Frozen Vegetables Market

Frozen Vegetables Market Outlook (2023-2033)

The global frozen vegetables market incurred high sales in the historical period assessment and showed growth rate of 3.1% during (2018-2022). The market value is expected to increase decidedly and register the sales of US$ 38,357.4 Mn in year 2023.

Frozen Vegetables Consumption Analysis (2018-2022) Vs. Market Estimations (2023-2033)

The global frozen vegetables market has witnessed significant growth in the historical period registering a CAGR of 3.1% in the historical period and was valued at US$ 38,357.4 Mn in 2023. The market is expected to grow steadily with growing economies and increasing disposable income of consumers on food and beverage products.

The expansion of the global frozen food industry has been fuelled by an increase in consumption and demand of frozen meals in rising economies of the Asia Pacific region such as Japan and India. Market expansion is aided by an increase in disposable income as well as changes in lifestyle and eating habits.

The major demanding region for frozen vegetables is Europe followed by North America. The rapid rise in large retail outlets, which include hypermarkets/supermarkets and other stores, is fuelling demand for frozen vegetables. France holds the highest value CAGR of 5.5% in Europe, followed by the Italy and Spain. In the North American region, the U.S. holds the highest market share of ~42% in during the forecast period.

What are the Key Trends in the Market for Frozen Vegetables?

“Market Witnessing New Trends because of Premiumization.”

Premiumization has been bridging the gap between the luxury and mass market to give all consumers access to unique and innovative products. For food and beverage producers, the benefits of premiumization are clear. Consumers are now willing to pay premium prices for value-added products with real benefits.

Today’s consumers are more trusting of premium branding. The premiumization of products gives an assurance of their quality. Owing to this, manufacturers or even distributors have been strategizing on branding their fruits and vegetables in various formats at premium levels in order to gain traction in the global market.

“Increasing Consumer Demand for Processed Foods Leading to Launch Frozen Vegetables”

People's working hours have risen as a result of the rigorous work culture in cities, making it harder for them to spend time cooking. Consumers have been compelled to choose packaged and ready-to-eat meals due to their hectic lifestyles. However, users can enjoy nutritious food that takes less time to make using frozen vegetables. Because frozen vegetables come in different varieties, consumers have the choice to choose what they want to eat.

Due to their fast-paced lifestyles, consumers are searching for inexpensive, quick, and ready-to-eat delicious food items, which presents significant development prospects for frozen vegetable products. Moreover, due to the growing demand for frozen vegetables, companies are focusing on developing new products. Because of shifting tastes, the majority of frozen vegetable consumers are looking for new and advanced food products.

Customers like flavourful goods and blended vegetables that are simple to cook. Because of the changing needs of customers, several firms have started introducing innovative frozen food items.

• B&G Foods Holdings Corp., a U.S.-based food manufacturer, launched a new mixed vegetable product, ‘Broccoli and Carrot’, in the frozen format.

“Growing Demand of Frozen Vegetables Foodservice Industry Benefitting the Market Growth”

Frozen vegetables are not only consistently available throughout the year but also offer outstanding operational advantages. Frozen vegetables are an excellent solution to labor shortages as they eliminate the need for time-consuming preparation. Frozen vegetables eliminate the need for training and specialized labor, as they are simple and quick to produce and serve.

Fresh vegetables are gathered and frozen within hours to preserve their nutrients and flavor. Minerals and vitamins are frequently kept in frozen meals, as are carbohydrate, protein, and fat content. Fresh foods lose vitamins and minerals over time, but freezing them preserves their nutritional value.

“Long Shelf Life Associated With Frozen Vegetables Boosting Market Growth”

Frozen food is seeing an increase in demand because of the technology employed in its manufacturing. Freeze-drying, air-drying, and vacuum drying processes have made it possible to store and consume vegetables, fruits, and other perishable foods for extended periods with proper preservation.

Frozen food has a longer shelf life than fresh food, ranging from weeks to months, allowing customers to eat it for extended periods. Elimination of moisture from vegetables during the freezing process gives them a longer shelf life and keeps them free from germs. Frozen vegetables are easier to store than fresh vegetables, need less storage space, and have a longer shelf life. All of these qualities make frozen vegetables a preferred choice for food service operations when compared to fresh products.

The frozen vegetable industry is expanding as a result of the numerous advantages of freeze-drying technology. Regulatory approvals provided possibilities for frozen vegetable manufacturers who saw the potential of this industry and began supplying new-age goods long before they became a trend.

“Development of Cold Chain Logistics”

Companies are focusing on the development of cold chain logistics, as it is crucial for the transport of frozen vegetables. Frozen vegetables are consumed in various countries; a majority of the share comes from the developed economies of North America and Western Europe. Several companies in Western Europe are looking to establish their distribution networks for frozen vegetables since the vegetables require a specific temperature and environment once they are taken out of cold storage. Frozen vegetables have the highest chance of getting bacteria and easily rot if kept without care after being taken out of cold storage. For transportation, specialized trucks need to be engaged to transport these vegetables in a stipulated environment. Hence, a large number of manufacturers are trying to start their own logistics networks to increase their profits. Presently, most of these providers don’t have transportation mediums dedicated to frozen vegetables, and they transport all types of frozen foods in the same trucks or other transportation mediums.

• Companies such as Dole Food Inc. and Pinnacle Foods Inc. are trying to establish their distribution channels to ease transportation and increase their bottom line. These companies are focusing on transportation trucks that are custom-built to carry frozen vegetables safely.

“Use of Harmful Chemicals during Farming Pushing Customers Away”

In the global fresh vegetable market, conventional vegetables hold a major volume share. In the farming of conventional vegetables, fertilizers and various chemicals are used. These pesticides and fertilizers have a negative impact on human health and cause several health issues. After the drying of the frozen vegetables, the chemicals used to do so also get concentrated in the products to a certain extent, which causes several health issues. Due to the increasing awareness about the potentially hazardous effects of these chemicals, consumers are looking for organic substitutes for conventional vegetables.

Country-wise insights

What is the Europe Outlook for the Frozen Vegetables Market?

Changes in European consumers' consumption habits, such as 'ready to eat' or 'simple to make' meals and the substitution of animal-based foods with vegetable-based alternatives, are anticipated to promote this development. Germany, France, the United Kingdom, Italy, and the Netherlands, in particular, provide opportunities for suppliers from emerging countries. Nutritious foods have gained tremendous traction among European consumers, who are increasingly looking for healthy and quick breakfast, meal replacement, and snack options that aid the market growth of frozen vegetables.

What is demand outlook for Frozen Vegetables in China?

China holds a major share in the East Asian market for frozen vegetables and is anticipated to expand at significant rate of about 5.8% over the forecast period. This is due to increase in domestic production of frozen vegetables and rise in consumption by the population in the country. The increasing demand for convenience foods in China is expected to have a positive impact on the global frozen vegetables market owing to higher nutritious value of frozen vegetables.

Category-wise insights

Which Type of Frozen Vegetables is Expected to dominate the Market?

On basis of type, the market is segmented into beans, peas, corn and baby corn, broccoli and cauliflower, potatoes, onions, tomatoes, carrots, and spinach, among others. The study on frozen vegetables shows that potatoes segment is witnessing the highest value share owing to increasing from foodservice businesses owing to ease of usage and high availability.

How are Various Distribution Channels Offering Sales Opportunities for Frozen Vegetable Suppliers?

Sales of frozen vegetables are increasing through business to consumer segments at a rapid rate. The hypermarkets/supermarkets segment is witnessing a high growth rate among the business to consumer channels, at a CAGR of 5.5%, followed by specialty stores, convenience stores, and online retail.

Competitive Dashboard

The majority of large-scale international and local businesses make up the global frozen vegetables market. Multinational companies with a wide variety of products account for roughly 45-55% of the worldwide frozen vegetables industry. Players in the frozen vegetables market are targeting their product offerings especially towards the foodservice operators. The consumer demand for nutrient rich seasonal vegetables all-round the year is providing growth opportunities for key players. General Mills, Inc., Ajinomoto Co., Inc., Conagra Brands Inc., and The Kraft Heinz Company among others are some of the major players operating in the global frozen vegetables market. Multinational players account for a market share of 45-55%, while regional players account for 30-40%. The latter are engaged in the business of providing frozen vegetables, operate at small scale, and are more export-oriented.

• In 2020, ITC Limited extended its product offerings under the Farmland brand by launching frozen vegetables such as peas, Indian round gourd (tinda), and pointed gourd (parwal). The company also launched frozen shrimps under its ITC Master Chef brand.
• In 2020, Ajinomoto Co., Inc. launched a stevia sweetener under the brand name AJISWEET RA, which was developed in partnership with Morita Kagaku Kogyo Co., Ltd. in Japan. The product has reduced bitterness and off-flavors, which helps to resolve taste issues, faced by food and beverage manufacturers.
• In July 2020, Conagra Brands, Inc. launched over 12 products under its Birds Eye, Marie Callender’s, Healthy Choice, and Snack Pack brands to satisfy changing customer needs.
• General Mills, Inc. has a joint venture with Nestlé S.A. They are collectively competing in the ready-to-eat cereal category in all regions excluding North America. The company also has a joint venture with Häagen-Dazs Japan, Inc. (HDJ), which competes in the super premium ice cream segment in Japan.

Frozen vegetables Industry Report Scope

Frozen vegetables Industry Research by Category

By Nature:

• Organic
• Conventional

By Product Type:

• Beans
• Peas
• Corn and Baby Corn
• Broccoli and Cauliflower
• Potato
• Onion
• Tomato
• Carrot
• Spinach
• Others

By Distribution Channel:

• Business To Business
• Business To Consumers
  • Hypermarkets/Supermarkets
  • Convenience Stores
  • Specialty Stores
  • Online Retail

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

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