Asia Pacific Frozen Snacks Market - Growth, Trends, and Forecasts (2022 - 2027).

The Asia Pacific frozen snacks market is projected to register a CAGR of 5.3% during the forecast period (2022-2027)

The market growth in the region is mainly driven by the rising popularity of frozen potato fries, potato wedges, and other potato products among millennial consumers. Further, Asian countries like China and India were among the major producers of potatoes worldwide, in 2020, according to FAO (The U.S. Food and Agriculture Organization). With the availability of a large volume of potatoes in the region and a high consumer affinity for potato-based food are enabling key manufacturers to produce a large assortment of potato-based frozen snacks. Furthermore, the busy lifestyles of the urban population are influencing the adoption of longer shelf life and convenience food options such as frozen snacks.

In the medium term, demand for plant-based snack products is expected to expand exponentially due to the consumer's inclination toward healthy food habits. Plant-based sausages, nuggets, and burger patties are a few of the products preferred by Asian consumers to replace conventional snack food.

Further, the outbreak of COVID-19 encouraged consumers to consume frozen snacks as longer shelf life snacks and ready-to-eat food is registering high demand owing to the work-from-home culture. For instance, ITC India, in its press release disclosed that the company's frozen snacks business has grown three times since the pandemic occurred. Also, the reach of the company's frozen foods extended from 12 towns to 132 towns from May to July 2020.

Key Market Trends

Popularity of Shelf-stable Food Products

Over the years, the demand for various canned food including freeze-dried snacks has grown tremendously in the region, owing to factors such as busy lifestyles, availability of multiple products under different brands, and improved supply chain infrastructure and logistics services for frozen snacks. Working populations is highly inclined towards frozen snacks due to the high shelf life of products and the requirement of minimal processing before consumption. Additionally, the growing preference for healthy snacking is promoting sales growth of various freeze-dried fruits in the market as the fiber, vitamin C, and nutrients from the original fruit are retained in larger amounts compared to other drying technology. Moreover, the market growth is influenced by the rising adoption of Western-style diets among millennial consumers, which in turn has boosted the demand for popular U.S. and European snack products, such as frozen burger patties, nuggets, sausages, french fries, and pizzas. As a result, key brands are enhancing their production capacity and manufacturing technologies. For instance, in December 2020, McCain Foods announced the construction of a second processing plant for its potato-based frozen products in China. The company invested around USD 200 million in the new plant, located in the Yangling Agriculture Hi-Tech Development Zone, Shaanxi Province.

India is the Fastest Growing Market

The frozen snacks market in India is being driven by urban consumers who have been exposing themselves to similar products in Quick-Service Restaurants (QSRs), food stalls, and kiosks, among others. Furthermore, the growing availability of traditional favorites such as samosas, cutlets, and momos in frozen formats has attracted a growing consumer base over the past few years, thereby driving the growth of the market over the review period. Additionally, the increasing internet penetration in the country and the rising trend of purchasing groceries through online distribution channels are expected to push the demand for frozen snacks in India. Many private labels are offering a variety of freeze-dried foods through online channels to cater to market demand. For instance, in 2021, Saraf Foods, a Vadodara-based small-to-medium-sized food-processer specializing in air-drying, freeze-drying, and individually quick-frozen technology (IQF) announced its plans to expand its portfolio of freeze-dried fruits. The company offers freeze-dried fruits, vegetables, herbs and spices, including bananas, mangoes, sapota (chiku), sweet corn, green peas, onion, bitter gourd, and green peppercorn by means of online portals.

Competitive Landscape

The market is highly fragmented with the presence of multiple regional and international players offering a wide range of frozen snacks in the market. A few of the major players include McCain Foods Limited, Nestle SA, Conagra Brands, Ajinomoto Co Inc, and Tyson Foods, among others. These players focus to leverage opportunities posed by emerging markets to expand their product portfolio and distribution network so that they can cater to the consumer demand for various product segments. For instance, in December 2021, ITC India's brand Master Chef announced a strategic partnership with Havmor ice cream owned by Lotte Group, to enhance distribution reach across the country. Further, key brands are investing in innovative packaging formats and advanced freezing technologies to enhance product appeal.

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