Over the past decade, the frozen food industry has experienced significant transformation as processors respond to shifting consumer demand and provide more options to meet health and taste needs in the marketplace. Continue reading to learn more about the latest trends shaping the frozen food industry and AFFI member tools that provide enhanced frozen food market insights to grow your business.
Better-for-You and Organic Frozen Foods: A Growing Market
Health-conscious consumers and younger shoppers have fueled the trend for organic and better-for-you foods. The increased demand for organic products extends to the frozen food aisle, with frozen meals containing organically sourced ingredients gaining significant market share.
A recent Mordor Intelligence report shows an increased demand for organic frozen food, demonstrating a compound annual growth rate (CAGR) of 4.3% from 2020 to 2025.
In addition, frozen foods sales targeting health trends like gluten-free, low-carb, high-protein, and clean labels are also rising, reflecting the growing consumer demand for different options.
Plant-Based Options: Catering to the Flexitarian Consumers
The increasing interest in plant-based diets has paved the way for more vegan and vegetarian options in the frozen food section. However, the market is also driven by “flexitarians” – people reducing their meat consumption without eliminating it.
The Good Food Institute reported a 27% increase in the plant-based food market in 2020. Frozen food manufacturers are seizing this opportunity by offering various plant-based frozen meals and meat substitutes.
The frozen segment of the plant-based market has been a significant part of this growth. A report by Technavio cites vegan frozen food as one of the key factors driving the frozen food market growth in recent years. Products range from plant-based pizzas and meals to meat alternatives like burgers and sausages.
Premium Foods: Bringing Restaurant Quality to Home Kitchens
The premium frozen food industry has experienced significant growth over the past few years. The surge has been primarily fueled by the rise in consumer demand for high-quality, convenient, and nutritious food options, especially among health-conscious consumers who value balanced diets but also the convenience of quick meals.Â
In addition, many consumers are recognizing the high-quality of offerings available through today’s advanced freezing technology, which preserve the nutritional value and taste.
High-income urban households, in particular, have been driving sales of these premium products, which often feature gourmet recipes, responsibly sourced ingredients, and innovative flavors.
The trend aligns with the growing consumer interest in cooking at home, experimenting with different cuisines, and consuming restaurant-quality meals without leaving the comfort of their homes. It caters to food connoisseurs who don’t want to compromise quality, taste or nutrition.Â
Global Foods: Exploring International Flavors From the Comfort of Home
As cultural boundaries blur in a globally interconnected society, consumer palates have become more adventurous, seeking new and international taste experiences. For example, the total global ethnic flavors food market grew from more than $47 billion in 2022 to more than $52 billion in 2023. This is reflected as well in frozen foods, where processors are offering new global flavors like Mexican, Asian, Indian, and Mediterranean.
The increased demand for global frozen food and the rising need for quick, convenient meal solutions due to busy lifestyles suggest this trend promises continued growth.Â
An AFFI Membership Delivers Business IntelligenceÂ
AFFI membership provides tools to access valuable information about the trends affecting the frozen food industry. Gain a broader understanding of the frozen food consumer and market with retail sales data through AFFI’s Business Insights and find your supply chain partners at the annual AFFI-CON event
