Frozen Processed Foods Market: Changing Lifestyles Spur Demand for Frozen Processed Food Items

Frozen food products are considered nearly as healthy as compared to fresh food items by many consumers, which is driving their demand. Another factor driving their demand is the efforts by manufacturers in terms of product innovation. Keeping in mind the changing consumer preference, manufacturers have started developing frozen processed food that are low in calories, fats, and cholesterol. This has widened the reach of frozen processed food to include the health conscious population base, as they are encouraged and attracted towards healthy food with low calories, fats, and cholesterol.

The demand for frozen processed food is also high owing to the convenience it offers. With increasingly busy lifestyle and rising number of working women, there is a need for easy-to-cook convenience food, which is driving the demand for frozen processed food.

According to the research report, the opportunity in the global frozen processed food market is expected to reach US$69.11 bn by 2021 as against US$57.50 bn in 2014. During the report’s forecast period of 2015 to 2021, the global market is expected to rise at a CAGR of 2.7% in terms of revenue. The demand for frozen processed poultry food items is expected to be highest, as the revenue of this segment is projected to reach US$9.91 bn by 2021. North America will be the key regional segment in the overall market and is expected to generate revenue worth US$23.60 bn by the end of 2021, exhibiting a CAGR of 0.9% from 2015 to 2021.

By geography, North America led the frozen processed food market in 2014, representing a share of 38.2% in the global market. Rising consumer demand for frozen processed food as opposed to their canned alternatives was the major reason driving the growth of the region in the market. Asia Pacific followed North America and accounted for 30.4% of the market in 2014.

In terms of volume however, the growth in the Rest of the World was highest, accounting for 55.2% of the global frozen processed food market. “The Rest of the World is expected to lead in the market in the future and is anticipated to account for 84.1% of the global market by 2021”, predicts a TMR analyst.

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By product, the frozen processed poultry segment led the market in terms of revenue, by accounting for 15.58% of the global frozen processed food market in 2014. In terms of volume, the red meat segment accounted for 17.5% of the market in 2014.

The leading players in global frozen processed food market are Stouffer’s, Bofrost, Zhengzhou Sanquan Food Co, Ltd., and McCain. “Collaborating with regional players to enhance product portfolio and reaching out a larger number of consumers are expected to be key strategies of players in the near future,” reports the lead author of this research report. Establishing integrated marketing communication strategies, improving point of visibility, and building a stronger relationship with retailers will also form the basis of successful businesses in the coming years.

Frozen Processed Foods Market Driven by Changing Consumer Perceptions about Frozen Processed Food Items

The changing lifestyles of the global population marked with busy schedules are driving the consumption of frozen processed food worldwide. With less time to cook elaborate and nutritious meals, an increasingly high number of consumers are opting for convenient meal options. This trend is especially making a pronounced impact on the revenues of the frozen processed food market in countries such as India, the U.S., China, and the Philippines.

Leading manufacturers in the global frozen processed food market are shifting their focus from processed to organic foods in order to align with the changing consumer perceptions of health, finds Transparency Market Research (TMR) in a new report. To do this, they are continuously striving to develop innovative products that satisfy the needs of consumers opting for high protein, gluten-free diet, with simple ingredients.

The key players in the market are Stouffer’s, McCain, Schneider, and DiGiorno. These four players collectively accounted for 27.6% of the global frozen processed food market in 2014. Overall, the new few years will see companies concentrating on preservative-free food and products with no synthetic flavors, TMR predicts

The changing consumer perceptions about frozen processed food items from being convenient solutions to being healthy dietary options have accelerated the demand for the global frozen processed food items. The market is also benefitting from ongoing product innovations and the strong distribution networks established by retail chains. Introduction of a wide range of healthy, natural, organic, and food items with less or no preservatives and additives is also boosting the demand frozen processed food items.

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The lack of time to cook elaborate meals and increasing number of working women have also made a significant contribution to the revenues of the global frozen processed food. The report also indicates that the rising disposable incomes and increasing number of households that own refrigerators especially in the emerging economies of China and India are also expected to propel this market in the forecast period.

According to the research report, the opportunity in the global frozen processed food market is expected to reach US$69.11 bn by 2021 as against US$57.50 bn in 2014. During the report’s forecast period of 2015 to 2021, the global market is expected to rise at a CAGR of 2.7% in terms of revenue. The demand for frozen processed poultry food items is expected to be highest, as the revenue of this segment is projected to reach US$9.91 bn by 2021. North America will be the key regional segment in the overall market and is expected to generate revenue worth US$23.60 bn by the end of 2021, exhibiting a CAGR of 0.9% from 2015 to 2021.

Product Innovation to Boost Sales of Frozen Processed Food Worldwide, says TMR

Leading manufacturers in the global frozen processed food market are shifting their focus from processed to organic foods in order to align with the changing consumer perceptions of health, finds Transparency Market Research (TMR) in a new report. To do this, they are continuously striving to develop innovative products that satisfy the needs of consumers opting for high protein, gluten-free diet, with simple ingredients.

The key players in the market are Stouffer’s, McCain, Schneider, and DiGiorno. These four players collectively accounted for 27.6% of the global frozen processed food market in 2014. Overall, the new few years will see companies concentrating on preservative-free food and products with no synthetic flavors, TMR predicts.

Companies Profit from Perception About Frozen Foods Being Nearly as Healthy as Fresh Products

Frozen food products are considered nearly as healthy as compared to fresh food items by many consumers, which is driving their demand. Another factor driving their demand is the efforts by manufacturers in terms of product innovation. Keeping in mind the changing consumer preference, manufacturers have started developing frozen processed food that are low in calories, fats, and cholesterol. This has widened the reach of frozen processed food to include the health conscious population base, as they are encouraged and attracted towards healthy food with low calories, fats, and cholesterol.

The demand for frozen processed food is also high owing to the convenience it offers. With increasingly busy lifestyle and rising number of working women, there is a need for easy-to-cook convenience food, which is driving the demand for frozen processed food.

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Rising Incidences of Meat Adulteration Restrict Demand for Frozen Processed Food

Recent meat adulteration cases and the Europe horse meat scandal in 2013, where 100% horse meat was found in products being sold as beef meat, have resulted in major setbacks for the global frozen processed food market. A high percentage of people across the globe suffer from obesity, thus opting for homemade food, and refraining from consuming frozen processed meat, fish, and poultry. Another factor challenging the growth of the market is the competition with chilled processed food.

Lack of Industry Rivalry Provides Opportunities of Growth in Market

There are a very limited number of players in many countries that offer refrigerated sausages and hot dogs. For instance, Venky’s Limited is the leader in hot dogs and sausages in India, accounting for 60% of the market. The presence of limited players in specific regions across the globe gives ample opportunity of growth to manufacturers. Another emerging trend is the growth of the retail sector in developing nations, which has increased the sale of frozen processed food.

Rest of the World to Lead in Global Frozen Processed Food Market

By geography, North America led the frozen processed food market in 2014, representing a share of 38.2% in the global market. Rising consumer demand for frozen processed food as opposed to their canned alternatives was the major reason driving the growth of the region in the market. Asia Pacific followed North America and accounted for 30.4% of the market in 2014.

In terms of volume however, the growth in the Rest of the World was highest, accounting for 55.2% of the global frozen processed food market. “The Rest of the World is expected to lead in the market in the future and is anticipated to account for 84.1% of the global market by 2021”, predicts a TMR analyst.

By product, the frozen processed poultry segment led the market in terms of revenue, by accounting for 15.58% of the global frozen processed food market in 2014. In terms of volume, the red meat segment accounted for 17.5% of the market in 2014.

According to the report, the global market opportunity in frozen processed food will rise from US$57.5 bn in 2014 will reach US$69.1 bn by 2021, expanding at a 2.7% CAGR between 2015 and 2021. In terms of volume, the consumption of frozen processed food is expected to rise from 245,980.4 thousand tons in 2014 to 384,881.1 thousand tons by 2021, expanding at a 6.35% CAGR from 2015 to 2021.

This information is based on the findings of a report published by Transparency Market Research titled “Frozen Processed Food Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 - 2021.”

The global frozen processed food market is segmented as follows:

Product

• Frozen Bakery Products
• Frozen Desserts
• Frozen Meat Substitutes
• Frozen Processed Fish/Sea Food
• Frozen Processed Poultry
• Frozen Processed Red Meat
• Others

Geography/ Country

North America

• The U.S.
• Canada
• Mexico

Europe

• Germany
• U.K.
• France
• Italy
• Spain
• Rest of Europe

Asia Pacific

• India
• China
• Rest of Asia Pacific

Rest of the World (RoW)

• Middle East
• Latin America
• Africa

Frozen Processed Foods Market Battles its Acquired Image Issue

The global market for frozen processed foods has seen several tumultuous episodes. Hailed for being one of the most successful methods of food preservation, the darker side of frozen processed foods is a heavily debatable one. The market itself comprises a wide array of products, including red meat, poultry, fish and other seafood, meat substitutes, bakery products, desserts, and vegetables, all frozen and processed to ensure long shelf lives. Those against the global frozen processed foods market argue that the contents of the products are harmful to the human body. And these arguments do not come without proof.

The global frozen processed foods market was valued at US$57.5 bn in 2014. Between 2015 and 2021, the market is expected to show a CAGR of 2.7% in terms of value, landing it at US$69.1 bn by the end of 2021. From a volume perspective, the global frozen processed foods market weighed in at 245980.4 kilo tons in 2014. Moving ahead with a volume-based CAGR of 6.3% in the aforementioned forecast period, the global frozen processed foods market is expected to be measured at 384881.1 kilo tons by 2021.

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The Woes of the Global Frozen Processed Foods Market

Consumerism can be a fickle affair, and no industry knows this better than the food and beverages industry. As one of the sectors of this industry, the global frozen processed foods market is no exception. This market is plagued by numerous problems, at the top of which lies the presence of trans fat in its products. Trans fats were considered as cheap and healthy alternatives to butter and have a superior shelf life. Scientists are now supporting the fact that trans fats actually pose twice the risk of heart diseases to individuals.

Another issue faced by the global frozen processed foods market is the presence (or absence) of certain mentioned products. Case in point, the 2013 horse meat scandal that rocked Europe. A large number of products marked as beef were found to contain horse DNA in them. There were even cases where the frozen and processed contents were 100% horse meat. Now, although the consumption of horse meat itself was not detrimental to human health, the scandal showed glaring discrepancies in the screening processes in the Europe frozen processed foods market. Harm could, however, have been caused by the consumption of horse meat that came from sports horses. Sports horses are administered with veterinary drugs that are banned from use in food animals due to the negative impact they have on human health.

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The Global Frozen Processed Foods Market’s Bright Side

All is not bleak for the global frozen processed foods market, however. Reports show that there are some segments that are faring much better than the others. This can be attributed to the major overhauls and expensive marketing strategies adopted by major players in the market to clean up their image. There is now a growing level of consumer acceptance towards the global frozen processed foods market as its products are being viewed as alternatives to non-preserved food that are just as healthy. The most popular products in the market are the ones that are low on fat and low on calories.

The various submarkets of the global frozen processed foods market also paint an improving portrait of the market. From the perspective of revenue, the market was led by poultry in 2014, followed by seafood. Reports on the market state that a major increase in the consumption of frozen and processed seafood is expected to tip the scales in its favor, causing it to lead the market before 2021. By volume, the global frozen processed foods market was dominated by red meat in 2014, followed by poultry. Both segments are expected to maintain their growth rates.

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Reaping the benefits of the changeovers in the global frozen processed foods market are its major players: Tyson Foods, Inc., General Mills, Nestle S.A., Unilever Plc., and ConAgra Foods, Inc.

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