Global Frozen Food Packaging Market - Segmented by Type of Food Product (Frozen Specialties, Fruits & Vegetables, Meat and Sea Food, Frozen Desserts & Ice Creams, Baked Goods), Type of Packaging (Bags, Boxes, Tubs & Cups, Trays, Wrappers, Pouches) and Region - Growth, Trends, and Forecast (2018 - 2023)
The frozen food packaging market was valued at USD 37.56 million in 2017 and is expected to reach a value of USD 50.67 billion by 2023 at a CAGR of 4.8% over the forecast period of 2018–2023.The growing consumer demand for ‘value for money’ is influencing the growth of frozen food packaging market. The quality and shelf life of a product is of prime importance when it comes to a buying decision. The packaging market for frozen food is performing better as compared to that of chilled and dried food. The advantage of frozen, over chilled food is, it's significantly longer shelf life. Food, if preserved at freezing temperatures, can avoid contamination due to microbes (yeast, mold, and bacteria), as these microbes become inactive. Freezing food can prevent the growth of microorganisms, food spoilage, and foodborne illness. Asia-Pacific holds the major market for frozen food packaging compared to other regions. Urbanization, increasing economic standards, and disposable income are driving the Asia-Pacific market. The presence of fast developing populous countries, like China and India, are further boosting this market.
Growing Number of Organized Retail Stores is Driving the Market
The retail industry has been witnessing tremendous growth in the last few decades. Organized retail stores are the primary distribution channels for frozen food all over the globe. These stores are always part of large retail chains, that have a huge presence in the global market. Majority consumers of frozen food products prefer large retail stores, supermarkets, and hypermarkets. Hence, for manufacturers, these stand as the key distribution channels.
In the organized retail market, many big companies are expanding their global footprint. Walmart, for example, is expected to host more than 11,000 stores worldwide. Similarly, new companies are entering this market with marketplaces, such as Amazon Go. Amazon is expected to open more than 2,000 stores by 2018. The growth in the organized retail chain is translating directly into the demand for food packaging solutions in the frozen food industry.
Bags Packaging Type has the Major Share in the Market
Bags are one of the most widely used forms of packaging, as it consumes less raw materials as compared to pouches and trays. Plastic and paper are the major materials used in manufacturing bags. Various factors, such as changing lifestyle, increasing disposable income, and rapid urbanization in developing countries, especially the growing middle-income population, are increasing the demand for bags for frozen food.
The bags segment had the largest market share in 2016. Plastic bags are available in different sizes and shapes. It offers several benefits, such as the ability to tolerate temperatures, and technical advantages, which is further fuelling the demand for bags in frozen food packaging. Ziploc bag is an important example in this regard. This type of bag is available in various sizes and can be used for storing meat and dairy food. For instance, dairy products can be frozen in freezer bags, as these are ideal for short-term usage and saving space. Another major trend being followed is customizing the product based on client requirements.
Asia-Pacific to Grow at a Faster Pace
Asia-Pacific is one of the major markets for frozen food packaging. The market presents a unique opportunity for vendors of frozen food packaging solutions, as it is still in the nascent stage in terms of adoption of latest packaging products. The demand for food products is expected to grow with increasing population, and quality products are expected to be on demand with urbanization and expanding awareness about foodborne illnesses, food wastage, and food spoilage. China is the largest in the Asia-Pacific frozen food packaging market. Large population and urbanization in this country have led to an increased demand for frozen food products. The Chinese consumers are now looking for easy-to-use and quality food products. The demand for frozen meat and other regularly consumed products in the frozen food market has been constant in the region, because of their availability.
Key Developments in the Market