Frozen food exporting is a lucrative opportunity for companies. It allows them to sell frozen foods like meat, vegetables, fruits, and poultry products to other countries.
The growing demand for convenience and ready-to-eat (RTE) food products is boosting the global frozen food exporting market. Rising disposable incomes and changing dietary habits also drive the market’s growth.
Asia Pacific
The Asia Pacific region is vast, encompassing the world’s largest number of countries and territories. It is also home to some of the most diverse cultures, religions and languages.
Frozen food exporting is an important industry in this region, enabling manufacturers to reach customers worldwide. The frozen food market is primarily driven by the demand for ready-to-eat and convenience foods, which offer consumers various healthy options without the need to cook them from scratch.
Europe and North America are the leading markets for frozen processed food, but Asia Pacific is increasingly gaining a strong foothold as well, with health trends increasing the popularity of such products. In addition, the rising disposable incomes of Asian consumers have encouraged the growth of the frozen foods sector in the region.
Fanija Samak, a packaged foods analyst at Euromonitor International, says the Asia Pacific frozen processed food market is becoming more appealing to consumers as it satisfies their needs for convenience and a high taste level. As such, it is a lucrative business opportunity for many regional manufacturers.
Several factors are driving frozen processed food demand in the Asia Pacific, including longer working hours and westernised trends in diet and culture. In addition, more liberal economic policies and improved manufacturing and distribution networks have helped increase consumer purchasing power.
According to Euromonitor, ready meals are the fastest growing sector in the Asia Pacific frozen processed food market. This segment grew by almost 12% in 2004, compared to just 1.9% for all other sectors combined, and is expected to grow further.
The ready-to-eat and convenience foods segment is expected to account for most of the frozen food market in 2020 due to the changing lifestyles of people worldwide and their increasing demand for convenient and healthy meal options. Moreover, the growth of online fresh grocery stores like MissFresh has increased the demand for frozen foods, especially among Chinese consumers.
The frozen meat substitute segment is also fast-growing in the global frozen food industry. This market is driven by the demand for protein-rich and low-calorie alternatives to traditional meat dishes. The market is expected to reach US$4.6m in 2004, and Euromonitor expects it to grow at a rapid rate in the future.
Europe
Europe is one of the world’s largest markets for frozen food. Its high consumer purchasing power, economic stability, and lifestyle change have contributed to the market’s growth. Moreover, the number of vegetarians and vegans has boosted the sales of frozen food products.
The European region has a large population and diverse landscapes, making it a suitable market for frozen food exporting. The market is expected to expand at a steady rate shortly.
Eurostat said the intra-EU food trade increased significantly between 1999 and 2018. In recent years (see Table 4), the average value for food trade was higher than the mean value (brown and red colours). It may indicate a high level of food security within the EU.
Nevertheless, many factors can influence the development of food security in the long run. Among them are political boundaries and social attitudes.
The European Union (EU) is the largest political and economic entity that covers Europe. It comprises 25 member states and candidate countries negotiating for membership, with several other states expected to begin negotiations in the future.
There are several ways to define the Europe region, which can differ in sociopolitical, geographic, and cultural characteristics. For example, some sources consider only Europe’s seaward flanks, while others include Greenland and parts of Turkey, Cyprus, the Faroe Islands, and other European countries.
In any case, some common features can be found across most European regions. These include many forests, favourable natural vegetation conditions, a warm climate with frequent summer droughts, and mountain ridges that allow water to flow from the ocean in the interior.
Despite its small size, Europe is home to many highly successful economies and an impressive array of scientific, military, and cultural achievements. Moreover, it has a strong tradition of cooperation and is a leading player in global politics.
North America
The frozen food market is a growing sector anticipated to experience significant growth during the forecast period. It is attributed to the increasing consumer preference for convenience products and RTE foods. The growing population and hectic lifestyle are also expected to drive the demand for these frozen foods in this region.
Despite the growing demand for frozen food, certain restraints are expected to impact the global market in this region. One of the major constraints is the lack of understanding among consumers about the nutrient content of frozen food.
However, with the help of supportive claims from organisations like the US FDA and IFIC, this is starting to change. These organisations are encouraging the production of health-befitting frozen foods free from added sugars and other ingredients that could be harmful to the body.
This trend also drives the growth of frozen meat & poultry and vegetable & fruit convenience foods in this region. These products are highly convenient and ideal for families with limited time to prepare fresh meals.
Additionally, the increasing disposable incomes of consumers in this region are contributing to the growth of this market. It is especially true in countries such as China, Japan, and India, where disposable income is high.
Moreover, the increasing internet penetration has facilitated the emergence of online retailing of edible items in this region. The online retailing of these products offers an opportunity for frozen food exporters to cater to the needs of the local consumers in this region.
In addition, the rising popularity of ready-to-eat foods in this region is further expected to drive the frozen food exporting industry. The working population often prefers these products due to their convenience.
The frozen food market in this region is expected to grow at a CAGR of 6.7% during the forecast period from 2022 to 2032. It is owing to the growing awareness about the nutrient value of frozen foods.
The frozen food exporting potential in this region is expected to be huge. It is mainly attributed to the growing adoption of frozen food products in this region and the growing consumption of packaged edible products. Several leading players are investing in this sector to expand their presence in the market. These companies are developing new varieties of frozen foods to offer consumers more options in this segment.
Middle East & Africa
The Middle East & Africa region is one of the world’s largest frozen food exporting markets, accounting for over US$20 billion in retail sales in 2015 (Figure 1). Its burgeoning F&B industry, driven by an increasing number of expatriates and tourists, offers a large market for frozen food players.
As the region’s population grows, it will demand more high-value agricultural products. In turn, it will drive food imports across the region.
However, this will also increase the risk of escalation in violence and migration as Arab states increasingly rely on food imports to meet their needs. According to Mahmoud Solh, director general of the International Center for Agricultural Research in Dry Areas, this could mean higher prices for poor consumers and less access to food.
In addition, the region’s food security is also threatened by climate change impacts on crop yields and population growth. These factors will likely boost the cost of food imports, making them less affordable for low-income people and increasing food insecurity.
Despite these challenges, the global frozen food market will continue expanding in the coming years. Rising consumer awareness about reducing food wastage by replacing fresh foods with frozen ones is expected to drive the adoption of frozen foods, propelling its overall growth during the forecast period.
Furthermore, increased millennial and Gen Z demand for convenient and on-the-go frozen ready-to-eat items are projected to provide further fuel to the market. As a result, demand for frozen pizza and versatile breakfast products is expected to significantly increase in the Middle East & Africa region over the next few years.
The Middle East & Africa frozen food market is characterised by various buyer groups and preferences. While the UAE is the busiest in frozen food sales, other countries like Saudi Arabia and Qatar have strong markets for this product category.
The market is expected to expand significantly over the next few years owing to increasing urbanisation, improved living standards, and a high proportion of expatriates in the region. The rapidly expanding cold chain distribution networks in supermarkets and hypermarkets will also contribute to the market’s growth. Moreover, the recent introduction of frozen processed halal meat and poultry, cold drinks, and flavoured milk is further projected to support the overall growth of this market.