Frozen and Convenience Food Market Expected to Expand at 8.09% CAGR by 2028

The Global Frozen and convenience food Market is on track to grow by USD 468.9 billion at a compound annual growth rate (CAGR) of 8.09% from 2023 to 2028. This growth is driven by increasing consumer preferences for vegan and plant-based products. Additionally, the expansion of retail stores stocking frozen foods has made these products more accessible to a broader range of consumers. 

Major food companies are also responding by launching new product lines to meet consumer demand. Brands like Nestle's Garden Gourmet and Tyson's Raised and Rooted are innovating with plant-based frozen foods, setting the stage for continued market growth.

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Rising Popularity of Vegan Frozen Foods

There is a growing trend toward vegan frozen foods, particularly in countries like the UK and the US, where consumers are increasingly seeking plant-based options. This shift is being driven by health and environmental concerns, as well as a desire for meat alternatives. Many companies are capitalizing on this trend by launching new vegan products. For instance, Nestle SA introduced plant-based sausages in January 2020, targeting the growing demand for meat-free meals in both Europe and the US. These developments are expected to further fuel market growth in the coming years.

Market Overview

Frozen and Convenience Food Market Growth Drivers

Key Growth Drivers

The frozen and convenience food market is being fueled by rising health awareness and the increasing digitalization of the retail sector. Consumers are looking for quick and easy meal solutions that cater to their busy lifestyles, and frozen foods offer a convenient option. The market includes a wide variety of products, from frozen vegetables to gluten-free ready meals, and benefits from the growing trend of online grocery shopping. Additionally, advancements in temperature-controlled logistics are helping to ensure the quality and safety of frozen food, which has become a major selling point for consumers concerned about food safety.

Emerging Market Trends

Convenience is a major factor driving the demand for frozen foods. As consumers' schedules become busier, ready-to-eat meals have become increasingly popular because they save time on meal preparation and cleanup. The rise in single-person households and the growing number of working women have also contributed to the growing demand for frozen convenience foods. Technological advancements in refrigeration and the increasing availability of frozen meals in grocery stores are expected to boost market growth during the forecast period.

Challenges Facing the Market

Despite its rapid growth, the frozen food market faces several challenges. One of the main concerns is the potential health risks associated with consuming processed frozen foods, which are often made with low-cost, unhealthy ingredients. Regular consumption of frozen meals has been linked to a range of health issues, including diabetes, obesity, and high blood pressure. These health concerns may limit the market’s growth potential in the future.

Market Segmentation

Frozen Convenience Foods: A Growing Segment

The convenience food segment is expected to see continued growth as more consumers seek easy meal solutions. These products are especially popular among people with busy lifestyles who may lack the time or skills to cook from scratch. The rising number of grocery stores stocking frozen convenience foods is also driving demand. As more retailers offer a wide range of packaged foods, consumers have greater access to frozen meals that fit their needs.

Distribution Channel Insights

The offline segment, which includes supermarkets, hypermarkets, and local grocery stores, is projected to experience strong growth. The wide availability of frozen foods in these stores, coupled with competitive pricing and a broad selection of brands, is attracting more consumers to this segment. Supermarkets and hypermarkets, in particular, are expanding their frozen food offerings to meet growing consumer demand.

Regional Outlook

Geographical Breakdown of the Frozen and Convenience Food Market

North America is expected to account for 49% of the global market's growth by 2028.

Europe is another important region for frozen food, with key markets in the UK, Germany, and Spain. The region is seeing significant growth, driven by mergers and acquisitions, innovative marketing campaigns, and the premiumization of frozen food products. Companies like General Mills and Young Seafood are investing in expanding their product portfolios to meet the demands of European consumers.

Competitive Landscape

Leading players in the frozen and convenience food market are adopting a range of strategies, including product innovation, partnerships, and acquisitions, to strengthen their positions. Key companies include:

• Ajinomoto Co. Inc., known for its wide range of frozen food brands like LingLing and JoseOle
• Amy’s Kitchen Inc., specializing in organic, vegan, and gluten-free products
• Associated British Foods Plc, which offers frozen foods through its popular brands

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Consumer Preferences and Market Dynamics

Consumer adoption of frozen and convenience foods varies across regions, influenced by factors such as convenience, pricing, and brand loyalty. Supermarkets and hypermarkets remain the primary distribution channels for these products, offering a wide variety of choices at affordable prices.

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