Industry Insights
India frozen food market was valued at USD 485.7 million in the year 2016. Indian market for processed food has witnessed the entry of many brands that are offering a variety of products across different processed food categories. Among all food categories, frozen convenience food is expected to be the latest trend in Indian processed food market. Advancement in cold chain transfer, growing number of modern retail chains and grocery stores have seen increased penetration and entry of new players in the recent years
India frozen food market revenue, by type, 2014 - 2024 (USD Million)
The key trend in market of India is sustainable and green. India being the religiously diversified country of Asia Pacific, many beliefs and practices still exist among different parts of the country. However, growing GDP and rising urbanization has made people opt for western dishes which is expected to set a new trend when it comes to buying the processed and frozen food.
India is the second largest food producer in the world straight after China. Despite strong agriculture production base, a noteworthy amount if food produced gets wasted owing to poor storage and inadequate infrastructure. Hence, frozen processed food products with longer shelf life and easy preparation than traditional food products are expected to bring new players in the market that can serve the market with an adequate amount of infrastructure.
Segmentation by Food Type
• Frozen ready meals
• Frozen pizza
• Frozen fish/seafood
• Frozen Meat
• Frozen potato products
• Frozen bakery products
• others
Frozen meat products and ready meals accounted for over one third of the market share in 2016, and the trend is expected to continue over the forecast period. The convenience factor, largley for younger demography of households in urban areas, mainly metros in the country, has resulted in the rising popularity of frozen food. Besides, increase in women workforce, growing at-home socializing trend, increasing population of young professional, increasing nuclear families, have also added to the growth of the easy-to-prepare meal options.
Apart from meat and ready meals, frozen fruits and vegetables are also gaining popularity in the country. The increasing inlcination to frozen food is largely observed in metro cities where frozen vegetables and fruits are considered an effective alternate to fresh food.
Segmentation by Distribution Channel
• Online
• Offline
Offline distribution is still the leading distribution channel for frozen food products in India and has accounted for a major market share in the year 2016, with the expectation that the channel will continue to remain the dominant segment over the forecast period as well. Among the various store formats in the channel, hypermarkets and supermarkets remained dominant in the year 2016. The offline channel is expected to remain buoyant, albeit at a relative slow growth compared to online channel.
Online channel, on the other hand, is expected to witness increasing adoption among the consumers over the coming years. Time-pressed younger population specially in the metros are expected to be a key consumer set for active players such as Grofers and Big Basket, which have been the front runners in online grocery retailing at large.
Competitive landscape
The industry in the country is at a relatively nascent stage with much of improvement expected in consumer awareness, market penetration, product portfolio, and the prevailing distribution network. The market in the country is marked by the presence of both regional and national players. To that end, some of the key players include Mother Dairy Fruits & Vegetables Pvt Ltd., Sahar Enterprises L.L.C., Innovative Foods Ltd., McCain Foods Limited.
