Frozen veggies and snacks contribute 85% to frozen market
Today, frozen food is increasingly becoming popular among consumers in India. Freezing technology is the most important aspect for frozen foods. It keeps the food fresh and nutritious from the time it is prepared up to the time it is consumed. Frozen food industry in India has been growing rapidly over the past few years. The busy lifestyles of consumers led to the increasing demand for convenience foods, especially, frozen foods. Previously, the frozen food industry in India was limited to only basic frozen vegetables and French fries. But today, the frozen foods market consists of frozen fruits and vegetables, frozen vegetable snacks and frozen meat products.
The convenience food and ready-to-eat products are estimated to account for the largest share in the frozen food market in India. Frozen vegetables and frozen snacks contribute to 85% of the market share for the frozen foods market in India. The product offerings include cold cuts, meatballs, hot dogs and sausages, samosas, kebabs, nuggets and frozen fries.
In 2018, the Indian frozen foods market reached a value of around Rs 74 billion. The market is further projected to reach a value of Rs 188 billion by 2024, expanding at a CAGR of around 17% during 2019-2024. McCain Foods, Venky’s, Mother Dairy, Godrej Tyson Ltd, Hyfun Foods, AlKabeer Group and Innovative Foods (Sumeru) are some of the key players in the Indian frozen foods market.
Frozen fruits and vegetables
Frozen fruits and vegetables offer a number of advantages over the fresh produce. In India, frozen fruits and vegetables are rapidly gaining traction among consumers. The freezing technique employed in fruits and vegetables assists in retaining the colour, flavour and nutritive value of these products. The residual moisture is converted into ice by freezing, which prevents the growth of bacteria and hence slows down the decomposition.
The spoilage of fruits and vegetables during transportation and exposure to light, heat and dust is also reduced by employing freezing technology. Frozen fruits and vegetables offer numerous benefits which include low cost, easy preparation and availability during the off-season.
Frozen meat and meat products
India has the world’s largest population of livestock. Approximately, 5.3 million MT of meat is produced by the country. India is also the largest producer of buffalo meat and second-largest producer of goat meat. The meat products are more prone to deteriorate when not stored in proper conditions. Hence, there is a need for cold storage infrastructure which will provide clean, safe and hygienic meat and meat products to the consumers.
Frozen processed meat is expected to show strong growth in the upcoming times. The frozen meat industry is expected to witness the fastest growth in coming years due to the increase in demand for a quick meal that also scores well on the nutrition scale.
The frozen snacking market has registered a double-digit growth in India. Nowadays, there is an increasing penetration of frozen snacks, from the deep-freeze displays at retail marts into home refrigerators in India. Both vegetarian and non-vegetarian alternatives are available in the market.
At present, the brands such as McCain, Yummiez, Quick Treat and Venky’s offer cold cuts, meatballs, hot dogs and sausages, samosas, kebabs, jalapeno and cheese sticks, spring rolls, nuggets, French fries, fillets, breaded fingers, patties and cutlets, which are available in vegetarian, chicken and mutton variants. The consumer preference for frozen snacks items is rising due to the hygiene issues and easy availability.
Indian Frozen Foods Market Insights
• The rising disposable incomes have driven the growth of the market. Moreover, the working population of India prefers frozen foods as these are more convenient. These do not need any additional preparation and culinary expertise.
• Changing lifestyle, rising awareness and acceptance, change in consumption patterns have resulted in higher demand for frozen food.
• Another reason for the increasing demand for frozen foods in India is the year-round availability of these products regardless of the season.
• The huge growth of the organised retail sectors in India, these modern grocery and food stores are equipped with cold chain facilities which have led to the availability of a variety of frozen food products in the market.
• In order to expand their consumer base, manufacturers continuously supply the variety of new products, such as frozen fruits, frozen vegetables, frozen snacks, frozen poultry, meat and seafood products and frozen ready-to-eat meals.
• Quick Service Restaurants (QSR), fast food chains, hotels, and cafes serve frozen foods to their customers.
• The booming e-commerce sector in India has further propelled the growth of the market. Online platforms offer high product visibility and product listing at nominal costs and hence facilitate the greater market penetration of frozen food products in India.
Major challenges faced by Indian industry
• Due to infrastructure, especially in semi-urban and rural areas, the penetration in the Indian frozen foods market has been limited.
• In India, there are a lot of misconceptions around frozen food and the process. The perception of consumers regarding frozen foods has not been very favourable. The consumption of frozen food is still close to negligible.
• Lack of consumer awareness about frozen foods.
Frozen fries and other ready-to-eat food products are gaining acceptance in Indian market. There is a need for better quality, healthier options, and longer shelf life within this category.
Source : fnbnews