Frozen Foods: An Industry Snapshot in 2021

This March, Quantum Technical Services is celebrating Frozen Foods month. The frozen food market represents a huge vertical that grows exponentially with each passing year. In 2020, frozen foods accounted for USD 244.3 billion, and is projected to increase to USD 312.3 billion by 2025. With so much money at stake, food manufacturers are quickly evaluating how to break into this market.

What do I need to know about the frozen food industry, and how can I take advantage of this market in my own manufacturing? Read on, as we explore everything you need to know about frozen foods, trends in the industry, and how you can leverage it into your current food manufacturing.

Frozen Foods, at a Glance

Consumers have a growing preference towards convenience foods that points towards the increase in frozen food sales. The pandemic has only heightened this preference – while third party delivery apps now define how restaurants are able to reach their audience, frozen foods have become a cost-effective alternative who don’t want to waste their budget on delivery.

One trend that we have seen grow in the past year is the expansion of virtual grocery shopping. Customers have increasingly begun using third party services. In 2018, almost 25% of the population shopped virtually in this manner. While statistics aren’t available concerning how this changed in the pandemic, it may signal a permanent change for virtual grocery shopping. Still, the offline segment remains the largest means of selling frozen foods.

The US Food and Drug Administration has made it clear that there is no nutritional deficit in the frozen foods market. Not only are these foods more convenient to prepare for consumers with increasingly busy lifestyles, it is also just as healthy as any other kind of food.

But how can food manufacturers take advantage of this trend? Producing frozen food at scale depends on using sound automation strategies into your current manufacturing lineup.

Manufacturing Frozen Food

One of the key differences that separates frozen food manufacturing from other types of food manufacturing is storage. Manufacturers struggling with bottlenecks in their production line might overlook this key factor: ensuring their food is kept at the proper temperature from completion to delivery.

Cold chain logistics serve a greater problem in developing nations – in the United States, relative accessibility makes it easier to maintain the long shelf-life of this type of food. For food manufacturers looking to break into the frozen food markets, finding viable options for cold chain logistics should be seen as an immediate priority – hiccups in the delivery process can not only spoil your food, but leave a lasting negative impression on retailers and customers.

What Types of Frozen Food Manufacturing are Seeing the Most Growth?

While frozen foods are experiencing a bit of a renaissance across the board, key players in the industry are increasingly turning towards frozen baked goods and frozen bakery products. According to the research, frozen bakery products currently amounts to USD 9,070 million in the United States alone, and is expected to grow at a CAGR of 5.2%. By 2026, it is expected to reach around USD 12,960 million.

A benefit for food manufacturers looking to break into this market is that frozen baked goods manufacturing shares many similar ingredients to those found in the frozen pizza industry. Refrigerated dough products are a key ingredient in both.

This gives manufacturers the flexibility to break into this market by diversifying their offerings.

How Quantum Technical Services Gives Frozen Goods Manufacturers an Edge

At Quantum, we specialize in the manufacturing of machines for food automation. One of the benefits that our machines have is their flexibility across different types of production. Our ingredient applicators, such as our dry/granular ingredient applicator, is equally as compatible with topping pizzas as it is many common pastries.

Pizza manufacturers and baked goods manufacturers have more similarities than differences. A manufacturer who focuses on one has flexibility and options when looking to diversify their offerings.

We do more than just provide manufacturers with the highest quality of automation. We offer expertise and experience that is relevant to your business. Contact us today to learn about what makes us a leader in automation for frozen food production.