Amidst the global pandemic crisis and the indefinite lockdown across nations, the consumer food & beverage industry first witnessed high demand for household staples, healthy food items, and consumables with longer shelf lives. The demand for frozen food products, fruits & vegetables, eggs, flour, and whole grains, among others, witnessed a considerable increase during the early stages of the crisis. Presently, most companies in the industry are faced with low consumption of their products and supply chain challenges. The companies are focusing more on altering their supply chains in order to reinforce their online presence and delivery measures, in an attempt to adapt to the present business environment. The changes in consumer buying behavior and the dynamic shifts towards online and D2C distribution channels may have serious implications on the near future growth of the industry. Our team is diligently working towards accounting these factors in our report with the aim of providing you with the up-to-date, actionable market information and projections.
The U.S. frozen food market is expected to reach USD 72.98 billion by 2024, according to a new report by Grand View Research, Inc. Greater economic participation from all segments of the U.S. society has resulted in hectic work schedules thus causing a change in lifestyles. Frozen food provides convenience thus catering to this shifting trend.
Frozen foods are easy to carry, cook and consume. They do not require much preparation before consumption. They come in pre-portioned and pre-measured quantities which reduce waste. Thus, they limit the time needed for cooking and this trend is expected to benefit the U.S. market.
Fruits & vegetables are frozen at the time of their ripeness. Advancements in freezing technology have enabled to lock in all the nutrients in the products. Furthermore, competitive pricing has allowed frozen foods to be available in comparatively fewer prices. All these inherent benefits are expected to drive the overall market over the next eight years.
Government regulations coupled with health concerns are expected to restrain the market growth. To overcome this restraint, companies impose strict quality checks on their raw material sourcing processes. Also, companies have reduced the content of harmful substances such as trans fats in frozen food.
There have been recent advancements such as the creation of new formulations that remove allergens like dairy, soy, and wheat, the introduction of a wide range of ethnic, and ingredients to suit changing palates and innovations in packaging are expected to impact the overall industry growth positively.
Frozen potatoes are presumed to be the fastest growing product segment growing at a CAGR of 4.9%. Advantages such as less waste, low price and ease of usage are expected to drive the market growth
Frozen fruits & vegetable segment is presumed to grow at a CAGR of 4.5% from 2016 to 2024. High nutritional value, all season availability and competitive pricing are the attributed factors for this growth
Frozen ready meals accounted for more than 35% in 2015 and are expected to occupy a major share. Availability of staple ready meals, product differentiation and ease of usage are the factors expected to drive this growth
The industry is fragmented in nature with the presence of both regional and international market participants. Companies are focusing on manufacturing process optimization to reduce wastage. Innovation is a key market characteristic
McCain, Inn Foods, ConAgra Foods, Pinnacle Foods Groups, General Mills Inc., Bellisio Foods, Jeanie Marshall Foods Inc., and Goya Foods are some of the major market participants.