Frozen Desserts Market Size, Share, Growth & Industry Analysis, By Product Type (Ice Cream, Frozen Yogurt, Confectionary & Candies, Others), By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, Online) and Regional Analysis, 2024-2031

Frozen Desserts Market Size

The global Frozen Desserts Market size was valued at USD 138.04 billion in 2023 and is projected to reach USD 203.89 billion by 2031, growing at a CAGR of 5.11% from 2024 to 2031. The frozen desserts market is experiencing a dynamic phase with robust growth and evolving consumer preferences. In the scope of work, the report includes products offered by companies such as Nestle, Unilever, General Mills, Kellogg's Company, China Mengniu Dairy Company Limited, Frosty Boy, American Dairy Queen Corporation, Unipex Dairy Products Co., Ltd. (London Dairy), Van's International Foods, Inc. and others.

In the current scenario, the market is characterized by a diverse range of products, including traditional ice cream, frozen yogurt, gelato, and more. The demand for innovative and exotic flavors, coupled with an increasing emphasis on health and wellness, has been instrumental in shaping the market landscape. As consumers seek healthier alternatives, industry players are adding low-fat, low-sugar, and even non-dairy options to their offerings.

The market outlook for the forecast years remains positive, driven by several factors such as globalization, premiumization, and technological advancements. The introduction of high-quality, artisanal, and gourmet frozen desserts is contributing significantly to a shift in consumer expectations, and the industry is likely to witness sustained growth as manufacturers continue to innovate and cater to changing preferences.

Analyst’s Review

Several key trends are influencing the growth of the frozen desserts market. Notably, changing consumer preferences and rising demand for healthier options are driving innovation in product development. The market outlook for the forecast years is optimistic, with a continued focus on premiumization and the introduction of unique flavors and ingredients. The rise of non-dairy and vegan options is another significant trend, reflecting the growing popularity of plant-based lifestyles.

Technological advancements in freezing and manufacturing processes are enhancing the quality and texture of frozen desserts, thereby contributing to increased consumer satisfaction. Sustainability is emerging as a critical factor, influencing packaging choices and sourcing practices. As the industry responds to these trends, the frozen desserts market is poised to observe considerable expansion, with a diverse range of products and distribution channels shaping the frozen dessert landscape.

Market Definition

A frozen dessert refers to a broad category of sweet treats, including, but not limited to traditional ice cream, frozen yogurt, gelato, and sorbet. These desserts are characterized by their frozen state, which is achieved through various freezing and production techniques. Key applications of frozen desserts include their consumption as standalone treats and incorporation into other desserts and beverages.

The regulatory landscape concerning frozen desserts may vary by region, with some jurisdictions imposing standards regarding ingredient labeling, quality control, and health claims. It is crucial for manufacturers to comply with these regulations to ensure consumer safety and confidence in the product. Additionally, with the evolution of the market, there is a growing trend toward healthier alternatives, which influences the use of natural ingredients, and the development of low-fat and low-sugar options.

Frozen Desserts Market Dynamics

The frozen desserts market is experiencing significant growth, partly fueled by the increasing demand for nutritious and healthy products. Consumers are becoming more conscious of their dietary choices, leading to a shift in preferences toward frozen desserts that offer nutritional benefits.

Manufacturers are responding to this trend by incorporating natural ingredients, reducing sugar and fat content, and introducing functional additives that contribute to health and wellness. This trend aligns with a broader societal focus on healthier lifestyles, creating opportunities for innovative products that meet both taste and nutritional expectations. The frozen desserts market is expected to capitalize on this driver, with ongoing research and development aimed at creating frozen desserts that not only satisfy cravings but also align with health-conscious consumer choices.

Concerns related to plant-based desserts pose a challenge to market expansion. Some consumers are apprehensive about the taste and texture of plant-based alternatives, impacting the adoption of these products.

Additionally, achieving the same level of creaminess and mouthfeel in non-dairy options compared to traditional dairy-based frozen desserts may hamper industry progress. While the frozen desserts market has seen an increase in demand for plant-based options, addressing these concerns and enhancing the overall sensory experience of such desserts will be crucial for sustained market growth. Manufacturers are actively working on improving formulations and overcoming these challenges to meet the rising demand for plant-based frozen desserts.

Segmentation Analysis

The global frozen desserts market is segmented based on product type, distribution channel, and geography.

By Product Type

Based on product type, the frozen desserts market is categorized into ice cream, frozen yogurt, confectionary & candies, and others. The ice cream segment dominated the frozen desserts market with a share of 45.91% in 2023 owing to its widespread popularity and longstanding consumer preference. Ice cream, with its creamy texture and diverse flavor options, has maintained a strong market presence.

Consumers across the globe are drawn to the classic appeal of ice cream, and its versatility allows for constant innovation in flavors and formulations. While other frozen desserts have gained significant traction, the established and timeless nature of ice cream has contributed to its substantial market share. This dominance is expected to continue as manufacturers explore new flavors, ingredients, and formats to keep the ice cream segment vibrant and appealing to a broad consumer base.

By Distribution Channel

Based on distribution channel, the frozen desserts market is categorized into supermarkets/hypermarkets, specialty stores, convenience stores, and online. The supermarkets/hypermarkets segment is expected to be the fastest-growing region through the projected period, depicting a CAGR of 5.44% over the forecast period propelled by the convenience and extensive product availability offered by these retail channels.

Supermarkets and hypermarkets offer consumers a one-stop shopping experience for consumers, allowing them to explore a wide range of frozen dessert options in a single location. The convenience of finding various brands, flavors, and types of frozen desserts in these retail settings plays a significant role in the rapid expansion of this market segment. Additionally, these outlets often run promotions and discounts, which attracts price-sensitive consumers. The accessibility and diverse product offerings found in supermarkets and hypermarkets make them a preferred choice for purchasing frozen desserts, which is set to drive the growth of the retail segment in the forthcoming years.

Frozen Desserts Market Regional Analysis

Based on region, the global frozen desserts market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

The North America Frozen Desserts Market share stood around 28.69% in 2023 in the global market, with a valuation of USD 39.60 billion, showcasing the region's strong influence on market trends and consumer preferences. The demand for frozen desserts in North America is mainly driven by a combination of factors, including a well-established food culture, a diverse range of consumer preferences, and a high level of disposable income.

In recent years, the region has witnessed a surge in demand for premium and innovative frozen desserts, with consumers actively seeking unique and high-quality products. Furthermore, the growing emphasis on health and wellness trends has prompted the introduction of healthier alternatives in the North American market. The presence of key players, coupled with their proactive approach to product development and marketing, has solidified North America's position as a leading region in the market. As the market continues to evolve, the region is expected to play a pivotal role in shaping industry trends and driving innovation in the market.

Competitive Landscape

The global frozen desserts market study will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Expansion & investments are the major strategic initiatives adopted by companies in this sector. Industry players are investing heavily in R&D activities, building new manufacturing facilities, and supply chain optimization.

List of Key Companies in Frozen Desserts Market

• Nestle
• Unilever
• General Mills
• Kellogg's Company
• China Mengniu Dairy Company Limited
• Frosty Boy
• American Dairy Queen Corporation
• Unipex Dairy Products Co., Ltd. (London Dairy)
• Van's International Foods, Inc.

Key Industry Developments

• April 2023 (Launch): Baskin Robbins (BR) revealed its plans to introduce a variety of product categories and new flavors for the summer season. Recognized for its inventive offerings and strong consumer appeal, the brand is extending its current portfolio to include a selection of indulgent options to meet the changing preferences of consumers in India.
• January 2022 (Launch): Unilever introduced its latest lineup of products for the year 2022. This exciting release encompasses four of Unilever's well-established brands in the packaged ice cream and frozen novelty segment, namely Breyers, Klondike, Magnum ice cream, and Talenti Gelato & Sorbetto.

The Global Frozen Desserts Market is Segmented as:

By Product Type

• Ice Cream
• Frozen Yogurt
• Confectionary & Candies
• Others

By Distribution Channel

• Supermarkets/Hypermarkets
• Specialty Stores
• Convenience Stores
• Online

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America.