Northbrook, IL 60062 -- (SBWIRE) -- 10/03/2023 -- According to the research report titled "Frozen Foods Market by Product (Fruits & Vegetables, Dairy Products, Bakery Products, Meat and Seafood Products, Plant-Based Protein, Convenience Food and Ready Meals, Pet Food), Consumption, Type, Distribution Channel, Region - Global Forecast to 2028" by MarketsandMarkets, the frozen foods market is on a growth trajectory. It is estimated to be valued at USD 284.2 billion in 2023, with projections indicating it will reach USD 363.7 billion by 2028, demonstrating a Compound Annual Growth Rate (CAGR) of 5.1% from 2023 to 2028.

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Convenience: The Driving Factor

Convenience is the primary key factor fueling the demand for frozen foods. In today's fast-paced world, consumers are constantly seeking time-saving solutions that align with their busy lifestyles. Frozen foods offer a hassle-free way to put meals on the table without the lengthy preparation associated with fresh ingredients. This convenience resonates with a broad spectrum of consumers, ranging from working professionals and busy families to students and seniors. Frozen foods provide a quick and efficient means of meal preparation, allowing individuals to enjoy a wide variety of options without compromising on taste or nutritional value. Additionally, the ease of storage and longer shelf life compared to fresh foods further enhance their appeal. Consequently, convenience remains the driving force behind the sustained and growing demand for frozen foods in the market.

Online Distribution Channel Takes the Lead

The online distribution channel is experiencing the fastest growth in the frozen foods market, driven by several significant factors. Firstly, the rise of e-commerce has revolutionized grocery shopping, offering consumers a convenient and accessible way to browse and purchase frozen food products from the comfort of their homes, eliminating the need for physical store visits. Secondly, the COVID-19 pandemic accelerated the adoption of online grocery shopping as consumers prioritized safety and social distancing. This shift in behavior toward online grocery services has endured. Thirdly, online platforms provide a broader variety of frozen food options, including niche and specialty products that may not be readily available in brick-and-mortar stores. This expanded selection caters to diverse consumer preferences and dietary needs, further propelling online sales. Moreover, the ability to read product reviews, compare prices, and access personalized recommendations online enhances the overall shopping experience, making it more appealing to consumers.

Food Service Sector Dominates in Consumption

The food service sector holds the largest share in the frozen foods market in 2023. This substantial presence can be attributed to several compelling factors. Firstly, the food service industry, which includes restaurants, hotels, cafeterias, and catering services, heavily relies on the convenience and adaptability offered by frozen food ingredients. Frozen foods ensure consistent quality and enable precise portion control, allowing food service establishments to optimize their operations while consistently delivering delicious meals to patrons. Additionally, frozen foods play a pivotal role in reducing food waste within the food service sector. They have extended shelf lives compared to fresh ingredients, reducing the risk of spoilage and financial losses, a critical consideration in a high-volume, fast-paced industry. Furthermore, the extensive array of frozen food choices, spanning appetizers, side dishes, main courses, and desserts, grants food service operators the flexibility needed to cater to a diverse array of customer tastes and dietary needs.

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Germany Leads the Way

Germany is expected to account for the largest market share in 2023. Several factors contribute to Germany's dominance in the frozen foods market. The nation's strong economy and high levels of consumer purchasing power make it an attractive hub for frozen foods. Additionally, Germany's shifting demographics, characterized by a growing number of working professionals and single-person households, fuel the demand for convenient meal solutions. Frozen foods align well with these changing consumer preferences, offering quick and effortless preparation options. Furthermore, Germany places significant emphasis on food safety and quality, and frozen foods are perceived as a secure and dependable choice.

This trust in the quality and safety of frozen products further solidifies their dominance in the market. Germany has also witnessed a surge in health-conscious consumers seeking frozen fruits, vegetables, and other healthier alternatives. This health-oriented trend has propelled the growth of the frozen foods market, especially within the healthier product segments. Germany's commitment to healthier and more sustainable food choices aligns with its National Nutrition Strategy, which aims to promote a shift toward plant-based foods, enhance overall population health, and reduce environmental impact. These initiatives are expected to drive the growth of the frozen foods market, particularly in healthier segments like frozen fruits and vegetables.

Key Market Players

Major players operating in the frozen foods market include General Mills Inc. (US), Nestlé (Switzerland), Unilever (Netherlands), McCain Foods Limited (Canada), Conagra Brands, Inc (US), Kellogg's Company (US), Grupo Bimbo (Mexico), and The Kraft Heinz Company (US).

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