COVID-19 Impact on Frozen Food Market in 2020 – Know the Forecast Demand till 2026
The global frozen food market size
is projected to reach USD 185.28 billion by 2027, exhibiting a
CAGR of 3.1% during the forecast period. Growing number of urban dwellers
around the world will be a leading factor propelling this market in the near
future, states Fortune Business Insights™ in its report, titled “Frozen
Food Market Size, Share & COVID-19 Impact Analysis, By Type (Frozen
Vegetables and Fruits, Frozen Ready Meals, Frozen Pizza, Frozen Seafood, Frozen
Meat Products, Frozen Potato Products, Frozen Baked Products, and Others),
Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience
Stores, and Online Retail), and Regional Forecast, 2020-2027”. Urbanization
is gaining considerable traction worldwide, underpinned by speedy economic
growth and development, especially in Asia and Africa.
According to the UN Department of
Economic and Social Affairs (DESA), urban areas, which house roughly 55% of the
global population at present, will be home to nearly 70% of the world
population by 2050. Put differently, over 2 billion people will be added to the
world’s urban areas in the next three decades, with Asian and African countries
leading the charge. Urban agglomerates are typically characterized by the
widespread presence of supermarkets, hypermarkets, and departmental stores.
Frozen type of food products are some of the most prominent items on shelves at
these facilities owing to their high demand among the working populace. Thus,
expansion of urban areas is expected to favor the growth of this market during
the forecast period.
Market Driver
Resurgent Demand for Frozen Foods amid
COVID-19 to Boost the Market
When the coronavirus pandemic broke out
and lockdowns and social distancing measures were imposed worldwide, retail
stores and supermarket outlets were fearful of reduced footfalls, which would
result in declining sales. While consumer footfall dropped as expected, retail
facilities are experiencing a new wave of demand for these foods products.
According to a study commissioned by
the American Frozen Food Institute (AFFI), the resurgent demand for frozen food
is attributable to returning buyers as well as first-time buyers. The study
found that in America, approximately 86% of consumers were buying frozen type
of foods, despite the pandemic. More interestingly, the study revealed that 70%
of current consumers are purchasing more products than usual, while 68% are
trying new products, indicating a shift purchasing patterns. The COVID-19
pandemic, therefore, has increased the demand for frozen foods and the AFFI
study states that this surge will continue even after the crisis is over.
Regional Insights
Growing Preference for Vegetarian Diets
to Catalyze the Market in Europe
With a size of USD 56.17 billion,
Europe dominated the frozen food market share in 2019 and the region is
expected to retain its leading position during the forecast period. This will
be mainly attributable to the gradual adoption of vegetarian and vegan diets in
the region, which is fueling the demand for frozen vegetables and fruits. In
addition to this, high consumer purchasing power will be another factor feeding
the growth of the regional market.
Growing awareness among consumers about
the benefits of frozen foods and strict food-safety regulations imposed by the
US Food and Drug Administration (FDA) on frozen eatables will support the
market in North America. In Asia Pacific, the primary growth driver for the
market will be the rising number of cold chain facilities in the developing
countries of the region.
Competitive Landscape
Strategic Launch of Products in
Regional Markets to Foster Competition
Key players in this market are tapping
avenues to capture region-specific frozen foods industry trends and expand
their presence in these regions. Besides this, companies are also making
large-scale investments in enhancing their production and R & D capacities,
thereby strengthening their market presence.
Browse Detailed Summary of Research
Report with TOC:
https://www.fortunebusinessinsights.com/frozen-food-market-104138
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