Frozen Food Market Booming

Industry Outlook Team

The frozen food market size is anticipated to reach USD 312.3 billion by 2025, growing at a Compound Annual Growth Rate of 5.0 percent during the forecast period. Major factors driving the growth of this sector include the developments in the retail segment, a surge in demand for convenience food and ready to eat food products, and technological advancements in the cold chain market.

However, the increase in preference for fresh food and natural food products over frozen food products acts as a major factor restraining the growth of this market.

The rise in consumer preference towards convenience foods indirectly favors the surge in demand for frozen products since it requires a very less amount of time and effort to cook the frozen food products. Furthermore, the rise in disposable income is also one of the important factors that have hugely influenced the frozen food market growth as it increases the purchasing power of consumers.

Based on the product, the convenient and ready to eat food product segment is expected to dominate the global market, owing to the changing and busy lifestyle of people living across the world.

Increase in the number of supermarkets

Research shows that frozen food dominates the Indian frozen food market owing to their high demand particularly the frozen potatoes-based products in the metro cities. Also, the surge in demand for frozen food in the country is due to the rapid increase in the number of supermarkets, retail stores with proper refrigeration facilities. The frozen food market in India is anticipated to reach INR 192.96 billion by 2024, growing at a CAGR of 17.74 percent, over the forecast period.

Various government schemes such as Integrated Development of Horticulture (MIDH) and Pradhan Mantri Kisan Sampada Yojana offered by the Government of India has rendered financial support to build and enhance the new cold storage facilities in the country. The improved shelf-life and packaging of frozen food, technological advancement in the cold chain infrastructure, has also supported the supply and distribution of frozen food products in the tier-1 cities and this has spurred growth in India’s frozen food segment.

Investing in IQF and quick-freezing technologies

Although frozen food is considered to be convenient, it is most often perceived to be unhealthy. This is a consumer misconception the frozen food sector has struggled with for a while now. According to consumers, fresh food is nutritious and better when compared to frozen food products. However, this is not necessarily true.

Freezing helps in increasing the shelf life of the food products without compromising the nutritional value and components present in the food. Therefore, freezing does not make food less healthy as the health aspect of any food product completely depends on its nutritional content and the way it is preserved while being frozen.

Frozen food provides a practical alternative to busy households but preserving the original quality and flavor of the ingredients remains a challenge for food producers. Hence, entrepreneurs in the frozen food segment have made huge investments in new technologies such as IQF, quick freezing, and maintain the high quality of inputs to protect the freshness and nutritional content of the food products.