Frozen Food Market Size, Share, Forecast, & Trends Analysis by Product (Meat & Poultry, Seafood, Dairy Products, Bakery Products), Type (Raw, Half-cooked), Distribution Channel (B2B {Food Services, Food Manufacturers}, B2C)—Global Forecast to 2031

The Frozen Food Market is expected to reach $447.79 billion by 2031, at a CAGR of 5.5% during the forecast period of 2024–2031.

Frozen Food Market Size & Forecast

The frozen food market presents significant growth opportunities driven by factors such as the increasing demand for convenience foods, the expansion of the global cold-chain industry, and evolving customer preferences. The market's growth is, however, restrained by the rising preference for natural and fresh foods and the need for constant temperature monitoring of frozen food. The increasing penetration of E-commerce and the emergence of economies in Asia-Pacific, Latin America, and the Middle East & Africa are expected to create significant growth opportunities. Conversely, the lack of cold-chain infrastructure in developing countries is a major challenge. Noteworthy trends in the global frozen food market include the rise of plant-based and gluten-free frozen food products.

Frozen Food Market Growth Drivers

Increasing Demand for Convenience Foods Driving Market Growth

Consumer demand for convenience foods has increased substantially during the previous decade. Consumers are increasingly turning to convenience food products such as baked goods, confectioneries, beverages, and ready meals as they are quick and easy to prepare. The need for dinner-time solutions among modern customers is fast expanding as a result of severe changes in meal consumption behavior. Many people are willing to spend money on ready-to-eat foods, given that they lack the time and ability required to prepare their food at home. It's important to note that the convenience trend is not a fad but a long-term phenomenon. Increased urbanization is expected to help the convenience movement gain traction, providing stability in the market.

Furthermore, as urbanization accelerates, so does the need for convenience food products, owing mostly to changing lifestyles, an increase in the number of nuclear families, an increasing proportion of workers, and a lack of time for food preparation. These elements make a compelling case for the accelerated growth of the frozen food products market, as frozen food products are widely available and have extended shelf life. As a result, the growing demand for convenience foods drives the frozen food business.

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Growing Global Cold-chain Market to Boost Market Growth

Cold-chain operations involve logistics planning and maintaining the temperatures at which perishable food products are stored through refrigeration or thermal packing. This increases product shelf life and helps maintain product quality for longer. Freezing preserves the physical and biochemical properties of fresh agricultural meat, poultry, and seafood products. The cold-chain market is driven by favorable government initiatives, technological advancements in refrigerated storage, and the increasing number of middle-income consumers in developing countries.

In addition, the implementation of advanced technologies in cold chains has facilitated modern warehouse management using modern heavy-duty refrigeration systems that help maintain proper temperatures during the transportation & storage of food. The adoption of innovative IoT-based automated software for cold-chain management provides live data to operators, allowing for unmatched visibility into every process and transaction within cold-chain logistics. Operators can connect to intermodal shipping containers, cargo, vessels, and trailers with enterprise IT systems via sensors, GPS, mobile networks, and cloud-based platforms. Thus, all these factors are expected to boost the global cold-chain market, in turn driving the demand for frozen food in the coming years.

Frozen Food Market Trends

Increasing Demand for Plant-based Frozen Food Products

Plant-based frozen food products have grown in popularity due to increased awareness of environmental sustainability, a growing vegetarian population, an increase in venture capital investments in plant-based food firms, food technology innovation, and health-conscious consumer preferences. Plant-based frozen food has a number of advantages over animal-based alternatives, including lower cholesterol levels, lower saturated fat content, and, in many cases, higher fiber content.

Plant-based frozen food products are trending and have marked serious growth in vegan product development. Across the food value chain, companies are looking to generate growth through innovation and product development in plant-based frozen food products, both within their legacy brands and by creating new product offerings. Some plant-based frozen food product developments in the global market are as follows:

• In December 2023, Konscious Foods (Canada) launched frozen plant-based sushi, poke bowls, and onigiri in 4,500 retailers across North America.
• In April 2020, Daiya Foods (Canada) launched veggie crust pizzas, or plant-based frozen pizzas with a vegetable-blend crust of cauliflower, sweet potato, and spinach. As part of this development, the company introduced cutting-board cheese shreds, gluten-free thin-crust pizzas, veggie crust pizzas, and burritos to the market.

Moreover, wholesale food suppliers are now stocking various vegan and vegetarian options in the frozen food section to meet consumer preferences. Additionally, concerns about animal welfare and sustainability are prompting consumers to choose plant-based frozen food, contributing to the growth of this market. Therefore, companies are expanding their plant-based product lines to cater to this rising demand and capitalize on the trend toward healthier, more sustainable food choices.

Gluten-free Frozen Food

The growing demand for gluten-free frozen meals is a significant trend in the frozen food market, driven by increased consumer knowledge of gluten-related illnesses and a desire for healthier eating options. With the rise of illnesses like coeliac disease and gluten sensitivity, consumers are looking for goods that meet their nutritional demands without sacrificing taste or convenience. This transition is reflected in the growing number of gluten-free frozen food products available, ranging from pizzas and bread to sweets and ready dinners. Manufacturers are reacting to this demand by creating creative goods made with alternative flours and additives, ensuring that gluten-free solutions are not only nutritional but also tasty and fulfilling.

Furthermore, the demand for gluten-free frozen food is being fueled by a broader consumer push for clean eating and product labeling transparency. Consumers are increasingly scrutinizing ingredient labels and looking for items that support their health and well-being aspirations. Gluten-free frozen food, which are seen as healthier alternatives, are gaining popularity among health-conscious consumers and those wanting to limit gluten consumption. As a result, the gluten-free segment of the frozen food industry is poised to grow rapidly, fueled by innovation, customer demand, and a continued emphasis on health and wellness.

Frozen Food Market Opportunities

Increasing Penetration of E-commerce Shopping Generating Growth Opportunities for Market Players

Global internet access and adoption are increasing rapidly. With over 5 billion internet users worldwide in 2023 (Source: International Telecommunication Union), the number of people making purchases online is ever-increasing. According to the American Frozen Food Institute (AFFI), frozen food is popular in digital carts.

With the expansion of e-commerce platforms and the convenience they provide, an increasing number of people are purchasing frozen food goods online. This trend is being driven by factors such as busy lifestyles, a desire for increased convenience, and the availability of a diverse selection of frozen food options online. Users can acquire frozen food products from the comfort of their own homes with just a few touches on their smartphones. Furthermore, innovations in packaging and logistics guarantee that frozen food is delivered safely and effectively to consumers' doorsteps, driving the growth of online frozen food sales. As a result, increased consumer awareness and acceptance of online purchasing are likely to generate market growth opportunities.

Frozen Food Market Analysis: Key Findings

By Product: In 2024, the Ready Meals Segment to Dominate the Frozen Food Market

Based on product, the frozen food market is segmented into ready meals, meat & poultry, seafood, dairy products, bakery products, vegetables, fruits, and other frozen food products. In 2024, the ready meals segment is expected to account for the largest share of 32.1% of the frozen food market.  This segment's substantial market share is attributed to changes in consumer habits as a result of the fast-paced work environment, notably among the working-class population, as well as a growing preference for ready-frozen meals for convenience. Furthermore, the growing popularity of ready meals among the younger age and teen population, as well as the widespread availability of frozen food in convenience stores and supermarkets, contribute to this segment's substantial market share.

However, the seafood segment is estimated to register the highest CAGR during the forecast period. The high protein content of fish, rising worldwide aquaculture production, and the expansion of supermarkets and hypermarkets are the main drivers of this growth. The market for frozen seafood is expected to grow due to the increasing demand for frozen seafood as a thickening agent, as well as the increasing use of quick-freezing technologies.

By Type: In 2024, the Raw Segment to Dominate the Frozen Food Market

Based on type, the frozen food market is segmented into raw, half-cooked, and ready-to-eat. In 2024, the raw segment is expected to account for the largest share of 46.3% of the frozen food market. This segment’s large market share is attributed to the rising consumer awareness about the nutritional properties of raw frozen food, the growing adoption of frozen technologies in the fresh fruits and vegetables sector, and the increasing number of raw frozen food product launches.

However, the ready-to-eat segment is projected to record the highest CAGR during the forecast period. This segment's rapid growth is mainly driven by rapid urbanization and increasing disposable income, changing lifestyles and busy schedules of working individuals, growing demand for convenient and healthy food, and continuous innovation and new product developments.

By Distribution Channel: The Business-to-consumer Segment to Witness Highest Demand During the Forecast Period

Based on distribution channel, the frozen food market is segmented into business-to-business (B2B) and business-to-consumer (B2C). In 2024, the business-to-business segment is expected to account for the larger share of 52.7% of the frozen food market. The growing number of quick service restaurants (QSRs), the expanding B2B frozen food trading, and the increasing demand from hotels, restaurants, food chains, cafes, and the food service industry are all responsible for this segment's significant market share.

However, the business-to-consumer segment is estimated to register the highest CAGR during the forecast period. This growth is being driven by rising urban population density, an increasing trend of online shopping, an increasing number of supermarkets and hypermarkets, the growing popularity of the franchising concept, and a growing preference for personalization, consumer convenience, and greater product selection.

Geographical Analysis

In 2024, Europe is expected to account for the largest share of 36.9% of the frozen food market, followed by North America, Asia-Pacific, Latin America, and the Middle East & Africa. Europe’s significant market share can be attributed to several key factors, including the rising preference for ready-to-eat food, favorable regulations, a well-established cold chain in the region, innovative practices by key players in the industry, technological innovation in the frozen food sector, busier lifestyles of consumers, introduction of various healthy and diet-related frozen meals, and the growing import of frozen food.

However, Asia-Pacific is anticipated to register the highest CAGR during the forecast period. Consumer lifestyle changes, rising disposable income, an increase in foreign direct investment (FDI) in the retail sector, expanding cold-chain facilities, and rising demand for processed food products in emerging markets such as India, Indonesia, and Thailand all contribute to the growth of this regional market. Furthermore, increased demand for dairy products such as yogurt and sour milk is propelling the frozen food market in the region.

Frozen Food Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the frozen food market are General Mills, Inc. (U.S.), Conagra Brands, Inc. (U.S.), Nestlé S.A. (Switzerland), Unilever PLC (U.K.), McCain Foods Limited (Canada), The Kraft Heinz Company (U.S.), Tyson Foods, Inc. (U.S.), Associated British Foods plc (U.K.), Ajinomoto Co., Inc. (Japan), Vandemoortele NV (Belgium), Lantmännen Unibake International (A Part of Lantmännen Group) (Denmark), Cargill, Incorporated (U.S.), Europastry, S.A. (Spain), JBS S.A. (Brazil), ARYZTA AG (Switzerland), and Nomad Foods Limited (U.K.).

Frozen Food Industry Overview: Latest Developments from Key Industry Players

• In July 2023, Conagra Brands introduced over fifty new items in its snack, supermarket, and frozen businesses. Conagra offers a broad range of flavors and price points for all of its brands and entrees in its frozen portfolio.
• In September 2022, McCain Foods acquired Scelta Products (Netherlands) to expand its presence in the global prepared appetizers sector and meet customer and consumer demand.
• In June 2022, General Mills acquired TNT Crust (U.S.), a company that produces high-quality frozen pizza crusts for regional and national pizza franchises, food service distributors, and retail stores. As part of the transaction, General Mills bought two manufacturing plants in Green Bay, Wisconsin, and one in St. Charles, Missouri.
• In June 2022, Conagra Brands opened a state-of-the-art vegetable processing plant in Waseca, Minnesota. The new 245,000-square-foot plant prepares fresh veggies for Conagra's frozen meals division and the Birds Eye brand. It was designed from the ground up with an emphasis on maximizing automation to increase efficiency and improve food safety throughout.

Frozen Food Market Research Summary

Key questions answered in the frozen food market report: