The U.S. frozen food market is expected to reach U.S. $72.98 billion by 2024, according to a new report by Grand View Research Inc. (grandviewresearch.com). 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 over the forecast period.
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.
Further key findings from the report suggest:
- Frozen potatoes are presumed to be the fastest growing product segment growing at a CAGR of 4.9% over the forecast period. 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 over the forecast period. 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.