Frozen foods once treated as 'chanbap' become 'hot'... Growing alongside the popularity of convenience meals

Snack Concept Frozen Foods, Now a Proper Meal
Gaining Spotlight Alongside HMR Since COVID-19
Air Fryer Popularization Also Plays a Role
Industry Diversifies Frozen Foods... Premium and Customized Products Follow

[Asia Economy Reporter Song Seung-yoon] Frozen foods, which were once not considered proper meals, are transforming into hearty meals. As home dining increased due to COVID-19, the demand for ready-to-eat meals has grown, bringing frozen foods into the spotlight.

According to Statistics Korea on the 4th, the domestic frozen food production scale has steadily increased every year, from 2.2247 trillion KRW in 2017 to 2.233 trillion KRW in 2018, and 2.5181 trillion KRW in 2019. In 2020, it reached 2.895 trillion KRW, a 30.1% increase compared to 2017. The industry estimates that last year it exceeded 3 trillion KRW. As of last year, the frozen food market was dominated by ground processed meat products with a 54.1% market share, followed by dumplings (mandu) at 32.2%, pizza at 7.7%, and hot dogs at 6%.

In the past, frozen foods were regarded as low-cost snacks. The prevailing perception was that although the quality or taste was not excellent, they were convenient foods to eat when there were no side dishes. However, frozen foods have recently undergone a turning point. Especially due to COVID-19, the status of frozen foods has significantly risen. Along with the growth of ready-to-eat meals, companies have started to develop and launch high-quality frozen convenience foods that are excellent as meal substitutes.

As demand for frozen convenience food products increases, the market is expanding. The popularization of air fryers has accelerated this trend. Due to the advantage of easy cooking, the household penetration rate of air fryers has greatly increased, and accordingly, air fryer-compatible frozen foods have also increased. Additionally, advancements in rapid freezing technology and the systematization of cold chain systems have contributed to the stable supply of such premium frozen foods to the market.

Supported by the growth of the domestic market, exports are also on the rise. Frozen food export value steadily increased from 12.06 million USD in 2017 to 15.02 million USD in 2018, 19.4 million USD in 2019, and 22.71 million USD in 2020. Last year, it surged nearly twofold to 45.32 million USD within a year. This increase in export volume was due to the growing overseas popularity of dumplings (mandu) and hot dog products. The global frozen food market size also grew by 20% compared to 82.7 billion USD in 2017, reaching approximately 99.7 billion USD as of last year.

Recently, the key topics in the frozen food market can be summarized as maximizing cooking convenience, expanding diet and health-oriented trends, and activating quick commerce and online markets. Products are diversifying from simple frozen processed foods to segmented forms such as convenient cooking sets, as well as vegan and premium products.

Manufacturers are releasing various types of products in line with these trends. Pulmuone Foods launched two types of frozen ready-to-eat meals, ‘Premium Tteokbokki Kit,’ last month. The kits include all necessary ingredients such as dakgalbi (spicy stir-fried chicken) or bulgogi, sauce, and udon noodles, allowing easy cooking anywhere. The rice cakes (milttteok) used in the tteokbokki kit are rapidly frozen right after being made to maximize their chewy texture.

Ottogi, which is focusing on the frozen pizza market, released two types of ‘Cauliflower Dough Pizza’ recently, adding healthiness by incorporating cauliflower into the dough, following the ‘Wood-fired Style Pizza’ launched in May as part of menu premiumization. Since entering the domestic frozen pizza market in 2016, Ottogi has continuously expanded its frozen pizza lineup by launching products such as ‘Spoonable Cup Pizza,’ ‘Square Pizza,’ ‘UNO Pizza,’ and ‘Crust Pizza.’ E-Land Eats’ restaurant meal replacement (RMR) brand Ashley Home Restaurant also launched three types of ‘Quick & Easy Single-Serving Pasta Meal Kits’ last month, introducing their signature product ‘Ashley Vongole Cream Pane Pasta’ as a single-serving frozen meal kit.

An industry insider said, "The frozen food market is likely to either maintain its current level or gradually grow in the future. Although the market may temporarily stagnate as the dining-out market expands again after the COVID-19 endemic phase, demand for frozen foods is expected to remain steady across various sectors."

This content was produced with the assistance of AI translation services.