According to Marketsandmarkets report, the frozen food market is estimated to account for about USD 219.9 billion in 2018 and is projected to reach a value of nearly USD 282.5 billion by 2023, growing at a CAGR of 5.1 per cent from 2018.
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 has driven the growth of the frozen food market. These large food chains form an important growing outlet for frozen food products, owing to the latest trend of on-the-go consumption. The rising per capita income and increasing number of working women, globally, have further accelerated the market growth.
On the basis of product, the convenience food and ready meals segment is estimated to dominate the frozen food market in 2018. This is due to the increasing consumer preference toward convenience foods, which indirectly favors the increasing demand for frozen products, as they require less time and efforts. 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 one such factor that had a huge influence on the growth of the frozen food market, as it increases the buying power of the consumers.
The frozen food market is witnessing strong growth due to the developments in the retail landscape.
The development of retail channels in the form of supermarkets, hypermarkets, and convenience stores has driven the growth of the frozen food 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, the supermarkets are also able to capture their share in the frozen bakery food market, as a result of the increasing demand for exotic vegetables and fruits and in-house bakers. This trend is driving the frozen food market, especially, the frozen bread market.
Europe is estimated to dominate the frozen food market in 2018.
Europe is estimated to account for the largest market share in the frozen food market in 2018. The region is projected to offer huge growth potential to the frozen food market. The market in 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 to gain acceleration in this market.