Frozen Yogurt Market Size, Share, and Industry Report [2031]

Report Description

The Global Frozen Yogurt Market size was valued at USD 1.75 Billion in 2022 and is expected to surpass USD 2.39 Billion by 2031, expanding at a CAGR of 3.5% during the forecast period, 2023–2031. The growth of the market is attributed to the rising awareness regarding healthy food and diet among consumers across the globe.

Frozen yogurt, also known as Froyo, is a frozen dessert made with a mixture of yogurt and other dairy or non-dairy products. Frozen yogurt is a popular choice of dessert, apart from ice cream, to consume in hot weather, especially in the summertime. There are a few differences between these two frozen treats. Ice cream is a mix of milk or cream, sweeteners, and other natural or synthetic flavors.

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All these ingredients are churned together as they freeze to make ice cream. Although frozen yogurt is made from milk or cream, sweeteners, and flavors, it contains live bacterial culture as well. Yogurt is made from cultured milk, which means it tends to have a sour flavor, compared with milk. Depending upon the amount of yogurt, sweeteners, and other flavors in the dessert, frozen yogurt can have a sweet or sour taste. The flavors used in frozen yogurt include fruits, vanilla, fruit extracts, cocoa, spices, sugars, and others.

Frozen yogurt is made with pasteurized milk, in which live bacteria culture is added. The milk is blended to ensure that the mixture retains a smooth consistency. The mixture is heated up to a certain amount and then, cooled down. Then milk or cream, sweeteners, stabilizers, colors, and flavors are added to the mixture. Air is injected into the mixture to give it a light and creamy texture. The mixture is cooled down further before serving the frozen yogurt. Frozen yogurt is usually served with a variety of toppings such as fresh fruits, chocolate chips, sprinkles, and others.

In comparison with ice cream, frozen yogurt is claimed to be a healthier option. Low-fat frozen yogurt has become a popular choice among consumers in recent years. Although both contain dairy and sugar, frozen yogurt contains live culture bacteria, which help in improving the immune system, managing blood pressure, and boosting the digestive system. Frozen yogurt is lower in calories and fat than ice cream, which makes it a healthy dessert.

With the increasing popularity of frozen yogurt among consumers, several major competitors in the frozen yogurt market launch various offers to attract customers and expand their business. For example, on July 23, 2022, Menchie’s Frozen Yogurt, a US-based frozen yogurt chain company, offered Buy One and Get One (BOGO) deal on frozen yogurt at participating locations. The offer was to commemorate the 15th birthday of Menchie's Frozen Yogurt. In May 2022, Orange Leaf Frozen Yogurt introduced a refreshing watermelon flavor for the summer months to attract customers.

COVID-19 Impact on Frozen Yogurt Market

The COVID-19 pandemic situation affected the frozen yogurt market negatively. The lockdown, social distancing, and other restrictions affected the manufacturing and sales of the market negatively. Conversely, the pandemic shifted consumer preferences toward immunity-boosting and healthy food products such as frozen yogurt. Key companies in the frozen yogurt industry improved their products by incorporating organic ingredients, launching vegan frozen yogurt, and making the products cholesterol-free. This facilitated the expansion of the frozen yogurt market in recent years.

Scope of Frozen Yogurt Market Report

The report on the global frozen yogurt market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Frozen Yogurt Market Dynamics

The report presents a complete overview of market dynamics by focusing on the current market trends, existing drivers, growth opportunities, and emerging challenges that can shape the outcome or overall performance of the market during the forecast period, 2022 to 2030.

Major Trends: Increasing Dmand for Tart Flavored Frozen Yogurt is a Major Factor for Market Growth

Consumer preferences have shifted from sweet flavored frozen yogurt to tart flavored frozen yogurt in recent years. Consumers report tart varieties of frozen yogurt are more refreshing than the sweet flavors that are traditional and in the market for a long time. Tart flavors are rising in popularity among consumers due to their tangy sour taste. Red Mango, a US-based frozen yogurt and smoothie manufacturer, offers various frozen yogurt flavors such as Blueberry Lemonade, Pomegranate Lemonade, and others. The increasing demand for tart-flavored frozen yogurt among consumers across the globe is expected to fuel the frozen yogurt market growth during the forecast period.

Key Drivers

The Benefits of Frozen Yogurt are Driving Market Growth

Frozen yogurt contains vitamins such as B1, B2, B12, A, and others. Frozen yogurt is low in calories and contains probiotics, which help in improving the immune system, lower blood pressure, and boost the digestive system. Some varieties of frozen yogurt contain calcium, which helps with bone-building. Such health benefits of frozen yogurt boost the demand for it, as an increasing number of the young population prefer a healthy lifestyle and healthy food. Growing demand for frozen yogurt is estimated to facilitate frozen yogurt market growth during the forecast period.

The Rising Shift from Ice Cream to Frozen Yogurt is a Key Factor for Market Growth

Health-conscious consumers across the globe are knowingly choosing the option of frozen yogurt over ice cream, due to its several health benefits. Frozen yogurt does not contain saturated fats or heavy cream as in ice cream. Frozen yogurt contains probiotics and vitamins, without any other artificial ingredients, preservatives, or added sugar. These benefits of frozen yogurt increase the demand for it and boost the growth of the market.

Existing Challenges: The Increasing Number of Market Players and Competitors Challenges Market Growth

The rising popularity of frozen yogurt across the globe has opened up the market to new frozen yogurt manufacturers and companies. The frozen yogurt industry is booming as new market players launch new products and use other business strategies to attract a large customer base and expand their business. The competitive landscape of frozen yogurt includes many companies competing for a dominating position in the market. The competitors provide several alternatives and competitions for frozen yogurt, which are anticipated to restrain the market growth during the forecast period.

Emerging Opportunities: Introduction of the self-serve Model Offer Growth Opportunities

The increasing demand for frozen yogurt specialty stores following the self-serve model offers growth opportunities to key players in the frozen yogurt market. The self-serve stores offer consumers complete autonomy to choose frozen yogurt flavors, quantity, and toppings. Consumers can choose which types of frozen yogurt to eat on the basis of their dietary needs and taste preferences. Consumers are charged by the weight of their selection, which is the key factor in the rising popularity of the self-serve model. Several frozen yogurt manufacturers are opening their self-serve specialty stores to increase their customer base.

Frozen Yogurt Market Segment Insights

Non-dairy-based Segment Expands Rapidly

Based on types, the frozen yogurt market is bifurcated into dairy-based and non-dairy-based. The non-dairy-based segment is estimated to boost the frozen yogurt market during the forecast period, due to the rising adoption of non-dairy products such as almond milk and soymilk across the globe. A growing number of consumers prefer non-dairy-based frozen yogurt over dairy-based frozen yogurt, due to the rising number of consumers suffering from lactose intolerance.

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Chocolate Flavor Segment holds a Key Frozen Yogurt Market Share

In terms of flavors, the frozen yogurt market is divided into pineapple, peach, strawberry, mango, lemonade, chocolate, banana, and others. The chocolate flavor segment is expected to hold around 50% of the frozen yogurt market share during the forecast period, as the chocolate flavor is the most commonly used in the majority of sweet food products. Although there are several unique or unusual flavors introduced in the frozen yogurt market, the chocolate segment witnesses steady growth. This flavor is popular among children and adults, which is expected to facilitate segment growth in the coming years.

The strawberry segment is anticipated to expand during the forecast period, as this is the preferred flavor among consumers across the globe in its season. Strawberry is a seasonal fruit, which enhances the taste of frozen yogurt when used fresh. This is a key factor boosting the market growth.

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Fat-free Segment Expands at a Significant Rate

On the basis of fat contents, the frozen yogurt market is segregated into fat-free, low fat, and full fat. The fat-free segment is expected to drive the frozen yogurt market during the forecast period, owing to increasing awareness of healthy food options, and rising demand for fat-free frozen yogurt by health-conscious consumers across the globe. Consumers focus on consuming minimum fat content food, which boosts the fat-free segment growth.

Specialty Stores Segment holds a Major Frozen Yogurt Market Share

Based on distribution channels, the frozen yogurt market is divided into specialty stores, grocery stores, supermarkets/hypermarkets, online retailers, convenience stores, and others. The specialty stores segment is projected to witness significant growth during the forecast period, as several frozen yogurt market players are opening their specialty stores that offer several innovative and lucrative offers to their consumers. Offers such as discounts, self-serve, and others aid this distribution channel attract customers. This is a key factor fueling the segment growth.

North America to Dominate the Market

In terms of regions, the frozen yogurt market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The frozen yogurt market in North America is expected to register a high CAGR during the forecast period, due to the increasing number of key players and frozen yogurt manufacturers in the region. Rising demand for healthy food such as frozen yogurt by health-conscious consumers in North America is the key factor for market growth. New trends such as soft-serve frozen yogurt specialty stores are growing in popularity in developed countries such as the United States and Canada, which aid in segment growth.

The frozen yogurt market in Asia Pacific is anticipated to expand rapidly during the forecast period, owing to changing lifestyles, increasing disposable incomes, the growing presence of key companies, and rising demand for healthy food options in the region.

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