More and more Indians consuming ready-to-eat food products, says report
The frozen food market in India is expected to reach a value of Rs.309.07 billion by 2027, expanding at a CAGR of ~16.27% during the 2022-2027 forecast period, according to a ResearchAndMarkets report.
It was valued at Rs.124.06 billion in 2021, said the report “Frozen Foods Market in India 2022-2027”, released 23 Jan 2023.
The frozen food market, which comprises chilled fruits and vegetables, snacks, meat, poultry and seafood, and ready-to-cook meals, has grown significantly in recent years. As frozen products require little time and effort for cooking, the growing consumer preference for convenience foods indirectly supports the increasing demand for frozen products. Some of the key players that operate in this market are Apex Frozen Foods Ltd, Godrej Agrovet Ltd, ITC Ltd and Venky’s (India) Ltd.
As frozen products require little time and effort for cooking, the growing consumer preference for convenience foods indirectly supports the increasing demand for frozen products.
The demand for ready-to-eat food products is rising rapidly owing to the notable shift in dietary habits among consumers, thus catalyzing the demand for frozen food products.
Besides this, rapid urbanization is contributing significantly toward improved living standards and rising income, which is influencing the affordability of frozen food products to a great extent.
Based on sales channel, the market is segmented into retailers, food service providers, and export. Export accounts for the largest share of the revenue, followed by food service providers and retailers in 2021.
The food service business was severely impacted due to COVID-19 in 2020, and the second and third quarter of 2021. Retailers is the fastest-growing segment because the demand for packaged French fries, burgers and chicken snacks has picked up amid the pandemic.
The COVID-19 pandemic has positively impacted the frozen food market. However, growth was interrupted during the second wave (April 2021 – May 2021). Nonetheless, steady recovery of retailers and food service providers is expected to drive the market during the forecast period.
Consumers’ perception toward the processed frozen food products changed positively as these items ensured better sanitization than the foods available from street-side vendors.
During the pandemic, various food and grocery delivery start-ups such as Licious, iD Fresh Foods and Grofers reported an increase in the sale of ready-to-eat and frozen food items, said the report.
The report featured Apex Frozen Foods Limited, Godrej Agrovet Limited, ITC Limited, Venky’s (India) Limited, Capricorn Food Products India Limited, HyFun Frozen Foods Private Limited, Innovative Foods Limited, Mother Dairy Fruit and Vegetable Private Limited, Top Fresh International Private Limited and McCain Foods (India) Private Limited. fiinews.com
