Any food item (raw or ready) that is kept frozen at a low temperature for a long time is called a frozen food. As far as the frozen food market is concerned, it includes things like ready-to-eat foods, soups, ice creams, desserts, snacks; and ready vegetables, fruits, fish, poultry, meat and seafood.
Literally, the origin of Indian frozen food industry dates back to the ancient period – as in the cold regions of the Himalayas, people used to store (or hide) food under the lumps of ice inside caves for use during the peak cold seasons when preying was not possible.
In the recent past, Indian frozen seafood industry has witnessed a spectacular growth in export, thus, considering the space limitation, in this article, I will try to highlight that industry only.
Demand for frozen food is increasing globally
As per the recent report of Astute Analytica India Pvt. Ltd., consumer behaviour is driving significant changes in the frozen foods landscape, with convenience, health benefits, and sustainability being primary motivators. The growing trend of home cooking has fueled demand for ready-to-cook frozen meals, with over 100 million households in the U.S. alone purchasing such products regularly.
Additionally, there is an increasing preference for frozen fruits and vegetables, with sales of these items reaching over 1.5 billion units annually. This shift is indicative of a broader consumer desire for nutritious and easily accessible meal options. Furthermore, the demand for ethnic and international cuisines is expanding, with more than 20,000 new frozen ethnic food products introduced in global frozen foods markets over the past year.
Potential of the Indian frozen food market
According to Technavio’s recent report – The India frozen food market is estimated to grow by USD 2.41 billion at a CAGR of 18.52% between 2024 and 2028. The market experiences growth fueled by an increasing preference for convenience and the rapid expansion of e-commerce, particularly bolstered by rising demand from Quick Service Restaurants (QSRs).
However, obstacles such as distribution challenges, health concerns related to frozen food consumption, and inadequate logistics infrastructure impede this growth. Despite the burgeoning desire for convenience and the surge in online retail, challenges persist in ensuring efficient distribution channels and mitigating health risks associated with frozen food consumption.
Addressing these hurdles necessitates strategic investments in enhancing logistics infrastructure and implementing stringent quality control measures. While the market benefits from the convenience-driven consumer trends and the digital commerce boom, overcoming distribution obstacles and health concerns is vital for sustained growth and market resilience.
Remarkable export scenario of the Indian frozen seafood industry
India’s frozen seafood exports touched an all-time high in volume during the financial year 2023-24 despite various challenges in significant export markets. India shipped 17,81,602 MT of seafood worth `60,523.89 crore (US$7.38 billion) during 2023-24.
Frozen shrimp
Frozen shrimp remained the major export item in quantity and value, while the USA and China became the major importers of India’s seafood. During FY 2023-24, the export improved in quantity terms by 2.67%. In 2022-23, India exported 17,35,286 MT of seafood worth `63,969.14 crore (US$8,094.31million).
Frozen shrimp, which earned `40,013.54 crore (US$4881.27million), retained its position as the top item in the seafood export basket, accounting for a share of 40.19% in quantity and 66.12% of the total dollar earnings. Shrimp exports during the period increased by 0.69% in quantity terms.
Representative Image from Pixabay
The export of frozen shrimps during 2023-24 was pegged at 7,16,004 MT. The USA, the largest market, imported 2,97,571 MT of frozen shrimp, followed by China (1,48,483MT), the European Union (89,697 MT), Southeast Asia (52,254MT), Japan (35,906MT), and the Middle East (28,571 MT).
The export of Black Tiger (BT) shrimp increased by 24.91%, 11.33% and 8.28% in quantity, value and US$ terms, respectively, in 2023-24. BT shrimps were exported to the tune of 38,987 MT worth2855.27 Cr (US$347.84 million). China (including Hong Kong) turned out to be the major export destination for black tiger shrimp with a share of 28.43% in terms of US$ value, followed by the USA (18.21%), European Union (18.06%) and Japan (13.12%). Scampi exports have shown a positive trend of 6.42%, 23.22% and 18.96% in quantity, value ` and US$ terms, respectively, in 2023-24. The Vannamei shrimp exports have grown in 2023-24 by 0.33% by volume; however, they declined by 11.56% from US$ 4809.99 million to US$ 4253.86 million.
Frozen fish
Frozen fish, the second largest exported item, fetched 5,509.69 crore (US$671.17 million), accounting for 21.42% in quantity and 9.09% in US$ earnings. This year, the export of frozen fish increased by 3.54% and 0.12% in quantity and value terms, respectively; however, it declined by 2.31% in US$ terms.
Fish and shrimp – meal & feed – non-edible dried items
Fish and shrimp – meal & feed – non-edible dried items, the third most prominent item in the export basket, earned 3684.79 Cr (US$ 449.17 million), accounting for 15.89% share in quantity and 6.08% in dollar earnings, showing an increase of 15.99%, 34.07% and 31.52% by quantity, value and US$ terms. Exports in this group reached to the tune of 2,83,019 MT. Unit value growth observed in this group was 13.38%.
Frozen squid
Frozen squid, the fourth largest export item, fetched `3061.46 crore (US$ 373.40 million), accounting for a 5.25% share in quantity and 5.06% in dollar earnings. The export of frozen squid increased by 11.52% in quantity terms.
Surimi and Surimi Analogs
The export of Surimi and Surimi Analogs, at the fifth most significant position, pegged at 1,35,327 MT, grew 4.12% in quantity terms and earned `2,414.43 crores (US$294.43 million).
Cuttlefish
The export of frozen cuttlefish, at the sixth most prominent position, pegged at 54,316 MT worth `2252.63 crores (274.62 US$ million), accounting for 3.05% share in quantity and 3.72% in US$ earnings.
Representative Image by Nicole Klesy from Pixabay
Chilled items
The export of chilled items at the seventh most prominent position, which is considered a promising sector, also increased by 47.06% in quantity terms and 8.66% in US$ terms.
Other items
Frozen octopus, the eighth largest export item, fetched US$62.17 million, followed by fish oil (US$58.51 million), live items (US$48.61 million), dried edible items (US$ 37.60 million), frozen lobster (US$ 33.67 million), and fish maws (US$ 16.76 million).
Major export destinations
As for overseas markets, the USA continued to be the major importer of Indian seafood in value terms, with an import worth US$2,549.15 million, accounting for a share of 34.53% in terms of US$ value. Exports to the US increased by 7.46% and 1.42% in quantity and value (`) terms; however, they declined by 3.15% in US$ terms. Frozen shrimp continued to be the principal item exported to the US, with a share of 91.90% in US terms. Exports of black tiger shrimp to the US increased by 35.37% in quantity terms and 32.35% in value in US$ terms.
China (excluding Hong Kong and Taiwan) emerged as the second largest seafood export destination country for India in terms of US$ with an import volume of 4,51,363 MT worth US$1,384.89 million, accounting for 25.33% share in quantity and 18.76% in US$ terms. Exports to China grew by 12.80% in quantity; however, they declined by 0.88% in ` value and 4.21% in US$ value. Frozen shrimp, the major item of exports to China, had a share of 32% in quantity and 55.11% in US$ value, while frozen fish had a second most share of 36.83% in quantity and 21.56% in terms of US$ value out of the total exports to China.
Japan is the third largest importer, with a share of 6.06% in quantity and 5.42% in US$ value terms. Frozen shrimp continued to be the major item of exports to Japan, with a share of 33.26% in quantity, 65.94% in `, and 65.98% in US$ value.
Vietnam holds the fourth largest market position, importing 1,32,086 MT worth US$ 391.41 million. Frozen shrimp dominates the import with a share of 55.43% in US$ earnings and 30.11% in quantity, followed by dried items.
Thailand is the fifth largest market, with a US$ share of 3.82% and a third-place position by volume (7.77% share), with 1,38,457 MT worth US$ 281.97 million. Frozen fish remained the significant item exported to Thailand, accounting for a share of 44.37% in US$ earnings and 63.91% in quantity.
By P. K. Chatterjee (PK)
