Frozen Fruits Market Trends

Growth Drivers

• Expansion of cold chain logistics infrastructure:  The government investment in the cold chain infrastructure, mainly in developing countries, is significant for the market expansion. The PIB data in August 2024 highlights that nearly 1,217 food processing projects were approved costing ₹31,308.24 crore under MOFPI that directly aids the frozen fruits market by expanding the national cold-chain capacity, infrastructure in fruit-processing, and value-addition units critical for large-scale freezing and preservation. This directly addresses the logistical barrier, enabling the new entrant regional players into the formal frozen food market and securing the supply chain for both domestic consumption and export. This strategic public funding is expected to minimize the post-harvest losses, thereby increasing the raw material available for the frozen sector.
• Government led sustainability and food waste reduction agendas:  National policies are now actively focusing on reducing food waste and are creating a structural pattern for the frozen fruit industry. The UK government has invested a significant amount to support organizations tackling food waste, as part of its wider Net Zero strategy, indicating this trend. Further, freezing is recognized as a vital technology to preserve a huge amount of fresh products. This government push promotes the retailers and food service providers to partner with the frozen fruit suppliers as a part of their sustainability reporting, transforming frozen fruit from a mere commodity into a strategic tool for achieving corporate and national environmental goals.
• Rising demand for fruit based export products in emerging markets:  Countries such as India, Mexico, Peru, and Chile are expanding their fruit processing and frozen export capabilities. The USDA FAS indicates that there is a rapid export growth in the berries and tropical fruits from South America to the U.S. and the EU. Further, the APAC government is proactively investing in fruit processing clusters under the national food processing missions. These initiatives boost the frozen fruit market and global supply availability. The Ministry of Food Processing Industries data in 2025 depicts that the market 2025 in India is expected to reach USD 284.55 billion and is set to grow at a CAGR of 6.5%, driven by the government-backed sectoral expansion.

Challenges

• Strong food safety and certification hurdles: Compliance with global standards and certification is mandatory, time consuming and costly. For example, the USDA Organic certification process can take years and requires rigorous documented practices. The Cascade Fresh uses its strong food safety protocols as a market differentiator yet the cost of the audit record keeping and facility upgrades pose a significant challenge for new suppliers mainly when targeting premium or international markets with strong import regulations.
• Logistical complexity and supply chain disruptions:  The supply chain of frozen foods is vulnerable to disruptions, from port delays to energy price shocks that surge the freezing and storage costs. The COVID-19 pandemic and subsequent global logistics constraints highlight how reliant the industry is on seamless transport. Key players such as Ardo have resilient and diversified logistics networks, but the new companies that are entering the market face significant risk from single points of failure that can stop operations and spoil inventory.