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Frozen Food Market - The Biggest Trends to Watch out for 2019
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Q. How are emerging economies contributing to the growth of the global frozen food market?
A. Significantly. The newly acquired economic prosperity in emerging economies is changing the lifestyle of consumers in several ways. Due to the rising purchasing power, individuals are spending a considerable amount of money on convenience foods or eating out. Moreover, adoption of Western living practices, wherein both the partners are working does not leave adequate time to prepare fresh meals on a daily basis. This is leading to an increased demand for convenience foods, which includes frozen foods.
Q. Are there factors that are challenging the growth of the frozen food market?
A. Yes. First and foremost, the dependence on third-party distributors to reach end-use consumers is a major challenge for manufacturers of frozen foods. As such, product manufacturers need to rely on cold chains and logistics of distributors and plan production accordingly. In the event of a disruption in distributor services or temperature control anomaly at the time of distribution, product manufacturers have to bear the loss of food spoilage and losing customer loyalty as well. To address this, product manufacturers are focused on partnering with retailers so as to reach consumers directly and reduce dependency on distributors and wholesalers.
The need to maintain impeccable hygiene and perfect temperatures right from production to retail shelves is also challenging the market’s growth.
Q. Which product category accounts for the highest demand in the frozen foods market?
A. Frozen meals account for the highest demand among several categories of frozen food. Frozen ready meals comprise a wide range of products such as frozen desserts, pizzas, entrees, and snacks. The market for frozen ready meals is expected to rise at a CAGR of 3.9% from 2013 to 2019. Other than this, frozen fruits and vegetables are expected to display considerable demand from the young generation due to their convenience quotient. This will lead to their increased market share in the coming years.
Frozen potatoes currently occupy the smallest market share, but the segment is expected to display an increased market share in the future due to an increasing product range of frozen potatoes.
Q. What is the regional growth scenario of the frozen food market?
A. Europe stood as the dominant market with more than 35% of the overall frozen foods market in 2012. In Europe, Germany accounts for the highest consumption of frozen foods and held more than 15% of the Europe market in the same year. However, Asia Pacific is expected to be the most promising market for frozen foods in the future with China and India being the chief contributors.
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