|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
How the frozen food industry giving tough competition to others?
|
|
Thursday, 17 February, 2022, 15 : 00 PM [IST]
|
|
Laksh Yadav
|
Anything from chilled fruits and vegetables, snacks, yoghurt, meat, poultry, seafood, and ready-to-cook meals comes under the category of frozen food.
Frozen foods are gaining popularity in India due to their convenience, as they do not require any further preparation or culinary expertise. Likewise, as compared to their home-cooked alternatives, frozen food products, particularly frozen snacks, have a higher flavour and texture. Another reason for the growing popularity of frozen foods in India is that they are available all year long, regardless of the season. End customers can also purchase these products through a variety of distribution channels, including supermarkets and hypermarkets, convenience stores, department stores.
Frozen Food Market in India
The Indian frozen foods market was worth Rs 42.7 billion in 2021, and it is expected to grow to Rs 93.8 billion by 2025, with a CAGR of roughly 17% between 2020 and 2025. Frozen food sales have been boosted even further by the expansion of modern retail outlets and the rise of online retail. Because of the pandemic's lockdowns and restrictions, people's lifestyles have changed, and frozen food is becoming a more popular option. In the last five years, the frozen food industry, which includes frozen snacks, fruits and vegetables, frozen meat, poultry, and frozen meals, has grown at a faster rate. The number of millennial customers opting for convenience food in semi-urban and urban markets is increasing, resulting in increased acceptability of frozen food in India.
A variety of products
Until recently, the usual product offerings of Indian frozen food were confined to smileys, green peas, sausages, nuggets, and French fries. However, in just 5–10 years, the frozen food industry has undergone a transformation. India is being eyed as a large potential frozen food market. The market has been divided into three categories based on product type: frozen vegetable snacks, frozen meat products, and frozen fruits and vegetables. Frozen vegetable snacks have the biggest market share of these.
In terms of cuisine, India is famous for its complexity. Companies have created additional Indian versions of frozen foods, such as cutlets, samosas, parathas, and kebabs, to meet the particular Indian palates that require a different taste every now and then.
It has given businesses a tremendous opportunity to capture the Indian market by selling traditional staples like peas and corn, strawberries, dairy and bakery items, as well as diet snacks, drinks, ready-to-cook meals, healthy frozen alternatives, and so on. Ready-to-eat frozen foods are mostly employed in dessert applications such as frozen yoghurt and ice cream, which is fueling the industry's expansion.
Frozen yoghurt trends and growth
Frozen yoghurt is a snack or dessert made with yoghurt, milk, and cream that is relished by people of all ages. Strawberry, banana, vanilla, blueberry, honey, and mango are some of the most popular frozen yoghurt flavours. It's high in fatty acids, riboflavin, and vitamin B12, as well as protein, phosphorus, and selenium, much like regular yoghurt. Frozen yoghurt has become a popular alternative to ice cream and other milk-based desserts in India due to the presence of these nutrients combined with a lower calorie level.
Throughout 2015 and 2020, the Indian frozen yoghurt industry grew rapidly. In the years ahead, the frozen yoghurt market in India is predicted to increase at a 21.3 percent compound annual growth rate (CAGR) between 2021 and 2026. According to the IMARC Group's most recent report.
As a result of increased awareness, Indian customers are opting for frozen yoghurt varieties with exotic flavours and minimal fat, sugar, and calorie content. In response to changing consumer demands, manufacturers are producing innovative products such as bio, organic, and fruit yoghurts.
Furthermore, a change in dietary patterns toward nutrient-rich snacks, particularly among urban and young customers, as well as a growing preference for ready-to-eat items, have had a beneficial impact on market growth. In addition, plenty of flavoured and frozen yoghurt chains and freestanding outlets have popped up in the neighbourhood, targeting premium customers with high-quality products. Easy product availability and developing organised retail channels are some of the main factors driving market expansion.
During the pandemic, an increase in at-home cooking and eating boosted fresh food sales. Fresh food sales increased by 10% in 2020 and remained strong in the first half of 2021. Frozen food, on the other hand, grew at a faster rate than fresh food, increasing by 21%.
Many people were able to stay stocked up during the pandemic by purchasing frozen food rather than fresh food. This allowed them to make fewer trips to the grocery store. Frozen food also helps consumers reduce waste as they become more aware of food degradation and wastage. Recently, customers have begun to consider food waste when making purchasing decisions.
Frozen food has improved in quality and variety over time. When you combine these benefits with the ease with which frozen food may be prepared, consumers say frozen food is easier to make than fresh. It's clear to see why frozen food is so popular. In terms of health, most individuals have a favourable opinion of frozen food, with more than half believing it can maintain vitamins and nutrients.
Younger customers are the ones who are boosting frozen food sales
In a period of rising prices, frozen may have even another advantage over fresh. At first glance, fresh food might be much more expensive than its frozen alternative. Consumer perception reflects this difference. Consumers claim that frozen food has improved in quality, variety, and premium alternatives since it was first introduced. The health and nutritional benefits of frozen meals are just as important as the taste or convenience.
While fresh is beloved and will most certainly continue to take up a larger share of the consumer's plate, frozen poses an undeniable challenge. Fresh food's perishable nature has become more difficult for many customers to incorporate into their lives, and this, combined with increasing prices and shifting preferences, has shifted the playing field toward frozen food.
Moving Forward: What will we see in the coming years?
The frozen food industry has benefited greatly from the advent of digitisation in the retail industry. Frozen food retailers have been hesitant to move to online sales in the past. Many have begun to shake up the frozen food sector with their e-commerce sites in order to attract and engage online buyers, seeing how it reduces the potential to cover and reach consumers.
The introduction of many applications that assist buyers and make it easier for them to pick products according to their preferences is the most recent trend in the frozen food sector that is boosting demand. Furthermore, the frozen food industry in India is growing, especially with the development of modern retail outlets and online grocery stores.
With the growth of key sectors such as the ready-to-eat segment and a plentiful supply of organic food, India's frozen food industry has immense potential.
(The author is CEO at Cocoberry India)
|
|
|
|
|
|
|
|
|
|