Frozen food is a novel food category that emerged in the 1960s. Due to its many advantages such as convenience, hygiene, low price, and high quality, it developed rapidly in the 1970s and by the 1990s had become the fastest-growing food industry in the world. In some developed countries, its sales account for 60% of all food, ranking first among processed foods. In recent years, frozen food has been accepted by people worldwide, especially in developing countries, due to its high nutritional value, good hygiene, convenience, and quick preparation.
There are four major categories of frozen food globally: frozen fruits and vegetables, frozen livestock and poultry, frozen aquatic products, and frozen prepared foods. They grow at an annual rate of 20%-30%, with over 3,000 varieties. The US, Japan, and Europe have established complete cold chains from raw material processing to sales and home consumption.
The United States is the world's largest producer of frozen food, with the most varieties and the highest per capita consumption. Its annual output reaches 20 million tons, with nearly 3,000 varieties and per capita annual consumption exceeding 60 kilograms. The European market is also a major consumer of frozen food, with annual consumption exceeding 10 million tons and per capita consumption near 30 kilograms. Japan is Asia's largest frozen food market and one of the world's top three, with annual consumption around 3 million tons.
- 'Chinese Characteristics' Drive Export Markets
In recent years, domestic frozen food companies have increased technical and capital investment, actively tracking and researching the latest products and technologies in the international frozen rice and flour food industry. They have introduced advanced production equipment from countries like the US and Japan, and have brought in and trained numerous professional technical talents. Meanwhile, domestic machinery manufacturers have begun developing high-end frozen food production equipment at international advanced levels, or have collaborated with food producers to develop non-standard specialized equipment, enhancing the technical equipment level and localization of the domestic frozen rice and flour food industry. More domestic companies are turning their target markets overseas.
Chinese culinary culture has a long history, and delicious Chinese dishes are loved by people worldwide. Frozen foods with 'Chinese characteristics,' such as frozen Chinese prepared dishes, frozen snacks, and pastries, are well received in the international market. Chinese frozen rabbit and beef have established a certain market in Western Europe, and the export volume and variety of vegetables are also increasing. New products with Chinese characteristics developed across regions, such as steamed dumplings, pan-fried buns, spring rolls, buns, and red bean paste buns, have entered markets in Europe, America, and Asia-Pacific. With a series of major international events held in China, the international influence of Chinese specialty foods will further expand.
- Domestic Frozen Food Ushers in a 'Golden Period'
China's frozen food industry started in the 1970s, initially focusing on frozen vegetables, seafood, and meat. After the 1980s, with surplus agricultural and sideline products, frozen pasta and pastries were gradually developed. After the 1990s, with the gradual formation of circulation and consumption cold chains, domestic frozen food entered a rapid growth stage.
What we commonly call frozen food includes: frozen surimi products, frozen meat products, frozen rice and flour products, and frozen prepared dishes. Among these, frozen surimi products, frozen meat products, and some other frozen products are commonly known as 'hot pot ingredients.' Hot pot ingredients and frozen rice and flour products are the main types of frozen food in China.
Under the trend of healthy food consumption, consumers are paying more attention to the health aspects of frozen food. Domestic consumers are shifting from holiday-based consumption to daily consumption, gradually integrating frozen food into all aspects of life. In the future, frozen food with health qualities will be more favored by consumers.
Compared with the frozen rice and flour food industry represented by Sanquan Foods and Synear Foods, the frozen prepared meat products industry has not yet formed a clear market structure. There is a lack of clear national brands, and regional characteristics are prominent. Southern frozen prepared meat processing enterprises, such as Anjoy Foods, Haihabawan, and Haixin Foods, mainly produce surimi products like fish balls and pork balls; northern enterprises, represented by our company, mainly produce livestock and poultry products like meatballs and chicken balls.
In addition, besides traditional frozen rice and flour food companies like Sanquan and Synear, which have entered the frozen prepared meat sector leveraging their years of industry experience and channel resources, other small and medium-sized enterprises are also developing rapidly, trying to carve out a place in this expanding market.
In recent years, with the increase in national income, the frozen food industry has become one of the fastest-growing food industries in China, and is expected to usher in a 'golden development period' of 25 to 30 years. In this promising industry, there is also very fierce competition. Facing such a market environment, what marketing strategies should the frozen food industry adopt?
Current Problems in Frozen Food Marketing
Products are relatively single and homogeneous. Currently, products from different brands in China's frozen food industry are mostly similar, with little innovation and similar quality, leaving consumers with limited choices. The frozen food in supermarket freezers is basically dumplings, glutinous rice balls, and other pasta. The depth and breadth of frozen food development are far from sufficient, leading to obvious homogeneity.
Brand promotion is not strong. Although brand building in China's frozen food industry is basically complete, such as Sanquan and Kedi, and these brands have initial brand personalities, their promotion and marketing are relatively monotonous. The focus is more on taste and green aspects, while insufficient promotion of product features and corporate advantages leads to low consumer recognition of frozen food brands.
Sales channels are relatively single. This is mainly reflected in low-end frozen foods being concentrated in agricultural wholesale markets, while high-end products basically enter supermarkets. These channels have a certain market size, but if more frozen food companies enter the industry under a fixed scale, it will inevitably lead to a shortage of channel resources.
Vicious competition caused by a red ocean. Instant noodles and beverages have already experienced the harm of vicious competition, and now this shadow is beginning to loom over the frozen food industry. Many companies are actively developing frozen food and using their own marketing to capture market share. However, with a fixed market size and no innovation in their products, rushing to grab the already small frozen food market without expanding the pie will inevitably lead to vicious competition.
Strategies to Address Marketing Problems in the Frozen Food Industry
Differentiate products through segmentation. Compared with the mature European and American frozen food markets, China's frozen product variety is still very limited. On one hand, there is a gap in relevant technical levels; on the other, enterprises lack innovation capability. Therefore, to gain an advantage in marketing, the key is to segment products and take a differentiated path, avoiding fierce competition caused by excessive homogeneity.
Improve marketing channels and expand sales terminals. Currently, the radius from frozen food companies to consumers' tables is too large, and the time consumed is too long, causing serious consumer dissatisfaction. The core of frozen food lies in speed; if the sales radius is too long, there is no speed, product deterioration is inevitable, and consumer confidence declines. Therefore, improving the current channel model combining supermarkets and agricultural markets is particularly urgent.
With the development of internet e-commerce, fresh e-commerce is making continuous efforts. To shorten the radius, many communities have their own cold storage sales. In this regard, frozen food can expand community sales channels, selling products directly to residents, greatly shortening the sales radius and increasing market share.
- Follow a brand-oriented route. In the current context of a major trust crisis in food safety, frozen food has gained favor from many consumers through concepts like green and environmental protection. However, in a fiercely competitive environment, some unscrupulous companies or sellers pay little attention to the quality of frozen food, leading some consumers to purchase spoiled frozen food, causing corporate crises and greatly damaging the brand reputation of frozen food companies.
Therefore, in this context, only by building a brand can frozen food companies gain consumer trust and expand the market. Brand building requires establishing a unique brand image and positioning. In brand marketing, attention should also be paid to differentiation, allowing consumers to recognize the differences between the company's brand and other frozen foods, as well as the advantages of its own frozen products.
In conclusion, although the competition in China's frozen food market is currently very fierce, it is precisely this fierce competition that drives many frozen food companies to innovate and seek change, continuously developing and expanding their consumer territory. Only in this way can the frozen food industry continue to develop.
-END-