There are many similarities between the Chinese market and the Japanese market - the younger generation is becoming increasingly busy, and household chores such as grocery shopping and cooking are being saved whenever possible. Takeout has become a "necessity" for some people, which will further stimulate the demand for frozen food. It can be predicted that the future growth space of China's frozen food industry will be at least twice as much as it is now.

China has a large population and a huge potential demand market. Why can't the frozen food market see the trend of catching up with foreign countries in the short term? Through comparison, it can be found that there are several factors that constrain the development of frozen food in China.

On the one hand, food diversity cannot be compared to foreign countries. For example, Japan's frozen ingredients are very diverse. In addition to our common pastries and dishes, vegetables, fruits, and desserts can also be frozen. Japanese frozen food manufacturer Life Foods not only freezes fruits such as mangoes and avocados, but also vegetables such as spinach, eggplant, and okra. In 2020, the sales of its "frozen blueberries" increased by 75%.

On the other hand, cold chain has become a key factor in development, as frozen food is not just about "sealing" food at -30 ℃. Strict temperature requirements must be maintained at -18 ℃ throughout the entire process of production, processing, transportation, and sales. Once the cold chain is disconnected, there will be safety risks. In the Japanese market, after shopping, you can add ice to the free ice. Compared with the "cold chain" of frozen food in China, it is difficult to meet the demand of the last mile. When consumers return home from supermarkets, frozen food is easily removed from the storage environment, which can also affect health and quality.

At present, the Chinese government and enterprises have also recognized the importance of cold chain. In 2019, the No.1 document of the Central Committee of the Communist Party of China and the State Council, entitled "Several Opinions of the Central Committee of the Communist Party of China and the State Council on Adhering to the Priority Development of Agriculture and Rural Areas and Doing a Good Job in the Work of Agriculture, Rural Areas, and Farmers", was released, which clearly stated the support for the construction of storage, preservation, and graded packaging facilities for agricultural products. In April 2020, the Ministry of Agriculture and Rural Affairs issued the "Implementation Opinions on Accelerating the Construction of Agricultural Product Storage and Preservation Cold Chain Facilities", further strengthening the construction of agricultural product storage and preservation cold chain facilities, and increasing support for new agricultural business entities' agricultural products.

In terms of enterprises, leading companies in the industry have begun to layout and promote the development of cold chain logistics. A group of logistics enterprises with national service capabilities, such as SF Express, JD.com, Suning, etc., have successively laid out national cold storage nodes and gradually improved their cold chain logistics service capabilities. According to the annual report of SF Holding, as of the end of 2019, SF Express had 23 food cold storage facilities with a business area of 145300 square meters; There are 273 refrigerated trucks and food transportation lines running through core cities across the country.

From the current supply and demand situation of frozen food, it is expected that the production of frozen food in China will continue to increase in the future. Due to the accelerated pace of modern residents' lives on the demand side, especially the increasing demand for convenient frozen food among Generation Z. In terms of supply, with the development of China's storage and transportation system, it can support the continuous expansion of the frozen food market.

Although the future prospects of the frozen food industry are bright, judging from the growth and expansion speed of the industry in the past, the frozen food industry has reached a critical point of transformation. With the change of Chinese consumption habits, quality and product itself can no longer be the only way to promote the growth of enterprise income. Only by promoting quick frozen food to become "online celebrity", grasping the preferences of young people, making good use of online marketing means, and focusing on winning the favor of young consumers through innovative packaging and taste, can further growth be brought about.

Especially, although frozen foods are associated with speed and convenience in public perception, people still have doubts about their taste and nutrition.

5. How can "unhealthy" frozen food win the hearts of the public?

For a long time, frozen food has been widely labeled as "unhealthy", and some even feel that it is not healthy at all and is made from dead meat. However, the new era of frozen products is different from the previous understanding, as they can consider both nutrition and taste. Therefore, in order to accelerate the development of the industry and reverse public awareness, it is also an urgent task that requires the joint efforts of all enterprises in the industry.

Wanchai Wharf has launched colorful Xiaolongbao, which are dyed with natural vegetable juice. At the same time, the brand packaging also takes into account the young people's demand for product appearance, which is a good start for innovation.

Other industry leaders, such as Sanquan, Kedi, and Wan Chai Ferry Terminal, have also established research and development centers to promote in-depth cooperation with well-known universities and research institutes, actively undertake national, provincial, and municipal research projects, and obtain multiple patents. A research and development system that combines industry, academia, and research has been formed.

Since the outbreak of the pandemic in 2020, the frozen food industry has flourished, and at the same time, the pandemic has made more frozen food manufacturers aware of their shortcomings.

The epidemic has affected the sales of frozen food in agricultural markets, especially in the catering market, in a short period of time; On the other hand, the epidemic has accelerated the sales of frozen foods through KA, BC, and online channels, bringing more opportunities and challenges to the industry.

In addition to changes in channels, the product innovation capabilities of frozen food manufacturers are also improving. Before the outbreak of the epidemic, frozen foods were mostly found in agricultural markets and affordable supermarkets, and merchants paid more attention to large packaging and cost-effectiveness. During and after the epidemic, more companies have begun to layout e-commerce and launch more high-end and small-sized packaging products.

In addition, with the continuous development of technology, frozen food has begun a phased transformation. The most common trend is the streamlining and onlineization of internal processes within enterprises, which will become more apparent in the future.

Expanding production capacity and improving the cold chain are the core factors driving the development of the frozen food industry, and attracting consumers with appearance is the key. At the same time, we need to change the traditional public perception of frozen food, establish public awareness of the safety and nutrition of frozen food through marketing and various means, and also pay attention to upgrading in taste and style, truly catching up with the frozen food markets in Europe, America, and Japan.