR of 4.53% from 2024 to 2031.

The global frozen foods market continues to witness significant growth, driven by changing consumer lifestyles, rapid urbanization, and increasing demand for convenience foods. Factors such as longer shelf life, ease of storage, and preservation of nutritional value are contributing significantly to market expansion. Additionally, advancements in freezing technologies and packaging techniques propel market growth. However, concerns over health implications and sustainability issues pose challenges to market expansion, thereby fueling demand for healthier frozen food alternatives.

Key Insights

  • Based on the product type segment, the sea/poultry & meat products segment accounted for the largest market share of 27.66% in 2023
  • Based on the distribution channel, the foodservice segment is estimated to register a CAGR of 4.39% between 2024 and 2031
  • On the basis of region, Europe led the market in 2023 with a valuation of USD 99.7 million

Smith Frozen Foods and Twin City Foods Announce Merger Agreement

February 2024: Two prominent frozen food companies, Twin City Foods Inc. and Smith Frozen Foods Inc., have reached an agreement to merge, with a term sheet signed. While specific details are being finalized, the merger is anticipated to result in the establishment of a new parent company named TCF Holdings Inc. This strategic move aims to align resources and expertise to better cater to customer demands and address market needs. Additionally, it seeks to bolster support for local farmers. The merger is forecasted to enhance operational capabilities and efficiencies, signaling a promising development for both entities.

Product Innovation and Development to Offer Lucrative Opportunities for Market Development

The rising awareness among consumers regarding health and nutritional aspects presents an opportunity for frozen food manufacturers to innovate and introduce healthier alternatives in their product portfolio. This includes investment into research and development for the formulation of products featuring reduced levels of sodium, sugar, and preservatives, while also placing increased emphasis on organic and natural ingredients. Catering to the discerning preferences of health-conscious consumers allows frozen food manufacturers to effectively penetrate previously underserved market segments, thereby distinguishing themselves from conventional processed food offerings.

Rapid Urbanization in Emerging Markets to Present Promising Growth Opportunities

The rising disposable incomes and rapid urbanization in emerging markets are creating a significant opportunity for the players operating in the frozen food sector to expand their presence. By utilizing existing distribution channels and tailoring products to suit local tastes, companies are capitalizing on the increasing demand for convenient and economical food options. Collaborating strategically with local retailers and food service providers further facilitates effective market penetration. This approach supports market entry and sustains long-term growth prospects for the frozen food industry by establishing strong footholds and fostering mutually beneficial partnerships within emerging economies.

Asia-Pacific to Experience the Fastest Growth, Exhibiting a CAGR of 5.49% Between 2024 and 2031

Based on region, the global frozen foods market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. The Asia Pacific region is poised to witness notable growth over the estimated timeframe. Rapid urbanization and increasing disposable incomes in countries such as China, India, and Southeast Asian nations are driving higher consumer spending on convenience foods, including frozen foods. Furthermore, changing lifestyles and busy schedules are fueling demand for quick and easy meal solutions, aligning with the convenience offered by frozen food products. Additionally, the expansion of retail infrastructure and growing adoption of Western dietary habits are contributing to the rising popularity of frozen foods, thereby stimulating regional market growth.

Companies Focusing on Reformulation of Food Products to Expand Their Market Reach

The global frozen foods market reveals a fragmented landscape, featuring prominent companies including Conagra Brands, Inc., Nestle, General Mills Inc., Kellogg Co., McCain Foods Limited, The Kraft Heinz Company, Unilever, Associated British Foods Plc, Ajinomoto Co. Inc., Cargill, Incorporated, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their global business footprint and enhance their competitive position.

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