Here's a point many supermarket buyers deeply relate to: Walk into any grocery store's freezer aisle today. Ten years ago, what did you see? Frozen dumplings, tangyuan (glutinous rice balls), and ice cream—the classic trio. Now? Shrimp paste, sliced beef rolls, batter-coated yellow croaker fillets, marinated chicken cutlets, pre-prepared meals... The number of SKUs in the freezers has multiplied several times over, with prime shelf space frequently allocated to frozen and prepared ingredients.

This isn't a coincidence. Q2026 data just came in: frozen food sales grew 3.22% year over year, making it one of the few offline retail categories still posting positive growth. While traditional dumplings and tangyuan are declining, categories like hot pot ingredients, shrimp paste, and frozen sausages are surging.

The profit gap is even more striking. Fresh meat typically yields a gross margin of 10%-15%, but once processed, portioned, and packaged as marinated semi-finished products, the margin soars to 40%-50%. You earn $4 per pound selling raw meat, but $5 per pound selling frozen prepared goods. The math is clear to everyone.

For H2 sourcing, frozen ingredients are a must-explore category. The SuperSourcing Hangzhou Exhibition opens on 8/19, featuring over 9 source factories in the fresh and frozen food sector—covering everything from seafood and meat to premium specialty ingredients. Here's a breakdown of industry data and exhibitor information.

How strong is the frozen food sector? The data speaks for itself.

Let's start by placing several sets of hard data here.

A 3.22% growth rate may not seem impressive in the broader market, but consider the benchmark: most categories were declining during the same period. Frozen foods are among the few major segments still posting positive growth, indicating that demand is genuinely rising.

More intriguing is the structural shift. Frozen hot pot ingredients account for over 20% of the frozen category. Shrimp paste sales grew by 56.9% year-over-year in 2025, with volume up 60.6%, surpassing beef balls to become the top hot pot meatball choice in Zhejiang, Jiangsu, Anhui, Hunan, and Guizhou provinces. Anjoy alone holds more than 50% of the shrimp paste market, and its frozen prepared food revenue rose 40.77% year-over-year in Q1 this year, driven by shrimp paste as a key blockbuster product.

Why Shrimp Paste Leads the Market in Growth

In short, hot pot is the easiest scenario to launch in restaurant-to-retail transformation. No chefs or complex kitchen equipment are needed; just a pot of broth and some frozen ingredients, and you're ready to go. Supermarkets can create dedicated hot pot sections where consumers buy ingredients and cook them at home, creating a very short experience loop.

Shrimp paste is even more unique. Once available only at hot pot restaurants, it now reaches supermarkets through standardized factory production, liquid nitrogen freshness preservation, and end-to-end cold chain logistics. Daxiaji invested 5 billion yuan in a self-built 88-acre shrimp paste plant in Beihai, Guangxi, led the drafting of the national standard "Frozen Shrimp Paste," and achieved annual sales exceeding 10 billion yuan. Haidilao's shrimp paste contains ≥95% real shrimp meat, retails at 8.9 yuan per bag, balancing quality and value.

There's an interesting trend: shrimp paste hot pot buffets. Starting from Hebei last year, the number of stores surged from fewer than 10 to over 500 within a year, with average prices ranging from 59.9 to 69.9 yuan per person. Consumers are drawn by the promise of "unlimited shrimp paste." This surge has, in turn, boosted both awareness and demand for shrimp paste in the retail sector.

Wholesale cross-channel expansion and cold chain upgrades are widening frozen food distribution channels.

Another shift is the expansion of bulk snack retailers into frozen foods. Top bulk brands added over 400 new SKUs last year, including dedicated cold storage display sections. The snack market has become saturated, making frozen products a new growth engine. For frozen food suppliers, this opens a new channel but also intensifies competition—you're now competing not just with peers, but with players entering from the snack sector.

Cold chain infrastructure is catching up. Coverage has increased from 79.2% to 87.6%. Frozen seafood that was once limited to coastal areas can now be reliably supplied to supermarkets in inland regions. Shrimp paste from Beihai, large yellow croaker from Xiapu, and abalone from Lianjiang—highly regional frozen aquatic products—are now reaching supermarkets nationwide through the cold chain network.

Another underlying logic is shifting: supermarkets are evolving from "landlords" to "category product managers." Previously, they simply collected slotting fees and channel charges. Now, top retailers like Sam's Club and Hema source directly at net prices, use big data to reverse-engineer product specifications and pricing, and then collaborate with factories for customized production. This demands a completely different level of capability from suppliers—you must be able to support OEM/ODM partnerships, maintain standardized SOPs, and ensure reliable cold-chain logistics.

Frozen Seafood: The Core of Hot Pot Ingredients

These 3 exhibitors are core suppliers of frozen aquatic products, covering key hot pot ingredients such as shrimp paste, large yellow croaker, and other frozen seafood. Hot pot ingredients account for one-fifth of the frozen food category, making this group of exhibitors the most critical supply chain players in this segment.

Frozen Meat Products: Supply Chain for Beef Rolls and Sausages

These 2 exhibitors specialize in beef and a wide range of processed meats, respectively. All are large-scale manufacturers with significant production capacity. Beef rolls are a staple in hot pot ingredients, while sausages serve as high-traffic draw products for supermarket processing sections. Both categories are positioned at the forefront of market growth.

Premium Specialty Ingredients: Differentiating Strategies for Abalone and Durian

This group of 2 exhibitors targets the premium segment: one specializes in abalone, the other in durian—both are high-value, differentiated categories that drive higher average transaction values in supermarkets. Consumers are willing to pay for unique experiences; these categories offer greater margin potential than standard frozen goods.

Fresh Basics: From Farm to Shelf

These 2 exhibitors focus on fresh basic categories, including alkaline soil tomatoes and soy products. Both are essential items for the fresh food section in supermarkets. Although they don't follow the frozen prepared food route, they form a foundational segment within the fresh and frozen food category, ensuring stable foot traffic and repeat purchases.

Buyers: Focus on these three selection criteria

You've reviewed exhibitor info. Now, how to negotiate and choose on-site? Here are a few lessons learned from common pitfalls.

Monitor high-growth categories.Hot pot ingredients account for over 20% of the frozen category, with shrimp paste growing at 56.9%. These represent the most certain growth areas. Key performers include Haqing Brothers' shrimp paste, Heyimuxian's beef rolls, and Funing Port's large yellow croaker slices—these are the fastest-growing hot pot segments. Traditional dumplings and tangyuan are declining; control inventory levels to avoid overstocking.

View supply chain coverage.Cold-chain breaks are the biggest risk for frozen goods. Look for suppliers with their own cold-chain logistics and forward warehouses. Deshan Food operates 7 forward warehouses nationwide; Haiqing Brothers runs 8 direct stores plus a cold-chain network; Funing Port manages 7 regional operation centers. Suppliers with local warehousing and distribution capabilities offer significantly more stable supply. Every day without stock means losses—supply chain reliability matters more than price.

View customization capabilities.Supermarkets are shifting from "landlords" to "product managers." Suppliers with strong OEM/ODM capabilities can help you build your private label. From Haiqing Brothers' supermarket customizations and Xiangbin Biological's abalone ready-to-cook products to Taixianglian's durian industry chain solutions, finding suppliers who can collaborate deeply is far more valuable than simply reselling established brands. Private labels remain the supermarket moat—a point made for years—but few have taken action yet. The first movers will reap the rewards.

At the Hangzhou International Expo Center on 8/19, 9 source factories of fresh and frozen products will showcase their offerings. Instead of repeatedly sending inquiries, waiting for quotes, and samples online, meet face-to-face at our booths. The frozen product sector will only get hotter in the second half of the year—act early to secure your spot.