The frozen food market in Europe is forecast to increase in value to the equivalent of US $48.81 billion from now to 2027 as momentum progresses at a 6.8% compound annual growth rate (CAGR), according to a report issued by the Technavio market research company.
However, factors such as distribution challenges may impede growth. The market is segmented by distribution channel (offline and online) and products (ready meals, fish and seafood, meat and poultry, fruits and vegetables, and others).
The offline segment will be significant for overall growth during the forecast period. There has been a premiumization of the market in Europe, with consumers willing to pay more for high quality, all-natural, and organic frozen food products. Offline stores such as supermarkets and hypermarkets have increased the selection of premium frozen food items they offer, such as ready meals, organic frozen fruits and vegetables, and meat and seafood as a response to that demand.
The market in Europe is significantly impacted by the expansion of e-commerce, with online retailers exploiting their broad digital capabilities to offer a wider assortment of frozen food products. They conveniently make deliveries directly to consumers’ homes.
Company Insights
The European frozen food market is fragmented, and companies are deploying organic and inorganic growth strategies to increase competitiveness. The report from Technomic provides information on a number of major companies in the frozen sector. Among them are: Nestle SA, Nomad Foods, Frosta AG, Iceland Foods, Ajinomoto Co., Associated British Foods Plc, BRF, Cargill Inc., Dr. August Oetker, General Mills, JBS SA, McCain Foods, Orkla ASA, Kraft Heinz Co. and Tyson Foods.
