The frozen food segment in India is growing at a steady pace. Brands in this space have seen their products evolve from occasional party snacks to everyday food items across meals that people of all ages relish. Frozen Momos, Samosas, Spring Rolls, and even Parathas – frozen food has captured the consumers’ needs and the market. It is no surprise, then, that the Indian frozen food market reached a value of INR 124.06 billion in 2021. As we step into 2023, it’s an opportune time to look back at the trends driving the growth of this space and the outlook for the year to come.

Frozen Food Trends Observed

According to the IMARC Group, the Indian frozen food segment is projected to reach INR 306.61 billion by 2027, growing at a CAGR of 16.2% between 2022 and 2027. This growth can be attributed to the convenience offered by frozen food items, which don’t require additional preparation or culinary expertise. This means that every family member can easily prepare a frozen meal and enjoy the authentic flavors while benefiting from the high nutrients value that it is possible for well prepared frozen foods to contain. Ready-to-eat (RTE) and convenience foods have gained increasing traction among the rising working population. This trend is especially growing among new-age partners where both individuals are busy and prefer quick, easy, nutrient meals for the family.

Yet another trend shaping the frozen food ecosystem is its ubiquity. These products are now readily available all year round across supermarkets, hypermarkets, convenience stores, departmental stores, etc. One can simply order frozen food products online or step out to any store close to their home. Frozen food products are now everywhere, fueling their popularity and demand.

Additionally, due to the glaring impact of climate change, sustainable cold chain packaging is another trend that is shaping in the industry. Now, industry leaders are trying to be solution oriented in terms of packaging. Since cold chain storage requires supportive packaging, companies have started to focus on making sustainable packaging as a key focus area.

Growth opportunities emerging in the frozen food space

The frozen food market, today, features products from around the world, such as Momos, Spring Rolls, Ready to Eat Meals, and more. These products appeal to today’s working professionals with improved living standards and rising disposable incomes. In fact, the fascination with modern food culture is transforming the food habits and lifestyles of young Indians, expanding the market for such brands. Apart from customer preferences and demands, market and supply chain evolution have also contributed to the growth of the frozen food industry. For instance, with rising urbanization and the growth of organized retail, modern grocery stores are now equipped with state-of-the-art cold chain facilities. This, in turn, has led to the availability of various frozen food products in the market.

Further, the booming e-commerce sector has helped frozen food brands make substantial strides in terms of reach and availability. Such platforms offer high product visibility and listing at nominal costs compared to traditional retail platforms. This has created a level playing field for frozen food brands of all scales to cater to consumers and boosts market penetration of this category.

The road to 2023 and beyond..

The appetite for frozen food is seeing a constant uptick. In order to meet the demand and increase their consumer base, brands are now introducing different variants such as frozen fruits and vegetables, frozen snacks, frozen poultry, meat, and seafood. These ready-to-eat options will continue to be voraciously popular among consumers, prompting more and more brands, including food industry giants, to start manufacturing frozen food. A healthy CAGR, the rapid development of fast-food chains, and aggressive marketing by major brands will continue to propel the frozen food segments to new heights in the years to come.

(Lisa Suwal is the CEO of Prasuma)