The
global frozen food market is highly fragmented with top five players
holding a small share in the overall market, as per a recent market
study by Transparency Market Research (TMR). Global players such as
Nestle, H.J. Heinz, and ConAgra are expected to further their
presence by means of advanced technology, acquisition, and adoption
of different strategies to increase their market share. However, a
significant presence of private labels in regional markets acts as a
major challenge for international players to enter and establish
themselves herein. In 2012, others that comprise a few large as well
as many local and unorganized brands collectively held more than 65%
of the global frozen food market.
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According
to the TMR report, the global frozen food market is likely to clock a
moderate 3.90% CAGR for the forecast period between 2013 and 2019,
for the market to attain a valuation of US$293.7 bn by the end of
2019 from US$224.7 bn in 2012.
Among
the various product types, frozen ready meals segment, which includes
frozen pizza, entrees, desserts, snacks, etc., is anticipated to rise
at a significant 3.9% CAGR between 2013 and 2019. On the other hand,
frozen potatoes occupy a small share in the market; going forward the
market share of frozen potatoes segment is likely to increase with
the expanding range of food applications of frozen potatoes. Frozen
fruits and vegetables are likely to register an increased market
share by 2019 due to advancement in freezing technologies that will
help extend their shelf life.
Geography-wise,
Europe stood as the leading market for frozen food in 2012 accounting
more than 35% share. Germany accounts as the leading domestic market
for frozen food in Europe. However, Asia Pacific is anticipated to
emerge as a lucrative market holding 24.8% market share until 2019.
Rising
Disposable Incomes leading to Changing Eating Habits Benefits Market
in Emerging Economies
The
worldwide market for frozen
food is expanding due to a number of factors. This includes
increasing number of women in the workforce, changing food habits,
increasing purchasing power, busy lifestyles, and a wide selection of
frozen food products. In particular, in emerging economies, recently
acquired economic prosperity has led to a dramatic change in eating
habits and purchase of ready to eat meals. Consumers in the region
are enticed with the wide selection of frozen foods that are
available in attractive packaging. This, along with rising disposable
incomes makes emerging economies a hotspot for the growth of frozen
food market.
The
rising acceptance that nutritional value of food is not lost in the
process of freezing is also leading to an uptake of frozen food. This
is because foods such as fruits, vegetables, soups, meat, etc., are
stored at subzero temperatures at which the moisture therein is in a
solid state. This expands the shelf life of food preventing it from
spoilage.
Dependency
on Third-party Distribution Channel Challenges Growth
On
the flip side, factors such as dependence of frozen food
manufacturers on third-party distributors mostly to reach retail
consumers, need to maintain a perfect temperature at the time of
transportation to prevent spoilage, and need to maintain impeccable
hygiene at the manufacturing facility are challenging the market’s
growth. To address this, leading companies are focusing on mergers
and acquisitions with distributors to reduce dependency on the
third-party distribution channel.
The
review presented here is based on the findings of a TMR report,
titled “Frozen Food Market (Product - Vegetables & Fruits,
Potatoes, Ready-to-eat Meals, Meat, Fish/Seafood and Soups) - Global
Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 –
2019.”
The
global frozen food market is segmented as follows:
By
Product
- Frozen Fruits & Vegetables
- Frozen Potatoes
- Frozen Ready Meals
- Frozen Meat
- Frozen Fish/Seafood
- Frozen Soup
