"When the whole market is cutting prices and engaging in price wars, if you don't follow, is it a 'crime'? " A salesperson from a frozen food brand joked to the author. "2024 will be a turning point for the entire frozen food industry. To be blunt, the impressive achievements of companies in the past, rather than being due to their own strength, are more like 'pigs on the wind'. When the industry runs fast, no one in this circle is slow. " An industry consultant told the author. Frozen food and Chinese people seem to have an inseparable connection. Why do we say that? "In any family, including the growing number of people living alone, frozen food in the refrigerator is almost ubiquitous," an industry consultant told the author. It is undeniable that refrigerators, scattered in thousands of households and becoming a necessity, have undergone a phase of quantitative accumulation and are now showing unprecedented explosive power. "Always have some on hand" Undifferentiated "full coverage" The industry is "galloping." According to data from research institutions, the scale of China's frozen food market has exceeded one trillion yuan, and is growing at a double-digit rate annually. Data from iiMedia Research shows that China's quick-frozen food market is continuously expanding, reaching 168.85 billion yuan in 2022, and is expected to reach 213.09 billion yuan by 2025. The demand for semi-finished ingredients in the catering sector has increased, and the rise of semi-finished ingredients has enriched the quick-frozen food market. The quick-frozen food industry shows clear trends of category diversification, channel diversification, and product branding. The author reviewed relevant materials and found that according to a report by Polaris, frozen food has become the fastest-growing segment in the food industry. The industry is expanding because consumers have demand. According to a report on the frozen food market by The Business Research Company, the global frozen food market grew from $227.01 billion in 2022 to $244.67 billion in 2023, with a compound annual growth rate of 7.8%, and is expected to grow to $317.34 billion by 2027, with a CAGR of 6.7% during the period. Similarly, according to iiMedia Research data, among Chinese consumers' willingness to purchase quick-frozen food in the future in 2022, 66.67% of consumers will buy quick-frozen food in the future. "The mental positioning of traditional dumplings and other quick-frozen rice and flour products in the minds of Chinese people determines that frozen food has huge development potential in China. This category, deeply rooted in Chinese consumers, has now become a trend and a windfall." An industry insider once said. With the continuous improvement of economic development and the acceleration of life pace, frozen food products, which combine convenience, speed, deliciousness, and variety, have gained recognition through rounds of consumer questioning and acceptance, and have become a "necessity" in every household along with refrigerators. "Always have some on hand, like quick-frozen dumplings, hand-grabbed pancakes, and beef rolls. Whether steamed, boiled, or air-fried, they are convenient when there's no time to cook. Both the elderly and children love them," Ms. Wang, who was selecting quick-frozen dumplings at a Vanguard supermarket in Shijiazhuang, told the author. "Consumer dining tables have changed" The battle for frozen food's upgrade It is this frozen food industry, which highlights its "people's livelihood attributes" due to its close connection with Chinese consumers, that is now experiencing "growing pains." "The former 'main battlefield' of large supermarkets is retreating irreversibly, and in recent years, the catering industry has also seen a wave of store closures... Demand from both B-end and C-end has indeed seen a noticeable decline in this cycle," an industry insider believes that changes in demand are the main source of the "growing pains" in the frozen food industry. According to the author's understanding, there is another deeper reason. That is, consumers' "dining tables" have changed. In other words, driven by the times, what consumers love to eat has changed. First, let's understand what frozen food is. According to Baidu Baike, it is defined as follows: "Frozen food is divided into chilled food and frozen food. Frozen food is easy to preserve and widely used in the production, transportation, and storage of perishable foods such as meat, poultry, aquatic products, dairy, eggs, vegetables, and fruits. It is nutritious, convenient, hygienic, and economical; it has a large market demand, holds an important position in developed countries, and is developing rapidly in developing countries." As mentioned above, the most prominent attribute of frozen food is "convenience." We seem to still remember a scene like this: When you don't have time to cook after work, you can boil some quick-frozen dumplings or make a bowl of instant noodles, simple and fast. At that time, small crispy pork was freshly fried, and fish was freshly caught and killed... Every dish in any restaurant was full of the wok aroma of fresh cooking. What about today? For ramen, they specially put up a glass so you can see the dough being kneaded and pulled; for dumplings, they can set up a camera so you can see the entire production process. However, the small crispy pork and pickled fish that are served in five minutes are all pre-made dishes. It seems quite interesting. But it is undeniable that a "new era" for frozen food has arrived. A "new era" Industry and consumption This "newness" is not limited to products, but also in various dimensions such as price, channels, and demographics. Speaking of this, a few days ago I chatted with a frozen food salesperson, and he told me an "interesting story." "The leading brands have all cut prices, why haven't you?" A distributor's question left the salesperson speechless and amused. "When the whole market is cutting prices and engaging in price wars, if you don't follow, is it a 'crime'?" The salesperson joked to the author, which is the scene mentioned at the beginning of the article. "From 2023 to now, this price war has become more and more intense. Not following the price cuts seems to be 'not fitting in.'" An ice cream and frozen food distributor said. The price war that started in the second half of last year has continued to this day, showing no signs of abating, but intensifying. "This year's market is particularly difficult. Everyone is competing on price. If you don't cut prices, you can hardly move." In terms of demographics, according to relevant data, female consumers of quick-frozen food in China account for a relatively high proportion, reaching 63.2%; the age group is concentrated in 31-40 years old, accounting for 52.6%; middle and high-income groups account for a large proportion, with monthly income mostly concentrated in 5001-10000 yuan, accounting for 37.9%, followed by 10001-15000 yuan and 5000 yuan and below, accounting for 28.2% and 16.6% respectively. It is not difficult to see that behind quick-frozen food is a group of mainstream consumers with stable income, strong and stable purchasing power, young and with taste requirements for life. CCTV Finance Channel once commented on the frozen food market: "The proportion of users under 25 is clearly increasing. Many creative cooking videos of frozen food are widely spread on social media. Young people eating quick-frozen food are not just satisfied with filling their stomachs, but on this basis, they use the time saved from 'laying the foundation' and preparation to unleash more creativity. And because this group is willing to share, they spark more beautiful sparks." "Walking on two legs" Down-market or high-end Looking to the future, the frozen food industry is also making efforts in both directions. In the down-market, some unique business formats are becoming new opportunities for the frozen food industry to open up market space. "Throughout the year, quick-frozen rice and flour products and dumplings have been selling well. In winter, hot pot and barbecue ingredients will obviously increase in volume," Mr. Zhu, who is a county-level first-tier distributor in Xingguo County, Ganzhou City, Jiangxi Province, told the author. "In relatively economically underdeveloped areas, pre-made dishes for rural banquets, as well as some quick-frozen rice and flour products and fried frozen foods, are developing very well. " At the same time, the rhetoric of consumption upgrading and product mid-to-high-end positioning has been popular in the frozen food industry for many years. A number of frozen food brands have also begun to make moves in "mid-to-high-end products." In 2019, Anjoy launched a mid-to-high-end hot pot ingredient lock-fresh series for the C-end, which achieved revenue of over 1.1 billion yuan in 2022. Anjoy Food recently also stated in response to investor questions on the platform: "The company continues to promote mid-to-high-end products represented by Lock-Fresh and Wan Zhi Zun, continuously improving corporate profitability, while also entering the high-speed growth segment of the industry by adding new sausage products to seize new momentum for future development." In addition, Hai Xin Food, Sanquan Food, and Synear Food are also striving to lay out mid-to-high-end product matrices and launch a series of new products; such as Sanquan's fresh "raw" series. Final Thoughts The high "visibility rate" of frozen food subcategories such as quick-frozen dumplings, buns, fried dough sticks, and pies in China's food industry and on consumer dining tables can, to a considerable extent, show that this industry has a natural affinity and demand with Chinese consumers. So, how much do Chinese people love frozen food? It seems to be hidden in the daily companionship. And frozen food and the Chinese market still have "more stories" to be continued. From August 20-22, 2024, the "2024 6th China FMCG Conference" with the theme "Crossing the Shrinking Era" and the "3rd China FMCG Hard Discount Conference" & "3rd China FMCG Distributor Conference" will be grandly held in Shanghai. At this conference, all roles in the FMCG industry chain will gather, allowing you to see industry trends at a glance, understand hot track trends, penetrate industry resources, and accurately connect with first-line brand owners, head retail platforms, and excellent large distributors with over 100 million in sales nationwide, providing you with precise decision-making, efficient cooperation opportunities, and on-site learning of exclusive methodologies from FMCG giants! Keynote speeches, roundtable dialogues, report interpretations, closed-door salons, and networking dinners, with rich formats, this thousand-person event is sure to have something for you!