Market Trends of South America Frozen Food Industry
This section covers the major market trends shaping the South America Frozen Food Market according to our research experts:
Increase in Consumer Expenditure on Convenience Food Products
The market is primarily driven by rising expenditure on food and beverages, the introduction of products with longer shelf lives, increasing impulse purchasing, and growing demand for convenience foods that can be prepared quickly due to a shortage of available time. These factors have resulted in the need to stockpile eatables in houses that last for a longer duration without spoilage, which further increased frozen food sales. For instance, in February 2021, the American Frozen Food Institute (AFFI) reported that the sales of frozen meals, such as seafood and poultry, were 25.0% higher when compared to 2019, with an increase in sales of all types of frigid/chilled meals across South America. Due to the rise in the economy, growing working-class population, and evolved consumer lifestyle, a notable rise is observed in the expenditure for convenience food products, such as frozen foods, across South America.
Due to the fast-paced lifestyles and the need for a quick meal or snack, there has been a growing demand for healthy and convenient food that can be consumed instantly. Frozen food products are considered to provide such a benefit as most of them can be cooked within less time for consumption. These factors are propelling the growth of the market studied.Moreover, manufacturers provide consumers with more foods, where much of the preparation work has been done outside the home. This development has been facilitated by technological innovations in preservation, packaging, freezing, artificial flavorings and ingredients, and by using microwaves.
Emergence of Frozen Snacks as the Fastest Growing Segment
The rapidly evolving retail landscape and the influx of multiple brands across various product categories have boosted the frozen snacks market. This is also due to the booming food service industry. The rising prominence of clean label ingredients with the label claims, such as 100% natural, non-GMO, and organic, in the country is boosting the demand for natural frozen snacks. The demand for these natural frozen food snacks is increasing due to the increasing health awareness among customers.
As a result of the increasing consumer appetite and acceptance, the frozen pizza market in the region has recorded a significant growth rate. This growth rate is driven by an increase in selling points and deeper penetration by organized food service players serving pizza as a grab-and-go snack, as well as an increase in the number of available freezers in retail channels, which creates more space for frozen pizza products in the country.
