ICE Age: The Frozen Food Industry

Food is a basic necessity of life and it is the endeavour of most governments in the world to make it their top priority to feed every mouth in their land.

But with short supplies in some regions, this is not an easy task. Resources are often unevenly distributed, with some food products available in abundance in some countries and not so in others. Seasonal variations also affect the availability of certain fruits and vegetables.

In the absence of facilities to preserve, process and export food products, there is bound to be over-supply and food spoilage in some regions while people in other regions will not have access to certain food products. A thriving food industry across the world is now tackling this problem.

According to recent studies, the frozen food industry has been witnessing phenomenal growth during the present economic downturn, as consumers are looking for cheaper alternatives to fresh fruits, vegetables, and meats. Even the military depends on frozen food to a great extent, especially in camps located in remote areas.

Japan had conquered most of Southeast Asia during World War II, effectively cutting off America’s supply of tin canned goods. Canned foods were required by the military, which suffered as a result. In came frozen food to replace canned food. Spinach was the first frozen vegetable to be sold.

Most vegetables and fruits are picked, packaged and frozen within 6 hours of being harvested, and hence contain more of certain vitamins than the fresh ones we buy from the market. These may have been harvested five or more days before they are actually cooked, since they typically spend more time in refrigerators at home as well.

Indian Frozen Foods

India is a large producer of food and is offering different opportunities and business propositions in food and food processing technologies, skills and equipment. The food-based industries encompass canning, dairy and food processing, specialty processing, packaging, frozen food/refrigeration and thermo-processing.

Products which come under the frozen food industry are fruits, vegetables, fisheries, milk products, meat, poultry and other packaged and convenience foods. Although it is a huge producer of food products, India still has immense untapped potential in the frozen food export industry. The demand for Indian recipes from the Indian Diaspora settled across the globe has served as an impetus to development of the frozen food industry in recent years. Vegetables like drumsticks and okra and prepared food like chapattis and paratas are nowadays available in frozen form in neat packets all over the world.

Organizations like Ari Freeze Foods in India are engaged in food processing and exporting. Freeze dried fruits, vegetables, dairy products, mushrooms, fish etc., are packaged specially for export in high quality economical packaging to maintain quality standards, which makes business sense in a fast growing industry.

Agri Freeze Foods uses a single process that enables food products with small particulates to be packed optimally, resulting in long shelf-life and high quality.

Frozen Food Industry in Malaysia

The entry of more manufacturers in the frozen food industry in Malaysia and their aggressive advertisement campaigns aired in television and other media have spawned a highly competitive market in the country.

The increased urbanization has further boosted the food industry, with a growing consumer base interested in trying out newer food types from other parts of the world. In 2009 Malaysia witnessed a remarkable growth in frozen processed food sales, which grew by two percent along with growth in sales of chilled processed food and dried processed food.

Although most Malaysian companies are medium or small sized, there are also large ones such as Yeo Hiap Seng, Nestle and F&N. The country imports more frozen food than it exports, as the industry suffers from a shortage of raw materials, insufficient technology development and research.

The younger generation has much influence on the consumption of food products and they seem to be inclined towards preprepared convenience meals or frozen food, which may be considered unhealthy by the older populace. Breakfast cereals are gradually replacing traditional cakes and bread in most households, indicating changing food habits. Although fresh food is preferred, the presence of microwave ovens and fridges has encouraged households with women working in offices to go for frozen pre-prepared food and frozen products.

The Malaysian market for processed foods has reached the mature phase, hindering high sales growth. However, it is possible to achieve further sales growth by launching new products to leverage the huge market potential and a varied population.

Frozen pastries, vegetables, meat, sausages and other derivatives form a significant part of the Malaysian processed food industry. In the 1990s many international retailers like Carrefour, Tesco, Dairy Farm International and Jusco entered the Malaysian market. Most of the hyper and super markets sell imported frozen food.

The ASEAN Australian New Zealand Free Trade Agreement implemented in January 2010 reduced import tariff restriction on goods, thereby reducing food tariffs. Several restrictions with respect to frozen food packaging and labeling regulations have been stipulated by the government, with strict guidelines according to religious sentiments to control the import industry.

Many companies like Lucky Frozen Sdn Bhd have grown remarkably, keeping in step with demand while striving to maintain freshness, quality, competitive pricing and excellent customer service. They supply imported chilled frozen beef, lamb, poultry, venison and seafood, besides frozen vegetables, chilled and frozen dairies that are guaranteed for freshness and quality.

Lucky Frozen also owns cold storage facilities, enabling it to control product quality, costs and delivery logistics, thereby ensuring customer satisfaction. It operates from branches located in Kuala Lumpur, Penang and Langkawi. To further augment the frozen food business, Lucky launched a frozen confectionary line created to cater to Malaysian consumers’ tastes and preferences.

Thailand in Deep Freeze Business

Frozen foods form a significant part of the Thai food export industry, which has long been well-known for its Thailand Frozen Fish. Fish and cooked fish products are favorite frozen foods exported from the country besides frozen meat and fruit products.

Thai frozen meals cooked in Thailand, quick-frozen and exported, are in great demand. Supermarkets, consumers and catering companies prefer ready-cooked Thai delicacies as they are ready to eat after defrosting and heating. In a fast-paced modern world with so many time restrictions, ready-to-eat meals are in and if they are delicious Thai food, the attraction is great indeed. The shelf-life of such products is increasing, and strict quality control ensures their safe consumption even for health-conscious people.

Such a lucrative market is being leveraged by Thailand-based companies which are launching ready-to-cook products like frozen shrimp and fish fillets, along with ready-to-eat foods like different menus of rice boxes.

CP Ready Meal is a large contender in the Thai market which distributes its frozen food products comprised of snacks and meals in its own convenience stores. It also supplies Chinese and Japanese foods. Japanese menus sold include teriyaki grilled salmon and rice, and Japanese yellow pork curry and rice, while the Chinese menu features a noodles section with wanton soup and seasoned noodles.

The “CP Ready Meal” products were launched based on periodic and continuous research on consumer behavior based on the company’s strategy of perpetual product development.

S&P, another contender in the frozen food industry in Thailand, has leveraged its popularity in the restaurant business to enter the new frozen ready-to-eat food market. The “Easy Meal” brand is another brand from Suraphon Foods, a production and export company for frozen seafood.

Easy Meal from Suraphon Foods comes in three types, encompassing rice, snacks and frozen ready-to-eat meals for kids (which gets special focus). The main ingredient for all products is seafood, as the company is essentially a seafood exporter.

“Tuppy” Rice Box from P.F.P. is yet another frozen menu provider. The company produces and distributes processed food from frozen fish and meats in various product styles, chiefly for export. The company caters as well with greater emphasis to the domestic market, as demand is set to grow further.

Prantalay, another company, makes new innovative frozen ready-to-cook and readyto-eat foods. In 2010 the company unveiled a project called “Good Health, Good Brain Nationwide with Prantalay 2010” to build their brand.

The new frozen ready-to-eat food market is developing fast and it is in the hands of manufacturers to study consumer preferences and satisfy their wants, while at the same time ensuring product quality by following strict guidelines. As food is an obviously important part of everyday life, it does not make sense to try to make quick profits by compromising on quality when the supplier can readily be wiped out of the market due to ‘false promises.’

With evolving tastes and preferences owing to the intermingling of populations and increased travel to foreign lands, menus need to be updated continually to make a brand successful. Products and their launches need intense media coverage in the form of advertisements, point-of-sale promotions, small quantity packaging and sample tasting promotions in order to enter consumer kitchens.

The market being large and varied, it gives immense opportunities for manufacturers to cater to consumer palates with frozen food of both ready-to-cook and readyto-eat types. Also these packs save time and money spent on restaurant visits. This business is sure to become popular in the AsiaPacific region just as it did in the American and European markets. The frozen food industry is well worth investing in.