China’s total frozen meal category will grow at a compound annual growth rate (CAGR) of 9.5 percent between 2016 and 2020, according to a research report on the sector by international research agency Mintel.
This will benefit the likes of Charoen Pokphand and Guolian Aquatic, both of which have developed frozen seafood meals for the Chinese retail market, with CP a first-mover in the sector.
Speaking to SeafoodSource, Mintel’s head in China, Matthew Crabbe, noted that while the growth rate has slowed due to “overproduction” and “competition from the food delivery service” there are still many under-developed areas within the category.
Crabbe said there is particular consumer interest in the breakfast-oriented sector (42 percent growth projected between 2016 and 2020), low-calorie foods (set for 39 percent growth 2016-2020) and on-the-go meals, as well as kids-specialized frozen meals, which are projected to grow by 31 percent and 28 percent, respectively, in the 2016-2020 period. The category of “frozen meals with no additives or preservatives” was the fastest-growing segment of China's ready-meals market between 2013 and 2016, according to Crabbe.
The rise of urbanization and the increase of single-unit households has been the main driver of emand for ready, frozen meals. While China has lifted its one-child policy, the country’s population is still trending toward smaller family units, reinforced by the traditionally high participation rate by Chinese women in the workforce. “Healthier” ready meals options are becoming more widely available, Crabbe added.
