Frozen Ready Meals Market Report

A potential opportunity in the frozen meal market is developing personalized meal kits or subscription services based on specific dietary needs and health goals. Picture a service offering customers a variety of choices such as gluten-free quinoa bowls, low-carb cauliflower crust pizzas, or high-protein chicken stir-fries. Every kit may include in-depth nutrition facts and the choice to include extra items such as enriched smoothies or healthy snacks. For example, a person who is passionate about fitness could get a custom weekly package of meals that are high in protein and low in fat, while someone with dietary restrictions could receive allergen-free choices. This method caters to various dietary requirements and takes advantage of the increasing popularity of customized nutrition and ease in preparing meals.

Furthermore, online shopping is a recent consumer trend. One of the major factors driving this industry's growth is online retail. The launch of multiple new apps makes more convenient for consumer to buy food products as per their preferences. There is a wide range of products available, which appeals to the working population, who avoid buying at retail locations. According to data provided by Eurostat in 2023, over 36 % of the population purchased their food items using e-commerce websites/apps. The overall online food delivery platform economy in India is anticipated to be US$ 30 billion by 2025, according to the National Library of Medicine. In 2023, more than 58 million people in the United States used online food delivery platforms, a figure that is expected to rise to 70 million by 2024. Growing smartphone and internet penetration is likely to fuel frozen food industry growth and generate opportunities for new entrants. Furthermore, the great majority of online retail shoppers, according to AFFI, were adding frozen to their digital cart. This trend is projected to continue in the long term, boosting market growth during the forecast period.

Trans fats are found in packaged or frozen meals and have been related to heart disease and blocked arteries. This lipid increases LDL cholesterol while lowering HDL cholesterol. For instance, according to World Health organisation (WHO), 5 billion people unprotected from trans-fat leading to heart disease. All of this contributes to heart disease. These meals contain a nearly twice ratio of fat to carbohydrates to protein, which explains why they are heavy in calories and discourages consumers who are concerned about their health from purchasing frozen food. As more individuals become aware of the negative consequences of frozen meals, they prefer fresh food over frozen meals, limiting the growth of the frozen ready meal market.

However, the growing demand for fresh, organic, and minimally processed foods is transforming the frozen ready meals industry. As health trends change, more people are focusing on using ingredients that are seen as natural and not heavily processed. This choice is motivated by a need for clarity in sourcing food and an emphasis on nutritional quality. As a result, frozen meals, typically seen as easy but not as healthy, find it challenging to rival the fresh and organic choices currently popular among consumers. This new pattern presents a major obstacle for frozen meal producers, pushing them to be creative and adapt to changing consumer beliefs.

New product innovation and advanced freezing technologies in the frozen meal market are revolutionizing convenience with a focus on culinary excellence and sustainability. Brands are adopting high-tech freezing methods to capture authentic flavours and nutrients while diversifying menus with gourmet and international cuisines. Eco-conscious packaging solutions are being introduced, aligning with green consumer preferences. Targeted marketing emphasizes both the health benefits and innovative preparation methods of these meals, catering to the growing demand for quick yet high-quality dining experiences. For instance, in March 2024, Kevin’s Natural Foods launched new frozen Entrée Bowl Line, Kevin’s Natural Foods’ new frozen entrée bowls are made with the highest quality chicken and beef, offering a convenient source of up to 33 grams of protein per serving. In addition, in August 2023, Tillamook County Creamery Association (TCCA), the co-operative behind one of the fastest growing dairy brands in the U.S., announced entry into a new product category with the addition of frozen macaroni & cheese and frozen pizza to its growing product line.

The rising preference for ready-to-eat and convenience food items, as well as the large presence of prominent frozen ready meal manufacturers and vendors, are driving growth in the US market. Consumer behaviour is influenced by the speed of modern life and Americans often prefer frozen food that is simple and quick to serve. Convenience is frequently important throughout the week since more and more people work full-time, despite the fact that consumers may enjoy extended cooking sessions on the weekends. This will drive up demand of frozen ready meals across the country. Frozen ready meals are more convenient and have a longer shelf life. As a result, these meals are gaining popularity in countries such as the United States. As reported by the American Frozen Food Institute (AFFI), revenues of frozen food and frozen meals have increased dramatically across the United States. In the USA, revenue of frozen food as a whole exceeded more than US$ 65 billion in 2023, while sales of frozen meals above US$ 22 billion. Similarly, rising adoption of frozen ready meals in the country's thriving food service industry, as well as increasing popularity of vegetarian frozen ready meals, will aid in market expansion.