Introduction -
In the last couple of years, the chilled food market has seen remarkable growth due to various factors that have come together- changing consumer preferences, advancement of technology, and improvement in the economic scenario. Here is a blog that deals with the drivers, market trends, and opportunities for growth in the chilled food sector.
Drivers of Chilled Food Market
- Convenience: Chilled food products offer their consumers availability in readymade or heat-and-eat kinds of foods. These are especially appealing to busy people, working professionals, and families that have less time to cook.
- Health Consciousness: Consumers are more concerned with healthy eating. Chilled foods generally contain fewer preservatives and additives compared to their processed counterparts; thus, they are a much healthier alternative.
- Safety and Quality: Chilled food undergoes an advanced level of checking for quality, which ensures the products are safe and fresh. This has gained consumers' confidence in the safety and quality of chilled food products.
- Improvement in Technology: New technologies in processing and packaging enable the production of high-quality, long-shelf-life chilled foods. This has increased the variety available and accessed.
Trends in the Chilled Food Market: -
- Competition and meal kits: Meal kits, containing ingredients already measured with recipes included, have gained considerable speed. They ensure that cooking is hassle-free and enjoyable for the consumers while assuring them of freshness and quality ingredients.
- Diversity in ethnic foods: Along with the increase in the number of ethnic foods, there is further development of chilled foods. This has been a response to growing diversity among consumer tastes and globalization in food markets.
- Plant-Based Alternatives: The trend of consumption toward plant-based diets has influenced and developed the segment of chilled foods made from plant-based ingredients that would be able to return the demand for vegetarians and vegans.
- Premiumisation: Consumers are ready to pay a premium for superior quality, artisanal, or organic chilled food items. This has given rise to many niche brands and specialty products.
Global Chilled Food Market Statistics
- Market Size: The chilled food market is expected to register a CAGR of 6% during 2023 – 2031. The chilled food market is growing due to rising demand for convenience food.
- Chilled Food Market Report comprises a detailed analysis of five major geographic regions, which includes current and historical market size and forecasts for 2021 to 2031, covering North America, Europe, Asia Pacific, Middle East & Africa, and South and Central America.
- Key Players: Major companies operating in the chilled food business include
- Nestlé SA
- ConAgra Foods Inc
- Hormel Foods Corp
- Grupo Bimbo SAB de CV
Growth Opportunities in Chilled Food Market
- Emerging Markets: Emerging markets with a growing middle class provide an emerging scope of opportunities for the growth of the chilled food market.
- Online Retail: E-commerce is increasingly selling chilled food items to ensure that consumers have easy access.
- Innovation and Customization: Noticeable continuous innovation in product development, packaging, and marketing may enable a brand to be distinctive and attract new consumers.
- Sustainability and Ethical Sourcing: Concern about sustainability and ethical sourcing is a factor; companies that emphasize those aspects create an advantage over the rest.
Challenges and Opportunities
Although the market for chilled food offers some real opportunities for growth, some of the challenges it still has to encounter or overcome include:
- Supply Chain Challenges: Ensuring a dependable and efficient supply chain is needed for maintaining quality and freshness.
- Competition: Increasingly high competition from established players and new entrants may pose a threat to attaining and maintaining market share.
- Regulatory Compliance: Adherence to the codified laws regulating the areas of food safety and labelling will be extremely critical in the functioning of this chilled food market.
Conclusion:
As consumer attitudes, technologies, and economic climates continue to change globally, the chilled food market represents a constantly evolving industry. Businesses can position themselves for success in this thriving sector based on a proper understanding of the major factors, market trends, and opportunities that will spur growth in this category.
Frequently Asked Questions:
1. What has been a key factor driving growth in the market for chilled foods?
Answer: -The growth is driven by increasing demand from consumers for convenience, growing health awareness, and improving refrigeration technology to extend life.
2. How does Chilled Foods differ from Frozen Foods in terms of preservation?
Answer: -Chilled foods are stored at near-freezing temperatures, which helps to preserve texture and flavour, while frozen foods are stored at sub-zero temperatures and often change texture as they thaw.
3. What are the major challenges that exist in the chilled food market?
Answer: - Major challenges exist, such as strict regulations on food safety, supply chain logistical efficiency, and fluctuations in temperature during transport.
4. How is changing consumer behaviour driving the chilled food market?
Answer: - Consumers are increasingly leading the demand for freshness and convenience with clean labels. Hence, chilled food market manufacturers are introducing healthier chilled food items with lesser processing and healthier.
5. What is the role of technology in the chilled food market?
Answer: -Technology has supported cold chain logic, improving the tracking and monitoring of temperature-sensitive products and enabling the development of various smart packaging solutions that prolong freshness more significantly.
Published By
Rajat Naik
Senior Market Research Expert at The Insight Partners