Study: Frozen food market expected to reach $306B by 2020
According to a new report published by Allied Market Research, Portland, Ore., titled, “World Frozen Food Market” - Opportunities and Forecasts, 2014–2020,” the global frozen food market will garner revenue of $306 billion by 2020, registering a CAGR of 4.1% during the forecast period of 2015–2020. The ready meals market, encompassing ready-to-eat foods, will account for the highest sales value of $112.7 billion by 2020. North America and Europe together account for nearly 72% of the total market revenue. However, developing markets will witness a significantly higher growth over the forecast period.
Frozen ready meals account for the largest share of the overall market sales value and will continue to be the leading contributor over the forecast period (2015-2020), the study shows. The segment is forecast to witness a CAGR of 3.8% during 2015-2020. Healthy snacks and other such frozen food products would continue to gain popularity among consumers. The frozen bakery and snacks’ market will witness a rapid growth in Asia Pacific region. Frozen potatoes and frozen fruits and vegetables together constitute around 14% of the overall frozen food market revenue. Increasing sales of organic fries and snacks created a huge demand of organic and sweet frozen potatoes in the developed markets.
End users of frozen food comprise of retail as well as business/foodservice industry customers. Rapidly increasing popularity of fast foods, including fries, pizza and burgers, specifically in the developing markets, largely supplemented the growth of frozen potatoes, fruits and vegetables, seafood and other frozen food products in the foodservice industry. However, retail user segment will witness a higher CAGR of 4.2%, owing to the changing food habits and innovative product offerings by frozen food players.
The growth in developed markets such as North America and Europe will largely be supplemented by the foodservice industry. However, retail market will be driven by healthy frozen food products manufactured from high-quality ingredients.
Asia Pacific and Europe, the Middle East and Africa (EMEA) together will account for around 35% of the global frozen food sales by the year 2020. Retail market in these regions will grow on account of increasing adoption of cooked and semi-cooked foods, bakery and desserts.
Key findings of the study include:
· Europe is the largest market of frozen bakery and desserts and will continue to account for the largest share of global sales value.
· Demand of healthy frozen food products such as organic fries, organic soups, snacks and processed fruits and vegetables will witness a steep increase in developed markets, including North America.
· The segment of retail customers will grow at a comparatively higher CAGR of 4.2% during the forecast period, vis-à-vis the foodservice industry.
This report also outlines the competitive environment of the frozen food market, providing a comprehensive study of the key strategies adopted by market leaders.