Frozen food – The best alternative for fresh foods
Frozen food is a type of food, falling under the convenience food category, where preparation time for the food is extremely short. It is taken as the best alternative for fresh foods, as the nutritive value of the food remains intact, on account of the product being stored frozen.
Changing psychologies and shifting shopping patterns of the consumers are driving India frozen foods market. Moreover, shortage of time and hectic lifestyles are also anticipated to fuel India frozen food market. Furthermore, improved standards of living of the people are also driving demand for frozen food across the country. In order to accommodate frozen foods as a part of their offerings, modern retail outlets have started increasing display of frozen foods in their refrigeration units.
Frozen Snacks French Fries Frozen Cutlets Frozen Smileys
Frozen Fruits & Vegetables Frozen Peas Frozen Corns Frozen Strawberries
Frozen Meat, Poultry & Seafood Frozen Raw Meat Frozen Chicken Frozen Eggs
Frozen Snacks The Leading Segment
Research has found that among various types of products, frozen snacks dominate India frozen food market and is projected to cross 58% by 2021, due to high demand for frozen snacks, especially frozen potatoes-based products in Metro cities along with Tier I & II cities.
The companies are offering varied range of product options to choose from including vegetarian and non-vegetarian frozen food items. The frozen snacks are preferred in India due to their easy availability and high quality.
The outlook for frozen fruits and vegetables segment is also promising and the segment is projected to cross 21% by 2021.
Frozen meat, poultry and seafood segment is also gaining popularity, as Indian population is witnessing a significant change in their lifestyles, which is being reflected in their food habits.
Organised Vs Unorganised Sector
Frozen food market in India consists of both organised and unorganised market players. The market is dominated by organised players such as Mother Dairy, Darshan Foods (Meatzza), Godrej Tyson (Yummies), Venkys, Al-Kabeer, Sumeru, McCain and so on. Furthermore, the customers are more inclined towards branded products such as those offered by established players.
According to research data, demand for frozen food is anticipated to grow in countries like China and India, wherein Asia-Pacific is projected to emerge as a strong demand generator for frozen food across the globe. Global frozen food market is projected to grow at a CAGR of around 4% during the forecast period.
Research also found that India frozen food market is projected to grow at a CAGR of 15%, in value terms during the next five years, owing to convenience and benefits offered by frozen food products, changing lifestyles, increasing working population base, especially women, growing presence of retail players in frozen foods market and rapid urbanisation.
North India accounted for the highest revenue share of around 39% in India frozen food market in 2019 and this is projected to reach 40.39% by 2021. The region is emerging as the highest demand generator for frozen foods in the country due to rapidly increasing migrant population base, growing number of employment opportunities, rising establishment of offices and increasing disposable income of consumers in the region.
Presence of hypermarkets, supermarkets and cash & carry stores, has augmented the demand for frozen food significantly in metros and mini metro cities. Additionally, kids also prefer frozen snacks, which are boosting demand for frozen foods in India.
India has opened doors to multiple opportunities for international manufacturers of frozen foods. Demand for frozen foods is rising across India due to growing working population base and increasing acceptance of frozen foods among consumers. The companies are offering extensive range of frozen foods to choose from which include vegetarian and non-vegetarian items.
According to a research report, Delhi dominates the demand share for frozen snacks in the country due to availability of ample employment opportunities and rising migration of people to Delhi from other cities in search of job opportunities. Additionally, Maharashtras capital Mumbai stands as the second-highest demand generator in India frozen snacks market, due to establishment of many offices and other commercial hubs in the city, which further increase employment opportunities.
Bangalore and Chennai stand at third and fourth positions respectively in India frozen snacks market, owing to rising demand for traditional ready-to-eat foods among South Indian consumers. The manufacturing companies are also launching innovative offerings such as medu vadas, idlis, sambar and masala utappams to meet the consumers demand.
Frozen food manufacturing companies are introducing products in small single-serve packs and which is posing as an extra incentive for consumers. Frozen food products occupy extra space in the refrigerator as once opened, they need further refrigeration for preservation of the quality and freshness. Introduction of small packs or single-serve packs is a latest trend adopted by many companies and is anticipated to drive more and more consumer in the near future.
The companies are continuously striving to introduce new product ranges, as this will not only increase profits margins for frozen food manufacturing companies but will also add to the existing portfolio of frozen foods available in the market.
Moreover, online players such as Big Basket and Amazon along with frozen food manufacturers, are selling these food products on their platforms allowing the consumers to purchase these products at their convenience, which is projected to drive the demand for frozen foods in the country in the coming years.
McCain is one of the leading companies in India frozen food market. The revenue share of the above-mentioned company is predicted to increase from over 20% in 2019 to reach 20.62% by 2021. Other top market leaders in the frozen food market of India include Godrej Tyson, Venkys, Darshan Foods and Al Kabeer.
Low awareness levels among Indian consumers is restricting the growth of India frozen food market. When compared to developed countries across the globe, consumers in India are comparatively less informed about the utility of frozen food products.
Therefore, frozen food companies need to increase their marketing efforts in order to increase their product visibility across various sales channels and advertising platforms so as to reach out to a larger consumer base. Also, high investment is required in India frozen food market due to the need for setting up proper cold chain facilities. Apart from this, certain level of stock must be maintained to address to the ever rising market demand for frozen food products.
Source : fnbnews