Industry Insights
The Germany frozen food market was valued at USD 11.76 billion in 2016 and is expected to grow over the forecast period. Strong penetration of the prominent brand, high level of innovation and increasing diverse quality & service offered in all the categories from entry level to leading brands are the key factors driving the growth market over the forecast period. For instance, in 2015, about 8% non-dairy ice-cream product were launched in Germany. Furthermore, increasing acceptance of this food products in food-service industry is expected have positive effect on the market growth.
Germany frozen food market revenue, by type, 2014 - 2024 (USD Billion)
The consumption of frozen food products in the country has increased in recent years. For instance, according to a study conducted by one of the institute in Germany, in 2016, per capita consumption was between 91 - 95 kg per household compared to 85 - 90 kg in preceding year. Thus, the increasing consumption and acceptance of this food category in Germany is expected to boost the market over the projected period.
In the country, frozen food product is already extensively used for many reasons, but one of the main reason among them is to enjoy seasonal product all year round which have created more demand among the German consumers.
Frozen food provides convenience, easy store, and are nutritious. Increasing women population in corporate sector, hectic schedule, and changing lifestyle are expected to create demand for frozen foods products as frozen foods provides convenience compared to fresh foods products.
Segmentation by type
• Frozen ready meals
• Frozen fish/seafood
• Frozen meat
• Frozen pizza
• Frozen potato products
• Frozen bakery products
• Others
The frozen bakery products accounted for the largest market share in 2016. Increasing offering of high quality of frozen bakery products in combination and customizable solution are the factors driving the growth of frozen food product category in Germany. Frozen pizza segment is expected to grow at a fastest CAGR owing to the increasing demand for fast food in the country especially by the toddler’s segment.
Frozen potato products are also largely consumed by German population. Increasing number of quick service restaurants in the country is the key factor driving the growth of this product category. Availability of high quality, innovativeness, high product safety and modernity in frozen potato products has created demand for this product category among the German consumers. Increasing consumption of outside food items and overall decline in in-house cooking is anticipated to augment the market growth over the forecast period.
Segmentation by distribution channel
• Offline
• Online
In 2016, offline distribution channel accounted for more than 60% of overall this food market in Germany. Within the offline channel, hypermarket and supermarkets dominate the space, and the trend is expected to continue over the forecast period as well. The online channel is expected to witness significant growth supported by the convenience factor. Changing lifestyle and buying behavior of consumer owing to the busy and hectic schedule is expected to boost the online sale of this food category. Furthermore, attractive price offered by online retailer and presence of variety of brands is expected to boost sale of this food category through online distribution channel.
Competitive landscape
The market has the presence of well-established players such as Permira, Nestlé, McCain Foods, Dr. August Oetker KG and Nomad Foods Europe Ltd. Companies are expanding their manufacturing facility to cater the increasing demand of frozen food products in the country. For instance, in 2013, Nestlé Wagner opened a new frozen pizza manufacturing facility in Germany in order to expand its business in frozen food.
