Thawing out: Rising health concerns will cause operators to expand product lines

Frozen food manufacturers have experienced slow growth over the past five years, as increasing levels of disposable income and growing health awareness among Canadians have increasingly diverted demand away from industry products. To counteract these deterrents, frozen food manufacturers have been quick to introduce new products that appeal to health-conscious consumers, thereby offsetting declining sales in more traditional product segments. In the coming years, the industry is expected to continue growing, driven primarily by rising per capita disposable income levels and shifting health trends, both of which will likely increase demand for the industry's higher-margin premium product more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Growing health awareness of the nutritional content of processed food will constrain industry performance
  • The continued convenience of frozen food has helped to boost demand
  • The convenience and affordability of frozen meals will continue to attract customers
  • Industry Report - Industry Investment Chapter

    The Frozen Food Production industry in Canada exhibits a moderate level of capital intensity. Using wages as a proxy for labour and depreciation as a proxy for capital, IBISWorld estimates that for every dollar Canadian operators spend on labour, $0.29 will be spent on capital in 2018. This figure represents an increase from $0.26 in 2013. Capital expenditure in this industry is required for machinery that is used to automate the cooking, processing, packaging and freezing procedures during production. The purchase and maintenance of freezers, preservatives and packaging equipment also represents a significant portion of the industry's depreciation costs...purchase to read more.

    Additional Insights for the Frozen Food Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Frozen Food Production Industry are

  • Having a clear market position
  • Supply contracts in place for key inputs
  • Economies of scale and scope
  • IBISWorld analysts also discuss how external factors such as Canadian-dollar effective exchange rate index and Demand from supermarkets and grocery stores in the Frozen Food Production industry impact industry performance..

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    What's in this report

    What is the Frozen Food Production Industry?

    Industry establishments produce frozen food products, such as frozen fruits, vegetables and juices; frozen entrees and side dishes (excluding seafood); frozen whipped toppings (excluding dairy); and frozen waffles, pancakes and French toast. These products are subsequently distributed to outlets such as grocery wholesalers, retail food stores and operators in the hospitality industry.

    Industry Products
  • Prepared meals and specialty foods
  • Frozen vegetables
  • Frozen fruit and juice varieties
  • Frozen Pizza
  • Industry Activities
  • Manufacturing frozen fruit and vegetables
  • Manufacturing frozen fruit and vegetable juice
  • Manufacturing frozen meals, pizza and whipped toppings
  • Manufacturing frozen waffles, pancakes and French toast
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian-dollar effective exchange rate index
  • Demand from supermarkets and grocery stores
  • Leisure time
  • Consumer price index for food
  • Per capita disposable income

  • Current Performance
  • Health concerns spur innovation
  • Changing consumer perceptions and trends
  • Strengthening trade conditions
  • Changing industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Convenience drives demand
  • Industry earnings to stabilize
  • Table: Frozen Food Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Frozen Food Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets & Grocery Stores in Canada
  • Convenience Stores in Canada
  • Hotels & Motels in Canada
  • Fast Food Restaurants in Canada

  • Key Selling Industries
  • Chicken & Turkey Meat Production in Canada
  • Corn Farming in Canada
  • Flour Milling in Canada
  • Meat, Beef & Poultry Processing in Canada
  • Soybean Farming in Canada
  • Vegetable Farming in Canada

  • Products & Services
  • Prepared meals and specialty foods
  • Frozen vegetables
  • Frozen Pizza
  • Other
  • Frozen fruit and juice varieties
  • Chart: Frozen Food Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Grocery Wholesalers
  • Retailers
  • Food Service Establishments
  • Chart: Major Market Segmentation for the Frozen Food Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Frozen Food Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Frozen Food Production Industry

  • Industry Globalization
    McCain Foods Limited,
  • Table: McCain Foods Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Frozen Food Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Frozen Food Production Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Consumer price index for food (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A substance added to preserve or improve the quality of a product.
  • Cryogenic Freezing
  • Also known as flash freezing, cryogenic freezing is the process of rapidly chilling food at very low temperatures.
  • Robotics
  • A branch of technology that deals with the application of robots for sensory feedback and information processing.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Frozen Food Production market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Frozen Food Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Frozen Food Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Frozen Food Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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