The frozen foods market is estimated to account for about $219.9 billion in 2018, and is projected to reach nearly $282.5 billion by 2023, growing at a CAGR of 5.1% from 2018, according to a new report published by MarketsandMarkets, New York.
The report, "Frozen Food Market by Product (Fruits & Vegetables, Dairy, Meat & Seafood), Type (Raw Material, Half Cooked), Consumption, Distribution Channel, and Region (North America, Europe, Asia Pacific, South America, and MEA) - Global Forecast to 2023," reveals the retail food industry has witnessed significant growth over the past few years globally. The development of retail channels in the form of supermarkets, hypermarkets and convenience stores continues to drive growth of the frozen foods market. The rising per capita income and increasing number of working women has also further accelerated the market growth.
Convenience foods and ready meals to account for largest share
The convenience food and ready meals segment dominated the frozen foods market in 2018. This is due to the increasing consumer preference toward convenience foods, which indirectly favors the increasing demand for frozen products. The processed food market is driven by the greater need for convenience due to the busy lifestyles of consumers. This, in turn, increases the demand for frozen products. Increasing disposable income is also a factor that bears influence on the growth of the frozen foods market, as it increases consumers’ buying power.
Growth due to developments in the retail landscape
The development of retail channels in the form of supermarkets, hypermarkets and convenience stores continues to drive the growth of the frozen foods market. These large food chains form a significant growing outlet for frozen food products, owing to the latest trend of on-the-go consumption. With this, supermarkets are also able to capture their share in the frozen bakery market, as a result of the increasing demand for exotic fruits and vegetables and in-house bakers.
Europe dominated the frozen food market in 2018
Europe accounted for the largest market share in the frozen foods market in 2018. Germany is estimated to be the major contributor to the growth in the region. The European market is driven by the robust growth of the food industry, which has supported the ready-to-eat snack food industry.