Significant rise in the consumption of ready-to-cook food products has reflected on the demand for frozen items around the globe. According to the Food and Agricultural Organization of the United Nations, approximately one-third of the food produced in the world, which amounts to $680 billion gets wasted every year. The issue of food wastage has given birth to the frozen food market, which is experiencing colossal growth with an increase in disposable income and accentuated refrigeration technology. Frozen vegetables have relatively more nutrients than that of fresh vegetables. After harvest, while transporting from longer distances, fresh veggies can be damaged, making them less nutritive than frozen vegetables. Nowadays, customers are being aware of this fact, which is reflecting on the demand for frozen potatoes. A rapid rise in the expansion of fast-food behemoths, along with the rising socio-economic status of the population are the key factors impelling the growth of the frozen potatoes market. The global frozen potato market size was valued at $59 billion as of 2018 and is anticipated to grow with a CAGR of 4% throughout the forecast period 2019-2025.
Enduring changes in the lifestyle of the population and an increase in women workforce coupled with time constraints and socializing at home are the influencing factors for the growth of the frozen potato market. Young professionals who are residing alone and growing dependency on nuclear families has opened new avenues for frozen foods. Potato is a major staple food and consumed either as fresh or in processed form globally. Majorly consumed frozen potato products are French fries, mashed, sweet potatoes, buttered, baked, stuffed, and topped. Frozen potatoes are main types of processed potatoes containing different nutrients and vitamins in the naturally preserved form with long shelf life. Owing to the shorter preparation time and ease of use, these products are commercially accepted on a large scale worldwide. Moreover, many caterers are inclined toward the use of frozen food, due to the convenience offered by these products and climatic challenges, which in turn, spur the growth of the frozen potato market. Market players of frozen potato are using innovative packaging and storing technologies in producing various frozen potato varieties. Manufacturers are providing packed frozen potatoes in various forms, which only need to be deep-fried before consumption.
Factors Driving the Growth of the Frozen Food Market
Advanced Individually Quick Frozen (IQF) Technology
IQF technology is a freezing method used to preserve the texture and taste of food items in the food processing industry. This technology can separate food items independently during the freezing process, thereby delivering high quality when compared to block freezing. The method involves passing of every individual piece of food through a blast chiller and assures freshness in the food items. IQF foods are prepared within few minutes by this freezing process. Products usually frozen with IQF technologies include all types of fruits, seafood, and vegetables. Food items that are produced by this technology hold on the nutrition values up to the time of consumption. This key benefit of IQF technology for food items preservation, which in turn, incite the growth of the frozen potato market globally.
Penetration of Modern Retail Stores
A surge in the expansion of modern retail stores as shopping destinations for urban consumers to pick out a wide variety of products which comprises of with quality in convenient pack sizes is one of the driving factors for the frozen potato market. Nowadays, companies are employing an enhanced supply chain management system to make sure that the frozen food market growth. Reefer trucks are being used to constantly maintain an optimum environment for frozen foods to stay fresh during transportation. These trucks are now being fitted with GPS technologies for timely deliveries to the customers or retail stores. Huge investments in the cold storage facilities are paving the path to shaping out the frozen food business extension. Growing investments in freezers are increasing the availability of quality frozen space in retail stores by ensuring the right storage conditions via cold chain digitization.
North America Holding Major Share of the Frozen Potato Market
North America generated 35% of the frozen potato global revenues in 2018. Products like French fries, sweet, and cooked potatoes are some of the fastest-selling products in North America. According to the United States Department of Agriculture, in the U.S., there are around 20,000 stores, and 3 out of four conventional grocery stores are producing organic food. Changing food preferences and tastes among people of different age groups in this region are anticipated to impel the growth of the frozen potato market.
The application segment that will be creating the most lucrative opportunities for the frozen potato market is French fries. This application segment is projected to grow at a CAGR of 4.4% through to 2025. French fries are usually available as salted and are served with local specialties depending on the country. Owing to the increase in the consumption of Western-style cuisine in developed economies, due to the rapid expansion of Quick Service Restaurants (QSRs) such as Burger King, Dunkin’ Donuts, McDonald’s, and Subway French fries are extensively consumed by the population. Companies are now focusing on introducing new flavors for enhancing the sale and developing new products and variations.
The Major Players in the Frozen Potato Market:
Prominent players in the frozen potato market include Agristo NV, Agrarfrost GmbH & Co. KG, Aviko, Bart's Potato Company, H.J. Heinz Company, Himalya International Ltd., J.R. Simplot Company, Lamb-Weston, McCain Foods, and TaiMei Potato Industry Limited.
Mergers and acquisitions are the other key strategies adopted by the players to stay ahead of their competitors. Lamb-Weston, an American-based frozen potato, appetizer and vegetable products company, has announced its acquisition with Ready Meals Pty Ltd., Australian-based frozen potato processor on June 24, 2014. With this acquisition, Lamb-Weston enhanced its frozen potato product portfolio. Such joint ventures aid the market players to expand their geographical boundaries and accentuate their footprint into the global frozen potato market.
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