The rise of foods and beverages that are ready to eat is unquestionably one of the factors contributing to the considerable changes in the food consumption patterns of consumers. Consumers believe that processed fruits and vegetables are healthier since they contain more nutrients than preserved foods. The top processed food producers are utilising the growing demand for processed foods as a chance to increase their market
shares. Given that the processed foods sector today contributes significantly to the national economy, this is one of Bangladesh’s most lucrative industries. A subcategory of this market is the market for frozen foods, which is predicted to grow at a CAGR of 9.88% in the forecast period of 2022–2027. Listed below are a few of the top frozen food companies that are succeeding in the market.

Facts, Figures, and Consumer Trends in the International Market
The global fruit and vegetable processing market reached USD 304.50 billion in 2020 and is expected to register a CAGR of 7.30% in the upcoming years. Increasing consumer dependency on processed foods due to changing lifestyles is a key factor expected to continue to drive the revenue growth of the global fruit and vegetable processing market to a significant extent. Busy work schedules and changing trends in this regard are driving a steady shift towards more consumption of processed foods, and this is expected to fuel demand for processed fruits and vegetable products and accelerate revenue growth. Changes in the dietary habits of consumers are another factor expected to propel further the revenue growth of the fruit and vegetable processing market worldwide. The COVID-19 pandemic has changed the eating habits of a significant consumer base globally. Plummeted and limited access to regular grocery shopping outlets has resulted in many individuals consuming fewer fresh foods, mainly fruits, vegetables, and seafood. These have been replaced by more processed foods, such as convenience store food items, which are expected to augment industry growth to a certain extent going ahead. Also, more automation and robotics are being used to process fruits and vegetables, which lowers operational costs and ensures growth.
The global food processing market is segmented into the fruit market and the vegetable market based on the types of products sold. The vegetable segment is expected to bring in the most revenue because the demand for processed vegetables, especially frozen vegetables, is rising around the world. This means that the CAGR forecast is also expected to grow in the future.

Major Companies and the Global Competitive Landscape
The market is reasonably fragmented, with a large number of medium-sized market players. North America stands for the largest revenue share among other regional markets. In the coming days, Asia-Pacific is expected to experience the fastest revenue growth, while Europe is expected to experience significantly more stable revenue growth.

The sub-categories in this market include the shrimp industry, where shrimp are packaged and processed for sale. In recent years, the desire for information about the sources and manufacturing procedures among consumers has increased the appeal of organic products. The worldwide organic shrimp market, which is anticipated to expand gradually at a CAGR of over 7%, has benefited from this trend as well. Manufacturers in the shrimp industry concentrating on improving packaging quality to extend shelf life are likely to see financial benefits and solidify their positions in the market. Due to growing consumer knowledge about the advantages of organic shrimp, Asia-Pacific is expected to continue to be the most attractive area for market participants.

Facts, Figures, and Consumer Trends in the Domestic Market

The food processing sector accounts for over 22% of all production, and over 20% of the labour force is employed in this industry. A total of 2% of the country’s GDP comes from the food processing industry. Cereals, pulses, oilseeds, bakeries and confectioneries, fruits and vegetables, dairy products, carbonated beverages, non-carbonated fruit juices, drinks, other beverages, and various other food items are all processed in the food processing industry of Bangladesh. As per Bangladesh Agro Processors Association (BAPA), there are now 370 members who work in this expanding industry. These products are being exported to 70 countries throughout the world. The major export markets for processed products are Asia and Africa. Most of the processed goods that are exported are pickles, drinks, juices, spices, rice, teas, party snacks (chanachur), almonds, mustard oils, chips, biscuits, rose waters, candies, puffed rice, and potato flakes. A report published by Bangladesh Investment Development Authority (BIDA) states that there are 1,000 food processors operating all over the country, of which 10% are classified as major and medium-sized businesses and the remainder as small businesses. The same report states that up to 2023, markets for edible oils, dairy products, and snacks are anticipated to rise gradually by about 6% per year. Processed fruits and vegetables, fish, and meats are among the products that are predicted to overgrow, with annual growth rates of 8%, 13%, and 13%, respectively. The demand for packaged or ready-to-cook foods is anticipated to keep proliferating, driven by factors such as rising per-capita income, increasing urban dwellers, increasing female labour force participation, and the resulting lifestyle changes. The need for healthy and secure food items is also being pushed by changing dietary habits and rising food quality and safety awareness.

Export Trends in Bangladesh

In terms of export potential, Bangladesh has achieved and will continue to achieve dramatic improvements due to a wide range of factors. Two major factors have been discussed below.

Lower Cost of Production:

Bangladesh has one of the lowest costs of production in the world because of a young, hardworking, and competitive labour force, as well as a robust incentive programme from the government that includes income tax exemptions and export subsidies. Increasing the export potential of food products made in Bangladesh will require taking advantage of the country’s low costs.

Access to Abundant Agro-Resources: Thanks to its farmers and fertile soil, Bangladesh is able to produce a variety of crops, including rice, sugarcane, jackfruits, mangoes, guavas, potatoes, eggplants, and tomatoes, as well as fisheries and livestock.

The national economy is benefiting from the drastic improvements in the performance of the industry in terms of production and export performance. There are, however, some sub-categories of the industry that are better performing than the other sub-categories.

Dairy Products: The dairy industry in Bangladesh has suffered difficulties over the years. The Department of Livestock Services states that there are 1.40 million dairy farms with an average herd size of 1-3 cows. Many of these farms lack access to official markets to meet increasing demand. A programme was introduced in 1990 to support smallholder dairy producers and advance local agricultural production. It is obvious that setting up infrastructure for milk collection and building capacity has resulted in significant improvement over time. With a 91% self-sufficiency rate, Bangladesh is currently ranked 25th in the world for milk production. Milk consumption has climbed by 13% over the past ten years, while milk production has increased by 18%. With the inclining trend in consumption of dairy products, increasing import is also prevalent with a spike in the current fiscal year.

Edible Oil:
The projected market volume for packaged oil brands, which is 900,000 MT, accounts for about 35% of the estimated 2,600,000 MT of total market volume for oil. More than two-thirds (69%) of the packaged oil market volume is fortified above the minimum fortification standard, and only around 5% of the packaged oil market volume is not fortified.

Frozen and Ready-to-Cook Foods:

Bangladesh’s consumer market has been expanding quickly in recent years. This growth is thought to be caused by Bangladesh’s massive population base, which has raised the demand for processed food products. Over the past ten years, the processed food industry has seen a considerable expansion in both the market and the product lines. The market for frozen meals and ready-to-cook items is growing quickly in Bangladesh.
Challenges in the Sector
Bangladesh’s food processing sector is plagued by serious issues like lower capacity utilisation, outdated technology, and poor marketing. Due to the considerable variability in raw material quality, lack of adequate technology, and lack of skilled labour, the quality of the finished product is typically very low. The industry is struggling as a result of rising energy costs and serious power supply issues, uncertainty about the availability of sufficient quantities of raw materials, insufficient and costly cold chain facilities, and varying processing conditions from one raw material to the next. In order to maintain food safety standards and hygiene throughout the entire process, both the industry itself and government regulatory authorities should make a systematic effort. However, lately, the defining characteristics of the industry have been the processing of increasingly diversified products to meet the changing demands of consumers. It will be the start of a new beginning for the processed food market. Observing the changing trends, the industry participants hope to carve a niche for themselves with strong market shares facilitated by growing a consumer base that is already there for processed food products. In the coming years, the food processing industry is likely to grow even more. This is because the middle class in Bangladesh is growing rapidly, and a significant portion of them want processed foods.