The global frozen food market is projected to register a CAGR of 5.68% during the review period. The growth of the market can be attributed to the increasing demand for convenience foods along with the rising number of working women. Market players are expected to witness profitable growth opportunities in the global market due to the demand for organic products.
The key players operating in the global frozen food market include General Mills, Inc. (US), Tyson Foods, Inc. (US), Grupo Bimbo (Mexico), Conagra Brands, Inc. (US), Associated British Foods plc (UK), Nestle S.A. (Switzerland), Unilever PLC (UK), Ajinomoto Co., Inc. (Japan), The Kraft Heinz Company (US), and McCain Foods Limited (Canada). The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach along with diverse product portfolios. Companies such as General Mills, Inc., Tyson Foods, Inc., Grupo Bimbo, Conagra Brands, Inc., and Nestle S.A. dominate the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.
The players are focused on investing in research & development and adopting strategic growth initiatives such as product launches, expansions, and partnerships to strengthen their market position and capture higher market shares.
Threat of New Entrants
Several established players operate in the global frozen food market, which makes it difficult for new entrants to compete with established brands in the market. Additionally, new players need to focus on creating a brand name through promotion and marketing. Regulatory framework and cost of certification also pose as a barrier for the new market players. However, the barriers to enter the market are not very high, and the initial investments required to start a frozen food brand is moderate. The easy availability of raw materials also increases the chances of new entrants.
Hence, the threat of new entrants in the global frozen food market is expected to be moderate during the forecast period.
Bargaining Power of Suppliers
The raw material suppliers in the global frozen food market are farmers, commodity traders, ingredient suppliers, millers, and company-owned farms. The frozen food manufacturers have the liberty to shift between suppliers as they are not dependent on a single supplier, which reduces their operational risks. Furthermore, high supplier concentration in the global frozen food market reduces the switching costs for the market players. Additionally, the limited scope of product differentiation also reduces the bargaining power of the suppliers.
Hence, the bargaining power of suppliers in the global frozen food market is expected to be low during the forecast period.
Threat of Substitutes
Frozen food is being replaced with fresh food products as the general population is becoming increasingly health conscious. The use of various chemicals and preservatives in frozen food can cause several diseases, which is why many consumers prefer fresh food instead of frozen food. Furthermore, the cold chain process in various developing and underdeveloped economies is still at a budding stage, which is expected to reduce the overall consumption of frozen food products.
Hence, the threat of substitutes in the global frozen food market is expected to be high during the forecast period.
Bargaining Power of Buyers
The bargaining power of buyers is the pressure consumers exert on manufacturers to offer high-quality products at low prices. Owing to the presence of several established industry players in the market, the buyers have the option of choosing between several brands, which reduces their switching costs and, consequently, increases the bargaining power of buyers. Moreover, consumers usually tend to experiment with new products in the market and often change their preferences, which increases their bargaining power.
Hence, the bargaining power of buyers in the global frozen food market is expected to be high during the forecast period.
Intensity of Rivalry
The frozen food market is highly competitive, which is marked with fierce rivalry among the players in terms of product quality, variety, and pricing. The mature and stagnant market for frozen food is forcing the market players to emphasize on innovation in terms of flavors and product quality to expand their customer base. Many manufacturers are focusing on reducing production costs to compete in the cut-throat market. They are also engaged in strategic expansions to strengthen their businesses worldwide and survive in the market.
Hence, the rivalry in the global frozen food market is expected to be high during the forecast period.
