Frozen Dessert Market Outlook 2031
The global Frozen Dessert market size was USD 99.7 Bn in 2022 and is likely to reach USD 162.8 Bn by 2031, expanding at a CAGR of 5.6% during 2023–2031. The market growth is attributed to the growing disposable income and the increasing demand for nutritious treats.
Rising numbers of gatherings and events is anticipated to significantly boost the growth of the frozen dessert market. Increasing demand for natural and minimally processed ingredients leads to customized and personalized frozen desserts.
Frozen desserts are a category of sweet treats that are enjoyed for their refreshing, sweet, and often creamy or icy textures. These products range from ice cream and gelato to frozen yogurt and cakes. They can vary in ingredients, flavor, and texture.
The market report finds that the COVID-19 pandemic hampered the frozen dessert market. The pandemic disrupted supply chains globally which affected the availability of certain ingredients and packaging materials for frozen dessert manufacturers. The food service sector includes restaurants, cafes, and ice cream shops faced significant challenges during the pandemic.
Many businesses had to close temporarily, which hindered the market. During and post-pandemic many consumers turned to online shopping for frozen desserts, resulting in a growth in e-commerce sales. Some manufacturers introduced direct-to-consumer sales channels to reach customers directly.
Frozen Dessert Market Dynamics
Major Drivers
Increasing demand for sugar-free and low-calorie desserts is expected to drive the frozen dessert market. Individuals are becoming more health-conscious and growing awareness of the negative impact of excessive sugar and calorie intake on overall health.
Consumers are actively seeking healthy alternatives that allow them to indulge in their sweet cravings without compromising their dietary goals. Many individuals have specific dietary requirements or restrictions such as diabetics or those following a low-carb diet. Sugar-free and low-calorie desserts allow a broader range of consumers to enjoy frozen desserts.
Existing Restraints
Rising lactose intolerance and dairy allergies hampers the market. These conditions affect a significant portion of the population prevent the consumption of dairy-based frozen desserts. Lactose-intolerant and dairy-allergic consumers have limited option to choose from. They often seek dairy-free alternatives such as vegan ice cream or sorbet, which may not be as widely available as traditional dairy options, further hampers the market.
Emerging Opportunities
Launch of innovation in flavors and ingredients creates lucrative opportunities for the market. Consumers today have diverse palate, thus manufacturers are offering a wide range of innovative flavors to cater to their varied tastes and attract a broad consumer base. Unique flavors and ingredients set the products apart from competitors. This increases consumer loyalty and brand recognition.
Additionally, introducing seasonal or limited-time flavors creates excitement and encourages consumers to make repeat purchases to try new and exclusive options. For instance,
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In May 2023, Blue Bell and Dr Pepper partnered to develop a new product, Dr Pepper Float Ice Cream. It is a new flavor with a creamy vanilla. It is available in 23 states, where Blue Shell has its presence, in the US.
Scope of the Frozen Dessert Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Frozen Dessert Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Product (Frozen Yogurts, Ice-cream, Frozen Cakes, and Others), Category (Conventional and Sugar-free), and Distribution Channel (Offline [Supermarket/Hypermarket and Convenience Stores], HoReCa, and Online)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Blue Bell Creameries; Dairy Farmers of America, Inc.; Froneri International Limited; Nestlé; So Delicious Dairy Free; SOVOS BRANDS; Tofutti Brands, Inc.; Unilever; and Wells Enterprises.
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Frozen Dessert Market Segment Insights
Product Segment Analysis
Based on product, the frozen dessert market is divided into frozen yogurts, ice-cream, frozen cakes, and others. The ice-cream segment is expected to hold a dominant share of the market during the projection period due to its universal appeal and its availability in a variety of flavors.
Ice cream enjoys widespread popularity across demographics and appealing to individuals of all ages, from children to seniors. This broad consumer base ensures a consistent demand for ice cream products. The versatility of ice cream allows for an extensive range of flavors, mix-ins, and formats such as cones, cups, bars, and sandwiches. This diversity caters to diverse taste preferences and provides numerous options for consumers. For instance,
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As per the data published by the International Dairy Foods Association, ice cream producers in the US generated over 1.38 billion gallons of frozen treats in 2022. According to IDFA's Dairy Delivers, the ice cream industry had a substantial economic impact and contributed USD 13.1 billion to the US economy.
The frozen yogurt segment is expected to expand at a significant growth rate in the coming years due to a shift in consumer preferences and it provides health benefits. In recent years, there has been a significant shift towards healthier eating habits. Frozen yogurt is perceived as a healthier alternative to traditional ice cream due to its lower fat content and live probiotics, which help improve digestive health.
These perceived health benefits allow consumers to purchase and manufacturers to develop products to fulfill these demands, further boosting their popularity, and thus, the market. For instance,
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In June 2022, Sovos Brands under portfolio Noosa brand entered the frozen dessert market for the first time and launched its innovative Noosa Frozen Yogurt Gelato line. This indulgent dessert promises a velvety-smooth experience and is available in four flavors such as strawberries & cream, chocolate fudge, sea salt caramel, and honey vanilla bean.
Category Segment Analysis
On the basis of category, the global market is bifurcated into conventional and sugar-free. The sugar-free segment is projected to register a high CAGR during the forecast period due to rising health consciousness and rising prevalence of diabetes. Increasing focus on health and wellness, consumers are actively seeking out options that allow them to indulge without compromising on their dietary goals. Sugar-free frozen desserts cater to this demand by providing a guilt-free treat for those looking to reduce their sugar intake.
Individuals with diabetes or those monitoring their blood sugar levels, sugar-free frozen desserts offer a safe and enjoyable way to satisfy their sweet cravings. These products are formulated with alternative sweeteners or natural sugar substitutes, which makes them suitable for diabetics. The conventional segment is anticipated to gain significant revenue shares in the market due to established consumer preference and increasing widespread availability.
Traditional or conventional frozen desserts such as ice cream have been a staple treat for generations. This familiarity and popularity among consumers provide a strong foundation for conventional frozen desserts. They are widely available in various retail outlets including supermarkets, convenience stores, and dedicated ice cream parlors. This accessibility ensures that consumers can easily find and purchase these products.
Distribution Channel Segment Analysis
On the basis of distribution channel, the frozen dessert market is segmented into offline HoReCa, and online. The offline segment is categorized into supermarkets/hypermarkets convenience stores. The offline segment is anticipated to register a robust growth during the forecast period due to recognized consumer behavior and it provides a personalized shopping experience.
Traditional shopping habits are deep-rooted in many consumers. They prefer physically visiting stores to make purchases, especially for food products such s frozen desserts where sensory evaluation such as viewing, touching, and even tasting is important. Many frozen dessert shops offer options for consumers to customize their treats with toppings, syrups, and mix-ins, which enhances the overall experience.
Regional Outlook
In terms of region, the global frozen dessert market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period due to increasing demand for ice cream and
Ice cream remains a beloved dessert choice in North America. The individuals in the region have a preference for low-fat or reduced-sugar options, and a combination of more nutritious ingredients. North America is a hub for innovation in the food industry including frozen desserts. Manufacturers and startups in this region often introduce new flavors, formulations, and concepts to cater to the changing tastes of the consumers.
The market in Asia Pacific is projected to grow rapidly during the forecast period, owing to the rising population and growing health awareness among individuals. Asia Pacific is home to a significant portion of the global, as more people move into urban areas, there is an increased demand for convenience foods including frozen desserts.
The countries with high disposable income in this region have a greater capacity to indulge in premium or specialty frozen desserts. In Asia Pacific, rising trend toward healthy alternatives such as frozen yogurt, is gaining traction due to its several health benefits.
Segments
The frozen dessert market has been segmented on the basis of
Product
- Frozen Yogurts
- Ice-cream
- Frozen Cakes
- Others
Category
Distribution Channel
- Supermarket/Hypermarket
- Convenience Stores
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Blue Bell Creameries
- Dairy Farmers of America Inc.
- Froneri International Limited
- Nestlé
- So Delicious Dairy Free
- SOVOS BRANDS
- Tofutti Brands Inc.
- Unilever
- Wells Enterprises
Competitive Landscape
Key players competing in the global frozen dessert market are Blue Bell Creameries; Dairy Farmers of America, Inc.; Froneri International Limited; Nestlé; So Delicious Dairy Free; SOVOS BRANDS; Tofutti Brands, Inc.; Unilever; and Wells Enterprises.
These prominent companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. For instance,
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In March 2022, So Delicious Dairy Free introduced a fresh line of frozen treats made from the company's innovative Wondermilk, which is available in five flavors and in pint-sized containers and cones.
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