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 .
Market Driver
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 .
Regional Insights
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 .
Competitive Landscape
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 .
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