From Snacks to Dinners: Here’s how the Frozen Food Market is Expanding

Frozen foods are great for any occasion, big or small. It’s easy to make and serve frozen food in today’s fast-paced world. Frozen Food market growth is supported by the increasing number of cold-chain facilities in developing countries.

Market.us, a research company, quoted that, “The global Frozen Food market was valued at USD 180 billion in 2021 and is projected to increase significantly at a CAGR of 5.1% from 2019 to 2028.”

They also added,” Asia Pacific reports substantial growth with a CAGR of 5.7% during 2022-2030 in the global market due to consumers preferring to opt for online retailing platforms. The increase in cold chain and refrigeration facilities in developing countries is boosting growth in countries like India and China.”

The research team at Market.us further mentions, “Increasing penetration of companies on e-commerce websites, rising employment in women, and demand for convenience food products are a few factors driving the market globally”

The COVID-19 pandemic has prompted a shift in consumer preferences to ready-to-eat (RTE) food products that can be stored longer and can be cooked in minutes. According to AFFI, frozen food sales saw a 75% increase during the COVID-19 pandemic. The increase in online food sales has had a positive impact on the frozen food market.

The demand for RTE foods is increasing and will continue to grow as the population ages and more consumers enter the food service market. There are a few reasons why frozen foods are more popular than ever before:
They provide a quick and easy way to get nutrients without cooking.
They tend to be more affordable than fresh or prepared foods.
They have a long shelf life, which is ideal in case of an emergency.
Frozen food packaging contains all the ingredients and nutritional information mentioned. It allows consumers to compare various products to choose healthy foods. It allows one to compare different brands’ protein, calories, fat, or sugar and make smarter decisions. Thus it gets easier to keep track of their nutritional and caloric intake.

Australia is planning to emphasize producing healthier options for the frozen foods sector. They are planning to remove the misconception that manufacturing in a freezing process means they will lack nutrients and quality compared to fresh foods. Australia is at a significant advantage due to its advanced cold chain system, which allows frozen food to be sent across and beyond the country. However, it would be reasonable for one to believe that this industry would not be growing in India and other countries like India, which are more important but have a less-developed cold-chain logistics system. But, in reality, local companies have developed various solutions to this problem.

Despite the fact that the cold chain conditions now are not very good, India remains a promising market. It is also a great place to sell frozen products. India is indeed a perfect market, particularly from a consumption perspective, due to the rise in per-capita income and the favorable weather conditions, which are incredibly profitable for this industry.

In August 2022, Amul, an Indian food retailer, exported 120 tonnes of frozen Amul french fries to the Philippines. Since then, Amul dairy has received orders from several countries like Malaysia, the USA, Canada, and Japan. The first consignment was scheduled to depart from the newly constructed potato processing plant in Banaskantha district, Gujarat, next month. This plant also processes frozen foods like chips, potato tikkis, burger patties, and french fries.

They conclude by saying,” Understanding frozen food consumer’s mindset will help support anticipated growth and drive purchase decisions. It is possible to reach more customers, drive excitement, and increase sales in the frozen section. This can be done through targeted omnichannel marketing and sales promotions.”