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The freeze dried foods market size is forecast to increase by USD 34.56 billion, at a CAGR of 8.23% between 2022 and 2027. Market expansion hinges on several key factors, notably the burgeoning organized retail sector, a surge in product launches, and the escalating prominence of private-label brands. The organized retail sector, characterized by its efficient operations and wide product range, serves as a catalyst for market growth by providing enhanced accessibility and convenience to consumers. Concurrently, the proliferation of product launches across various segments fuels market dynamism and innovation, catering to evolving consumer preferences and driving demand. Additionally, the rising prominence of private-label brands, known for their competitive pricing and quality offerings, further augments market growth by offering consumers diverse choices and value-driven options. Together, these factors contribute to the expansion of the market, fostering a conducive environment for sustained growth and competitiveness within the retail landscape.
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The market is witnessing significant growth, driven by the increasing demand for ready-to-eat (RTE) food products. Consumers are increasingly opting for natural and healthy food products over those containing artificial food additives. Advik Foods and Brothers All Natural are prominent players offering a variety of options, including bakery products, cereal products, fruit snacks, and vegetable snacks, all prepared using freeze-drying techniques. This market's appeal lies in its nutritional perks, lightweight packaging, and suitability for activities like hiking. Additionally, with rising disposable incomes and changing dietary preferences, the demand for freeze-dried sweet corn from Harvester Farms and similar offerings continues to soar.
This report extensively covers market segmentation by distribution channel (offline and online), product (freeze-dried fruits, freeze-dried vegetables, freeze-dried beverages, freeze-dried MFS, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the market forecasting report includes historic market data from 2017 to 2021.
During the forecast period, it is anticipated that the offline segment of the market will experience notable growth in terms of CAGR, in comparison to the online sector. Freeze dried meals are predominantly distributed through supermarkets and hypermarkets, which have become the most favored distribution channels.
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The offline segment showed a gradual increase in market share with USD 34.99 billion in 2017. Supermarkets and hypermarkets have emerged as the most popular distribution channels for freeze-dried meals. The growing retail industry and the establishment of numerous retail outlets are driving sales in this segment. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027. The growth of this segment is primarily attributed to the increasing adoption of freeze-dried meals, which is driven by an increase in the global demand for the market during the forecast period.
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North America is projected to contribute 40% of market growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America was the largest region in the market in 2020 and will continue to be the largest segment of the market in 2025. The demand for freeze-dried food products is increasing in North America, primarily led by the convenience offered by freeze-dried products such as instant coffee. The market is also driven by rising new product launches and increasing product innovations in the market over the past few years.
The market is experiencing robust growth as consumers seek healthy products aligned with the wellness trend. Offering convenience and nutrition, this market caters to various preferences, including ready-to-eat food items and ready-to-eat meals. Employing traditional food processing techniques, companies in the food-processing sector ensure the quality and taste of their offerings, spanning meat products, vegetables category, and processed (comfort) food. The popularity of freeze-dried foods lies in their ability to retain health and nutrition benefits while providing ready-to-cook food packages and ready-to-consume food packages option suitable for today's fast-paced lifestyles. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growth of the organized retail sector is the key factor driving market growth. Hypermarkets and supermarkets are two of the major offline distribution channels for freeze-dried foods. Organized retailing is an integral part of these offline distribution channels, which facilitates the purchasing process for consumers and enables them to choose from a diverse range of freeze-dried foods. Tesco Plc (Tesco), Target Brands Inc. (Target), and ALDI Inc. (ALDI) are some of the major hypermarkets and supermarkets that offer a plethora of freeze-dried foods.
Additionally, an increase in the number of organized retailers offering private-label freeze-dried meals is one of the major factors that are expected to drive the growth of the market during the forecast period. Tesco, a multinational grocery and general merchandise retailer, offers freeze-dried foods under its Tesco brand. Large organized retailers have a global presence, which helps in improving the visibility of freeze-dried meals and increases the demand for such products. These stores are convenient for individuals who prefer the traditional way of shopping.
The growing prominence of online shopping will fuel market growth. The online distribution channel, also referred to as e-commerce, has significantly fueled the growth of the global freeze dried foods market for the last decade. E-commerce enables customers to access regional and global brands of freeze-dried foods. Also, a significant increase in the number of e-commerce companies globally is fueled by the increased penetration of smartphones. Personalized shopping assistance and suggestions on freeze-dried foods are some of the primary benefits of online shopping. Also, e-commerce companies allow customers to collect information and compare various freeze-dried foods available online, which helps customers to choose the best options based on their requirements.
Furthermore, various companies are focusing on providing freeze-dried foods through online platforms as they provide companies with easy access to the market. Also, online platforms provide an opportunity for companies to expand their market reach in different regions that they cannot reach physically. Owing to these benefits, certain companies of freeze-dried foods have started using online channels to sell their products and inform potential consumers about their products. Therefore, the increasing inclination of consumers toward online retailing, complemented by rising Internet penetration in various regions, is expected to drive the growth of the market during the forecast period.
The increasing number of product recalls is a major challenge to the market growth. Most manufacturers purchase or source raw materials from third-party suppliers. Improper handling of these raw materials or supplies can adversely affect the safety and quality of the finished products. Food regulatory and compliance authorities in any country can shut down a business and recall its products from the market if these products pose a threat to the well-being of consumers.
Further, a product recall severely affects a company's brand image as well as its operations and sales. Furthermore, manufacturing and packaging defects can hamper a company's sales. In April 2018, OC Raw Dog recalled its Freeze-Dried Sardines as the fish exceeded the US FDA's compliance guidelines for fish larger than 5 inches. The above factors will hinder the market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecast report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The market offers a diverse range of clean-label healthy snacking options, catering to consumers' preferences for gluten-free and all-natural products. From smoothies to bites and nuggets, these offerings emphasize nutrition content and environmental sustainability. Brands like Blue Bottle Coffee and Samra Origins Coffee have expanded into the market, adding frozen snack products to their portfolios. With a focus on plant-based products and zero added sugar, freeze-dried foods appeal to those prioritizing physical and mental well-being. As non-perishable foods, they serve as emergency food storage and are suitable for individuals concerned about cardiovascular disorders. This market encompasses a wide array of options, from whole fruit pieces like strawberries and apples to roasted red pepper and sugar snap peas in the vegetables segment.
Further, the market is witnessing a surge in demand for clean-label healthy snacking options as consumers seek processed food alternatives. Frozen products such as strips and ethically-sourced Ethiopian coffee from brands like Conagra Brands are gaining traction, particularly in the frozen food line. Offerings like frozen veg and chicken spring rolls, frozen chicken nuggets, and chicken and veg mini samosas are becoming popular due to their convenience and premium offerings. Despite being an energy-intensive procedure, freeze-dried foods are preferred for their nutrition content and alignment with healthy dietary patterns. With options ranging from raspberries and Fuji apple to mango fruit crisps and jackfruit, they cater to both the fruit segment and fresh vegetables, contributing to a diverse and nutritious diet.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.23% |
Market growth 2023-2027 |
USD 34.56 billion |
Market structure |
Fragmented |
YoY growth (%) |
7.87 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, Canada, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Asahi Group Holdings Ltd., Carnivore Meat Co. LLC, Chaucer Foods Ltd, Concord Foods LLC, European Freeze Dry, Freeze Dry Foods LLC, Joe Coffee Co., Kerry Group Plc, Mercer Foods LLC, Mondelez International Inc., Nestle SA, OFD Foods LLC, Saraf Foods Pvt. Ltd., Seva Foods Inc., SouthAm Freeze Dry SA, The Amalgam Group, The Hain Celestial Group Inc., The Kraft Heinz Co., Unilever PLC, and Van Drunen Farms |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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