Product Innovation to Boost Sales of Frozen Processed Food Worldwide, says TMR
Leading manufacturers in the global frozen processed food market are shifting their focus from processed to organic foods in order to align with the changing consumer perceptions of health, finds Transparency Market Research (TMR) in a new report. To do this, they are continuously striving to develop innovative products that satisfy the needs of consumers opting for high protein, gluten-free diet, with simple ingredients.
The key players in the market are Stouffer’s, McCain, Schneider, and DiGiorno. These four players collectively accounted for 27.6% of the global frozen processed food market in 2014. Overall, the new few years will see companies concentrating on preservative-free food and products with no synthetic flavors, TMR predicts.
Companies Profit from Perception About Frozen Foods Being Nearly as Healthy as Fresh Products
Frozen food products are considered nearly as healthy as compared to fresh food items by many consumers, which is driving their demand. Another factor driving their demand is the efforts by manufacturers in terms of product innovation. Keeping in mind the changing consumer preference, manufacturers have started developing frozen processed food that are low in calories, fats, and cholesterol. This has widened the reach of frozen processed food to include the health conscious population base, as they are encouraged and attracted towards healthy food with low calories, fats, and cholesterol.
The demand for frozen processed food is also high owing to the convenience it offers. With increasingly busy lifestyle and rising number of working women, there is a need for easy-to-cook convenience food, which is driving the demand for frozen processed food.
Rising Incidences of Meat Adulteration Restrict Demand for Frozen Processed Food
Recent meat adulteration cases and the Europe horse meat scandal in 2013, where 100% horse meat was found in products being sold as beef meat, have resulted in major setbacks for the global frozen processed food market. A high percentage of people across the globe suffer from obesity, thus opting for homemade food, and refraining from consuming frozen processed meat, fish, and poultry. Another factor challenging the growth of the market is the competition with chilled processed food.
Lack of Industry Rivalry Provides Opportunities of Growth in Market
There are a very limited number of players in many countries that offer refrigerated sausages and hot dogs. For instance, Venky’s Limited is the leader in hot dogs and sausages in India, accounting for 60% of the market. The presence of limited players in specific regions across the globe gives ample opportunity of growth to manufacturers. Another emerging trend is the growth of the retail sector in developing nations, which has increased the sale of frozen processed food.
Rest of the World to Lead in Global Frozen Processed Food Market
By geography, North America led the frozen processed food market in 2014, representing a share of 38.2% in the global market. Rising consumer demand for frozen processed food as opposed to their canned alternatives was the major reason driving the growth of the region in the market. Asia Pacific followed North America and accounted for 30.4% of the market in 2014.
In terms of volume however, the growth in the Rest of the World was highest, accounting for 55.2% of the global frozen processed food market. “The Rest of the World is expected to lead in the market in the future and is anticipated to account for 84.1% of the global market by 2021”, predicts a TMR analyst.
By product, the frozen processed poultry segment led the market in terms of revenue, by accounting for 15.58% of the global frozen processed food market in 2014. In terms of volume, the red meat segment accounted for 17.5% of the market in 2014.
According to the report, the global market opportunity in frozen processed food will rise from US$57.5 bn in 2014 will reach US$69.1 bn by 2021, expanding at a 2.7% CAGR between 2015 and 2021. In terms of volume, the consumption of frozen processed food is expected to rise from 245,980.4 thousand tons in 2014 to 384,881.1 thousand tons by 2021, expanding at a 6.35% CAGR from 2015 to 2021.
This information is based on the findings of a report published by Transparency Market Research titled “Frozen Processed Food Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 - 2021.”
The global frozen processed food market is segmented as follows:
- Frozen Bakery Products
- Frozen Desserts
- Frozen Meat Substitutes
- Frozen Processed Fish/Sea Food
- Frozen Processed Poultry
- Frozen Processed Red Meat
- North America
- The U.S.
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Rest of the World (RoW)
- Middle East
- Latin America
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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