Processed & Frozen Vegetables Market

Market Overview

The global processed & frozen vegetables market size was valued at USD 76.44 billion in 2021 and is predicted to reach at USD 103.46 billion by 2030, increasing at a CAGR of 3.42% from 2022 to 2030.

The term processed vegetables refers to food that has been processed and is ready to eat. Vegetables are treated after harvest to keep their nutrients locked in for a longer length of time. Low-temperature preservation and long-term storage are the hallmarks of frozen veggies. Lower than their freezing point, the temperature is maintained for these vegetables. Frozen vegetables are made to be more easily transported and stored in this manner.

For example, the method of freezing vegetables involves converting excess water into ice, which reduces breakdown and hence restricts the bacterial growth. Vitamin A is produced inside the body using the carotenes, which freeze-dried veggies retain. Veggies and fruits, as well as potatoes and meat & poultry are among the many commonly available frozen vegetables on the market. Soup is also available. Easy preparation and inexpensive cost are only two examples of the many advantages they have to offer. These vegetables can be found in most stores. Packaged ready-to-eat foods, bakeries, snacks, and desserts are also included in frozen ready meals. Many food producers use freezing to preserve food in order to keep up with demand, reduce food waste, and make their operations profitable and competitive. Frozen vegetables and fruits, potato, and non-veg goods are among the most commonly purchased frozen food products by businesses like hotels, catering, restaurants, and fast-food outlets.

Market Dynamics

Global Processed & Frozen Vegetables Market Drivers

Disposable Incomes Are Rising and People's Lifestyles Are Changing

The growing demand for processed and frozen veggies around the world is being driven by consumers' increasingly hectic lifestyles and work schedules. Frozen fruits and vegetables, which do not require washing, chopping, or peeling, are becoming increasingly popular because of this shift in preference toward quick-to-cook foods. Additional product varieties are also being introduced by the producers, such as different varieties of potato and other legume varieties. They also want to introduce new varieties of raspberries and spinach as well as strawberries in an effort to broaden their customer base.

Customers increasingly prefer online buying over traditional shopping, and they use credit/debit cards to pay for their purchases, which removes geographical restrictions and speeds up market growth. Frozen fruit and vegetable sales are being bolstered by the success of online retailers like Amazon and eBay. A further driver of this industry's expansion is the rising standard of living in nations like China and India, where people in the middle class now have more discretionary income to spend on more convenient meal options.

An Increase in The Number of Quick-Serve Restaurants

Consumers have come to depend on fast-food as well as quick-service restaurants (QSRs) as an essential part of their daily lives. More and more individuals have started to go to these fast-casual restaurants for their convenience, good-tasting mass-produced cuisine, and the savings of their time and money both. Fast food and quick service restaurants (QSRs) are expanding because of shifting consumer tastes. When dining at one of these establishments, customers expect quick and easy service. There are several options for consumers, including sit-down, takeaway, and home delivery, offered by QSRs in order to meet the demands of today's busy consumers. Preparation time is cut in half with frozen vegetables, and they may be used right away. Frozen vegetables aid QSRs in their goal of delivering meals to customers as rapidly as possible, which is their primary competitive advantage. Increasing demand for frozen veggies is a result of the expansion of these QSRs.

Global Processed & Frozen Vegetables Market Restraints

Market Development Would Be Stifled by The Growing Preference for Fresh and Organic Vegetables

However, consumers believe that frozen vegetables have a low nutritional value, which could impede the global frozen vegetable market's development. Another factor that could have an adverse effect on this industry in the next years is a shortage of freezing facilities in remote and semi-urban areas. On the other hand, growing public concern over the nutritional value of frozen veggies may put a crimp in the market's expansion. Consumer preference for fresh and organic food is a potential headwind for processed and frozen vegetable producers. The market for processed and frozen veggies is growing, but some restraints, such a preference for organic foods and a shift in consumer health consciousness, could slow it down.

Global Processed & Frozen Vegetables Market Key Opportunities

Escalating Market for Vegan Food Products Resulting in New Opportunities

In recent times, plant-based meat replacements have gained appeal. 84 million US dollars will be spent worldwide on plant-based substitutes, according to current market estimates. Plant-based food makers are seeking to capitalize on the utilization of fruits and vegetables, pulses and legumes; they are also considering fruit-based items due to their increased functioning and nutritional content, which can result in flavor and sensory enhancements.

Moreover, the application of digitization in the sector is also making it simple for consumers to select out their favored products and test many new ones based on other consumers' feedback. As more and more people are utilizing the internet and smartphones, retail food buying is gaining prominent in processed and frozen veggies market. Furthermore, Companies are working very hard into establishing cold chain logistics, which is crucial for moving frozen vegetables. Frozen veggies are used in a range of countries, with developed regions of Western Europe and North America contributing for a large percentage of the market. All of this will provide new opportunities for the market for processed and frozen vegetables.

Regional Analysis

The Global Processed & Frozen Vegetables Market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

In 2021, North America held the top spot as the most lucrative region in the global market for processed and frozen vegetables, accounting for more than 35% of total revenue. The expansion of the market is being driven in this area by the rising level of consumer education on the positive effects that eating processed veggies can have on one's health.

In addition, recent years have seen a significant shift in consumer lifestyles, with people becoming increasingly worried about their health and well-being, which has contributed to the expansion of the sector. The expansion of the regional market has been driven by the increased adoption of packaged food items in the United States and Canada as a result of the high levels of nutrition and low levels of calories found in vegetables.

From 2022 to 2030, the Asia-Pacific area is projected to have the highest compound annual growth rate (CAGR), which is expected to be 5.12%. The enormous customer bases for the usage of processed and frozen veggies that are present in China, India, as well as Japan will be the primary factor in driving demand in the region.

In addition, it is anticipated that the region would be driven largely by the growing population as well as the growing incomes available to individuals. Moreover, an increase in the number of consumers who are becoming increasingly concerned about their health is anticipated to help the market growth in the years to come.

Segmental Analysis

The Global Processed & Frozen Vegetables Market is divided into different segments according to the Product, Distribution Channel, and Region (Geography).

By Product, the Global Market is segmented into Dried, Canned, and Frozen. The market for processed and frozen vegetables is anticipated to expand at a compound annual growth rate of 3.42% between the years 2022 and 2030, with the canned product segment contributing the greatest revenue share of more than 41% in 2021. The ever-increasing demand for food stored in cans is expected to be a primary driver of growth over the upcoming time period. In addition, increasing health issues among consumers have led to a surge in the demand for food which possess low calories in order to prevent further health difficulties, which has stimulated the expansion of the industry. The fact that canned veggies are so good for you both physically and nutritionally will, in turn, propel the market forward within the anticipated time frame.

It is anticipated that the frozen category will progress at the quickest CAGR of 4.29% between the years 2022 and 2030. Consumers have access to convenient, nutritional, and healthy frozen veggies through various retail distribution channels. Frozen vegetables are handy, nutritious, and healthful. In addition, the expanding growth and popularity for frozen food, together with the rising disposable income of customers, are main factors leading to the expansion of the market. The development of new technologies and improvements in the production of frozen vegetable products are also projected to act as a significant factor in the expansion of this market segment over the course of the projected period.

By Distribution Channel, the Global Market is segmented into Offline and Online. In 2021, the offline channel was responsible for contributing about 82% of the total market share in the processed and frozen vegetable industry. Customers would rather buy consumer goods, groceries, and processed food items offline, where they can visually inspect the product's quality before making a purchase decision. This applies to both fresh and processed food products. Additionally, the convenience of accessing various processed vegetable goods in stores as well as the ability to search for those items are aspects that are likely to promote the expansion of the market in the next years. Because of developments in distribution networks all across the world, we anticipate that offline channels will continue to hold the majority of market share throughout the projected period.

It is expected that the online sector of the processed and frozen vegetable business would have the highest CAGR throughout the period from 2022 to 2030, coming in at 4.59%. Presently, there has been a promising development in the rate of internet penetration, which has contributed to the major development of the e-commerce business across the globe. As a result of the fact that a number of the makers of these goods are now selling their wares through e-commerce platforms in addition to their own websites, the market is expected to expand throughout the period covered by the forecast.

By Region or Geography, the Global Market is segmented into North America, Europe, Asia-Pacific (APAC), Latin America, and Middle East & Africa. In 2021, North America was projected to hold a 35% revenue share of the processed and frozen vegetable market. There is a growing awareness of the health benefits of eating processed veggies in this area, which is boosting market growth. From the year 2022 to 2030, the APAC market is expected to increase at a CAGR of 5.12%.

Recent Developments

• April 2022 - The new 65,000-square-foot global headquarter & eco-powered innovation centre in Eden Prairie, Minn., were unveiled by SunOpta, a U.S.-based global pioneer in sustainable, plant- and fruit-based food and beverages.
• April 2022 - Del Monte Foods, Inc. declared their commitment to attain net-zero emissions by 2050 on April 6, 2022. To achieve this goal, the corporation has agreed to develop near-term science-based goals to reduce Scopes 1, 2 and 3 carbon emissions to promote SBTi's focus on reducing rise in global temperatures to 1.5°C.