A Deep dive analysis of the Frozen Food & Food Processing Segment
Welcome to the Expert Insights Series, where we feature industry leaders sharing their perspectives on key topics. Today, we have Karan Ket, a seasoned professional with over 17 years of experience in food processing, infrastructure development, and supply chain management. Karan has worked with leading companies like TATA Steel, ITC, and Godrej and led over 50 strategic projects.
To gain a deeper understanding of the frozen and processed food industry in India, we asked Karan a series of insightful questions that are valuable for both established businesses and aspiring entrepreneurs. Let’s dive in!
1. What are the most significant trends shaping the frozen and processed food industry today?
The frozen and processed food industry in India is witnessing transformative growth, driven largely by lifestyle changes and increasing urbanization. With the market estimated at over ₹14000 crores in 2023 and expanding at a CAGR of ~15%, this sector is evolving into a crucial segment in India’s food economy. Convenience is at the heart of this growth-busy professionals and double-income, nuclear families are turning to frozen and ready-to-eat meals for their time-saving benefits. Categories like frozen snacks, vegetables, and desserts are particularly thriving, with consumers appreciating their consistent quality and long shelf life. The rise of e-commerce and quick commerce platforms such as BigBasket and Swiggy Instamart have further accelerated access to frozen products, even in Tier 2 and Tier 3 cities, making this a pan-India phenomenon. In addition to this, commodity frozen products are also holding a strong position in India for key commodities like corn, mango, pulp, and other vegetables, owing to India’s abundant material availability, cheap labour, and spare capacity. This growth has been further fueled by government subsidies and schemes, which have enabled the mushrooming of frozen units across the country.
2. What are the biggest logistical and operational challenges in maintaining the frozen food supply chain, and how can they be addressed?
The supply chain for frozen food is improving but still faces significant challenges. For one, cold storage infrastructure is heavily skewed-more than 2/3rd of it is dedicated to staples like potatoes, leaving limited capacity for perishable frozen food.1 Logistics is another pain point; transporting frozen products over India’s vast geography requires precise temperature control, which many smaller players struggle to afford. However, solutions are emerging. Technologies like runtime temperature, GPS location, and speed tracking are helping reduce shrinkage issues, while AI-enabled route optimization is reducing transit times and fuel costs. Companies are starting to invest in distributed cold storage systems to serve regional hubs more efficiently. Furthermore, the advent of 3P logistics is providing process and systems standardization across locations. Collaborations with government-backed initiatives like the PM-Kisan SAMPADA Yojana could also help smaller players access grants and build better infrastructure.
3. What role do modern food processing techniques play in improving the shelf life and quality of frozen food?
In recent years, advancements in food processing technologies have been game-changers for the frozen food segment. Techniques like Individual Quick Freezing (IQF) are becoming the industry standard, especially for fruits and vegetables. IQF ensures that each piece of produce is frozen separately, preserving texture, taste, and up to 90% of its nutrients-far superior to traditional freezing methods. Freezer drying processing is another value addition, providing significant scope for value creation in the otherwise perishable segments of fruits and vegetables, seafood, and more. High-Pressure Processing (HPP) is also a standout innovation, particularly for ready-to-eat products. By eliminating bacteria without heat, HPP extends shelf life significantly while retaining the product’s natural flavour and nutrients. Retort is already a tried and tested technology in the RTE space. Indian companies are also exploring innovative packaging solutions like vacuum-sealed and nitrogen-flushed packs, which further enhance quality and storage efficiency.
4. How can the industry address common misconceptions about the nutritional value and health implications of frozen and processed food?
Frozen and processed foods are often unfairly criticized for being less nutritious than fresh options. However, the reality is more nuanced. For instance, frozen vegetables can retain up to 95% of their nutrients, compared to fresh produce that loses 15–25% of its nutrients during transport and storage.2 The key to overcoming consumer skepticism lies in transparency. Clear, detailed labeling that highlights nutritional benefits, absence of preservatives, and high-quality sourcing can go a long way in rebuilding trust. Educational campaigns, such as recipe videos or influencer collaborations, could also help demonstrate that frozen foods can be part of a balanced and healthy diet. Additionally, increasing the product range of frozen offerings will bring more touchpoints with consumers, creating more opportunities for positive experiences.
5. How can smaller frozen and processed food brands differentiate themselves in an increasingly competitive market?
With the frozen and processed food market becoming increasingly crowded, smaller players need to carve out their niche to survive and thrive. One effective strategy is focusing on regional specialties-products like frozen idlis or parathas cater to localized tastes while offering something unique in the market. Another approach is to tap into premium segments, such as organic or preservative-free frozen products, which appeal to health-conscious and affluent consumers. For instance, launching a line of gluten-free frozen snacks could position a brand as a leader in innovation and inclusivity. Smaller brands also benefit from storytelling-highlighting their sourcing practices, community impact, or artisanal techniques can create a strong emotional connection with consumers.
6. What strategies can frozen food and food processing companies adopt to effectively capture international markets while addressing diverse consumer preferences, regulatory challenges, and logistical complexities?
India’s frozen food exports are on the rise, driven by demand from the Middle East, North America, and Europe. However, breaking into international markets requires more than just high-quality products. Companies (manufacturers/marketing entities) must meet stringent regulatory requirements, including certifications like FSSAI, FDA, and BRC, which assure global buyers of food safety and compliance. Tailoring products to suit regional preferences is equally important-Indian frozen snacks with mild spice levels, for example, have gained popularity in the Gulf. Strategic partnerships with global retail chains, as well as leveraging online platforms like Amazon Global, can amplify a brand’s reach. As India’s reputation for quality food exports grows, there’s immense potential for frozen food to be a flagship segment.
7. What does the future hold for the frozen food segment, and how can companies prepare to meet evolving consumer demands and industry trends?
The future of the frozen food segment in India looks promising, with the market projected to grow at a CAGR of ~15% over the next decade. Urbanization, coupled with the rising spending power of millennials and Gen Z, will continue to drive demand for convenience foods. The need for quick bingeing (e.g., QC platforms procure almost all RTE segments in frozen form) will further accelerate this growth. However, success will hinge on innovation-whether through healthier recipes, advanced freezing techniques, or sustainable practices. Companies that embrace omnichannel strategies, integrating traditional retail with e-commerce, will likely lead the pack. Additionally, the sector could benefit from government incentives and private investments aimed at building robust cold chain infrastructure. As frozen food becomes an integral part of Indian kitchens, it’s no longer just about convenience-it’s about creating products that resonate with the values and lifestyles of modern consumers.
