According to the Food and Agriculture Organization of the United Nations, nearly one-third of the food produced every year amounting to roughly $680 billion (approximately 1.3 billion tons) gets either wasted or lost. The issue of food wastage has given birth to the frozen food market which is experiencing a colossal growth with an increase in disposable income, and accentuated refrigeration technology, explains Agustin Adrian Demartini, a Food Economic Resource Specialist.
According to the analyst, the global frozen food market size in 2018 stood between $225 billion to $228 billion. The market is estimated to grow steadily with a normal CAGR of 3.5%-5% during the forecast period of 2019-2025. Geographically, the U.S is at the top of the Global frozen food market list and should be ready for the increase of this market in the next years. That’s what believes the specialist Agustin Adrian Demartini.
“The prospect for the frozen food market has never seemed brighter. With growing awareness in food trends, consumers are resorting to cooking fresh meals at home which are free from any preservatives”, says Agustin Demartini. “For this, they require frozen foods which come in extensive categories these days, some of which are dairy-free, vegan, gluten-free, sugar-free, low fat, etc”, explains the Food Economic Resources Specialist.
According to Agustin, the availability of high-quality frozen foods makes market growth easier, and less prone to negative fluctuation. Recent trends in technology have introduced cryogenic freezing which prevents the addition of any artificial preservatives while maintaining the negligible growth of microorganisms at the same time. Ready meals, a key segment of the frozen food market, is expected to grow at a standard CAGR of 2.5%-4%. “It is a convenient, and accessible option for the working class society which is perpetually busy, and consistently short on time”, says the specialist.
An Increasing Demand for Preservative Free Food
With an increase in organic produce demand, consumers are incessantly on the lookout for fresh vegetables, seafood, and fruits that do not have a short shelf life. Since most of the organic produce expires quickly, hypermarkets are resorting to freezing of frozen foods that customers are interested in buying.
“Cryogenic freezing of food items extends their shelf lives and makes them free from any added preservatives. Consumers flock towards these products and help the frozen food market in attaining noticeable growth. The U.S needs to be ready for this market increasing in the next years”, says Demartini.
The specialist believes that one of the basic challenges faced by the frozen food market is the lack of a proper supply chain system, and the consistent fear of cold chain systems failing. Since frozen foods require a set optimum temperature around -18C, even the slightest failure in the cold chain system can result in massive wastage. A thoroughly functioning power backup and consistent vigilance are required for assuring negligible frozen food loss.
“In order to make sure that the frozen food market continues to grow, and is not obstructed by food wastage, companies are employing an ameliorated supply chain management system”, reveals Demartini. “Reefer trucks are being used to consistently maintain an optimum environment for frozen foods to stay fresh. These trucks are now being fitted with the third party GPS technologies for timely deliveries. This being a primary market disruption, is driving the growth of the frozen food market in a positive direction”, says.