Polar Perfection: Elevate the Meals with Frozen Excellence!

Frozen foods are gaining popularity in countries like Europe and North America while Asia and South America are also catching up quickly. The Indian frozen foods market is flourishing with 250 new frozen products presented only in the past year mostly in the cities.

Cold-chain is necessary for product quality; countries like China are spending a lot of money in building cold storage facilities and in 2023 alone more than 5000 new cold storage units were installed. This allows growth in the nexus to snack on more frozen nutrients as the shop's coverage bereaves any complaints of rhythmic expansion in the attendees. In Latin America for instance, the growing per capita consumption of frozen foods is supported by the opening of 1,500 new retail chains delivering more space for frozen food access.

The economic structure of the frozen food ecosystem is still evolving, and a report by Astute Analytica projects that the?global frozen food market is anticipated to reach a market size of US$ 808.42 billion by 2032, with a compound annual growth rate (CAGR) of nearly 10.4% during the forecast period from 2024 to 2032.

A brief about the market: -

In 2023, ready-to-eat meals, snacks, frozen vegetables, and frozen meats occupied the biggest share of the frozen foods market. Leading players include ConAgra, Nestlé, and Tyson Foods. Nestlé's Hot Pockets Stouffer's and ConAgra's Banquet and Marie Callender's are common among households. These brands serve the growing requirement of working people and working couples who survive on fast meals. A survey cites that 94% of consumers in the U.S. claim they will not cut or cut down on any frozen food purchases, and out of these, 7 out of 10 consumers claim to freeze different products these days. The expansion in the demand for frozen foods is being propelled by health-oriented consumers as well, with more than 20,000 stores indoors selling organic frozen foods.

In this regard, frozen ready meals from the plant-based sector are a growing area as companies like Beyond Meat and Amy's Kitchen have started to add frozen product lines. The worldwide plant-based frozen foods market contains over 300 new products introduced in 2023 alone. The focus on online sales has brought about physical changes to retail where it is reported that over 50% of customers order frozen foods online at least once a month. The reason behind that change is the home delivery alternative and the broader choice on the internet.

Understanding Consumer Behavior Analysis

Over the recent years, it has been surveyed that the behavior of consumers in the frozen foods market is gradually changing to be concentrated on the principles of convenience and variety-seeking. According to a survey done by the American Frozen Food Institute, 86% of customers buy frozen foods due to their convenience. Due to busy lifestyles, frozen meals that need no preparation and contain little cooking time, also referred to as frozen ready meals, are gaining much of the market share.

The same goes with the frozen food aisle, which presents a plethora of choices including more and more ethnic and gourmet frozen meals. On the other hand, consumers who are focused looking forward to eating healthy are also inducing these trends by looking for frozen foods that contain healthy components. In 2023, 35% of consumers of processed food products stated that they purchased a greater quantity of plant-based frozen food compared to 2022. This also reflects a rising concern for healthy living and healthy and ethical eating practices.

Busy Lifestyles Increasing Demand for Convenient Frozen Food Products

In today's fast-paced world, the demand for convenient, quick-preparation frozen food products is rapidly growing, propelled by consumers' busy lifestyles. The global frozen foods market reached US$ 265 billion in 2023, with a significant portion attributed to time-strapped individuals seeking easy meal solutions. Urbanization has led to more single-person households, now totaling 282 million globally, which usually prefer quick meal options. In the United States alone, about 40 million people work more than 50 hours per week, leaving minimal time for meal preparation.

The frozen pizza market, valued at US$ 18 billion, underscores the convenience trend, as does the rise in frozen breakfast items, now a US$ 3 billion market. Companies like Nestlé have capitalized on this trend, with their Lean Cuisine and Stouffer's brands delivering diverse, ready-to-eat choices. Moreover, the growth of dual-income families, which comprise 65 million households in the U.S., has propelled the demand for convenient meals, giving a boost to the frozen foods market growth. The demand for frozen food in India, with a burgeoning middle class of 350 million, is also on the growth.

Also, the frozen vegetable segment, valued at US$ 33 billion, is benefiting from consumers seeking healthy yet convenient alternatives. The ability to store these foods for extended periods, with frozen foods lasting up to 3 months compared to 2-3 days for fresh produce, further adds to their appeal. The increasing number of health-conscious consumers has led to innovations like low-calorie frozen meals, which are now a US$ 1.5 billion market, indicating that convenience and health can coexist.

Shift Towards Premium Frozen Products with Gourmet and Exotic Flavors

In recent years, there has been a sharper growth in the popularity of frozen food products that need minimal preparation on the part of the consumers, attributable to the latter's busy lives. In 2023, the revenue of the global frozen foods market had reached US$ 287.5 billion, and a large share of that was dedicated to those seeking fast supper solutions. Urban agriculture contributed to more single-person households now worldwide numbering 282 million women and men who eat and prefer fast foods. In America, about 40 million citizens are workaholics, working at least more than 50 hours a week which gives no room for preparations of meals. Frozen pizza as other market trends with a turnover of US$ 18 billion exemplifies this convenience trend, coupled with ready-to-eat breakfast items which are fast becoming a US$ 3 billion opportunity.

The rising trend has also been adopted by companies like Nestlé, Lean Cuisine, and Stouffer's brands, which deliver a broad range of pre-cooked meals. The increasing number of dual-income households in the US, which currently totals 65 million households, has created a market for easy-to-prepare meals. This trend is also evident in India which has a rapidly growing middle class of 350 million; the frozen foods market is on the rise as well. Furthermore, the US$ 33 million frozen vegetable market has been on the rise as consumers go for convenient and healthy alternatives. As for the ‘durability’ of the product, frozen foods last about 3 months while fresh foods such as vegetables and fruits are available for only about 5 to 3 days. The growing number of health-conscious consumers has led to innovations like low-calorie frozen meals, which are now a US$ 1.5 billion market, indicating that convenience and health can coexist.

Recent Launches: -

In 2024, grocery e-tailer BigBasket launched a new frozen foods brand?Precia?in collaboration with chef?Sanjeev Kapoor. Precia will include three product categories, including frozen snacks, frozen vegetables, and frozen sweets, read the release. “We desire to redefine the landscape, meeting the rising demand for convenient, high-quality meal solutions. Our goal of INR 100 crore in online sales by 2026 underscores our belief in Precia's potential and our commitment to continuous growth,” said?Hari Menon, CEO and co-founder, of BigBasket.

In 2024, Nestle?launched a new frozen-food brand, Vital Pursuit, aimed at the rising market of consumers who are utilizing GLP-1 drugs like Ozempic and Wegovy. Over the last year, the buzzy weight loss and diabetes drugs have taken off as more alternatives hit the market and as celebrities like Oprah Winfrey and?Elon Musk?endorse them.

Roughly one in eight adults in the U.S. reported?utilizing a GLP-1 drug?at some point, according to a recent?survey?from health policy research organization KFF. Roughly half of those Americans, or around 6% of U.S. adults, are currently utilizing one of the treatments.

The total number of U.S. consumers taking the medication could soar to 31.5 million, or 9% of the total population, by 2035, according to?the research.

In Conclusion

The frozen foods industry is encountering a remarkable transformation, pushed by the growing demand for convenience, health-conscious choices, and innovative offerings. With the global market projected to reach a staggering US$ 808.42 billion by 2032, the sector's dynamic evolution reflects a complex blend of consumer requirements and technological advancements. From the rapid expansion of cold storage facilities in China to the rise of plant-based frozen products and online retail growth, the landscape is growing to meet diverse consumer preferences.

The shift towards gourmet, premium, and health-oriented frozen products underscores a broader trend where convenience does not compromise quality. As urbanization and busy lifestyles drive demand for quick meal solutions, companies are growing to the challenge with inventive, high-quality frozen offerings. The introduction of new brands like BigBasket's Precia and Nestlé's Vital Pursuit exemplifies the industry’s adaptability to emerging consumer trends and health considerations.

As people move forward, the frozen foods market is set to continue its impressive growth, shaping the future of food consumption across continents. The blend of technological progress, growing consumer behavior, and an expanding range of product options ensures that frozen foods will remain a cornerstone of modern convenience and culinary delight.