An Analysis of Globalization's Impact on the Frozen Food Industry

This report comprehensively examines the impact of globalization on the frozen food industry, focusing on market expansion and product segmentation. It analyzes internal and external contextual factors, including consumer preferences, market adaptation, and financial support. The report explores how globalization influences product segmentation, globalized production, and foreign direct investment, highlighting trade opportunities and challenges. It delves into the geographical mapping of the frozen food market, the role of e-commerce, and the importance of consumer analysis. The study provides insights into the industry's growth, including the role of major companies, changing consumer habits, and the increasing demand for frozen food in both developed and developing countries. The report concludes by emphasizing the significance of globalization for the development of the frozen food sector, particularly in Australia and globally.

Running head: IMPACT OF GLOBALIZATION ON FROZEN FOOD INDUSTRY
IMPACT OF GLOBALIZATION ON FROZEN FOOD INDUSTRY
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1IMPACT OF GLOBALIZATION ON FROZEN FOOD INDUSTRY
Executive Summary
The report has focused on the frozen food market and extension of that market due to
globalization. As globalization encourages all kinds of businesses thus it seems to be a good
opportunity for this business to enhance their market in different countries. In this report, all
possible aspects of business growth in the frozen food market and their product segmentation in
other countries have been discussed. The geographic mapping of frozen food has been discussed
here. There are internal and external contextual frameworks of globalization and all these factors
are responsible for increasing business in the frozen food industry. Consumers’ preference, need,
market adaptation and expected business in the market are depending on the financial, social and
communal support to frozen food.

2IMPACT OF GLOBALIZATION ON FROZEN FOOD INDUSTRY
Table of Contents
Introduction......................................................................................................................................3
Frozen food market..........................................................................................................................3
Internal and External contextual factors..........................................................................................4
Impact of Globalization on product segmentation...........................................................................5
Globalised production and Foreign Direct Investment....................................................................6
Trade opportunities..........................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

3IMPACT OF GLOBALIZATION ON FROZEN FOOD INDUSTRY
Introduction
Frozen food industry is one of the popular markets in Australia. A growth of 6.1% in a
year has shown better availability of frozen food products in the Australian market
(agriculture.gov.au, 2017). Most of the frozen foods are good in hygiene and they contain
maximum vitamins and minerals. There are some facilities via online marketing in the frozen
food industry and increasing more customers attach to that service (Navickas, Baskutis &
Gruzauskas, 2015). There are some positive influences like this market will only customize food
that is available in next eight years. Foods like meat, vegetables, poultry, seafood, soups come
under the frozen food sector and people from Australia and UK people are happy to consume
these kinds of food. This is one of the developing markets in Asian countries like India and
China. There are hypermarkets and supermarkets in Australia where frozen food demand in high
in nature.
Frozen food market
There are some major companies that adopt acquisition of new products in frozen food
and get a competitive advantage from other food companies. The product type depends on the
user and geographical need of people. Nestle is one the leading companies in Europe. Aryzta is
another one. The traditional food habit has been changed by consumption of these kinds of foods
and the report forecasted comprehensive understanding over the market. Frozen Food Market is
expected to reach $306 Billion by 2020 and that growing food culture changes consumers’
lifestyle and food habit (Ravuvu et al., 2017). From the geographical point of view, there are four
segmentations like North America, Europe, Asia-Pacific and LAMEA in the frozen food

4IMPACT OF GLOBALIZATION ON FROZEN FOOD INDUSTRY
industry. The market dynamics are also changing the business opportunity and most of the online
food suppliers companies added those frozen foods to their delivery list. As per the Australian
food news in 2010, the foremost customer advocacy company, Choice, research over frozen
foods and provide a report that resulted in the better nutritional value of food
(Ausfoodnews.com.au, 2010). All those foods have been vacuum packed with nitrogen and
carbon dioxide. The continual development in the frozen food market could be accredited to the
increasing consumer perceptive that frozen can often equivalent fresh.
Internal and External contextual factors
Globalization is the procedure in which communities come to know the gradual
enhancement in general financial, communal and cultural atmosphere. The business environment
is depending on the internal and external matter of globalized system and influenced by the
market structure. A more integrated world community has got influenced by this process and
food distribution in all over the world makes a statement of right perspective and change.
In case of global understanding, internal factors like opening of new market of frozen
food company or providing customer service or implementation of marketing strategies are
important. External factors like new market environment are not always fruitful for frozen food
companies in terms of business expansion (Baker & Friel, 2014). Health and fitness is the key
benefit of the frozen food industry and there is no use of preservatives. The clean and healthy
atmosphere is sustained in these foods and these are protected from food spoilage case. So
consumers are attracted by the packaging or by brand of the company.

5IMPACT OF GLOBALIZATION ON FROZEN FOOD INDUSTRY
Company branding is another factor that presents a global image of business by aligning
their logo (Hendrie et al., 2016). Most of the cases new approach is taken by a new company so
their product or service needs a unique strategic plan so that they can sustain their business in
this competitive business market. External factors like promoting the company and need a
promotional strategy for that company is important for globalization.
Consumer analysis is important for this kind of business as there are several business
markets or trends in business which is good for consumers’. Frozen food companies convince
their customers about the necessity of those foods and state the level of hygiene consumers can
get from those foods (Zia, 2017). Frozen food industry selects their packaging technology in an
attractive way so people are attracted by these kinds of packaging and better consumer reviews
can be gathered.
Another section in globalization is the market analysis, which is depending on the people
need, market size, product availability and probable enhancement in market and all these are
considered as an internal factor as this is controlled and monitored by the company (Webster et
al., 2014). On the other hand political barriers, cultural activity and communal problems consider
as external issues.
Impact of Globalization on product segmentation
There are different segmentations in the Frozen food industry. Readymade meals attract
more people and people love to consume that as they have not put their effort into cooking those
materials. Beef production in Australia is incredibly high in 2013 and this amount of beef cannot
be stored in a right way and almost 95.5% of that mature beef needs to be frozen so that those

6IMPACT OF GLOBALIZATION ON FROZEN FOOD INDUSTRY
beef can be used for further occasions (Brown, 2018). Australian Sheep meat production is
almost over 150’000 tonnes and lamb production is also high, so the concern matter for
Australian Food industry to store those foods for future use and this is the reason behind frozen
food industry (Evans et al., 2015). These foods are distributed globally and reach in the different
market. There are some issues like transport, market opportunities all these are externally
handled by the company. Products have to go through between tariffs, regulations and customs
but multinational companies are eager to have those products (Augustin et al., 2016). There are
different food safety laws in different nations so the parental company has to change their law
over food and all those imported food products sell at high price (Hafting et al., 2015). Most of
the nations want to update their organic food and for this reason, globalization is important for
those nations. To introduce those organic products a particular frozen food market is needed for
the development of economy over the nation (Olson, 2016). Frozen potatoes, frozen vegetables
and frozen soups all these product types help to enhance preservation process in the market and
also assist food service industry of Australia for their future uses.
Globalised production and Foreign Direct Investment
In case of globalization, change in the economy in Australia is quite natural as increasing
number of population enhances extra GDP and that affected nation’s economy. Globalization
supports to enhance trade opportunities and negotiate with other countries for better business
dealing. In case of frozen food, a high rate in foreign market embrace the business of frozen food
and by default, Australia national economy enhances (Bucchini et al., 2016). Frozen potatoes are
one of the globalized products that acclaimed by all over the world and the product extension
market allows foreign business companies to take those opportunities to introduce them in

7IMPACT OF GLOBALIZATION ON FROZEN FOOD INDUSTRY
market. There are some local crops are also exported in China, India and Northern America and
Australian companies invested their money in these countries so that better business standard and
flow in froze food can sustain (Yusoff et al., 2015). In this time, there is a worldwide demand for
frozen food which can only possible due to globalization. FDI also reduce transaction cost,
access and develop foreign market and overcome all the trade barriers so that better business
outcome can be drawn (Ferguson et al., 2016). The expansion in business of frozen food and
their stable and adequate supply from Australia and other countries adopt people behavior to
intake frozen food in a large amount. The foods are high in vitamins so basically there is no such
problem to globalize those foods. The increasing demand for frozen foods consumption is the
major need of globalization and even that is growing in many developing countries.
Trade opportunities
Business trade opportunities are huge in case of frozen food business as products start to
form milk powders and end in confectionaries. So a huge amount of food globally transferred to
different nations. In case of market entry, e-commerce in urban sector is impacted by revenue
generation for the company due to the sealable ability of frozen food. Online food sale in urban
sector and their current market fresh food scarcity also help frozen food to establish their market
in e-marketing (Milc et al., 2016). There are multiple distribution channels for frozen food
industry and transportation, management all these are linked with that. Depending upon the
combined population of the country, trade opportunities are also increasing in number. GDP over
more than $13 trillion has earned through this trade and that showcases as the greatest potential
growth of Australia.

8IMPACT OF GLOBALIZATION ON FROZEN FOOD INDUSTRY
Conclusion
Therefore, it can be concluded that Globalization is important for the development of
Frozen food industry. The process is not only featured in Australia but also in global aspect.
There are many developing counties, imported frozen foods and enhance their business market.
Consumers love to acquire those foods and that is the reason a global market of frozen food
sustain. In Australia, a major market is based on Frozen food so economic development in terms
of GDP is extracted from this process. In this report, all possible economic change and product
distribution of frozen food has been discussed and also analyze the income growth in the external
market and pointed to the relationship between globalization and frozen food.

9IMPACT OF GLOBALIZATION ON FROZEN FOOD INDUSTRY
References
Agriculture.gov.au (2017) Australian Food Statistics Retrieved from:
http://www.agriculture.gov.au/ag-farm-food/food/publications/afs [Accessed on 9th
January, 2017]
Augustin, M. A., Riley, M., Stockmann, R., Bennett, L., Kahl, A., Lockett, T., ... & Cobiac, L.
(2016). Role of food processing in food and nutrition security. Trends in Food Science &
Technology, 56, 115-125.
Ausfoodnews.com.au (2010) Hot food trends for 2010 Retrieved from:
http://www.ausfoodnews.com.au/2010/01/01/hot-food-trends-for-2010.html [Accessed
on 10th January 2017]
Baker, P. & Friel, S., (2014). Processed foods and the nutrition transition: evidence from
Asia. Obesity reviews, 15(7), pp.564-577.
Brown, A. C. (2018). Understanding food: principles and preparation. Cengage learning.
Bucchini, L., Guzzon, A., Poms, R., & Senyuva, H. (2016). Analysis and critical comparison of
food allergen recalls from the European Union, USA, Canada, Hong Kong, Australia and
New Zealand. Food Additives & Contaminants: Part A, 33(5), 760-771.
Ferguson, M., O'dea, K., Chatfield, M., Moodie, M., Altman, J., & Brimblecombe, J. (2016). The
comparative cost of food and beverages at remote Indigenous communities, Northern
Territory, Australia. Australian and New Zealand journal of public health, 40(S1).

10IMPACT OF GLOBALIZATION ON FROZEN FOOD INDUSTRY
Hafting, J. T., Cornish, M. L., Deveau, A., & Critchley, A. T. (2015). Marine Algae: Gathered
Resource to Global Food Industry. In The Algae World (pp. 403-427). Springer
Netherlands.
Hendrie, G. A., Baird, D., Ridoutt, B., Hadjikakou, M., & Noakes, M. (2016). Overconsumption
of energy and excessive discretionary food intake inflates dietary greenhouse gas
emissions in Australia. Nutrients, 8(11), 690.
Lin, B. & Lei, X., (2015). Carbon emissions reduction in China's food industry. Energy
Policy, 86, pp.483-492.
Milc, J., Caffagni, A., Ronga, D., Francia, E., Pasquariello, M., Laviano, L., ... & Pecchioni, N.
(2016). Evaluation of Cucurbita pepo germplasm for staminate flower production and
adaptation to the frozen food industry. Scientia Horticulturae, 213, 321-330.
Navickas, V., Baskutis, S. & Gruzauskas, V., (2015). Logistic cost optimization in the food
industry of small countries. Journal of Management, 26(1).
Olson, R. L. (2016). Objective tests for frozen food quality. Low temperature biology of
foodstuffs, 381-397.
Ravuvu, A., Friel, S., Thow, A. M., Snowdon, W., & Wate, J. (2017). Monitoring the impact of
trade agreements on national food environments: trade imports and population nutrition
risks in Fiji. Globalization and Health, 13(1), 33.
Webster, J., Trieu, K., Dunford, E., & Hawkes, C. (2014). Target salt 2025: a global overview of
national programs to encourage the food industry to reduce salt in foods. Nutrients, 6(8),
3274-3287.

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Zia, M., (2017). Impact of Product Attributes on Purchase Decision: A Study of Processed Food
Consumer in India. Proceedings of The 10th MAC 2017, p.42.