India Frozen Food Market Outlook to 2028

India Frozen Food Market Overview

The India Frozen Food market, valued at USD 168 billion, has witnessed substantial growth due to increasing consumer preference for convenience foods. The demand is primarily driven by the busy urban lifestyle, where frozen foods offer a quick and easy meal solution without compromising on nutrition. This growth has been further propelled by the expansion of modern retail formats, enhancing the accessibility of frozen food products across major cities. Additionally, increasing investments in cold chain infrastructure have allowed for better storage and distribution, supporting the markets expansion.

Dominant regions in the India Frozen Food market include metropolitan areas like Mumbai, Delhi, and Bangalore, which lead due to their higher urban population density, rising disposable incomes, and greater exposure to global cuisines. These cities have an increasing number of supermarkets and hypermarkets, where frozen food sections are prominently featured. Their dominance is also fueled by consumer lifestyle trends that prioritize convenience and the availability of diverse frozen food options in organized retail outlets.

India's frozen food market show a surge in product diversity, catering to the growing demand for convenience. In 2023, Goeld launched a range of new products, including Pizza Pockets and Paneer Pakodas, exclusively in Reliance Retail stores. Similarly, in 2022, Prasuma expanded its frozen offerings with popular snacks like chicken nuggets, mini samosas, and kababs. These innovations are in response to the increasing trend of ready-to-eat meals in India

India Frozen Food Market Segmentation

By Product Type: The India Frozen Food market is segmented by product type into Frozen Fruits and Vegetables, Frozen Meat and Seafood, Frozen Ready-to-Eat Meals, Frozen Dairy Products, and Frozen Snacks and Bakery. Recently, the Frozen Meat and Seafood sub-segment has maintained a dominant position in the market, owing to the rising consumption of non-vegetarian foods among Indian households and the increasing awareness of frozen products hygiene and safety standards. The organized retail sector and quick-service restaurants (QSRs) are major buyers of frozen meat and seafood, further solidifying its lead in the market.

By Consumer Type: This market is segmented by consumer type into Household, Food Service (restaurants, hotels, catering services), and Institutional. The Food Service sector dominates the market, as restaurants, hotels, and catering services prefer using frozen food for its convenience, consistency, and longer shelf life. The expanding QSR culture in urban and semi-urban regions has driven demand for frozen products, especially ready-to-cook meats, seafood, and snacks, allowing for faster service and standardized offerings.

India Frozen Food Market Competitive Landscape

The India Frozen Food market is characterized by the presence of both domestic and global players. The markets competitive landscape reflects a mix of long-established companies and emerging brands. Key players have expanded their product portfolios to cater to evolving consumer preferences while also investing in enhancing their cold chain logistics and distribution networks.

Competitive Landscape Table

Company

Establishment Year

Headquarters

Market Focus

Product Range

Cold Storage Capacity

Distribution Network

Regional Presence

Revenue (in USD)

Collaborations

ITC Limited

1910

Kolkata, India

Mother Dairy

1974

Noida, India

Mc Cain Foods India Pvt. Ltd.

1957

Canada

Venkys (India) Ltd.

1976

Pune, India

Godrej Tyson Foods Ltd.

2008

Mumbai, India

India Frozen Food Market Analysis

Growth Drivers

Changing Consumer Lifestyles (Urbanization, Working Population): Urbanization has accelerated in India, with the urban population now accounting for nearly 36% of the total population, up from 31% in 2011, according to the World Bank. The working-age population, which makes up about 66% of the countrys 1.4 billion people, is driving demand for convenient, ready-to-eat frozen foods. As time-strapped consumers seek quick meal solutions, frozen food options have become increasingly popular. The combination of rising employment, especially in urban centers, and changing dietary habits has boosted demand for frozen food products as part of modern lifestyles.

Expansion of Organized Retail: India's organized retail market has been expanding rapidly, growing to over 12% of total retail sales in 2024, according to estimates from the Ministry of Commerce. Supermarkets and hypermarkets have extended their reach into urban and suburban areas, providing greater access to frozen food products. Retail giants like Reliance Retail and D-Mart are spearheading the penetration of organized retail, offering more freezer sections for a wide variety of frozen goods. This expansion has enabled better availability, visibility, and promotion of frozen food items, boosting the market significantly.

Cold Chain Infrastructure Developments: Indias cold chain infrastructure has seen considerable improvement, with over 37 million metric tons of cold storage capacity as of 2024, according to the National Centre for Cold Chain Development (NCCD). Government investments in this sector have focused on increasing storage and transportation capabilities, minimizing spoilage, and extending the shelf life of frozen food products. The Pradhan Mantri Kisan SAMPADA Yojana has allocated significant funds to modernize cold chains, particularly for the perishable food sector. This expansion supports the growth of the frozen food market by ensuring better product preservation and safety.

Challenges

High Dependency on Cold Storage (Energy Costs, Inefficiencies): Frozen food storage is highly dependent on reliable cold storage facilities, which consume significant amounts of electricity. According to the Central Electricity Authority, energy consumption in cold storage units reached over 15,000 GWh in 2023, resulting in high operating costs that pose challenges for small and medium-sized enterprises (SMEs) in the frozen food market. Additionally, energy inefficiencies due to outdated cooling technologies further drive up operational expenses, impacting the overall affordability of frozen food for consumers.

Supply Chain Complexities: The frozen food supply chain in India faces numerous challenges, including logistical delays, inefficiencies in transportation, and inadequate cold storage facilities during transit. According to the Ministry of Road Transport & Highways, only 10% of trucks are equipped with refrigeration systems in 2024, leading to frequent spoilage and quality deterioration. The fragmented nature of the supply chain exacerbates these issues, as coordination between manufacturers, distributors, and retailers remains inconsistent, making it difficult to maintain the necessary cold chain continuity.

India Frozen Food Market Future Outlook

Over the next five years, the India Frozen Food market is expected to grow significantly, driven by the increasing demand for convenience food products, the rising number of working individuals, and the expansion of organized retail. Additionally, technological advancements in cold chain logistics, improved packaging methods, and the rising penetration of e-commerce platforms will further fuel market growth. The market is likely to see an increase in product offerings, catering to various consumer segments such as health-conscious consumers, with low-calorie and organic frozen food options becoming more prevalent.

Market Opportunities

Increasing Demand for Ready-to-Eat Meals: The growing demand for ready-to-eat frozen meals in India has been a key driver for market expansion. According to the National Sample Survey Office (NSSO), more than 200 million people in India now consume convenience foods regularly. The increasing pace of life, particularly in urban areas, is driving demand for quick meal solutions, with frozen curries, snacks, and desserts seeing rising popularity. Manufacturers have an opportunity to innovate by introducing culturally tailored frozen meals that cater to Indian palates.

Penetration in Tier 2 and Tier 3 Cities: Tier 2 and Tier 3 cities are becoming crucial markets for frozen food companies. According to the National Statistical Office, these regions are witnessing rapid urbanization, with approximately 50 million people moving to urban and semi-urban areas in 2024. As disposable income rises in these cities, demand for frozen foods is expected to grow. Modern retail formats and e-commerce are also making frozen food products more accessible to these regions, offering untapped potential for market penetration.
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