Industry Insights
The Netherlands frozen food market was valued at USD 1.35 billion in 2016 and is anticipated to grow on account of rising concern of healthy and nutritious food. Consumer search for fresh, nutritious and gluten free food products which indeed is anticipated to add this food products market growth. Increasing population of working women have less time for house chores such as cooking which in turn is projected to have positive impact on the market growth.
Netherlands frozen food market revenue, by type, 2014 - 2024 (USD Billion)
Hectic schedule leads to less time for house work such as cooking food. Frozen food products provide conveniences such as less time to prepare food, easy to store and have longer shelf life. Thus, market for frozen food is expected to increase in foreseeable future. Frozen products such potato, vegetable and other fruit products generate less food waste which in turn may lead to increase in consumer preference for frozen food products compared to fresh products.
Working women population have doubled in the Netherlands. For, instance, women employment increased from 35% in 1980 to 70% in 2016. Thus, busy and hectic lifestyle has led to increase in search for convenience food products which will require less time for cooking, and yet healthier.
Segmentation by type
• Frozen ready meals
• Frozen fish/seafood
• Frozen meat
• Frozen pizza
• Frozen potato products
• Frozen bakery products
• Others
In terms of food type, frozen ready meal dominated the market in 2016 with major market share owing to the increasing penetration of this category in the country. Increasing employment and working women are among the factors driving the growth of frozen ready meal in the country. Increasing investment by food giants for new product development and extension of existing brand with added benefits are the factors expected to boost the market for this food category market in the near future. Frozen food producers are focusing on healthier and fresh product as local consumers prefer heathy and fresh food products. For instance, in 2017, Dr Schar introduced healthy and gluten free frozen pizza brand Schar to cater the increasing demand.
Segmentation by distribution channel
• Offline
• Online
In the Netherlands, offline channel of distribution dominates frozen food market in 2016 and it is anticipated to grow at a CAGR of around 3.0% over the forecast period. Market leaders in Netherlands are collaborating with small players, hypermarket, and supermarket in order to increase the product penetration and fulfill the growing demand in the country. However, online distribution channel is expected be the fastest growing segment over the projected period. Availability of different options, lucrative price and food comparison capabilities are anticipated to be the key growth factors for online channels. Consumers under age group 18 to 44 year old mostly shop online, as its relatively convenient and less time consuming. Shopping by using tablets and smartphones has boosted in past few years which indeed is anticipated to add market growth over the projected period.
Competitive landscape
The market has the presence of well-established players such as Oerlemans, Duca Frozen Food, and West Food Group.As people in the Netherlands prefer healthier and gluten free products, companies are focusing on providing healthier and gluten free products to increase their market penetration. For instance, Lamb Weston / Meijer, acquired Oerlemans potato food division to increase production capacity.
