Page 80 - IBT December 2020

have made snack time more convenient by AG group, Golden Harvest, etc
giving people a quick solution to such meals have a set customer base.
and they are now more readily served than However, as the switching cost
before when these snacks had to be from one company to another
handmade. Not only this but the is not significant, there is
work-from-home culture has given many some nothing stopping customers
time to explore latent culinary talent, leading from trying out newer products
to the sales of more frozen goods, from other brands.
this time as ingredients rather than dishes on A strong need for cooking
their own. convenience and healthy
While the future does seem to be quite bright competition between brands is
for the frozen food industry, the frozen goods what is keeping the frozen
sellers and companies may not agree to this foods industry growing.
exceedingly rosy picture painted of their trade. Although the industry is not
They argue that restaurants, which used to be yet backed by certifications
the biggest buyers of their wares, are now such as BSTI or Bangladesh
either shut down or are seeing slower traffic. Food Safety Authority, they
As such, profits are not really as high as they preservatives and is considered by many to be a have their own mechanisms to ensure quality. As
may seem on the outside. Discrediting healthier alternative. the process is not standardized yet, the quality of
business owners’ claims, some recent The family structure of cities like Dhaka, During the COVID-19 phase, many people choose products is not set but varies from company to
achievements in the frozen food industry are Chittagong, and others have been quietly to remain within the safe walls of their homes company. A lot also depends on shopkeepers’
that it generated upwards of $300 million changing for quite some time. Where rather than go out to get groceries. The frozen ability to keep food at a certain temperature to
USD in the fiscal year 2018-2019, about 1.4% previously tradition called for bigger families foods industry has sniffed out the need of the retain quality and things can and do go wrong
of the overall exports of the country. The consisting of both immediate and extended hour and made their products available online for the manufacturing companies at this stage.
industry also hit $600 million USD in the members, the shift towards smaller and then and just a click away. Now ready-made food is When shopkeepers fail to keep their end of
fiscal year 2019-2020 (July-Jan) and has nuclear families has been slow but sure. Now, not simply convenient to make, it is also easy to quality control bargain, food quality suffers and
surpassed export volume for cotton and cotton due to a lack of help from other family procure. And just like that, Bangladesh’s frozen customers are not always the most forgiving.
products, leather and plastic products but members, homemakers look for ways to make foods online market is expected to be one of the Despite these challenges, the industry has bright
according to experts, in all honesty, the climb life easier for themselves. Frozen food items fastest-growing segments in the near future. prospects, and manufacturers and investors are
has really only begun. Projections show an offer quick, ready to eat meals which save While the presence of frozen foods was always hopeful and optimistic about the market place.
optimistic climb in the profit trends of the time and are therefore favorites. Similarly, the there, it was previously serving only a slim group Looking at the short time span in which this
industry worth 2500 crore, by as early as fast-paced urban life pulls many young men of upper-class consumers. Nowadays, however, industry has made its mark on the food market
2025. Frozen food has its fans and its from their hometowns into Dhaka’s glitz and even barring the pandemic, people have become in Bangladesh and the numbers thus far, it may
critiques but the pandemic situation truly has glamour. These youths are too often faced more tech-savvy and have learned well how be safely assumed that the producers and
brought to light, this dark horse that had until with a problem as a majority of them do not technology and the internet can free up more investors are right to be so optimistic.
now managed to avoid the public eye in the know how to cook. The frozen food industry time for them and have started taking advantage
race. has found its niche among this group and of online shopping. E-commerce giants in the
manifested itself even more strongly during they have been accepted with open arms. A Bangladesh market like Shwapno and Chaldal
the pandemic. Whatever the reason, the similar market, in the form of working youths, offer frozen products online and even modify
frozen food industry is on a climb and it is is also present in Dhaka in the form of young their orders by offering bundle pricing and Projections show an
increasing pace one fiscal year at a time. couples and young people living away from convenient payment options. They report that optimistic climb in the
The pandemic has been instrumental in parents. These go-getters are often reliant on per sale of frozen items earns them as much as
bringing out the shortcomings of certain frozen food for their meals as they too are 1500tk. There are as many as 30,000 people profit trends of the
industries and forced them to change their busy with work and cannot give the domestic buying frozen goods online every day from big
methods of work. Just like that, the pandemic part of their life too much thought. Names like cities like Dhaka, Chittagong, and Sylhet so the industry worth 2500 crore,
The frozen food industry is a 1500 crore has also pushed out front, those industries Golden Harvest, Kazi Farm, and Pran have sale amounts add up to a great sum. A good by as early as 2025. Frozen
number of companies are trying to open up sales
industry as of this date for Bangladesh and that have to do with customer comfort and more or less become a part of their everyday in other, smaller cities too so the market is set to
can no way be overlooked as insignificant. give them the kiss of life. As more and more mealtime. expand. food has its fans and its
However, until now, the market was people decide to stay home instead of braving Although the most obvious picture that comes Despite the fact that frozen goods have been very
somewhat shielded from the limelight and the pandemic, they rely less on restaurant to mind when we think of frozen goods is recently introduced to the Bangladesh food scene, critiques but the pandemic
has only just begun to peak its way through deliveries and instead spend more on frozen ready to eat food, a major portion of they have taken up a sizeable portion of the situation truly has brought
to the center stage. Why then, has the foods that they can keep in the safety of their Bangladesh’s exports comes from dried and market. About 30 companies joined the frozen
process taken so long, and why now and not homes and prepare as they wish and when processed foods like dried or frozen shrimp foods segment over the last 3 to 4 years, fueled to light, this dark horse
when the country is experiencing an they wish. As staying home and socially and fish, livestock and poultry processed by the growing demand and a whopping 20%
economic boom? One reason can be COVID-19 distancing results in some extra leisure time, meats, seasonal fruits, etc. Seasonal fruits are annual growth rate for the past 5 years; with that had until now
and especially the quarantine situation. this situation gives people more family time. special favorites, as these canned foods, that small and big companies hopping on the managed to avoid the
Another could be the overall changing family Culturally, during holidays or on days when are available year-round contain a mild and bandwagon every few months, the market is
structure in urban Bangladesh and the the family is more or less relaxed, evening fragrance-less stabilizer that retains the jam-packed. Seasoned players such as Pran RFL, public eye in the race.
fast-paced lifestyle of the cities that has snacks are a thing. Frozen goods can and natural properties of fruits as opposed to

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